Indian tourism sector is considering recently developed downward trend of FTA in tourism hotspot Nepal as a matter of concern. The negative swing is likely to significantly influence the tourism business in Nepal adjoining Eastern Himalayan destinations in India like Sikkim, Darjeeling as well as Bhutan.

The downward trend in 5 Star class guest's arrival in Nepal has begun since December 2012 pulling the occupancy rate to below 90%. The booking rate for many agencies has gone down even bellow 50% in January 2013.

But, the trend remained highly positive throughout the whole 2012. According to Nepal Tourism Board (NTB) statistics, FTA in Nepal through Kathmandu during Jan to Dec 2012 were 598,204 with around 10% growth over 2011 figures. As common convention, Indian entrants are not included in this statistics as per an ET report.

Besides considering the recent negative trend as a 'seasonal factor,' the tour operators in Nepal held many local factors too as responsible.

The downward swing of FTA in Nepal carries great significance for Indian tourism sector. "It is a concern for us. At least 30% of travelers from Western world arriving Nepal prefer visiting eastern Indian destinations including Darjeeling or Sikkim. In 2012 too, we had favourable arrivals trend in these areas through Nepal, a straight outcome of Nepal's Foreign Tourism Arrival (FTA) growth during the whole year. Naturally, any downward trend in this is bound to leave noticeable effect in our operation," said Mr. S. Sanyal, senior Executive Committee member of Eastern Himalayan Tour and Travel Operators Association (EHTTOA).

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