Meaning: Tourism is a process of traveling one place or a country to another place or country for entertainment, study, observe new place, culture, living activities. The traveler is called tourist and the business of occupation which provides different kinds of facilities such as hotel, lodge, rafting, trekking agent, guides and other related activities to the tourist is known as the tourism industry. Nepal has celebrated the ‘The tourism year 2011’ with a slogan of ‘Together for Tourism’.

Importance:
The tourism industry plays a crucial role in the economic development of Nepal. The tourism industry has been recognized as an important sector of the Nepalese economy. The existence of various natural beauties, cultural values and institutions, and other religious places attract foreign visitors in Nepal. It has a significant impact on the Nepalese economy. Role of the tourism industry in economic development can be explained as follows:

1. Source of foreign currency:
The tourism industry is regarded as one of the major sources of foreign currency earning. A tourist spends its money in the course of visiting Nepal. The more the travel of tourist, more the transactions of foreign currency increased and earns more money.

2. Increase in employment opportunity:
Tourism industry helps to generate the employment opportunities directly or indirectly to the people in different tourism-related activities such as in hotels, trekking, traveling, mountaineering business, etc.

3. Cultural exchange:
Tourism is an important medium of cultural exchange. Due to tourism development, people from different countries come to Nepal, which helps to exchange art and culture between Nepal and the rest of the old. It helps us to change the traditional concept and introduce modern thinking and others.

4. Development of the handicraft industry:
The development of the handicraft industry also depends on the development of the tourism industry. Tourists are interested to buy handicraft goods which represent Nepalese art and culture.

5. Development of backward areas:
Most of the tourist places are situated in rural areas. Transportation, communication, hotel lodge, etc. are essential factors for tourists. Thus, expansion and development of the tourism industry would help to develop backward areas because most of the tourist destinations are in remote areas.

6. Source of government revenue:
Tourism is also a source of government revenue; government earns income from tourism activities. Such as hotel and restaurant tax, bars tax, visa fee, airport tax, etc. This increases government revenue.

There are other important roles of the tourism industry such as a change in the living standard of people, increase in social facilities, promotion in trade and business, publicity of nation, etc.

Prospects of Tourism Industry
The tourism industry has been becoming one of the major sectors of the Nepalese economy. Due to specific religious, Cultural and natural diversity and hospitality of the people, there are huge possibilities of expansion of the tourism industry in Nepal. Some of the major prospects of Tourism industries are as follows:

1. Natural Beauty:
Nepal is a country full of Natural beauties like Mount Everest, interesting caves, rare animals, dense and green forest, waterfalls, lakes, etc. These heart-touching beauties have proved to be a natural blessing to Nepal. Their development and protection help to develop the tourism industries.

2. Historical and religious places:
There are some places of historical and religious importance. Nepal is a holy place for Hindus as well as Buddhists and so on. Pashupati temple, Krishna temple, Janaki temple, etc are Hindus temple. Nepal is also the birthplace of Gautam Buddha. And there are other religious and historical places where tourist wants to visit Nepal either for religious purpose of for study and research.

3. Cultural diversity:
Nepal is a multi-ethnic nation with over 60 different ethnic groups living in different parts of the country. It is a common garden of various caste and communities. Each caste and ethnic groups have their own language, culture, way of living, etc. This cultural diversity attracts the tourist to study and enjoys with them.

4. Wide range of Biodiversity:
Nepal is rich in biodiversity. In Nepal, there are various places, where different varieties of wild animals, plants are found. All these provide an additional attraction to tourists to visit Nepal.

5. Less expensive:
The cost of living in Nepal is very low in comparison to other countries. Therefore, it is a suitable place for tourist in different countries and different status and stays for a long duration at a very low cost.

6. Unique places for recreation:
There are various unique recreational places for enjoyment for tourist. Tourist always wants to visit such places.

There are other prospects of tourism industries such as ancient art and culture, suitable climate birthplaces of brave persons, mountainous country, etc.