CHAPTER-1

INTRODUCTION

Background

Bhaktapur, a place of historical importance and the home of medieval art and architecture, is one
of the three capital towns of Nepal, locally known as Bhadgaon/Khawopa. It is renowned for its
colorful festivals, traditional dances and typical indigenous Newari lifestyle. It has emerged as
Nepal’s cultural capital. It is a living open museum, displaying traditional music, festivals and
ritual dances, the vibrant depth of Newari Culture, to attract the global tourists.

For its majestic monuments, colorful festivals and the native Newars best known for their long
history of craftsmanship, the ancient city is also variously known as the ‘city of culture’, and the
‘living heritage’ and ‘Nepal’s cultural Gem.’ It is 28 o north and 85 o 35’ east lies 11.2 km east
of Kathmandu, which is situated at 1,401 meters above the sea level and spreads over an area of
6.88 sq. km. It grows from a collection of villages strung along trade route between India/Tibet.

King Yaksha Malla (15th century) heavily fortified his city in a bid to make it invulnerable. The
Hindus and Buddhists have co-existed in harmony and drawn inspirations from each other
through the ages. Painting, carving, masonry, bronze casting, jewelry, pottery, agro-products are
other traditional enterprises still existing. Monuments and artistic carvings on wood, stone and
metal are scattered all over the historical core of the city.

Unlike other two cities of the valley-Kathmandu and Lalitpur, Bhaktapur is still predominantly
comprised of the peasantry, with their traditional enterprises. Like the rest of Nepal, one can see
Hinduism and Buddhism intermingling with one another in religious tolerance and communal
harmony. Due to German funded Bhaktapur Development Projects in 1970s, it has been a much
cleaner and tidier town, but there’s still a distinctly timeless air to the place.

A Cultural City: Bhaktapur, one of the three historic royal towns in the Kathmandu valley with
rich architectural and urban heritage found in 8th century is called Khwopa in Newari dialect.

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One hundred thousand people inhabit in the city and the main occupation of its inhabitants is
agriculture whereas the crafts and businesses are their secondary occupations. Moreover, the new
generations are also migrating to other countries for occupations and new generations have also
adopted different professions with a passage of time that is direct impact of globalization.

Cultural and living heritage dating back 14-15 centuries has remained relatively well preserved.
The Taleju shrine, 55 Windowed palatial, structure of the Durbar square, the five storied temple,
the Bhairav temple at Taumadhi square, the Dattatraya square with many small and big temples
as well as the priest houses have remained the master pieces not only for Bhaktapur but also of
the country. “Were there nothing else in Nepal save the Durbar square of Bhaktapur it would still
be amply worth making a journey halfway round the globe to see,” expressed A.E. Powell,
London. Swiss Geologist, Toni Hagen wrote, “Bhaktapur is the most clean city, others should
follow her.” Citizens of Bhaktapur are indulged in conservation of the heritage as inspiration.

Historical Settings: The oldest part of the town is around Tachupal Tole (the Dattatraya
Square), to the east. Bhaktapur was the capital city of the whole valley during 14th-16th centuries
and during that time, the focus of the town-shifted west, the Durbar Square area. Much of the
town’s great architecture dates from the end of the 17th century during the rule of the King
Bhupatindra Malla. On Yaksha Malla’s death, the kingdom after a period of joint rule among his
sons eventually became divided into three small kingdoms-Bhaktapur, Kathmandu and Patan.

Socio-Culture: Newars, an ethical group, mostly inhabits in town. They are the descendants of
the original inhabitants of the valley who had come to settle there in the time of King Hari Singh
Dev in 1324 A.D. On an average, there is a handloom of crude old type in every household of
Bhaktapur. The peasants rarely use foreign-made clothes. They put on home-made cloth.

Their females have a distinct type of dress. They wear black saris with red borders called
Hakupatashi. A special type of curd called Juju Dhau is prepared sweet tasty. Some sections of
the people maintain their life by taking to curd making. Another notable industry of Bhaktapur is
cap making, there a particular type of cap called Bhadgaule Topi is manufactured locally.

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The Agricultural Economy: Economy of Bhaktapur, like that of the rest of Nepal as a whole, is
fundamentally agricultural. The city is ringed with farmlands. The main crops are rice, wheat,
and maize, followed by crops grown in much smaller quantities-millet, potatoes, oil seed, barley,
sugarcane and a large variety of vegetable crops such as pulses, peepers, onions, soybeans,
tomatoes and ginger. The fields are irrigated and those on the hillsides are terraced.

In a study, 70% of the sample farming accounted for more than 70% of their household cash
income, while for 11.5% of the households it accounted for 50% to 70% of their income, and for
11.5% it accounted for 30% to 50% of their income.

All households in the survey supplemented their crop income in various ways-by limited sale of
animal products, by income from various trades and crafts, by wage labor, and from the rental of
land or, rarely, through local commerce.

The Non-Agricultural Economy: An inventory of the small stalls and shops that crowd the
bazaar street gives some idea of the variety of the supplies and of the specialists who provide
them, which are necessary for the material and symbolic life of Bhaktapur.

There are specialized shops or market areas selling various matters like cloth for saris and
clothes; readymade clothes; smoking supplies; rice and other grains; metal cooking pots; curds;
curios for the tourists; books; gold and silver ornaments and small religious figures in gold and
silver; caps; sweet cakes.

Finally, there are all kinds of specialized performers and service providers-musicians of various
types, ritual dances, barbers, and medical specialists, priests and ritual specialists, midwives,
cutters of umbilical cords, astrologers, tailors, fishermen, sweepers, and many more.

The 1971 census reported for Bhaktapur that 65.8% of the workforce was engaged in agriculture,
8.5% in commerce, and 8.2% in manufacturing, primarily crafts. It also listed a small number of
people engaged in electrical, gas and water services.

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Focus of the Study

At the moment, Nepal's capacity to benefit fully from socio-economic opportunities of tourism is
optimum. To promote tourism, the distribution of the tourism earnings within tourism sites in the
country must not be neglected, as local people deserve the rights to benefit from their resources.

The tourism-based economy, therefore, should strictly maintain and retain the sustainability of
the tourism business. Sustainable tourism is based on unique characters of natural, cultural and
social environments and interests of certain groups of tourists in these environments. Planners
and promoters of tourism sector should aim for improving sustainable tourism and minimizing
negative impacts on the natural, cultural and social environments caused by maximum mobility.

Sustainable tourism, therefore, must be based on the rational use of natural resources so as not to
destroy the environment, which is sought after by the tourists (destruction that is often caused by
mass tourism). Tourism cooperative, whether cooperatively-owned travel agencies, developers,
or tour operators, aim to provide adequate low cost tourist opportunities to cooperative members.
Essentially they have same concerns as the private sector of tourism industry; however, tourism
cooperatives can be influenced by members to make sustainable development and environment
issues high priorities. The sustainable tourism should mainly focus for overall prioritized areas:

 Promoting environmentally safe tourism;

 Promoting plastic free environment in the target areas;
 Involving members in tourist activities by providing information about safe and hygienic
environment at home; and
 Promoting eco-tourism in the target area.

Statement of the Problem

It is attempted to examine tourism promotion strategy adopted by Bhaktapur Municipality, which

is beneficial mostly to central tour operators but at what social cost? More research is necessary
to clarify the fact that who are the actual beneficiaries of the tourism-based economy in BM?

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Concerned tourism entrepreneurs complain about the lack of long-term strategy for the tourism
industry promotion but who are responsible for this? The local communities or power centers?
Plans, policies and marketing strategies are essential to be maintained by the ministries to meet
the long-term goals or change the tourism promotion marketing objectives, which might not be
in their interest. The tourism industry is also uninterested in gathering too much data; not only is
there a cost, but also the data might reveal unpleasant patterns exercised by concerned players.

Improving the collection and dissemination of data would be good initial efforts of the GoN,
private sector and civil societies who are the major game players in the tourism based economy
of Nepal. However, tourism industry in Nepal has been taken only as a golden egg-giving hen
but at the same time we are killing the hen in the name of tourism industry. My issue is: should
we protect the golden egg-giving hen or kill it at once? But how? Further topics in this project
work include: Municipality’s willingness to promote tourism industry; a thorough analysis of the
tourism marketing promotion strategy adopted by the BM and outcomes as recommendations.

Objectives of the Study

 To trace out the role of tourism sector for Bhaktapur Municipality development;
 To explore tourism as an alternative means of development for Bhaktapur Municipality;
 To assess an impact of tourism in strengthening heritage sites of Bhaktapur Municipality.

Significance of the Study

In the context of Nepal, beginning of the tourism industry dates back to the later fifties and early
sixties. The recorded numbers we got is only 6,000 in 1962 which to 156,000 in 1976, 266,000 in
1988 and 491,000 in 1999. Tourism continued to be one of the important aspects of the Nepalese
economy in 1999. Among the tourist visited in 1999, 54% were from Asia, 36% from Western
Europe, 10% from North America and 3% from Australia and the Pacific. Tourism contributes
3.6% to GDP and 16% of total foreign exchange earnings of the country. It gave direct or
indirect employment to 257,000 people in 1998. (Nepal Economic Survey 89/99).

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Economic Implication of Tourism in General: The rewards gained both financial and socio-
economic are immense in the tourism. The contribution of tourism to the economy exceeds that
of other sectors in several countries, to the extent, it appears as one of the essential elements in
the trade balance. Tourism provides direct employment to the millions of people in the hotel
industry, transport, travels, trekking and mountaineering, entertainment and also the indirect
employment generating out of them. Tourism is the only export industry that earns large amount
of foreign exchange without exploiting natural resources and without exporting manufactured or
raw materials in balancing the adverse balance of trade with the other several countries.

Sustainable Tourism in Nepal: Many tourists visit Nepal for its unique natural and cultural
resources. In 1995 over 363,000 tourists visited the country, they spent more than 117 million
US dollar from which half was generated by the trekking tourists. But only less then 1% of the
tourism generated revenue reaches to the rural areas where tourism attractions actually belongs.
More than 85% people and most of the tourism attractions are in rural areas of Nepal. Therefore
tourism can be of helpful to them economically and socially if they directly benefited from it.
For this purpose, the GON has to formulate plans, policies and strategies to attract the tourists
from global market. The rural based tourism packages such as home stay, village, cultural, fair
trade, sustainable and eco-tourism etc. to be seriously designed and implemented.

Limitations of the Study

Very little information is available regarding the arrival of the tourists in BM. However, most of
the contents of this project work are based on secondary data. Limited time and resources
available to conduct the necessary surveys to collect all primary data is another constraint of this
project work. The researcher found several problems while conducting survey to collect the
primary data from the concerned government authorities, local communities and the tourism-
based industries since they were not cooperative to provide the required information that s/he
needed to conduct the study. Moreover, lack of co-operation from private sector was also found
while collecting information and s/he is also unable to collect photographs of the heritage sites.

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Scope of Study

This project work contains information regarding the tourism promotion activities of BM, its
socio-cultural and socio-economic impacts in the macro economy of BM and contribution of
tourism sector for poverty alleviation a local level in general and revenue generation in the
central government level in particular.

Moreover, it also gives a short picture of tourism potentiality of BM in international competitive

market. The project work also discusses the tourism promotion marketing strategies to attract the
global tourists. The detailed discussion has been explained in the proceeding chapters of this
project work, which is not sufficient to understand the positive and negative socio-economic
implications of the tourism sector in Nepal in general and Bhaktapur Municipality in particular.

On the other hand, the project work mainly focuses on the marketing strategies adopted by the
Bhaktapur Municipality in promotion of the tourism from the main potential source countries.
However, this project work is totally silent about the new market development possibilities since
the new market development process is the combined efforts of all stakeholders not merely BM.

On the other hand, this project work has been prepared on the basis of current trend in the market
but it has not included the possible threats and challenges that Bhaktapur Municipality as well as
Nepalese tourism industry may have to tackle in the day to come due to changing tendency.

Similarly, the study has also not covered the detailed technical impacts of the tourism sector in
the socio-economic and socio-cultural aspect of Nepal. The positive and negative impacts in
environment, economy, cultural and social issues particularly social mobility, gender and
children are the huge field for study so they to be seriously taken into account while formulating
tourism related plans either in national or local level.

The project work, however, has mainly focused on the issues of marketing promotional strategies
and thoroughly discusses the promotional tools and techniques to cope with global competition.
The project work has revolving around the marketing strategy with core focus on BM.

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 CHAPTER-II
REVIEW OF LITERATURES

Conceptual Review of the Term “Marketing Strategy”

This is vital to understand theoretical and conceptual meaning of the widely used term strategy.
The word strategy is broadly used in terms of tactics and changing working procedures in
accordance with the rivals with an objective of winning in the battlefield. At present, the word
strategy is frequently used even in management science particularly in marketing, advertisement,
campaign, market promotion, production and distribution fields. We are using the same term in
the context of tourism marketing strategy adopted by Nepal for global tourist attractions purpose.

Greek word strategy actually refers to general that means art of general in the ordinary sense. In
the very inception, this terminology was entered in the military science that means what a chief
of the army does to offset actual or potential actions of competitors. Generally, this term is
frequently used in war for defeating the rivals in the battlefield.

Strategy implies to actions that can be taken in the light and art but be marshalling of resources,
which provides the best opportunity for subsequent tactics. For this purpose, every possible
action can be implemented as strategy for winning over desired actions. However, management
strategy is some how different than army strategy because it is used as interrelationship among
the different management requisites especially for the marketing promotion activities.

Strategy is a comprehensive master plan, which directs the way to achieve missions, visions and
objectives. It helps to maximize competitive advantages and minimizes disadvantages. It is a
pattern of actions for achieving objectives and goals in accordance with the requirements of the
external and internal environment after successfully implementation. Strategy is concerned with
making strategic decisions about the future direction and implementation of plans. Alfred D.
Candler defines: “Strategy is the determination of the basic long term goals and objectives of an
enterprise and adoption of the course of action and the allocation of resources necessary for
carrying out these goals.”

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Professor Henry Green, Harvard University, who is a pioneer contributor in the development of
business policy has interpreted the term in different sense: “Strategy is the pattern of objectives,
purpose or goals and major policies and plans for achieving these goals, stated in such a way so
as to define what business company is in or is to be and kind of company it is or is to be.”

However, Jauch and Glueck have emphasized on business, its nature, products, functions, market
and objectives of firms in the business environment. According to them, the answers related with
these components are simply strategy. Moreover, they have further interpreted the strategy with
sport of a game. According to them, before a team goes in to the field, effective coaches examine
competitor’s past plans, strengths and weakness. They look at their own team’s strength and
weaknesses. The objective is to win game with minimum of injuries and resources.

Johnson and Scholes define: “Strategy is the direction and scope of an organization over the
long-term: which achieves advantage of organization through its configuration of resources
within changing environment to meet market needs and to fulfill stakeholders’ expectations.”

It is clear that the scope of strategy is broader to include total management functions, which are
related with the determination of organizational objectives in the light of environmental variables
and course of action and commitment to achieve such objectives. As conclusion, the strategy is
related with plan of actions and its environment. It is continuous process and related with
objectives, goals, visions and missions. For this purpose, we have to scan and examine the
possible opportunities, threats, weaknesses and strengths available within the total environments.

The marketing strategy gives emphasize for the improvement of the competitive position of
organizations’ product and services. This addresses to the market segment of the business. It is a
comprehensive plan providing objectives for the business, allocation or resources among the
functional areas and coordination between them for marketing optimal contribution for
achievement of the corporate level objectives. Hence, marketing strategy is mainly related in
formulating the long-term business plans, policies and objectives in accordance with the existing
environments, which can directly influence to the output of the business.

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Related Studies

There is a very limited study regarding the tourism sector of Nepal particularly on the tourism
market promotion activities. A study was conducted and its findings were presented to the
ICA Business Forum by Dr. Devid Williamson, entitled Sustainable Tourism in Nepal.
According to him, tourism has significantly influenced to most of the communities. The
study explains that:

…. Tourism is a most complex functional system comprised of five components viz. tourists,
attractions, service facilities, transportation and information direction. Tourism is a series of
activities of the people for the development of tourist movement. This is a practice of traveling
for recreation, pleasure or culture, exploration, promotion or encouragement of touring and
accommodation of tourists. Tourism is the world's largest industry in these days. This has made
leading contribution in improving the economy of many countries including Nepal….

"Travel is a strong influence in the development of human potentials and a vital link in the world
communication. By visiting other lands, exchanging ideas and making new friendship, we can
help to build goodwill and peace full intercourse among all people." (Former President Jimmy
Carter, Speech on Travel Agents Congress in USA). This gives a high vision in the value system
of world tourism to make it sustainable and highlights the importance of tourism sector.

Another joint research was carried out by Prof. Alberto Baroni, Dr. Anna Milvia Boselli, Prof.
Gianumberto Caravello, Dr. Cristina Bresoline, Dr. Federico Giacomin for the National Research
Council, entitled “Tourist impact on environmental and anthropic matrix in the Everest National
Park-Nepal” that mainly focuses on the socio-economic and environmental aspects caused by
the massive mobility of the tourist around the Everest National Park of Nepal.

…. Over the last decades, we registered a profound socio-economic transformation in Nepal due
to tourism sector connected with ever greater abandoning of traditional economy such as
agroforestal, mercantile, breeding, etc. totally to mass tourism and commerce (expeditions,

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trekking, souvenirs, etc.). This has not only modified the economical activities, but it has also,
heavily undermined local customs and social organization….
…. Along all the main trekking routes, many dwellings have been converted into lodges, and
many small shops, often in front of hotels and lodges, have been opened. This has produced
wealth for local with property in these villages. Most of the local population has been driven
towards tourist activities, both at home and away, with its strong attraction of paid labor from the
poorer areas. The results being a marked increase in building without any evident planning
criteria and marked increase in the level of education both among the male and female members
of the population, following a tradition of sexual equality….

…. However, the increase in tourists has also produced negative effects in civil society and
natural environment. Environmental degradation is being caused by overcrowded camping sites
and lodges and incorrect waste disposal, which, linked to the limited personal hygiene of both
local population and tourists that provokes health problems….

…. Our observations of waters showed a certain degree of alteration in the hydrological quality,
above all in correspondence with greater anthropic pressure (villages, tourist tracks, lodges, etc.),
possibly caused by organic contamination presumably of faecal origin. The qualitative recovery
proved to be rapid because of the strong flow of water, which provides rapid oxygenation….

…. The situation is different for water destinated for human use, although originally they were
probably uncontaminated, they all proved to run a high pollution risk, because of the superficial
nature of water used for such purpose. In fact, gathering points for water (spring, piping,
fountains, etc.) for human use are inevitably contaminated with bacteria of faecal origin….

…. It was also noticed that the systems of collecting, distribution and conservation of the water
was totally unsuitable for protecting them from eventual further and even greater risks of
microbiological contamination as public, domestic and personal hygienic habits are insufficient
to guarantee their protection. The effects of these inadequacies are in some way mitigated by the
fact that water for nutrition is nearly always boiled for a certain period (tea, soups, etc.)….

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…. Moreover, the tourist flux is influencing local customs and provoking social problems in
traditional societies and often pushing the young to urbanization and emigration….
CHAPTER-III
RESEARCH METHODOLOGY

Research Design

Researcher has combined different research designs in preparing this project work such as
historical, experimental, exploratory, explanatory, descriptive, correlation design, criterion-group
design, case study, field survey, observational, etc. as while conducting survey all designs were
equally important for better output. However, historical, exploratory, explanatory and descriptive
research design was found vital for this study so that it is based on these research designs.

Population and Sample

The smallest set of values as sampling was selected from the population of the tourists who visit
Bhaktapur Municipality. The main purpose of selecting the sample respondents was to lower the
cost, accuracy, resource scarcity. Some sampling methods such as simple random, stratified,
systematic, cluster, multistage were used with the combination of non-probability sampling such
as convenience, purposive, quota, export and snowball to conduct this survey.

Source of Data

Primary qualitative data was collected through a small survey that is based on sampling around
the tourist hub of the valley/BM. Several tourists were formally and informally interviewed and
some concerned experts, officials, businessman, etc. on tourism sector were visited and discussed
about the issues. Moreover, reference library and publications of the related organizations were
main source for secondary data, which proved extremely helpful to prepare this project work.

Primary Data

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The primary data was gathered through direct personal interview with the visitors, experts and
officials flowed by the indirect interviews like phone calls, e-mails. etc. The data was gathered
through planned or ad-hoc basis interviews and focus group discussions with the tourists.
Secondary Data

Moreover, secondary data was collected from NTB, GoN’s concerned ministries/departments,
donors, projects, private and public sectors. Literatures of different writers and organizations’
publications were widely reviewed to get the facts and figures about tourism and its strategies.

Data Collection Techniques

Due to nature, scope and objective of the inquiry and limitations of the time and resources, the
researcher has widely used the secondary data. However, to some extend, the researcher has also
collected primary data from individual visitors, concerned exports, tour operators and officials
representing government and private sectors who are involving for the tourism market promotion
activities in Bhaktapur Municipality. For this purpose, direct observation at tourist hubs in
Bhaktapur Municipality, indirect oral investigation such as phone and e-mail contacts, scheduled
based interviews and focus group discussions, etc. were used with the stakeholders.

Data Analysis Tools

In order to exclude irrelevant data and process them as per requirements, data was edited, coded,
categorized and properly tabulated. The data was arranged, grouped and accordingly entered into
an appropriate tabular form. Moreover, it has been analyzed and interpreted on the basis of
qualitative data so that no tables and graphs have been presented in this report.

Limitations of the Methodology

This project work only focuses about case study of Bhaktapur tourism business and has reviewed
existing Municipality’s plans, policies and strategies in promoting tourism industry. However,
this project work is silent about implications of the tourism industry and its remedies. Moreover,

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it ignores possible opportunity, threat, weakness and strength due to presser on environment,
socio-economic and cultural impacts to the Municipality communities of Bhaktapur.

CHAPTER-IV
DATA PRESENTATION AND ANALYSIS

Conceptual Framework of the “Marketing Strategy”

 Alfred D. Candler defines: “Strategy is the determination of the basic long term goals and
objectives of an enterprise and the adoption of the course of action and the allocation of
resources necessary for carrying out these goals.”1

 However, he has focused only on the enterprise that is narrower used of the term. It is the
adaptation of the course of action for the desired goals. The strategy can also be carrying
on in short-term goals. If we are going to attend some meetings, present seminar papers
and dealing business, on such circumstances, we can develop shorter strategy on our
presentation, negotiation and decisions that has been neglected in the definition.

 In fact, the term has wider meaning and it can also be used in other several fields such as
economics, social science and so on. Hence, definition is more specific that concentrated
only in the business sector and ignores the humanities field.

 If we accept above definition, we have to make conclusion that the strategic management
is the subject related with adaptation of tactics in the management field. The tactics may
be related with the course of actions to be chosen for achieving the desired goals. The
above definition also highlights common future of management strategies as: a) unified
plan which ties all parts of enterprise together; b) comparative plan which covers all
major aspects of enterprise; c) integrated plan which makes compatible with each other
and fits together well; and d) strategic advantages to the environment.

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  Glueck emphasized on business, its nature, products, functions, market and objectives of
the firms in the business environment. According to him, the answers related with these
components are simply the strategy.
 Moreover, he further interpreted the term strategy with the sports of a game. According to
him, before a team goes in to field, effective coaches examine a competitor’s past plans,
strengths and weaknesses. Then they look at their own team’s strength and weaknesses.
The major objective is to win the game with a minimum of injuries and resources.

 Johnson defines as: “strategy is direction and scope of an organization over long-term,
which achieves advantage of organization through its configuration of resources within a
changing environment to meet needs of markets and fulfill stakeholders’ expectations2.”

 On the other hand, strategy clearly designs market and its segments for which products
are new and channels through which these markets will be reached. The means by which
operation is to be financed will be specified as emphasis to be place on safety of capital.
Usually profit objectives will be stated in terms of earning per share, return on investment
or return on shareholders’ equity or combination of these.

 Lastly, the size and kind of organization, which is to be the medium of achievement, will
be described. From these discussions, it is clear that the scope of strategy is broader to
include into the total management functions, which are related with the determination of
organizational objectives in the light of environmental variables and determination of
course of action and commitment to achieve such objectives.

 As conclusion, the strategic management is related with the plan of actions of a corporate
it is concerned with the total organization and its environments, formulating to adopt that
environments and assuring implementation of the strategic management in the corporate
houses. It is continuous process and related with objectives, goals, visions and mission of

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 the management. For this purpose, the organization has to seriously scan and examine the
possible opportunities, threats, weaknesses and strengths available at the environments.

Importance of Strategic Management in the Business Organizations

 Strategic management is the formulation and implementation of the long-term plans and
carrying out activities, which may be expected to yield several benefits. It is important for
adoption and success of the organizational environment. Various executives create a
number of reasons as to why an organization engages in strategic management3.

 Strategic management provides clear objectives and direction for employees. It points the
way for the employees to follow. Strategic management provides strong incentives for
employees and management to achieve objectives.

 It serves as a basis for management evaluation control because top executive have a
unified opinion on strategic issues and actions. When the objectives are clearly spelled
out, these provide clear direction to persons in the organization who are responsible for
implementation of the various course of actions.

 Strategic management helps to cope up with changes. The survey results indicate that: a)
clearer sense of strategic vision for the firm; b) sharper focus on what is strategically
important; c) improved understanding of changing environment can be observed in the
variety of strategic management4.

 Strategic management allows an organization’s top executive to anticipate change and

provides direction and control to the organization. It also allows the organization to
innovate in time to take advantages of new opportunities in the environment and reduce
the risk. It ensures full exploitation of opportunities.

3
4

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  The strategic management process stimulates thinking about the future. It allows the
organization to take action at an early stage of new trend and consider the lead-time for
effective management in the overall business environments.
Strategic Management in Nepal

 Strategic management is the most important and useful tool in the management field.
However, in the context of Nepalese management, it has been rarely used. Nepalese are
comparatively weak in management and administrative fields, which can be observed in
Nepalese bureaucratic sector. Nepal hardly spends any budget and resource on the
research and development. Consequently, our management styles are conventional that is
based on the chakri and chukli.

 The government employees lack motivation to implement an innovative idea in the

management since they have a kind of fear within themselves that seniors may reject their
ideas. On the other hand, the seniors are also not supportive to motivated employees who
initiate for new strategy in the day-to-day operation of the organizations.

 Consequently, Nepalese management hardly implements any innovative managerial

strategies as tools and techniques in the corporate level. However, it does not mean that
Nepalese managers lack ideas about the strategies. They have sufficient idea, knowledge
and skills particularly in the Nepalese bureaucracy are highly educated and they have
multiple degrees obtained from the abroad. But, they lack motivation and encouragement
to implement their innovative ideas in their respective jobs.

 However, the management in private sector is using modern tools and techniques in
several activities in their corporate houses. Similarly, the young generation who has
obtained an opportunity to study in the better universities is comparatively more talented
group. Unfortunately, the government is unable to attract them. If those youths were
managers in the government organizations, they could initiate in implementing modern
management practices as well as strategies to achieve desired goals.

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  Moreover, we have to be optimistic with young generations who are also future managers
and they have abundance knowledge. When they take over the management, they will
implement strategic management in the Nepalese governmental or private organizations.
Conceptual Framework of the “ Tourism Industry”

 The basic concept of tourism pleasure leisure was started from ancient time of human
civilization even though people cannot enjoy in a disturbed environment so that peace is a
pre-requisite for tourism promotion. Moreover, tourism includes various characteristics
such as religion, painting, carving, architecture, handicrafts, music, dance, tradition and
several activities, which are directly related with learning, enjoyment and adventures.

 "Tourism development meets the needs of present tourists and the host regions while
protecting and enhancing the opportunity for the future. It is envisaged as leading to
management of all resources in such a way that economic, social and aesthetic needs can
be fulfilled while maintaining the cultural integrity, essential ecological processes,
biological diversity and life support system.”5.

Tourism Development “Marketing Strategy Issues”

The vital component in developing an effective Tourism Development Strategy is the resultant
marketing. Unlike classic product marketing criteria, when product is developed first
followed by marketing strategy.

 In addition, they not only contain the necessary image and positioning requirements, but
also cognitive attributes like specific product, which will facilitate destination marketing.
The destinations, not only have subjective attributes like image and sense of place, but
also destination product, that in effect ‘lands’ would be tourist. Image marketing is
promoting ‘sense of place’ and destination marketing is selling product. The marketing
can only be successful if it can sell the place and land the tourist. In other words, a tourist

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 can make a buying decision if s/he likes the place and knows how to get there, where to
stay, how much it cost, what to do and how to get6.

Developing the Marketing Model

Sense of Place + Product = Image

 The use of the term ‘image’ when applied to marketing a product is at best subjective.
Many may assert that image is something that is there, but cannot be felt, touched or
experienced. To feel, touch and experience an image it must possess a ‘sense of place’.

 An image is created as a consequence of marketing sense of place and product. It is

therefore unwise to create and then market an image. It is better to market a ‘sense of
place’ and associated product or destination attributes, which together create an image.

 For instance, a picture of Mt Everest evokes a certain response (much like a thousand
other sites in the world) but coupled with hiking trails, bushman, paintings and cozy
hotels nestling in the foothills, a sense of place is created.

 The image of the Annanapurna standing to attention outside valley evokes a unique sense
of place from which words and feelings like pomp, ceremony, history and tradition are
evoked. While a product is most often tangible and able to be experienced, an image is
something virtual, perhaps submerged behind the product.

 As applied to the brand created for Nepal, ‘The Kingdom of Himalalya’; it can only
really work if the sense of place is bound in with the product, thus creating the image.

 It is in this product offering, with its associated imaginary, that we find a point of
analysis. The product must deliver the imaginary associated with it.

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  If it is the sense of place that is promoted, and to ensure there is no credibility gap, the
product must build on the sense of place in a tangible, easily assimilated way7.

Branding + Positioning = Strategy

 Branding is now a commonly utilized marketing strategy. In its purest sense, it is used to
denote ownership and identity of the product, and should easily be associated with the
underlying imagery of the product, and its delivery or experience. Adding to this weight
of terminology come the terms ‘differentiation’ and ‘positioning’. Differentiation, which
implies uniqueness, helps us to ‘position’ a product away from direct competition.
Ultimately we brand products that are positioned for best differentiation. Branding,
therefore, is something that is done to a product to denote ownership, identity, and recall
and to drive equity but it is not the product.

 To arrive at a marketable product branding, the product, not the brand, must be subjected
to analysis to determine its differentiation and ultimate positioning. This cascade of
analysis, which ultimately results in a brand, is all well and good, but to be ultimately
successful, the brand must rest comfortably on the platform of reputation. Therefore the
ultimate success of a brand depends upon the reputation that the brand has. Reputation
goes beyond sense of place, image, positioning, differentiation, branding and product8.

Strategy + Image = Reputation

 Increasingly marketers, communications specialists and public relations practitioners are

concentrating on developing strong brand reputations to build equity and ownership.

 The “Himalayan Kingdom of Nepal” has been adopted as the brand for marketing our
nation internationally. While it is not the scope of this document to comment on the

7
8

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 efficacy of this brand (brands take a long time to build) we should concern ourselves with
tourism development strategy that delivers against the imperatives of the brand.

 The reputation of the Kingdom of Nepal therefore results from strong strategic branding
which contains the elements of strategic reputation management.
 Nepal has a reputation onto which the brand is attached. In the past, we have not had
luxury of developing a brand/product from scratch. “The Himalayan Kingdom of Nepal”
brand has thus had to adopt the existing product package, which, in most instances, is at
best at variance, and at worst contradicts the brand.

 Adding to this, Nepal the product has a reputation, which has suffered at the hands of a
variety of largely uncontrollable internal and external factors, like political disturbance,
grime, violence, tardy infrastructure and no new tourism plant development.

 The tourism development strategy must result in a match between perceived needs of
tourists and communicate an appropriate image through product and sense of place
marketing. Branding is, wrapping this up, under a symbol of ownership, which together
with strategic interventions will result in building a strong brand reputation.

Reputation Management

The following reputation management is necessary for Nepal:

 Distinctiveness: a strong reputation will result when Nepal owns a distinctive and
attractive position/image in the minds of the publics.

 Focus: strong reputation will result when Nepal focuses attentions and communications
around a single core theme.

 Consistency: a strong reputation will result when Nepal is consistent in her marketing
activities and communications to all its publics.

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  Identity: a strong reputation will result when Nepal acts in ways that are consistent with
espoused principles of identity.

 Transparency: strong reputations are built when organizations are transparent.

Towards a Marketing Strategy

The Power of Word of Mouth

 It has been established that a large number of international tourism to Nepal is associated
with the Verbal Friend’s Recommendation (VFR) market-influenced to a large degree by
word of mouth. Thus, it is upon recommendations of global residents that the bulk of the
international tourism market rests.

 Yet upon arrival, a significant percentage feel disappointed because they feel unsafe
(only few perceived their safety to be good, and only small group reporting their
impression of cleanliness as good). Getting the tourists, either as VFR’s or conference
delegates is only good if they return with positive feelings and give strong
recommendations. However, if they return with negative experiences or perceptions, their
word-of-mouth comments will severely affect reputation.

Countering Negative Perceptions

 Communication campaigns directed at the international market to overcome negative

perceptions of violence will not work and could be counter productively by alerting
audiences to potential dangers that they did not know about.

Visibility vs Reputation

 The phrase ‘any publicity is good publicity’ can only be attributed to pop stars or
politicians. What audiences read in the media will not only shape their perceptions, but

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 will influence the reputation of Nepal through the image. Local newspapers have quoted
that value of international media coverage was worth millions. This may be true, but in
the absence of any media research, analysis and measurement, it can be argued that those
millions of advertisement generated by publicity, did not necessarily portray Nepal as per
the various marketing propositions.
 We may have had millions of media coverage, but at best it was neutral moving into
negative. Positive publicity can only be claimed if the coverage endorsed the attributes of
Nepal as a premier tourism destination and/or a viable place to invest.

 As a result of the coverage, more people in the world may know that Nepal exists, and
possibly where, but how do they perceive the region? Did the pictures of Moist Conflict,
sufferers of the poorest communities, coupled with street marches of political activists
promote the region as a holiday destination?

 These are factors that directly affect reputation, and irrespective of the creativity and
inventiveness associated with the marketing proposition, medium or long-term marketing
success may be difficult to attain if imperatives of reputation management are ignored.

 Real qualitative and quantitative research is required. Gut feeling, although sometimes
accurate, is not a measure, which can be tracked or benchmarked. Within any successful
long-term marketing and communications plan must come research, measurement and
evaluation against known goals.

Unique Situation Requires Unique Plan

 A marketing strategy for Nepal must be unique. There is no case study to follow and the
marketing proposition does not conform to the more widely known tenets of product
and/or corporate marketing. It therefore, must concentrate on building reputation and
image through promoting sense of place and product (destination).

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  Each destination, which has been identified in the Tourism Development Strategy, must
market its unique sense of place within the Himalayan Kingdom of Nepal brand on the
horizon. The product/destination within each area should be marketed in bike with the
sense of place, to ensure that together an image is developed which will draw tourists.
Because the various destinations offer different attractions and product-most directly or
indirectly associated with mountains, a wider cross section of tourists will be attracted.
 This coupled with product on the ground, as suggested in the project analysis, will ensure
that the resultant marketing of sense of place and product will produce a positive image.
Each of the destination can be subjected to close analysis to see that it delivers against the
criteria needed to demonstrate place and project/product/destination facilities.

 Once this analysis has been applied, each destination will be in a position to identify
those attributes, which best serve promotion of sense of place and product. What should
emerge are distinct destinations, each with their own sense of place and associated
product that together enhances the Kingdom Nepal brand.

 Remember that a positive image when applied to the principles of reputation building
forges a strong reputation. But image is not marketed; it is created as a result of the
simultaneously marketing sense of place and product.

Marketing Delivery Structure

 Each destination must have its own marketing plan that is implemented through the
creation of an intra-destination marketing. Internal marketing will be the responsibility of
each destination but external marketing (regional, national and international) will become
a joint effort under the umbrella of the intra-destination marketing. Internal marketing is
vital as it is through this mechanism that all visitors, within each destination understand
and hold to the requirements of sense of place and appropriate product.

 Investment into specific projects, which conform to the dictates of the Kingdom brand
and sense of place, is best handled at the destination level, but with active participation

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 and networking through the intra-destination committee for possible funding, added value
and resources. This requires macro co-ordination by Tourism Nepal, as it would be too
costly for each sub-brand to ‘go it alone’. In this instance, the whole will be greater than
the sum of the parts. This structure should initiated and chaired by Nepal, and will ensure
cost effective delivery without expensive activity overlaps, confusion of messages and
duplication of efforts.
New and Traditional Marketing Techniques

 Traditional marketing techniques need to be reappraised. The tendency to stay with the
tried (tired) and tested methodologies is neither strategic nor cost effective in comparison
to ‘21st century’ solutions. Essentially the Tourism Development Strategy is marketing
orientated, as it assumes normal requirements of product, positioning, price etc. However,
the method of getting the message to market is reliant on using specific strategies.

a) Adopting 21st century communications techniques.

b) Ensuring physical presence at trade shows, exhibitions, etc.
c) Facilitating direct interventions with tour operators and travel agents.

 The discussion surrounding need for reputation management introduces new marketing
paradigms specifically through marketing of sense of place and product, which creates
the desired image. Likewise, the techniques applied to the above need to be reviewed.
Exhibits at targeted trade fairs will always be good direct-to-trade promotion. Moreover,
advertising is too costly, and while there is a place for brochures/leaflets and other print
bound tools, a new avenue or perhaps highway has opened.

Push vs Pull Marketing

 Internet technology and its premier function as a communication vehicle and information
purveyor, should not be confused with or negated by the dot com crash. Making money
on Internet is different from using the Internet to communicate. The power of the Internet
to communicate to global audience while adopting one-to-one communication principles.

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  The traditional communications methods of ‘pushing’ information via advertising to a
vast audience are too costly, wasteful, uncontrollable and relatively ineffective when
compared to attributes of one-on-one, or word of mouth communications. The Internet
provides the power of one-on-one communication through a mass medium.

Internet Users are also Tourists

 It is safe to assume that currently, and more so in the future, the high-income tourists
wishes to attract will have Internet capability. In fact, at present there are enough Internet
users within the core geographic regions of Western Europe and North America for them
to qualify as their own market segment.

 Increasingly, people will be using the Internet to find information in the first instance and
then to book holidays. Increasingly, trend is towards using the Internet as disseminator,
source and reservoir of information. The more traditional marketing methods of the
advertising can then be effectively used to market the website, which is purveyor and
holder of all information.

Digital Distribution of Pictures and Words

 The cliché ‘a picture is worth a thousand words’ is a cliché because it is so true,

especially in this instantaneous communications age, which requires imagery and sound
bites to attract attention in the media clutter.

 Sense of place can best be communicated by using pictures and some words, and product
with smaller pictures and more words. Greater use must be made of available digital
satellite and Internet technology. In this way, it is not only possible, but also simple and
cost effective to get high-resolution images into the computers of picture editors, input
editors and news editors in travel/tourism related publications and online newsrooms

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 throughout the word. This coupled with the distribution of expertly written editorial by
specialists in their fields: i.e. wildlife, wilderness, history, culture and heritage.

 All strategies will supply tourism-oriented publications with material that communicates
destinations’ unique sense of place to a worldwide audience. This ‘soft’ editorial can also
be distributed throughout the world via Internet technology and also online into specific
tourism related newsgroups and websites and, of course, loaded into ‘house’ websites.
 Added to this is the advent of customer relationship management technology, which
means that editorial, news, pictures and general information can be sent direct to the
client/customer/tour operator/travel agent’s computer. Each destination with its unique
sense of place, like wildlife and wilderness or history and heritage, will be able to use this
to communicate with a diverse tourism audience with specialist interest groupings9.

Summing up

a) The identified destinations possess attributes for sense of place and product marketing.

b) Each destination displays clear marketing differentiation, each offering unique tourism
experiences resulting in less overlaps and confused messages.

c) A strong reputation results from good strategy and a positive image.

d) The focus of marketing strategy will be to embrace principles of reputation management.

 Marketing sense of place in conjunction with product directly to target audiences is the
emphasis of all communications. This will result in a positive image of each destination.
The marketing delivery system at destination and intra-destination level will engage three
layers namely: tourism marketing, internal marketing and investment marketing.

a) Each destination will form part of an intra-destination marketing committee with clear
and unambiguous lines of communication and areas of responsibility.
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 b) Marketing techniques must use combination of traditional and 21st century technologies.

c) A scientific research and media measurement structure should be incorporated at the

outset to the guide and direct strategy, benchmark objective criteria, measure reputation
index and demonstrate return on investment.
Current Tourism Conditions in Bhaktaput Municipality

Tourism in Bhaktapur: Being one of the historical cities in the Kathmandu valley, most of
Nepal’s foreign visitors visit Bhaktapur municipality area during their Nepal visit. Bhaktapur is
involved in the half-day sightseeing tour package. Though, many tourists stay over nights in
Bhaktapur with their own purposes and during some specific occasions. Also, Bhaktapur being
the intermediate point for Nagarkot, Changu Narayan and Dhulikhel, many tourists visit it. It is
estimated that about 87345 foreign guests used to visit Bhaktapur Durbar Square annually, prior
to the introduction of the service charge USD 1 since July 1993 for the purpose of conservation.

Tourism Attractions in Bhaktapur

Tourists Sites in Bhaktapur: Monumental masterpieces in Bhaktapur are innumerable. Most of

the temples are pagoda style-they have terracotta tile roofs supported by intricately carved
wooden struts or columns, wooden and doors, gilded roofs and pinnacles, open brick-paved
spaces around, and above all, an image of the deity presiding over the edifice. Still while temples
share similar attributes each is unique. Each reflects a different component of the religious belief,
social outlook and economic status of the culture and artistic tradition of the indigenous Newars.

Durbar Square: The Durbar Square is Bhaktapur’s monumental gem. It is one of the seven
UNESCO world heritage sites located in Kathmandu Valley. This spectacular square, a capital of
Malla Kingdom till 1769, is an open museum itself. Victorian illustrations show that it was once
packed with monasteries, temples and artistic buildings, almost one third of which were
destroyed by the disastrous earthquake of 1934. The square still holds mesmerizing palaces,
pagodas, shikhara-style temples as well as Buddhist monasteries exclusively architecture.

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While one pace through Durbar Square, s/he will be compelled to feel the touch of mediaeval
excellence, The Golden Gate, Taleju Temple (The Interior of Taleju, The Mul Chowk, The
Kumari Chowk, The Golden Spout), Statue of King Bhupatindra Malla, Fifty-five Windowed
Palace, The Big Bell, Chyasin Mandap, Siddhi Laxmi Temple, Vatsala Temple, Yaksheshwor
Temple, Chatu-brahma Bihar at Sakotha. Taumadhi Square:
Taumadhi Square, just half a minute walk from the Durbar Square is the square that divides the
ancient town into upper and lower halves. The biggest festival of the town-Bisket Jatra,
schedules every year in April, starts from this very square. The square is dominated by many
mesmerizing temples and other medieval architecture-Nyatapola Temple, Bhairav Temple and
Til Madhav Narayan Temple are the major structures. Being centrally located, a lot of local
activities depicting local life-style and culture can be observed here throughout the day.

Dattatraya Square: Like the other squares, the Dattatraya Square is also like an open museum
that contains innumerable monumental masterpieces of woodcarvings. The seat of royalty till the
late 1500’s, it is home to the ancient city’s best-known masterpieces, especially those in wood.
The square originally known as Tachupal verbally meaning ‘the grand rest house’- alone consists
seven Math’s among a dozen existing in Bhaktapur.

Bhimsen Temple, famous Peacock Window, the Bronze and Brass Museum, the Woodcarving
Museum and Dattatraya Temple are the additional major attractions of the square. It is probably
is the original center of Bhaktapur, in the initial periods of its founding, Temple of Dattatraya,
Poojari Math, Wakupati Narayan Temple, Peacock Window, Wane Layeku, Bhimsen Temple,
Salan Ganesh Temple are other popular attractions in the city.

Pottery Square: Bhaktapur’s two Pottery Squares are world renowned, and so are the many
potters that can be seen on their traditional wooden wheels. The first Pottery Square is located at
Talako, some 500m to the southwest of Taumadhi Square. Here visitors will find potters giving
shape and size to lumps of black clay, and earthenware they make ranges from such household
goods as pots and jars to cheap souvenir items as animals and birds.

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As pottery in Bhaktapur is a family job, visitors may chance upon the entire family doing their
parts of work. Right within the complex is a two-floored temple that houses an ornate image of
Ganesh, erected in a very traditional way. The pagoda dates back to 14th century. Bhaktapur’s
second Pottery Square is located to the east of the Dattatraya Square. Here also, visitors will see
ancient city’s well-known craftsmen sunk in what they have inherited from their ancestors.
Elsewhere in Bhaktapur: Nava Durga Temple, Ta-pukhu (Sidhapokhari), Terra-cotta
Windows, Nepal’s Largest Shiva Lingum, Ancha-Pukhu, Varahi temple, Barhe-pukhu (Kamal
Vinayak), Buddhist Bihars and Bahis are other well known monuments.

Day-trippers around Bhaktapur: Nagarkot, Changu Narayan, Surya Vinayak, Thimi, are
easily accessible places, which are located within the easily access from the city. Several public
and private transport facilities are available to access these place.

Museums in Bhaktapur: Bhaktapur is a paradise for art lovers. The whole city could be a live
museum itself. If there are enough resources, there could have many more specialized museums.
Several museums of traditional dances, instruments, costumes, ornaments, etc. are available
around city. Bhaktapur Municipality can still offer to the beloved guests, the three specialized
museums-National Art Gallery, Woodcarving Museum, Bronze and Brass Museum. The
museum, Bhaktapur’s third, faces the Woodcarving Museum in the Dattatraya Square.

Housed in a historic Math noted for its mesmerizing masterpieces in wood, it specializes in such
heterogeneous, ceremonial and household metal ware as ritual lamps (sukunda), hanging lamps
(yekha-dallu), ceremonial jars, water-vessels, cooking pots, ink-pots, oil pots and spittoons
which were used in the ancient and medieval periods. Museums are open daily, except public
holidays, from 9am-5pm.

Festivals of Bhaktapur: Bhaktapur’s monuments serve as a stage for the city’s many festivals
and cultural dances, which are at least as spectacular as any architectural structure. Still
celebrated with the same old flavor and enthusiasm, this living heritage has been handed down
from centuries in an unbroken chain from generation to generation.

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The most popular festival of the town is Bisket Jatra and others are Mata-tirtha Aunsi/Mother’s
Day, Buddha Jayanti/Swanya Punhi, Sithi Nakha, Nag Panchami, Saparu/Gai Jatra,
Ghathamunga, Krishnastami, Gunla, Gokarna Aunsi, Father’s Day, Yenya Punhi,
Mohani/Dashain, Swonti/Tihar, Maghe Sakranti, Vasanta Panchami/Shree Panchami, Maha
Shiva Ratri, Holi/Fagu, Nava-durga Dance.
Ritual Dances of Bhaktapur: Among the local dances, the name of Devi Dance comes to the
forefront. Men with masks all adorned with embroidered laces and decorative floral designs play
it. The party consists of dancers called Kali, Kumari, Maha Laxmi, four Betals, two Bhuchas,
and two Khyaks. They all dance merrily in tune with vocal instrument called Mahalin.

The dance of Kumari and that of Maha Laxmi on the back of a gorgeous lion are exquisitely
charming. To the same category is Bhairav Dance. This party too consists of Bhairav, Maha Kal
and Khyaks. They dance in tune with the blowing of trumpets called Khing. This dance is very
vigorous and awe-inspiring. Among the other local dances, the names of Maka Pyakhan
(Monkey-Dance), Natuwa (Dancing Girls), Phakandali, Gayencha (Bards), Nagacha (the duel
dance between Shiva Parvati), Bhalu Pyakhan (Bear Dance) and Lakhey Pyakhan (Demon
Dance) are the popular dances. They are exhibited on Gai Jatra, which takes place in August.

Products of Bhaktapur: Bhaktapur is rich in its traditional culture and skills. The generations of
master craftsmen have been carrying on their time-honored traditions of arts and crafts. Besides
monuments and festivals, Bhaktapur is equally rich in local Newar handicrafts. There visitors
can see for themselves the way Nepal’s master craftsmen carry on their time-honored traditions
of art and craft. At either of the city’s two Pottery Squares, visitors can see potters spinning life
into lumps of clay. Other of Bhaktapur’s handicrafts includes paubha scroll paintings, papier-
mâché masks, cotton cloth, woodcarvings, metalwork, and jewelry.

One can also find the homespun haku-patasi (black sari), traditional black caps, and the world
famous Juju-dhau-the king of all yogurts. Some of the major craft products are: Wood Carving,
Paubha Painting, Terracotta, Traditional Masks, Lokta Paper, Handloom, etc.

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Accommodation and foods in Bhaktapur: As Bhaktapur has evolved itself into a popular
tourist destination; the growth of hospitality business in this city is but natural. In recent years,
the city has seen considerable surge in tourism trade including hotels, restaurants and handicrafts
in and around the historic territory. Like anywhere else, the hotels and guesthouses vary in size
and standard, but things that they all have in common are their convenient location, varieties of
amenities and above all, the personalized service they offer to their customers.
The rooms are well-appointed, most of them having all amenities that a modern traveler may
look for. For those whose preferences are for luxury-stared hotels, it is only a few kilometers
away from the city canter. The city is a favored place for gourmets and gourmands as well.
Tastefully decorated and well stocked, restaurants in this historic city serve varieties of culinary
delights ranging from simple Nepali dal-bhaat to international delicacies. Adding to it, the
ambience is serene and soothing. And always with an eye on hygiene, what they offer to their
customers suit both their palates and wallets.

Keys to Releasing Tourism Potential

Bhaktapur Tourism Development Committee (BTDC): With the intensions of retaining and
improving in all possible aspects, the image of Bhaktapur, BTDC was established in 1997 with
the active participation of the local community people directly and indirectly related to tourism
industries. “Progress thoroughly healthy and sustainable tourism development” is main guiding
principle for all the activities of BTDC. The main objectives of BTDC include:

 Identifying the problems in tourism development through general discussions, workshops

and survey works.
 Solving or assisting authorities in solving problems related to tourism in Bhaktapur.
 Contribution for the conservation and development of historical and cultural sites as well
as traditional skills and technologies.
 Conservation of the environment around the tourist sites by public awareness campaign
about the importance of tourism industries.
 Draw attention of the authorities towards the possible side effect of tourism industries
and act to minimize its negative impacts.

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  Work for professional benefits of the members by bringing them together and generating
cooperative attitude towards each other.
 Working closely with national and international organizations with similar objectives.
 Contributing to the development of national tourism industries.
 Work in all possible sectors of tourism development.

Proposed Product Development Strategies

Bhaktapur city core areas which are scattered within the Bhaktapur Municipality are the good
examples of under-utilized resource that bear the potential to become a major tourist interest with
a concept of “Open Museum” and the key tourism attraction in this historic city-Bhaktapur,
responding to the current intense interest in Bhaktapur. The proceeding chapters attempt to give
an insight views how the tourism promotion strategy can be combined to the poverty reduction
programme particularly the urban poverty as case study mainly deals about the Bhaktapur city.

Market led development

Tourism product development is likely to be the most successful if it is market led in a proper
manner. This requires matching proposed tourism products to market segments, maintaining the
balance between the demand and supply of tourism products with concentration on products that
respond and strengthen market image. Products recommendations have been influenced by
“picking winners” that are achievable and most likely to be successful in commercial terms.

Add value to tourism products

Adding value to the existing products is proposed as a key strategy. This is both cost effective
and creates tourists attractions whereas, at present, there is only a little to encourage visitors.
Fostering value and enhancing quality tourism must involve in improving service standards and
trend positioning upwards towards some higher yield market segments, thus increasing the
revenue generating possibilities. Adding value to the current tourist experience in Bhaktapur
Durbar Square, Taumadhi Square, Dattatraya Square and Pottary Square could along include the

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culture and heritage sites and conservation areas within Bhaktapur city. Promotional traditional
events, organizing cultural shows and mini musical concerts in the historic city would create the
correct “cultural heritage” ambience and reinforce pride in the existing traditional skills. Other
examples of supplementing value include the introduction of “Heritage Cafes and Cultural events
to explore Bhaktapur” and street and floodlighting to create evening destination.

Conservation and Facilitation Program

Our cultural heritage is an organic whole of the human civilization. Its conservation is a major
important task. We have understood the cultural and economical value of our heritage only on
late eighties. Since one and half-decade, the Municipality has been working with a great concern
in the conservation of its heritage.

It has not been able to achieve the desired level in the sector due to constraint of resources. The
central government’s grant for conservation and development to Municipality is so small that it
is not sufficient even to conserve one building in a year.

Realizing the needs for searching locally available resources, Bhaktapur Municipality tried to
mobilize locally available resources. Today levying different taxes, Municipality collects
revenue amounting USD120, 000.00 from its citizen.

Similarly municipality had initiated to collect USD 1 since July 1993 for a fund for conservation
and development as a tourist service fee for visiting the city core area. It had raised the entrance
fee to USD 5 from July 1996 onward. Again, it has been raised to USD 10 effective from
January 2001 which has contributed in a several aspect in preserving the heritage sites.

Although, only 40% tourists landed in Nepal have found to pay visit Bhaktapur, the municipality
was able to raise the funds amounting USD 3.3 million for monument conservation and urban
environment improvement. Total amount collected till 2001 since municipality started to charge
tourist entry fee is USD 3.323,209.00 of which USD 1.798.230.00 has spent on the conservation
of the Cultural Heritage alone which is a milestone for sustainable tourism.

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Heritage Conservation and Urban Environment Activities

The Bhaktapur Municipality has given highest priority in heritage conservation and environment
improvement. Almost 70% of the Municipal development budget is chanalized towards the
conservation of the arts, culture and heritage along with cleanliness of the city.
In the past years, Bhaktapur Municipality has renovated, reconstructed or conserved 36 old
ponds, 38 well, 24 water spouts, 41 public inns, 37 temples and entire city core’s lanes, streets
and courtyards have been paved with traditional paving materials.

 No permission is given to pollution–prone industries such as carpet, dying, garments, saw

mills, beaten rich mills within the densely populated core city area. Previously
established such industries are also being relocated away from the core city.

 Heavy vehicles are completely banned to enter into old city core and all motor vehicles
are prohibited strictly in Durbar Square area.

 Locally published newspapers Shramik weekly and Majdoor daily are continuously
publishing the importance of heritage.

 To encourage the traditional folk dance, prayers, and trusts, the Gaijatra festival has been
observed as a competitive event every year.

 8th September has been observed as solidarity day in accordance with the proclamation
of the Organization of World Heritage Cities (OWHC).

 The stone marker with inscription of the ‘world heritage’ has been installed and the old
traditional buildings, temples, in city have metal plates inscribed ‘World Heritage’.

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  With the sole purpose of conserving cultural heritage within the city, Municipality has
brought motto in operational usage with these words of commitments-“Creation of our
predecessors: our art and culture”.

During the last seven years (1993–2000) Bhaktapur Municipality had spent USD 864,000.00 for
city cleaning and USD 57,333.00 for information dissemination, USD 189,333.00 for managing
tourist service centers.
To meet ever-increasing demand for housing and for planned extension of the urban area, Libali
Land Development Project in 35 hectors of land have been implemented with support from
landowners and tenants. Thus USD 2,884,806.00 had been spent within the span of seven years
for cultural heritage management and urban environment improvement.

Municipality had allocated approximately 57% of its total development budget for conservation
and management of heritages in the fiscal year 2000/2001. With an aim to converge Bhaktapur
city into tourist’s destination, the Bhaktapur Festival was held in 1997 for the first time in Nepal.
It had paved the path for the year 1998’s “Visit Nepal Program”.

With a view to promote and present cultural heritage of Bhaktapur in the international arena, the
Municipality participated in the World Tourism Marts 1998 in London. Meanwhile, it would be
worthwhile to mention about the UNESCO Peace Price 1998 awarded to the Municipality in
recognition of the endeavors made toward the safeguarding of the cultural heritage. Municipality
has gained a standing membership of the “Organization of World Heritage Cities (OWHC).”

Study on the structural condition for conservation of the 55 Windowed Palace and national level
workshop and seminars were also held under the auspices of Bhaktapur Municipality. Beside
them, the skilful woodcarvers from Bhaktapur had been to Palpa, mid western Nepal, in order to
conserve the Tansen Temple.

Similarly, the male group of flute players had participated Nepal Era 1120 eve at Pokhara while
the female group at Hetauda in 2001. In connection with the safeguarding of the folk dances and
folk songs, series of programs have long been staged in the town in a competitive method.

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Among them is Bansuri (Flute) Competition, Recognition of the Artists, Gaijatra Festival and
Comic Competitions, etc. are worthy. Under the joint venture of the UNESCO and Bhaktapur
Municipality, a week long workshop on Cultural Heritage Management and Tourism was
organized in April 2000 participated by more than 20 experts and stakeholders the workshop
heralded by nine city experts paper presentation and discussions resolutely determined to work
closely hand in hand for the cause of Heritage Conservation and submit to the people at large.

In tune with the resolutions reached so far Municipality is undertaking a continued process to
impart training in languages (English and Japanese) along with culinary training to stakeholders.
Subsequently, group of males and females are under the carpentry-training course. It is expected
that it will help in transforming skills in woodcraft to the younger generation.

Workshop participants might have idea of how big Bhaktapur is encompassed by the Heritage
conservation. As decided by the GoN, the Durbar Square, the Taumadhi Square, the Dattatraya
Square and the houses between the streets leading to and from Taumadhi to Dattatraya square are
protected monument zone for safeguarding the heritage site.

In spite of this, the Municipality has ventured to undertake a decision to encompass the core city
as indicted by mediaeval city wall structure.

Tourist Facilities in Bhaktapur

Nepalese have the culture of considering visitors as Gods and treating them likewise. The basic
requirements of tourism industry like attraction, transportation, accommodation and other
facilities are properly maintained in Bhaktapur.

Some of the facilities that tourists enjoy in Bhaktapur are: Guide facilities of various languages,
comfortable access/transportation to from Bhaktapur, basic facilities like parking, toilets
information, etc., standard accommodation, travel related facilities and communication, tourist
information and service center providing services like (Hotel booking, trekking information).

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Mountain bike hire, taxi/car service, Long-route bus services, mountain flights, balloon sunrise
bookings, rafting, airline ticketing, etc.), are also available in the city. New tourism products
(product diversification), promotion of new tourism activities, night/evening tourism, traditional
ritual dances and festivals, medieval music of various typical instruments are the main service.

Foster Private Sector and Community Investment

One of the keys for tourism development in Bhaktapur is to create right business environment in
stimulating the involvement of private sector and local communities in prospective investments
for tourism. There are many chances for commercial ventures using Newari entrepreneurship.
Lying within Kathmandu Valley, Bhaktapur relatively has the ultimate benefit of easily available
human resources, better infrastructure, services and facilities and educated people.

It is recommended that Bhaktapur Municipality aspire to be a catalyst or instigator, creating a

healthy environment for local businesses to flourish. These might range form small-scale shops
and cafes, to the more ambitious restaurants and privately run tourist enterprises. For example,
various programs organized on different occasions like cultural heritage shows, food carnivals,
and typical musical concerts, etc. can also be run by private sectors and community investments.

Standardization of restaurants and other tourist consuming products have been called by the
Bhaktapur Municipality and Bhaktapur Tourism Development Committee (BTDC), and will
assist private entrepreneurs. BTDC could also help Nepal Tourism Board (NTB) in upgrading,
regulating and monitoring the general standards of tourism products in Bhaktapur in an attempt
to overcome the damaging reputation of poor hygiene and sanitation.

Impact of Tourism in Society

Cultural and Heritage Impact

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Our cultural heritage has a significant place in our society due to its “spiritual and cultural uses”
value. Therefore, the conservation of our heritage is imperative for our identity and continuity of
the culture and furthering its development in the future. The urban heritage conservation of
Bhaktapur includes not only the important monuments, but also the surroundings, courtyards and
squares, lane and streets and its skyline and townscape as well. Municipality spends almost half
of the total fund generated from the tourists’ service fees on keeping the city clean and in the
improvement of urban infrastructure.
The remaining fund is being used for the heritage conservation and management. Sustainable
development of Bhaktapur emphasizes that “the improvement of the living areas and their
surroundings with the efficient management of garbage and waste disposal, sanitation and water
supply” for a healthy living, working and recreation activities within the Municipality.

The Environmental Improvement Projects are being implemented in the historic city with respect
to richness of art and architecture and the functional values of the heritage by providing technical
and financial help to the heritage house owner for maintenance and up-keeping of the heritage
house intact. The Municipality also emphasizes in the improvement of the ecosystem by cleaning
river, improving Ghats and by greening public open spaces wherever possible.

Social Impact

Bhaktapur Municipality believes that the management of its urban heritage and resource
mobilization has to be taken up in partnership with the user’s group, government agencies,
I/NGOs, Heritage Society and the people engaged in the tourism industry. Success of the
conservation efforts through sustainability depends upon the awareness among the people and
the central government levels. Appropriate government policies and investment for sustainable
planning and the conservation work are also needed.

Bhaktapur realizes the widely accepted view that the benefits from tourism should be invested in
the conservation and management of the heritage. Its plan, programs and actions of past decades
clearly demonstrate that the revitalization of the old city core area is possible only with the
cooperation from visitors, its citizens and investment in heritage conservation.

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Economic Impact

In Bhaktapur, there are 172 temples, monasteries, and mosques. Likewise, Bhaktapur has 172
parts (public shelters), 27 sattals (public inns), 19 maths (priest houses), 152 wells, 34 ponds and
77 sunken stone waterspouts.

It is Nepal’s cultural capital, in which, diverse cultural events, festivals and traditions are found.
Tourists visit Bhaktapur to enjoy this unique architecture and cultural events. The tourist number
visiting Bhaktapur ranges from 500-600 daily.

Municipality’s record also shows that as many as 1200 visitors had visited the city during tourist
peak season. Average growth in tourist arrival is around 15%. In year 2000, more than 2, 00,000
tourists visited Bhaktapur to see its architectural monuments, festivals, culture and lifestyles.

Thus, the ever-increasing flow of tourist possesses economic potentiality as well as threat to the
cultural heritage, which in principle reflects the history of the socio-economic development of
the society. The economic developments are rapidly taking place and the impact on the heritage
is visible. It is very essential to timely address the negative socio-cultural impacts in the city.

It has also brought changes in the cultural landscape with the introduction of modern technology
in communication (cable TV, disc antennas) and concrete structures in old city core areas, either
destroying the old heritage house or dwarfing it altogether on the cultural landscape.

Product Development Activities

Priority Amenities for Tourism

Neat environment

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There is no question that a clean city environment and effective solid waste management will
contribute greatly to making Bhaktapur a more attractive destination than ever. The government
and the people together must remain absolutely sanitation conscious that is a part of civilization.
Though Bhaktapur is the cleanest city in the Kathmandu valley, still control in the pollution is
definitely required. Pedestrianization to the Bhaktapur Durbar Square is a priority to achieve an
atmosphere conducive to the visitor appeal in a world heritage site. Involving community in
these activities is more likely to ensure sustainability.

Basic Amenities

Basic tourism amenities as toilets, telephones, information and paving are being implemented
under Municipality’s ‘Conservation and Facilitating Program’. Similar programs can be
developed for all parts of the city. It is highly desirable that any new buildings in the historic city
area blend in with the existing structures. The toilet maintenance is most likely to be successful if
the commercially sustainable and the community manage with responsibility. Pay toilets are also
quite suggestible to improve the foreigners for their kind of innocent habit to the rest room and
lavatory back home. Planned tourism information manuals and maps should be carefully sited
and designed so as not to further contribute to any “urban clutter”.

Create an Evening Destination

A key attraction to increase the length and quality of visitation would be the establishment of the
historic city of Bhaktapur as an evening destination. BTDC is very well placed to achieve this
and plans are already underway. The Municipality is exploring proposals to improve the street
lighting. The four squares have already been floodlighted.

Local Guides and Improvements

It is recommended that all guide trainings in solid conjunction with a comprehensive guide
manual be linked with the heritage walks in order to maximize the chances of their success,

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ensure the same interpretation story is disseminated and to focus guides in a direction that will
achieve certain objectives like:

 To involve the community into the increased tourism benefits by organizing a cadre of
special category local guides for Bhaktapur Chapter based in the NTB Site Office and
training conducted by NATHM for two weeks.

 Organizing Tourist Escorts for Bhaktapur Chapter based in the NTB Site Office by
TURGAN for one week could benefit more residents.
 To establish Heritage Walks by offering a two-day refresher course by Nepal Heritage
Society for licensed tourist guides and journalists to familiarize them with heritage walk
routes and to attract the media coverage.

 To improve visitor experience by offering better interpretation of the Durbar Square Area
and heritage walk routes.

With main objective to control the wrong practices, irresponsible activities and uncontrolled
services being practiced by the unauthorized local guides, Bhaktapur Tourism Development
Committee and Bhaktapur Municipality in joint venture, conducted “Bhaktapur Area Local
Guide Training” from May 14-29, 2002.

Cultural Heritage Conservation and Tourism

At the moment, the cultural heritage has become the center of attraction. Generally, five to six
hundred tourists visit the city. They vividly observe life style, cultural events and festivals along
with seasonal melodies and lively drama played by the local people. Municipality has not been
succeeded in attracting by Nepal Television, Radio Nepal and the government owned mass
media toward direction. However, municipality is on the verge of imparting knowledge, skill and
behavioral attitude to the emerging generation from now on.

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Some newspapers like Majdoor, Simrik and municipal’s monthly magazine has been putting
emphasis on heritage conservation along with diversified articles from all over the globe.

The people’s representatives are also indulging in the task of making people aware of the facts
leading to heritage conservation. The Municipality has made a conscious effort to preserve its
temples and unique environs. Besides the reconstruction work, which was undertaken in the
1970s, the Municipality has launched an ambitious campaign for the purpose. Other steps have
also been taken. For instance, Municipality has banned on any type of vehicle in and around 55
Windowed Palace, the Durbar Square and heavy means of transportation all around the core city.
Bhaktapur, therefore, is the least polluted city in the valley.
GON has made a policy declaration with regard to make official announcement on the Cultural
City to Bhaktapur through the ninth five-year plan document. In tune with the applied principle,
the local governance act, 1999 and the by laws, has promulgated clauses and regulations for the
same. There should be no debate on announcing Bhaktapur as the cultural city.

Hence, to enhance promotional tasks on the conservation of cultural heritage-embracing a wide

spectrum of life tangible heritage like Maths, Temples, Taverns, Inns, Rest Houses, Bihars and
Bahis (Buddhist Shrine), Water Spouts, Ponds and intangible cultural heritage like festivals,
songs and melodies, Dafas (Community Songs), Bhajan (Community Prayers), etc.

For this, Municipality may work with the Ministry of Culture, Tourism and Civil Aviation along
with the Department of Archaeology. And, ultimately the inhabitants of Bhaktapur in all the
good sense, must be mobilized and motivation for it.

Large number of Maths, Taverns, Inns, Buildings and other properties under the management of
the Guthi Sansthan, are being misused either by individuals and controlled or rented out at a
nominal rent for contemporary use-Jangam sattal (Taverns) at Tachapal, Café at Taumadhi, plot
of land in the north Nyatapola (Five Storied Temple) are glaring examples of it.

Foster New Plans

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Fostering new products, especially attractions that involve revenue opportunities for the local
community appeals to target markets and reinforce the cultural heritage image may include:

 Fostering bicycling tours around Municipality area using dedicated biking routes.

 Promoting heritage biking routes would serve to further spread of tourism opportunities
and draw awareness throughout the city.

 All the world heritage sites should be given priority for any further tourism development
as they already lure strong visitor flows.
 The tourism potential needs to be assessed of new conservation areas proposed “as areas
shouldering special architectural or historical interest which Municipality wishes to
preserve and enhance.”

 Improving local lifestyles and promoting opportunities for Bhaktapur residents spending
their life in their native town.

 Fostering culture shows and typical musical concerts occasionally.

 Establishing the standard accommodation facilities so that business and first class tourists
can spend overnights in Bhaktapur.

 List of implemented urban fabric conservation and development projects (monuments

and building conservation related projects).

Marketing Activities

Establish Market Image

 A separate transparent fund being used for the Service Charge.

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  Daily cleaning activities, beautification and solid waste improvements in the core city
areas and beyond as well.
 Pedestrianization plans.
 Developing new tourism products in the historic city.
 Stone paving task in different parts of the city.
 Restoration of important buildings with examples such as water waterspouts
 Fostering the imminent re-use of historic buildings.
 Frequent training and organizing of the local guides as “World Heritage Site Volunteers”
to provide an added value for the alien visitors increase an awareness of historic sites and
bring direct tourism benefits to the community.
 Improve interpretation materials and displays.
Published Materials

From the tourism perspective, the priorities are likely to be as follow:

 A series of high quality posters could send the message to the stakeholders. If beautiful
enough, these can be used as revenue generating sales items. Black and white posters can
be traced effective if well designed and are much cheaper than the color ones.
 A guide training should most focus on establishing the heritage walks tourism products.
 Hanging in the Internet gives more thresh of enchantment in the tourism perspective.

Support NTB promotional Activities

It is recommended that there are opportunities to support NTB and other promotional activities
belonging to the private sector. These might include:

 Provide detailed information about the time and location of traditional festivals, cultural
events, music recitals and local happenings within Bhaktapur Municipality.
 Encourage agents for familiarization trips.
 Convince visiting media programs.

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  Joint marketing and advertising of special events on the waiting list.
 Support subsequent production of suitable notion-pictures including documentary and
feature films, especially those tat nurse the market image in target markets.
 Support the imminent promotion of destination videos and audio-visuals.
 Encourage the publication of art books, guidebooks, novels and CD ROMs stressed on
Bhaktapur, especially those that support the market image.
 Help with the collection of a high quality photographic library and review-room.
 Foster close links with the tourism industry Internets, websites, WebPages, homepages
and other electronic sales tools.
 Help encourage international meetings, conventions, forums, symposiums, carnivals,
conferences, incentives and exhibitions in Bhaktapur.
 Develop the NTB product initiatives in the Bhaktapur area.
Conservation and Tourism Awareness

Conservation and tourism awareness objectives have been woven into product development and
marketing strategies. They are crucial to establishing linkages between tourism and conservation
with the resident communities so existing.

Municipality and Peoples’ Participation

Bhaktapur Municipality is launching her overall programs through active people’s participation
and strictly under the ethics of transparency. All participants might know the completion of the
conservation of the Bhairav Nath temple at the expense of Rs. 29, 18,189.38. The estimated cost
of which was Rs 78,09,156. The conservation work of five-storied temple was accomplished at
an expense of Rs 17, 27,423 against the estimated cost Rs 38, 01,364. The conservation of the
Siddha Pokhari was accomplished at Rs. 22, 78,462 against the estimated cost Rs 35, 45,616.
The long-term and sustainable conservation cannot be achieved with too much dependency on
others as our predecessors on their own erected all monuments. It does not mean to reject
cooperation from global human community for the World Heritage Conservation Participation
and involvement of the people can be achieved through maintenance of transparency in
conservation. This is what municipality has learnt through practical experience. All projects

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under Bhaktapur are being implemented through the people’s users committees and not through
contractors. Berlin based Transparency International has made Bhaktapur Municipality an
“Island of Integrity” having evaluated its overall tasks.

In the long run, it is far more essential to bring entire Kathmandu valley into the fold of a
conservation master plan for a judicious Heritage Conservation and Tourism Promotion. It has
also become a live necessity to all those environmentally unfriendly and polluting factories such
as carpet, garment, textile and dying industries in order to preserve the precarious natural and
cultural resources. These factories and industries are required to be relocated out Kathmandu
valley economic decentralization. And, for pollution free Kathmandu Valley’s Heritage
Conservation and Tourism Promotion; strict enforcement of the existing laws and control over
haphazard mushroom growth is the must.
Challenges Ahead

In spite of willingness to conserve the heritage, people are suffering from the scarcity and
soaring cost of the construction materials like timber, tiles for roof, typical brick called Dachi
Apa as well as ornamental carved bricks with floral designs.

GON had made a decision in 1999 in favor of help to conserve the individually owned private
houses with archaeological values. In absence of the implementation of the decision, on the
contrary, made the people faced much with problem.

In realization of the problems faced by the people the municipality has reached a decisive point
to give leverage through extension of cooperation in terms of bearing 100 percent of the total
cost on Dachi Apa, roof tiles and 75% of total cost on timbers required for standard windows,
doors and roof to the house owners of architectural values. Some major challenges ahead for the
Municipality are as follows.

 Need to support the house owner financially and technically.

 Need to produce good quality traditional materials to make traditional building material
easily available at affordable price.

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  Need to reduce the imposition of cement concrete structure.
 Need of waste product management and cleaning of river surrounding the city along with
the appropriate management of sewerage and treatment plant.
 Traditional building materials such as various kinds of brick Dachi Apa, tile, timber, etc.
should be easily and economically available according to regulations.
 The importance of heritage must be publicized regularly in electronic and paper media
such as TV, radio, and national magazines and newspapers.
 Bhaktapur city must be proclaimed as ‘A Cultural City’.

Study Tours and Further Trainings

National and International Opportunities

There could be training opportunities through Bhaktapur Tourism Development Committee and
Municipality to enhance the potential capacity of culture, heritage and tourism development in
Bhaktapur. These could be both national and international and could include capacity building
for tourism, “training of the trainers”, museum interpretation and displays, and study tours to
neighboring destinations as Thailand, China, Japan that possess partner agencies.

The BTDC is conducting village tourism training in the near future whereas it had successfully
conducted a 15 days training on “Bhaktapur Area Local Guide” in joint venture with the
Municipality that proved successful in developing local guides.

An effort from Local Government Municipality has been attending maximum efforts to improve
tourism. 14 counters are established for the tourist entrance. Main counter is located in front of
the Durbar Square. Municipality has managed all counters and information center.

Bhaktapur is aimed to be the cultural city so non-Nepali television cable networks are strictly
prohibited throughout the Municipality so that it would preserve from the cultural encroachment.

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To introduce new generation of Bhaktapur with the traditional architecture, Municipality has
established Khowpa Engineering College by own effort.

The college is providing technical and behavioral education for native students. Municipality has
provided training on heritage education for school children, community people and local
entrepreneurs. About 400 foreign tourists visit Bhaktapur daily and the necessity of skilled
manpower is realized.

Several local people are facilitated with tourist guide training. Peaceful parking facilities are
available around the city. No vehicles are allowed to enter within the Durbar Square, which has
helped to keep fresh and clean environment.
Municipal council meeting decided the following policies and programs obtained for the current
fiscal year: Formulation of building by laws and enforces the whole inhabitants to construct
traditional houses. It is being compulsion to use traditional bricks while constructing houses.

Municipal government has adopted the program of great renovation of ancient city structure. To
maintain the city's shape of medieval malla period, It is performing the renovations of Temples,
monuments, public shelter, ponds, 55-window palace, Taleju Bhawani, Nawadurga and so on.

Arniko conference hall is located within the Durbar Square and Municipality has proposed to be
replaced outside the core areas. Local people should be updated for the interpersonal skills with
foreigners. Municipality has adopted program of foreign language training to make easy
communication with tourist throughout the city.

Message to Other Cities

The municipality is earning about 80 million rupees every year from the tourism. A lot of
renovations held by the municipality are performed only through the internal sources. Sanitation
system of the municipality is another important example to other cities. Streets and chowk are
maintained always clean by the Municipal efforts. Such goodwill discussed in the previous steps
of the Municipality are mentioned as follows:

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Self- sufficiency
 Preservation of traditional lifestyle
 Heritage education to school children and community people
 Good Sanitation system
 Protected city
 Commitment from the decision makers
 It is now developed as one of the clean city of Asia and Pacific region. UNESCO has
announced the Peace Prize for 1998/99 to the Municipality.

CHAPTER-V
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Tourism industry plays an inevitably important role in Nepalese economy. The existing market
situation and the prevailing passive economic activities after the drastic fall in foreign visitors to
Nepal due to national and international political causes have proved the fact to its maxim. In
Bhaktapur itself, tourism is the next major economic source after agriculture. Bhaktapur
Municipality depends on tourism for almost 60% of its direct financial sources (tourist service
fee). Thus, it is beyond doubt that for overall development of the district, tourism is important.

With the beginning of official-modern tourism in Nepal four decades back, tourism activities in
Bhaktapur also gained momentum as ”Cultural Tourism" destination. Abundance of historic,
artistic and uniquely architecture, monuments; cultural riches, festivals, dances, music, art, life
style within Bhaktapur city, and beyond has attracted millions of tourists since then. Likewise,
"Changu Narayan" one of the oldest existing monuments of Nepalese history, has established
itself as another popular destination for "Cultural Tourists".

Being situated towards the eastern side of Kathmandu valley, Bhaktapur is surrounded by green
mountains almost around its three sides. Fresh mountain air, clean and natural environment,
green fields and beautiful views of the mountain range, life style of the villages, innumerable
wilderness of flora and fauna are main attractions of most of the villages around Bhaktapur.

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Breathe taking views of the northern and Northeastern mountain range including Mt. Everest,
romantic sun rise and sun set, exciting nearby village walks and beautiful and fresh mountain
environment in Nagarkot has established itself as one of the most popular destinations among
eco-tourists and village-tourists alike. It is an established tourist sight where all kinds of tourist
facilities are available.

Within the Bhaktapur side of Nagarkot area (about 20% of the main area) alone there are over 7
good hotels with over 110 bed capacity and many restaurants with the capacity of over 400 pax.
Apart from these, small and medium sized hotels/restaurants are scattered in Bhaktapur.

Though there are profound potential of tourism promotion in almost every VDC in Bhaktapur,
most of the tourism activities are concentrated within the core city area of Bhaktapur. Almost
70% tourist oriented guesthouses and restaurant facilities are based in this area. There are 23
guesthouses with 170 bed capacities, 18 restaurants, 350 gift shops and service establishments
and many temporary gift shops directly involving a large number of local populace.
Development of tourism has helped to create market for local handicrafts and gift items.

With the local traditional craft and craftsmen are getting opportunities to preserve and promote
their ancient skills that have been handed down from generation to generations. Official data on
total tourist arrival, in Bhaktapur district, their length of stay and the average spending are not
available, but according to data available with the Bhaktapur Municipality, 141312 tourists from
third country entered Bhaktapur Municipality in 2057-2058, which is about 40% of the total
tourist arrival of Nepal the same year.

According to Nepal Tourism Board, 60% of the tourists coming to Nepal come for pleasure or as
cultural tourists, 20% are trekkers and mountaineers, 5% are business travelers, 5% are official
visitors and 10% visit with other purposes. Hence, it is evident that there still is an immense
possibility of tourism development in the city and if we plan properly we can expect over 90% of
the tourists visiting Nepal to come over to Bhaktapur, stay longer and spend more.

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Municipality has been doing a lot in preserving historic monuments and cultural heritage. It has
changed from the filthiest city in the valley to the cleanest city today. Still there are more
things to be done for promoting tourism in Bhaktapur. To exploit the tourism potentials of
the district to the fullest for economic upliftmen of its inhabitants, following measures are
to be considered:

The quality man-power, security, comfortable and pleasant, access basic facilities (like parking,
toilet and general information on do's and don’t dos, standard accommodation,
communication facilities, new tourism products, night (evening) tourism programs
(packages).

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