Nepal sees rise in locally-led tourism, says Community Homestay Network

Demand for community-based tourism is rising in Nepal, as the country enters a potential new phase of political and tourism development, according to a new report from Community Homestay Network.

Balendra Shah, known as “Balen,” leader of the Rastriya Swatantra Party (RSP), is on the brink of becoming Nepal’s youngest prime minister following recent election results.

Shah, the former mayor of Kathmandu and a one-time rapper on the NepHop music scene, has identified tourism as a priority in his party’s manifesto. 

The RSP is expected to secure a historic number of seats in parliament.

Community Homestay Network released its 2025 annual report this week, highlighting the growth of community tourism and its impact on local communities.

Since launching in 2018, the organization says it has positively impacted 1,945 lives (+170 per cent), including 865 women (+381 per cent).

In 2025, the network worked with 51 communities and 408 households, benefiting around 2,000 people through homestays and locally led tourism experiences.

Founder Shiva Dhakal said the election outcome could support further investment in responsible tourism.

“Balen’s nurturing of culture and heritage, and focus on visitor experience as Mayor of Kathmandu, combined with his strong social impact stance as expressed through his career in music, strongly align with our mission and values at Community Homestay Network," he says.

“Our annual report is a timely demonstration of how community tourism empowers women, preserves culture, and spreads wealth to lesser-known parts of the country. This election result gives us hope that our trajectory of lifting up local people and inspiring them to become tourism entrepreneurs will continue."

Dhakal added, "the RSP’s manifesto is clear in its commitment to increasing visitor numbers, and improving aviation connectivity and tourism infrastructure. With the government leaning toward promoting rural tourism, such as the regions Community Homestay Network has been actively working to open up to the tourism supply chain, we see a positive outlook for creating job opportunities, safeguarding local culture, and boosting entrepreneurship at the rural level.

The report also notes growing interest in immersive, locally led travel experiences, particularly in rural and lesser-visited regions of Nepal.

“It’s also exciting to see the RSP express its desire to strengthen Nepal’s cultural identity, particularly through gastronomy. Nepal has typically been marketed synonymously with mountains and hiking, which are obviously magnificent and important drivers of tourism, however there is so much more for travellers to see and do in terms of art, wellness, food, spiritually and culture," said Dhakal.

Community Homestay Network received several recognitions in 2025, including the Gender Equality Champion of the Year Award (Accommodation) and ICRT awards for local sourcing and shared value. 

Dhakal was also named a PATA Nepal Trailblazer Award recipient.

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