A Report on

Responsible Tourism Business in Nepal

with reference to Mountain Biking
Submitted To:
Mr. Panka Pradhananga
Submitted b! :
Neetika "erma #Prashant Barachar!a # Suin $oshi # Susmriti
Shrestha
Ace %nstitute of Management
Sinamangal& 'athmandu
()
th
*ecember +,(+
-.ecuti/e Summar!
As more and more tourists pour into the country, the expectation and need of the tourists
diversifies. As an attempt to offer something unique and different, we have come up with
the concept of responsible tourism which is just beginning to raise its head in the
international arena. We are confident that the notion is slowly yet certainly catching up
and spreading rapidly. Responsible tourism demands a lot of considerations and respect to
nature and not everyone can afford to participate due to various reasons. We have target
the high end tourists, who are environment conscious and are willing to experience the
thrill of ecotourism adventure.
This brief report proceeds by describing the concept of responsible tourism with a brief
overview of the state of tourism business in epal. As the society is gaining more and
more conscious towards the ecological and environmental issues, we cannot lag behind in
this regard. !ence the concept of responsible tourism whose main objective is to ta"e
nothing from the environment except the photographs and leave nothing behind except
the footprint in the mean time contribute to the society by any means possible. The
second part of the report describes the mar"eting plan for responsible tourism. We have
come up with the traveling agency #co planet travel and tours whose main focus will be
to provide travelling arrangements and information specifically to mountain bi"ing. $n
this brief mar"eting report, we present with the mar"eting strategy for the newly
established firm, the action plans, the product %service& review and the budget that will be
involved in the firm.
Table of 0ontent
S.No. Title Page No.
0hapter % : An o/er/iew of Responsible Tourism
'.' $ntroduction
'.( Responsible Tourism
'.) epal and need for responsible tourism
'.* Adventure Tourism
'.+ ,i"ing in epal
0hapter %% Marketing Plan
(.' -bjectives and issues
(.( .ar"et /egmentation
(.) .ar"eting .ix
(.* .ar"eting /trategy
(.+ .ar"et Research
(.0 .ar"et -rgani1ation
(.2 Action 3rograms
0hapter %%% 0onclusion
,ibliography
0hapter %
An 1/er/iew of Responsible Tourism
(.( %ntroduction:
The contribution of tourism to the development and economy of epal is evident from the
number of businesses and employees dependent on it. 4rom luxury hotels employing
thousands down to individuals such as a porter, tourism now defines much of epal in
terms of the livelihood of people of many places.
At a brief glance, tourism with the benefits of foreign revenue and employment is always
a welcome addition. Tourism however, is a phenomenon that inherently consists of
externalities since it involves the consumption of resources by outside actors.
With its rich biodiversity, varied geomorphology, the !imalayas and cultural diversity,
epal is an ideal destination for tourists. With immense untapped potential for further
tourism development, epal could benefit even more if tourism were to be managed
sustainably.
!owever, the degradation of the natural state of the environment 5 pollution, loss of
wildlife and habitat, problems with waste management, adverse impacts resulting in
decline of local culture and heritage etc. have been documented time and again
highlighting the negative impacts of tourism. Tourism is thus a double6edged sword 5
with obvious benefits but also with serious irreversible negative impacts 5 the same being
exemplified in epal. 7onsidering the mentioned dependence of epal on tourism,
ensuring that tourism is sustainable is "ey to epal8s economy and future.
(.+ Responsible Tourism
,y definition, responsible tourism is tourism that creates better places for people to live
in, and better places to visit.
To aid understanding, the concept of Responsible tourism can be understood through
/ustainable tourism, the goal of both being the same 6 sustainable development. While
/ustainable tourism points at the obvious need for sustainability, Responsible tourism
means ta"ing the initiative, understanding actors involved, studying the impacts and
benefits and spreading them out equally, in other words, spreading the responsibility for
both impacts and benefits thus ensuring the ability of all levels of actors to act
accordingly 5 be government, tour operators, hospitality industry and even individuals
such the tourists themselves.
Responsible Tourism in/ol/es the following things:
2 .inimi1es negative economic, environmental and social impacts
2 9enerates greater economic benefits for local people and enhances the well being of
host communities
2 $mproves wor"ing conditions and access to the industry
2 $nvolves local people in decisions that affect their lives and life chances
2 .a"es positive contributions to the conservation of natural and cultural heritage
embracing diversity
2 3rovides more enjoyable experiences for tourists through more meaningful connections
with local people, and a greater understanding of local cultural, social and
environmental issues
2 3rovides access for physically challenged people
2 $s culturally sensitive, encourages respect between tourists and hosts, and builds local
pride and confidence.
The distinguishing characteristic of the approach is the focus on the responsibility of role6
players in the tourism sector, and destinations in general, to ta"e action to achieve
sustainable tourism development.
Responsible tourism is a global phenomenon and approach that invites people to live
locally, thin" globally and respond personally. $t maximi1es the benefits and minimi1es
the negative effects of tourism by engaging the local communities, promoting the use of
local good, following best environmentally sound practices and so on. Tourists are now
increasingly aware of the need for their travels and holidays to be :green: and responsible.
4ollowing responsible tourism not only guarantees the preservation of the environment
but also ensures that epal receives tourists who demand green travels.
(.) Nepal and the Need for Responsible Tourism
The need for responsible tourism stems from awareness 5 awareness of environmental
issues, degrading qualities of life support system. Tourism on a global scale is one of the
"ey factors in environmental change. Awareness of environmental issues however is
causing a massive transformation in tourism with travelers and locals see"ing ways of
building constituencies with the shared goal of ma"ing tourism sustainable and
responsible.
Tourism in epal, despite its importance is not sustainable. epal has neither an effective
waste management program nor strong developmental attributes and has suffered from
long periods of political instability. 9iven these aspects, Responsible tourism is crucial to
ensuring the sustainability of tourism is obvious. Responsible tourism divides costs and
benefits across all actors without depending solely on the government enabling
individuals and businesses as well as communities to do their part. This means greater
benefits to both the hosts as well as to the tourists. Responsible tourism, with its focus on
sustainability and sustainable development has the potential to connect many smaller
ideas together.
(.3 Ad/enture tourism:
Adventure travel is one of the fastest growing but least understood forms of international
tourism. epal is one among the best destinations in the world for ad/enture tourism
which offers an excess of outdoor activities from 3aragliding near the mountains to
waiting for the ,engal tiger in the dense forest of 7hitwan, to experiencing 1ipline in
3o"hara, bunjy jumping at ,hote ;oshi, to name a few. The history of adventure tourism
in epal starts from the early attempts to ascend world8s highest pea" Mt. -/erest some
about five decades ago. The role of Adventure Tourism in the economic development of
remote areas and its impact on local community, economy, and the environment are not
fully figured out, even though adventure tourism has been adopted enthusiastically by
many countries li"e epal. !ere we are not to analy1e the impact of adventure tourism in
epal but we believe that adventure travel will bring many positive impacts on epal:s
national economy, indigenous populations, tourism industry, and conservation
development. With its steady growth, adventure tourism in epal will play an
increasingly important role for national and local development in the frontier areas.
.ountain ,i"ing is one of the adventure tourism which attracts a number of tourist in
epal. <.ountain ,i"ing8 is established to show the best way to explore the
mystic parts of epal, Tours offered are especially designed to ta"e on the best
trails where other mountain bi"ers rarely get a chance to ride= deep in to the
!imalayan culture and lifestyle.
.ountain ,i"e is a bicycle created for off6road cycling. This activity includes traversing
of roc"s and washouts, and steep declines, on dirt trails, logging roads, and
other unpaved environments activities usually called mountain bi"ing. /ince the
development of the sport in the '>2?s many new subtypes of mountain bi"ing have
developed, such as cross6country %@7& bi"ing, all6day endurance bi"ing, 4ree ride6
bi"ing, downhill mountain bi"ing. #ach of these place different demands on the bi"e
requiring different designs for optimal performance.
7ross 7ountry bi"ingA $t is the most common discipline of mountain bi"ing. While less
publici1ed than downhill cycling as it is more difficult to televise, it garners the highest
levels of participation both recreationally and competitively. $t is defined by the terrain on
which it is performed. @7 courses and trails consist of a mix of rough forest paths
and single trac" %also referred to as double trac" depending on width&, smooth fireroads,
and even paved paths connecting other trails. Riding or racing is also only deemed cross6
country if the technical complexity of the trails is easy or moderate.
Bownhill ,i"ingA As the name of this discipline implies, downhill races are held on steep,
downhill terrain, resulting in high speed descents, and with extended air time off jumps
and other obstacles. The width of the course can vary greatly over the length of the
course, but it is typically between about (m and '?m wide. Riders have one attempt to
reach the finish line in the shortest amount of time while remaining between the tapes.
The rider must choose their path %or line& by compromising between the shortest possible
line and the line that can be travelled at the highest speed.
(.4 Biking %n Nepal
epal8s diverse terrain is what mountain bi"ers8 dreams are made of. ,i"ing offers an
environmentally sound way of exploring the country. $t is possible to go bi"ing the entire
length of epal. 7enturies old dirt roads and trails offer a chance to go on extended trips
to exotic locals li"e Annapurna, #verest and ;anchenjunga areas. 9ear bicycles are
recommended when riding through touch terrain. .ountain bi"es are available for rent
for a day or longer in numerous bicycle rental outlets in and around ;athmandu, 7hitwan,
Bhading and 3o"hara through off routes that weave in and out of the cities. 4ood and
accommodation are easily available around valley and the main trail.
epal .ountain ,i"ing tour was in the mid6'>C?s that bi"ing activity really too" off in
;athmandu. #nthusiasts flew with their bi"es from !ong ;ong to Tibet to answer the call
of the wild steppes. The two6wee" journey from there over the passes %'2,??? ft& to epal
is what spar"ed it all off. #ven today ;athmandu is a mecca for mountain bicyclists, as it
draws thousands of enthusiasts from all corners of the world. The bi"ing trips within
;athmandu Dalley allow you to enjoy its hidden poc"ets rarely frequented by westerners
which give you a chance to see the other bac" side of ;athmandu. -ther bi"ing trips
include 7ity Tour with a difference bi"ing to the famed popular historical and medieval
places of ;athmandu, ,ha"tapur and 3atan, viewpoint of agar"ot and ;a"ani, the quiet
sleepy town of /an"hu and ,udhanil"antha.
.ountain ,i"ing in epal is a significant part of the adventure tours in epal. $t is a
popular sporting activity in the country and is underta"en by tourists and adventure
lovers. .ountain bi"ing ensures that travelers have a feel of the natural beauty of the
country by braving the natural odds. The idyllic setting of the country, the rugged
mountainous terrain, deep gorges and beautiful valleys have paved the path for tourists
and tre""ers to embar" on .ountain ,i"ing in epal.
The rugged terrain in epal and the steep and winding paths have always attracted
tre""ers and adventure lovers to underta"e epal mountain bi"ing trips. $t requires
immense physical strength and technical s"ill to overcome the steep hills while mountain
bi"ing. 4or sports frea"s and adventure lovers who wish to accept the challenge of scaling
some of the steepest mountains in the !imalayas, mountain bi"ing in epal can be a
tremendous experience.
.ountain ,i"ing in epal provides adventure lovers with immense scope to overcome
natural odds under trying circumstances. The region around ;athmandu Dalley has some
of the popular trac"s for mountain bi"ing. The routes pass through local villages, temples,
,uddhist stupas and beautiful valleys. While bi"ing, travelers need to ta"e adequate
safety measures against landslides and bli11ards. The bi"es should also be strong and
should be able to withstand pressure. /ome of the popular points of sightseeing in epal
also fall in the trip.
epal offers varieties of landscape, trails that can be used for mountain bi"ing. This sport
will be another big event that will give international and domestic tourist different taste.
0hapter %%
+. Marketing Plan
+.( 1becti/es and %ssues
$n relation to the product launch, our major issue is the ability to establish a well regarded
brand name lin"ed to a meaningful positioning. We will have to invest heavily in
mar"eting to create a memorable and distinctive brand image projecting innovation,
quality and value. We also must measure awareness and response so we can adjust our
mar"eting efforts as necessary.
+.+ Market Segmentation:
The mar"et segmentation and corresponding product differentiation strategy can give a
firm temporary commercial advantage. .ar"et segmentation will help .ountain ,i"ing
identify segments in the mar"et that are its potential customers. $t would help the
company adopt a sniper approach by singling out segments and focusing on those
segments. !ence, the products of the company are segmented as followsA
i. *emographic Segmentation:
According to this segmentation, the mar"et will be differentiated according to age
group and income level. 4or the core product of the company, which is Bownhill
.ountain bi"ing, the mar"et segment will be affluent individuals from 'C 5 )+
age group. /imilarly, for other products with less difficult trails, the company can
also target individuals above 'C 6)+ age groups.
ii. Beha/ioural Segmentation:
The product that is offered by the company is for extreme sports lovers for whom
fitness is very important. $n this, the mar"et is segmented for individuals who are
outdoors, adventure enthusiasts and have passion for exploration.
iii. 5eographic Segmentation:
The products of the company will not only target international tourists but also
individuals residing in epal. 3resently, in the urban areas of epal such as
;athmandu there are many cycling groups that meet frequently and explore
various trails. !ence, the company also has the potential to attract a si1able
amount of urban domestic riders.
/imilarly, there are many downhill racing venues in countries li"e 4rance,
9ermany, $taly, Russia, 3ortugal, Enited ;ingdom, /wit1erland, 7anada and
others. This implies that the target customers for the company are individuals of
these countries.
+.) Marketing Mi.:
The mar"eting mix is a business tool used in mar"eting products. The mar"eting mix is
crucial when determining a product or brand:s unique selling point helping it differentiate
a product from its competitors .The mar"eting mix consists of the product, place,
promotion and pricing strategy. These elements are discussed in detail belowA
Product The 3roduct is the Bownhill .ountain ,i"ing itself. $t is one of the latest and
extreme adventurous sports in epal and is also believed to be very popular adventure
sport in many countries. !ence it can be an attractive and feasible Tourism 3roduct in
epal as well.
Place: A lot of sports are mainly focused on urban areas only. ,ut we want to operate this
Tourism product in rural area so that due to the success of .ountain ,i"ing, the rural area
will also benefit from the tourism economically. We will be focusing in different hills of
;athmandu, li"e agar"ot, !attiban, agarjun, ;a"ani etc. .oreover, we also offer
bi"ing pac"ages for jomsom and mustang. Aannapurna base camp will be focused for pro
ridersF interested riders. .ountain bi"ing trails in Gomsom and .ustang is considered in
top + best mountain bi"ing trails in world
Pricing: A lot of training and monitoring is necessary for operation of this product and
also the setup cost is considerably huge. Additionally, it is related with adventure,
passion. /o the product will be priced as a premium product mainly targeted to foreign
riders and extreme sports lover between the age group of 'C to )? yrs .$n simple words,
the product will be a high end, high expenditure product. The pricing will be covering the
transportation %in supporting jeeps &, brea"fast or Hunch% dinner for overnight pac"age&,
,icycle with helmet, 9uide with mechanical bac"ups and all #ntrance 4ees.
Promotion ,y integrating all messages in all media, we will reinforce the brand name
and the main points of product differentiation. Research about media consumption
patterns will help our advertising agency choose appropriate media and timing to reach
prospects before and during service introduction. Thereafter, advertising will appear on a
pulsing basis to maintain brand awareness and communicate various differentiation
messages. The agency will also coordinate public relations efforts to build the /onic
brand and support the differentiation message. To create bu11, we will host a user6
generated video contest on our Web site. To attract, retain and motivate channel partners
for a push strategy, we will use trade sales promotions and personal selling. Entil the
brand has been established, our communications will encourage purchases through
channel partners rather than from our web site.
+.3 Marketing Strateg!:
-ur mar"eting strategy is bases on a positioning of product differentiation. /ince there are
only a few competitors offering ecotourism, we believe that our differentiation strategy
will be well received by the upper end tourism who values our service. -ur secondary
target will be anyone who are well aware of the global issues and are willing to pay for
the quality of service that we offer them.
Positioning Strateg! 3ositioning strategies can be conceived and developed in a variety
of ways. $t can be derived from the object attributes, competition, application, the types of
consumers involved, or the characteristics of the product class. Tours offered by
.ountain ,i"ing are especially designed to ta"e people on the best trails where other
mountain bi"ers rarely get a chance to ride= deep in to the !imalayan culture and lifestyle.
The type of positioning strategy we will be using is I3roduct characteristics or customer
benefitsJ. After all, it is all about customer experience and satisfaction when it comes to
adventure travel. The only thing that can differentiate us from other competitors is the
ultimate experience we provide to the customers.
Branding Strateg!: ,randing resides in the realm of -utside 3erception5how people
outside our organi1ation perceive it. We provide downhill bi"ing, cross6country ride, and
adventurous ride. The type of branding we would be using is destination branding.
Authenticity is indeed what many travellers are loo"ing for, but authenticity is a difficult
concept to mar"et and moneti1e. $n mar"eting, KauthenticityK has become a clichL 6 much
li"e the word KuniqueK. $f every destination is about KauthenticityK, authenticity becomes
a commodity. 3roviding bi"ing experience to places where travelers can have the
authentic experience creates a different brand. !owever, it is important to remember that
a destination:s culture is merely a feature and that many destinations have culture to offer.
7onsumers ultimately want to "now what the experience will be li"e %how will it be
different from any other location& and how will it ma"e me feel %meaningful high order
benefit&. Without branding, it is almost impossible to achieve a meaningful and
sustainable point of differentiation.
+.4 Marketing Research:
Esing research, we will identify the specific features and benefits that our target mar"et
segments value. 4eedbac" from mar"et tests, surveys, and focus groups will help us
develop the service. We will also measure and analy1e customer:s attitudes toward
competing brands and products. ,rand awareness research will help us determine the
effectiveness and efficiency of our messages and media. 4inally, we use customer
satisfaction studies to gauge mar"et reaction.
+.6 Market 1rgani7ation :
7hief mar"eting officer, .r. 3rashant ,ajracharya, holds overall responsibility for all of
the company:s mar"eting activities. The figure below show the structure of mar"eting
organi1ation. The mar"eting team will handle national sales campaigns, trade and
consumer sales promotions, and public relations efforts.
+.8 Action Programs :
The company will be launched in 4ebruary. 4ollowing are the summaries of action
programs we will use during the first six months of next year to achieve our stated
objectives.
GanuaryA We will launch a sales promotion campaign. We will create bu11 by providing
the overly discounted pac"age to selected product reviewers, opinion leaders, influential
bloggers, and celebrities.
4ebruaryA We will start an integrated printFradioFTDF$nternet campaign targeting high end
consumers. The campaign will show how many benefits the pac"age will offer and
emphasi1e the convenience of the pac"age.
.archA We plan to roll out a new national advertising campaign. The radio and TD ads
will feature celebrities, telling their experience of ecotourism destinations. The styli1ed
print and online ads will feature avatars of these celebrities.
AprilA -ur TD campaign will add a new tag line promoting the service as a gift. We will
analy1e the results of customer satisfaction surveys for use in future promotions and to
provide feedbac" for product and mar"eting activities.
0hapter %%%
0onclusion
As more than sixty percent of the country is hilly terrain, there is a very good opportunity
for the mountain bi"e adventure see"ers and we can target both internal and external
tourists. /o there is a good opportunity to cash6in this business. As per the demographic
segmentation, the target group belongs to 'C6)+ years age group. The gears and
accessories provided to them will be of higher caliber and as per the international
standard, as it is largely targeted to high end customers.
The mar"eting strategy for this business will be based on positioning of product
differentiation. This means that we will be providing the services differently than some of
the competitors available. -ur main targets are the high end customers as we will be
providing high end products, the cost will definitely be higher than the competitors. The
type of positioning strategy we will be using is I3roduct characteristics or customer
benefitsJ. After all, it is all about customer experience and satisfaction when it comes to
adventure travel. The only thing that can differentiate us from other competitors is the
ultimate experience we provide to the customers.
Bibliograph! :
'. www.tre"6in6nepal.com
2. httpAFFen.wi"ipedia.orgFwi"iFTourismMinMepal
). www.traveltips.usa.com