Economic Impact of Tourism Industry Special Reference to Nepal & India

Tourism industry has potential contribution in economic development of a nation. Tourism industry quantitatively contributes of a country in terms of, foreign exchange earnings, employment generation and gross domestic product (GDP) as well it contributes to the nation by means of social and cultural exchanges. This research paper is concern with the contribution tourism industry in Nepalese and Indian economy. Tourism industry is the multiindustry and multi-product as well tourist demand is complementary and has to be met a number of goods and services, which are not only spatially disparate but also functionally different. Tourist products are highly perishable nature and bulk of tourist facilities has an in built inflexibility. This paper initially reviews the concert and using a model, it deals with the factors affecting the economic impacts associate with tourism. The economic impact is measured in terms of direct employment, foreign exchange earnings and GDPdue to the flow of total tourists’ arrival of tourists in different fiscal years by using simple linear regression model and correlation. Results reveal that there is positive economic impact of tourism industry in the both economies.