Theme: Protecting Cultural Values of Place Title: Sustainable rural tourism and local communities in Nepal Author(s): Jharna Joshi & Manoj Rajopadhyay Contact information: Mailing address: GPO Box 8975 EPC 1063 Kathmandu NEPAL Telephone: (977 1) 55 21 567 Fax: (977 1) 55 43 206 E-mail: jharnajoshi@gmail.com, manojdai@gmail.com Sustainable Rural Tourism and Local Communities in Nepal Rural tourism for conservation and development Tourism is defined as a business generated from people visiting places other than their locality of adobe for various reasons. It is a growing business that changes with time and trends and requires a wide range of services and expertise. Globalization, satellite television, and mass communications, especially the internet has made traditionally “foreign” objects familiar to regions that have no connection, yet people still travel miles over days for new experiences. The tourism market is constantly in search of new destinations and experiences to entice the ever changing tastes of its clients. However, it is not an environment friendly industry, but can be harvested with minimum infrastructure and investments. The preference of tourists over the years has changed with the political and economical changes in the world. With global warming on the top of the list of priority and concern of a growing number of countries, tourism is also moving towards environment friendly traveling. Pressed for time in their daily routines, travellers expect to relax on their travels, at the same time, seek new experiences, thrills, and activities, and are conscious of the social and environmental impacts of their activities and travels. The search for new experiences that also has social and environmental benefits to the local community has opened up opportunities for a number of countries and destinations that are rich in culture and nature, yet lack the resources and comforts of the developed worlds. Although Europe and North America still command the major chunk of the worldwide tourism business, new countries in Asia and Africa are giving travelers alternative experiences that also give them a sense of accomplishment of giving something back to the community and the planet. The demand for destinations that offer history, culture, nature, and new experiences has compelled the tourism market to look for supplies of alternative destinations, one of which is the emerging rural tourism market. On the other hand, aid agencies and development workers are also tapping into this market and initiating programs that puts tourism money into pro-poor and poverty alleviation projects. These projects are offering tourists new destinations and helping the locals protect and preserve their cultures and natural environments, in destinations that lack resources and opportunities for other high cost investments. Tourism development in Nepal Although tourism in Nepal has prospered since the hippies’ era in the 70s with Mt Everest a constant attraction, organized development and promotion started in the last decade with international interest and funding. Nepali people in general are hospitable and respect visitors as “gods” as they believe that “god” visits in different disguises, especially as travellers adds to its potential to develop tourism as a source of foreign exchange. Tourism as an industry to earn foreign currency and generate local employment is a viable solution to develop Nepal due to its location and geo-political situation. Rural tourism in Nepal has the potential to reach the grass root level of the society benefiting the poorest community through employment and use of local resources. It can be linked with sustainable community development, ultimately leading to the overall development of the country combining environmental protection with economic development targeted to improve the living conditions of the local population. Nepal offers a wide variety of natural and cultural experiences. Nepal is a country rising from 60 meters above sea level to the highest point on earth, Mt. Everest at 8848 meters, within a distance of 150 kms., resulting in sub-tropical to artic climate and subsequent biodiversity. Covering just 147,181 sq. km., Nepal is home to 2% of all the flowerings plants in the world, 8% of the world’s population of birds (more that 848 species), 4% of mammals, 11 of the world’s 15 families of butterflies (more that 500 species), 600 indigenous plant families, and 318 species of exotic orchids. In addition, more than 101 different ethnic groups with 90 spoken languages add an exciting cultural dimension to visitors. This diversity and the geographic setting of the country have provided vast potential in Nepal for rural tourism destinations. Although Nepal with its wide variety of biodiversity and culture is an attractive product for the rural tourism market, these very essence and identity of the villages are the most vulnerable to external forces in today global competition. The local communities must be aware of long term and short term benefits of harnessing their natural and cultural environment to the external factors. When there is a dearth of economic activities, short term gains are more attractive and perceived as guaranteed than the slow returns of long term gains. In this process and haste for short term benefits, there is a danger of losing the very essence and identity of the destination. Therefore, making the local community aware of the long term gain, albeit slow, is critical to the survival and success of a destination. This is more applicable to the tourism business that is fickle, trendy, and dependent on external factors and international political scenarios. Tourism as a tool for cultural and natural preservation in Nepal Tourism cannot survive on isolation and is a multi-disciplinary service that depends on many external factors, subsequently engulfing and benefiting a larger community. Tourism, if promoted carefully can provide economic gain and improvement of living condition to the entire community. Reciprocally, income generated through tourism has the potential to have a tickle-down effect providing benefits to the larger community. Ultimately, promotion of rural tourism not only protects the resources but also promotes the identity of the place and the people that are in danger due to globalization. The focus of tourism today on “sustainable tourism” that protects and benefits the local community and environment is dependent upon local products produced by and benefiting local communities. Products include tourist attraction sites, activities for tourists, services and facilities, as well as souvenirs. Promotion and publicity are equally important for a successful destination. Nepal Tourism Board is the state agency to promote Nepal in the national and international markets. Unstable political situation in Nepal has affected the work of NTB. NTB has also not considered the growing domestic travellers as tourists with the law of Nepal defining only foreign travellers as “tourists”. This has two major disadvantages: the domestic visitors are not counted by any statistics and there are no incentives for Nepali population to travel within the country. As a developing country, Nepal lacks resources for large scale investments and infrastructure works. The recent economic policies since the reinstatement of multi-party democracy has opened potentials foreign direct investments, however, the internal Maoists conflict in the past decade has deterred large scale investments. Nepal still has a long way to go before the complete democracy and stability is regained, an environment not alluring the investors. More than 70% of Nepal is covered by hills and high mountains that require large investments for infrastructure development. Sustainable rural tourism requires minimum costly infrastructure development and uses local resources for income generating activities. Additionally, rural tourism is based on the preservation and promotion of local resources that benefit the larger community. On the other hand, the low rate of literacy and education is a deterrent in introducing new elements in the rural communities. Awareness programs are needed to explain that sustainable rural tourism benefits the larger community beyond those directly involved in hotel and restaurant businesses. Hotels and restaurants employ local people generating employment and also purchase produce from the local markets. Additionally, visitors spend money on the purchase of local products and souvenirs that will subsequently increase employment and income prospects. Local culture, including architecture is still perceived as reminiscence of bygone era that is associated with backwardness and poverty. The recent internal conflict of the past 12 years has seen an exodus of young labour leaving for work aboard (especially the gulf region for work in dangerous conditions) that has created a void in the local communities. The returnees bring back their earnings, however the lack of investment opportunities result with new buildings in “modern” styles that are perceived to be “westernised” and associated with refined class distancing themselves from the backward and poor. Nepal has many villages and towns that can attract tourism however, many villages lack basic facilities for tourists. The national and international projects that have focussed on tourism as a tool for conservation and development at the grass root level started with the Annapurna Conservation Area Project. The second major project to target the preservation and development of rural communities through tourism is the Tourism for Rural Poverty Alleviation Programme followed by the Bandipur Eco-Cultural Tourism Project that focused on a sustainable approach to new destination promotion with the objective to conserve, develop, and promote a particular town. Annapurna Conservation Area Project (ACAP) Annapurna Conservation Area Project was the first and largest conservation area in Nepal that was launched in 1986 by National Trust for Nature Conservation (formerly known as the King Mahendra Trust for Nature Conservation) and covers the most popular trekking route, the Around Annapurna Trek. The objective of this project was to manage resources, supplemented by conservation, development and alternative energy programs to minimize the negative impacts of tourism and enhance the living standards of the local people. The Annapurna Region is rich in both biological and cultural diversity, which has made this the most popular tourist destination in Nepal since the first trekker came to this region in 1957 drawing 60% of the country’s total trekkers. The guiding principle of ACAP was to maximize people’s participation, sustainability, and its role as a catalyst or facilitator, where the local people are involved in all aspects of the conservation and development process, both as primary actors and beneficiaries. ACAP spreads out in 5 districts of the Western Development Region on Nepal and covers 55 Village Development Committees with seven field offices in Jomsom, Manang, Lho Manthank, Bhujung, Lwang, Sikles, and Ghandruk. The ultimate objective of NTNC is to see that ACA is managed by the local community with minimal intervention from the government or other institutions and has emphasized building the capacity of the local institutions to carry out and continue ACAP’s activities. Tourism for Rural Poverty Alleviation Programme (TRPAP) The next major project to focus on tourism as a tool to sustainable community development is the Tourism for Rural Poverty Alleviation Programme that was launched in September 2001 by the Government of Nepal – Ministry of Culture, Tourism and Civil Aviation (MoCTCA) with technical and financial support from United Nations Development Programme (UNDP)/ Nepal, Department for International Development (DFID)/ Nepal and Netherlands Development Organisation (SNV)/Nepal. The Programme aimed to contribute to the poverty alleviation objective of the government through sustainable tourism development that is pro-poor, pro-environment, pro-rural communities and pro-women, making the benefits of tourism reach grass-roots level in the specific program sites. The program was designed to be handed over to Nepal Tourism Board after its tenure, with the establishment of Sustainable Tourism Development Unit (STDU) in the Board. The program covered 48 Village Development Committees in 6 districts: Taplejung, Solukhumbu, Rasuwa, Chitwan, Rupandehi and Dolpa during its peak period. These districts were chosen based on the existing tourism development and its potential, and the extent to which significant elements of poverty and marginalized social groups were in need of support. The three main objectives of this project were: To demonstrate sustainable tourism development models for policy feedback To develop institutional mechanisms for the sustenance of tourism development in Nepal To support the government to review and formulate sustainable tourism development policies and strategies and integrate them with wider conservation objectives. By developing linkages with the rural populace, the program encourages and involves grassroots people in the decision making process, to help ensure that benefits from tourism can reach the rural poor. The focus of the program is always towards the disadvantaged stratum of rural people who live below the poverty line. The program has a very strong social agenda, and is aimed at getting multiple stakeholders (such as community interests, local government and the national tourism organization) to work together towards agreed common goals. The program has taken partnership approach at all levels for program planning and implementation as well as for program sustainability. Bandipur Eco-Cultural Tourism Project (BECTP) Bandipur Eco-Cultural Tourism Project was designed as a sustainable approach to new destination promotion and is supported by the Asia Urbs Programme that was launched by the European Commission in 1998 as an initiative in decentralised (city-to-city) cooperation, to bring together local governments from the European Union and Asia. The European partners of this project, Municipality of Hydra, Greece and Comune di Riomaggiore, Italy have proven experience in promoting and developing tourism for sustainable economic benefit that will be shared with Bandipur. This project in Bandipur is focused on the potentials of this town as a sustainable ecocultural destination, which will provide an impetus for other economic activities that can be easily replicated elsewhere. Located at a convenient distance from the three most popular tourist destinations in Nepal, Kathmandu, Pokhara, and Chitwan with other attractions at easy hiking distances, it is at an ideal location for a stopover with the potential to extend the length of stay of visitors to Nepal. The principal objective of this project is to build on the existing programmes and infrastructure of Bandipur to revitalize, protect, and promote this new destination in the domestic and international markets. Bandipur Bandipur lies in Tanahun District and the main centre is located at 3300 feet above sea level and is 140 kilometres from Kathmandu along the Prithvi Highway. Bandipur VDC covers approximately 45 square kilometres in area and includes 9 wards. The major economy of Bandipur VDC is based on agriculture and trade. Slate is widely available here and is a popular roofing material. Currently, orange farming is gaining popularity and is sold to dealers from Kathmandu and Pokhara. However, lack of a cold storage at a convenient distance compels the orange growers to sell their product at a cut-price, while the buyers enjoy a comfortable profit. Bandipur is a historic settlement and once thrived as a trade centre between the hills (Gorkha and beyond) and the Tarai (Chitwan) along the ancient India-Tibet trade route. It is a couple of hour’s pleasant hike from Dumre Bazaar, a busy present-day trading centre on the Prithvi highway that links Kathmandu to Pokhara and is also the drop off point to reach Besi Sahar, starting point of the popular Annapurna trekking route. The town is also accessible by a winding scenic road (8 kms. from Dumre) with vistas of mountains and the valley below. There are other smaller settlements at easy hiking distances such as Ramkot and Bahun Bhanjyang that can also be linked to Bandipur and developed together. Its location provides Bandipur with the potential of an alternative place to stay at a convenient distance between Kathmandu, Pokhara, and Chitwan. This town still retains its century’s old traditions and built environment even with its proximity to bigger cities, modern transportation, and enterprising population, which is a major attraction for the growing cultural tourism. Bandipur has a population of approximately 23,000 with about 5,000 living in the main centre of the town. Although Magars were the original settlers of Bandipur, at present Newars are the majority with Bahun, Chhettri, Gurung, Damai, Kami, Sarki, etc. making up a significant portion of the community. The different communities settled at different locations forming a close-knit community that gives this town its unique cultural identity. The Newars in Bandipur migrated from Bhaktapur and bought their rich culture, traditions, and architecture to this picturesque hilltop town that is still fairly intact. As a destination Bandipur needs certain qualities, facilities, and uniqueness to offer and be able to market itself. The essence of Bandipur lies in its proximity to the major tourist destinations in Nepal, its location on a ridge with temperate weather and rich culture and biodiversity, and other interesting sites such as the Siddha Cave, Ramkot, a Magar village, etc. in near vicinity. Siddha cave is reached after a 30 minute hike from Bimal Nagar, the small sleepy town on the Prithvi highway just before Dumre or 45 minutes downhill hike from Bandipur. This cave, probably the biggest in the Himalayas can be explored for more than an hour and has the potential to be a major attraction for Nepali visitors and adventure tourists that make a significant portion of foreign visitors to Nepal. However, the most unique aspect of Bandipur is its location on the hilltop, which acts as a natural view tower from where you get a panoramic view of the majestic mountains above 8000 metres including the Annapurna range and the lush green Marshyangdi valley (below 500 metres) in a single frame. Project rationale Located at a ridge with a picturesque town and abundant natural and cultural resources, Bandipur has high potentials for to be developed as an attractive destination. Its easy accessibility and existing infrastructure adds to this potential. On the other hand the location of Bandipur is also deterrent for other industrial investments with limited space for large scale expansions due to the hilly terrain. However, situated on an elevation of more than 1000 meters on the southern plains of the country, its weather and soil has the advantage of both the warmer conditions of the plains and cooler airs of the hill, resulting in a rich cultural and biological diversity. Despite the existence of basic infrastructure, Bandipur has not been able to benefit from the growing number of tourists visiting this region. There was a slight increase after the Bandipur Festival during the Visit Nepal Year 1998. But the lack of basic facilities such as accommodations and eateries as well as information is detriment to visitor experience and length of stay. There are potential businesses that have not been able to take advantage of the market even though some of the local residents are actively involved in the tourism sector in other regions. Tourism is one of the fastest growing industries in the world. Despite the recent decline in the number of tourists in many destinations, the World Tourism Organization predicts the number of international tourists rising up to one billion by the year 2010, with more than US$ 1,500 billion generated in revenue. As new destinations are created and tourism increases in mountain and hill settlements, the social and environmental impacts in these fragile regions will also increase. Responsible tourism has the potential to minimize the detrimental impacts and assist in a sustainable approach the local economy to revitalize the towns. Bandipur is already identified as a priority destination by the Nepal Tourism Board (NTB), which will potentially increase the number of visitors to this region. In order to maximise the positive impact of this increased opportunities and minimize the adverse effects on culture and environment of the villages that are its source of income and attraction, it is essential to familiarize the locals with awareness programmes that prepare them for the changes that the new interest will generate. At the same time, it is also equally significant to educate and inform the visitors on the culture and environment of these places to maximize visitor experience and quality. This project is taking a unique approach of protecting the natural and cultural environment of Bandipur through community efforts for the larger benefit of the local community. Protecting cultural values for economic improvement The principal objective of this project is to build on the existing programmes and infrastructure of Bandipur to develop it as a sustainable eco-cultural tourism centre with a network of similar hill towns to revitalize, protect, and promote their cultural and natural resources with programmes that have replication values. This project has four main targets: 1. To develop and promote Bandipur as a tourist destination with links to neighbouring similar settlements: 2. To enhance, upgrade, and conserve the built and natural environment of Bandipur: 3. To support local enterprises and revitalize economic activities: 4. Promote this network of settlements in Asia Urbs partner countries in Asia and Europe In order to fulfil its objectives of the project was divided into 3 major activities: 1. Infrastructure development Although the focus of this project was on soft infrastructure development such as raising awareness, capacity building, promotion and publications in order to make the local community capable of continuing the project activities, physical construction is necessary to build up confidence and sense of belonging of the project in the community. However, the project focussed on conservation and economic activities in its tourism related infrastructure development works. With the increase in the volume of visitors to Bandipur, the demand for accommodations and eateries are bound to create pressure on the existing infrastructure. In order to prevent the loss of traditional buildings that give identity to this hilltop town, encourage restoration and adaptive reuse of houses, and prevent large scale unsympathetic developments invading this unique town, the project restored a number of buildings as demonstration projects to use as visitor centres and guesthouses. Local youth were provided training on restoration techniques theoretically and on site providing work during the project duration and building up their self employment capacities. The restoration projects also involved the house owners, especially on the guesthouse projects to ensure continued maintenance and management of the guesthouse that included hospitality trainings as well. The preference of visitors for traditional houses for accommodations, including home stays and the demonstration projects has added value to these architectural resources that were earlier seen as high maintenance and expensive in comparison to new concrete structures. In the process of restoring the various buildings, the project also revived traditional building techniques that had almost died due to the easy availability of new and easy to use materials and technologies. The project also repaired and restored other tourist sites that are also frequently used by the locals, such as the historic parade ground, Tundikhel, that is also a popular picnic spot for domestic day visitors from nearby towns. In additional, towards the end of the project duration, the project managed to repave the main bazaar area that had been destroyed by various excavation works. The paving had been a contentious issue with the local community divided between those who wanted to stop vehicular movement in the main bazaar (approximately 850 feet in length with a total of 18,000 square feet in area) and those who opposed it citing various reasons, including the raise in labour charges and ultimately products, and necessity of emergency services. The project had made a point in highlighting the restrictions on vehicular access (and ensuing pollution) as one of the major reasons for the success of the European partner cities, Hydra and Riomaggiore, in attracting millions of visitors annually. This point was further driven during the various visits by the delegates of the partner cities. The approach of the project in this paving work was on the condition of local contribution to ensure future maintenance and care. The project provided the stones similar to the ones found in Bandipur and the local contributed the remaining materials and labour that has heightened the sense of ownership to this paving reassuring the project that maintenance will be contributed since each household paid the amount needed for the space that was calculated according to the length of the façade of each house and its distance from the centre of the street. This approach has been highly successful with those initially opposing the paving taking care of the space they paid for and the challenging issue resolving itself with consensus to make the bazaar vehicle free. This paving has initiated further activities with the provision of parking areas at the entrance of the bazaar and cafes and restaurants opening up taking advantage of the new open space. More activities are expected to materialize providing economic opportunities and employments. However, there is a danger of over-exploitation of this small town in a short span in the near future resulting in the destruction of the very essence that made this town a popular destination. Another possibility is that most investments will be made by outsiders segregating the locals in the development process, an issue that was addressed by the project in this capacity building activities. 2. Human resources and capacity building The long term objective of the project is to encourage the local communities to involve themselves and actively participate in the decision-making process concerning the development of their region and set am example that can be replicated in other parts of the country. Several trainings, workshops, and awareness programmes were held that included all sections of society, including the women and children to encourage their participation in the project activities. The trainings and awareness programmes focussed on three main topics, natural and cultural heritage conservation, environment, and tourism. At the end of the project duration the local community has the responsibility to maintain and manage the visitors to extend the life cycle of Bandipur as a destination with new products and attractions. The trainings provided by the project aimed to build up the local capacity to manage the visitor centre, visitors, and services related to tourism and included study tours to Ghandruk, a popular trekking destination on the ACAP area managed by the local community. A committee comprising of locals will be established that will work with the local authority and be responsible for the overall tourism development and management of the larger Bandipur region and coordinate with regional, national, and international agencies. The construction works were carried out by local user groups under the technical supervision of the project. The user groups were responsible for the overall implementation, including allocation of funds and actively participating in the decisionmaking process. This approach provided trainings to the user group members on small project management and resource mobilization. The trainings on masonry, carpentry, electricity, and plumbing, including rain water harvesting has produced local manpower and created self employment opportunities. The local guide trainings provided employment for the local youth and better services for the visitors. The small hotel and restaurant management training enabled the local businesses to provide better services and expand, while encouraging new businesses to open up. These training emphasized on the significance of cultural heritage and environment and their preservation. Studies were carried out on the local fauna, flora especially the rare orchids (23 varieties were found), culture, architecture, and social structures that enhanced the trainings and will also be useful resource for further research. The third focus of training was on environment and heritage conservation to raise awareness of the local community. The training provided for the schoolchildren focussed raising awareness and encouraging their participation and responsibilities through ecoclubs established at their schools. The trainings provided for the women emphasized on recycling and reusing waste that provided economic returns, such as composting, making souvenirs from plastic, etc. 3. Tourism promotion and publications This project is taking a unique approach in developing tourism activities by promoting Bandipur as a new destination in domestic and international markets. Although destination promotion is the foundation of tourism marketing, Nepal has not been able promote its many destinations in the international market. With its limited resources NTB only markets Nepal as a single destination and it is left to the travel agencies to introduce the destinations in Nepal through tour packages. NTB has also not targeted the domestic market actively, which is on the rise in Nepal as road and air transportation facilities increase. With the assistance of the European partners and the EU funding, this project is able to introduce Bandipur as a new destination in Nepal and internationally by means of several media. The promotion of Bandipur through the most prevalent media of our times, the website, <www.bandipurtourism.com> has been very effective to disseminate information and market the destination worldwide. For the local market the slogan “One Stop in Bandipur” through brochures, posters, and especially through the advertisement boards at key location in several parts of the country has been widely noticed. The target group for this marketing strategy is the growing domestic tourism market. Its convenient location from Kathmandu, Pokhara and Chitwan makes it an ideal place for a lunch stopover or overnight halt has the potential to attract the domestic visitors and long stay visitors to Nepal. This project participated in various travel trade promotional fairs in Nepal and in other Asian and European cities to promote Bandipur and expand its network in these countries. Regular interactive programmes were held with travel agencies and several familiarization trips organized targeting different groups in the initial promotional campaign. Although the impact of this promotion in the domestic markets is already visible, Bandipur will be able to reap the benefits of the international promotion in the long run, depending on the overall international tourism trends and the political developments in the country. The project is also participating in international conferences on travel and tourism, increasing the interest of academics and related industries, entrepreneurs and students in this town, which will help to expand the network of Bandipur and also ensure long term promotion of the site with research potentials on the success of this modality to be replicated elsewhere. Other towns with the potential for eco-tourism will also be able to benefit from the subsequent research works. Several promotional materials were published that will be a valuable resource for Bandipur such as brochures in different languages (Nepali, English, Greek, Italian, French, German, and Japanese). Postcards, bookmarks, promotional documentary (on DVD), key rings, and t-shirts are just a few examples of the range of souvenirs published that will serve as an income generating resource. The research that went into the production of these materials, such as 35 hours of digital footage for the documentary will be invaluable for future studies. Impacts of tourism and the project on the local economy and community The success of responsible tourism depends on the sustainable benefits to the local community and the economy and their active participation in the process. This project has been able to include the majority of the population in its various activities. The project is being coordinated through a local Sub-Committee and implemented by local User Groups formed for specific activities. Existing User Groups are also used where they already exist. This methodology has been able to include representation from the majority of the population providing the “sense of ownership” of the work to the local community. The project kicked off with a Tourism Strategy Workshop in Bandipur with the participation of representatives from the European partners, local consultants, project team and representatives from the larger Bandipur area. This workshop was able to identify the needs and potentials of Bandipur as well as identify the resources required. This workshop was the key in setting the platform for the implementation of project activities and a first of its kind in Nepal, where local, national, and international experts involved the local community to participate actively in the local development process. The implementation of the physical construction activities has provided employment for the locals more than a year. In addition, their involvement through the process has ensured their participation through the “decision making” process ensuring that the project works addressed the local needs. The work was supervised by the technical staff of the project in consultation with the international consultants providing the locals with invaluable trainings in the process. The various promotional activities such as the advertising boards placed in key locations in the major cities, Kathmandu, Pokhara and Narayanghat and the participation at the domestic and international exhibitions has increased the number of local and international visitors to Bandipur. The recent political change with the peace agreement signed by both the insurgents and the government has also created a favourable environment for travelling within Nepal. There is an increase in day and overnight visitors to Bandipur, which has generated an increase in economic activities for those directly involved in the tourism trade such as the lodge and restaurant owners. It has also indirectly influenced other businesses such as vegetable and other vendors. New cafes and guesthouses are opening up to cater to the different expectations of visitors. In the long term, the increase in tourism will create more job opportunities and the necessity for new services and businesses, such as laundry services, local guides, handicraft shops, etc. The new paving restricting vehicles to enter the main bazaar has created work opportunities for porters, one of the poorest and discriminated groups in Bandipur. In general, tourism is not an environment friendly industry and puts high demands on the local natural and cultural resources. The trainings provided by the project through the various workshops, training and awareness programmes and the publications will ensure that such activities are continued and replicated by the local community. Conclusions The methodology of this project is easily replicable in other destinations of Nepal since it is based on the basic principle of identifying the site and analysing its future potentials with active participation of the local population. This allows a long term strategy that takes into account the possible changes that are certain to happen and allows the possibility of growth, which again is inevitable. Bandipur Eco-Cultural Tourism Project has built the necessary infrastructure for this town to grow as a tourist destination and established a network locally, nationally and internationally that will give sustainability to the activities initiated by this project. The inclusion of Bandipur as the author’s favourite trip in the latest edition (2006) of the Lonely Planet, the most popular tourist guides, especially with the free itinerary travellers has added to its popularity along with the individual and institutional efforts of local residents and friends of Bandipur. With favourable political situations continuing and increasing visitors to Nepal, tourists to Bandipur will continue to rise in the future. The workforce trained during the project duration will be the foundation for the continuation and future promotion of Bandipur. This project has integrated tourism related physical infrastructure, human resource trainings, and promotion in its overall tourism strategy for Bandipur that allows for growth and changes, yet protects the natural and cultural resources for the benefit of the local population. The development of rural tourism in Nepal has multiple benefits for the country as well as the local community. This approach to sustainable development of rural areas protects the vast natural and cultural resources of the country, ultimately promoting the identity of the place and the people. End.