Nepal’s tourism growth threatened by labor shortage, says Hotel Association

KATHMANDU: The Hotel Association Nepal (HAN), in collaboration with the Government of Nepal and the ENSURE Project, successfully organized the HR Meet 2025 on Tuesday. The event, held in Kathmandu, brought together government representatives, hospitality professionals, vocational training experts, and private sector stakeholders to address the growing shortage of skilled manpower in Nepal’s tourism and hotel industry.

The HR Meet focused on the country’s rising number of star-rated hotels and increasing inflow of international tourists, particularly from India and China. Participants highlighted the growing challenges faced by the hospitality sector due to a lack of trained human resources, outdated curricula, regulatory gaps, and the pressure of foreign employment pulling away potential workers.

Speaking at the program, Hotel Association Nepal President Binayak Shah said it was a national concern that the country is facing a critical human resource shortage in the hospitality sector despite only one-third of the hotels being fully operational. He stated that the event was organized to raise attention to this problem and to discuss sustainable solutions for workforce development.

CTEVT Member Secretary Mahesh Bhattarai emphasized the need for timely and relevant updates to vocational curricula. He called on the private sector to collaborate in designing need-based and practical training modules to ensure effective manpower preparation.

Legal Advisor to HAN, Gandhi Pandit, gave a presentation on current laws, policies, and procedures related to the hospitality sector. He pointed out loopholes in existing frameworks that hinder workforce integration and smooth labor operations in hotels and restaurants. Meanwhile, ENSURE Project Team Leader Ravindra Bahadur Singh delivered a presentation on the importance of industrial trainees and the policy changes required to strengthen internship and apprenticeship programs.

The program highlighted that the current education-to-employment pipeline is failing to meet the demands of Nepal’s expanding tourism and hotel industry. They stressed the need for greater coordination between the government, educational institutions, and the private sector to produce job-ready graduates who can meet international service standards.

The program concluded with the decision to establish a Hospitality HR Club. This new body will be composed of HR managers working in the hospitality sector and will aim to address workforce challenges collectively. It will focus on capacity building, policy advocacy, and ensuring that workforce development aligns with industry demands.

With the hotel and tourism sector emerging as a strategic industry for Nepal’s economic future, participants at HR Meet 2025 agreed that urgent reforms are needed to fill the workforce gap. The program ended with a joint commitment from government agencies and private stakeholders to work together to strengthen Nepal’s human capital in hospitality, ensuring competitiveness and service excellence in the South Asian tourism market.