Travel Reference
In-Depth Information
are only so many cellular phones that can be sold. Thus, local
junior venture capitalists may indeed create another project
that will require employing even more people. Roads may be
paved in order to build a bank, school, or industry. Access and
accommodations such as lodging and dining facilities need to
be built for tourists who want to see or climb the country's
majestic mountains. This is how the service sector develops,
slowly and often painfully, in countries such as Nepal.
Economic analysts, both domestic and foreign, believe that
the development of Nepal's service sector, if ultimately suc-
cessful, must emphasize the growth of tourism. The country
has astoundingly beautiful natural landscapes, highlighted by
the world's most spectacular mountain peaks. It has tremen-
dous cultural diversity and attractive rural cultural landscapes.
Many Nepalese support the development of tourism, which
they believe to be a “clean” industry. For many decades, a few
people came to the country each year to climb Mount Ever-
est. To most outsiders, perhaps that seemed to be the only
place worth visiting, or thing to do. With development of a
tourist infrastructure, many argue, Nepal has the potential to
become the “Switzerland of the Himalayas.” Who could argue
against that?
The service sector depends on a reliable banking system.
It must provide adequate financial support for expansion
and also accommodate potential foreign investments. Nepal's
financial sector is in desperate need of liberalization and
expansion of services. Fortunately, it is being assisted by the
World Bank and other international institutions. Currently,
only about a quarter of households enjoy the luxury of bank-
ing, holding an account into which they can deposit or from
which they can withdraw money. For two of every four Nepal-
ese, economic transactions between people must rely on some
other means of exchange. This is typical of a folk culture in
which barter, rather than currency, is the primary medium
of exchange.
