The Nepal-China Friendship Highway under China’s Belt and Road Initiative: A Tourism Area Life Cycle exploration

Abstract

With the introduction of China’s Belt and Road (B&R) Initiative and the launch of the Asian Infrastructure Investment Bank (AIIB), the Government of Nepal has agreed to develop its connectivity with China through cross-border infrastructure projects such as railway and road networks. It is assumed that increased connectivity will bring dynamism in urban and regional development and that tourism plays a significant role in shaping urban-rural economic dynamics. Tourism destinations are influenced by tourism activities, and undergo different developmental stages that are correlated with temporal and spatial dimensions . Improved connectivity promotes accessibility and enhances economic activities which may increase tourism within destinations. According to the Tourism Area Life Cycle (TALC) Model, destinations experience changes over time which are linked to developmental stages, appropriate management and policies. It is therefore needed to maintain tourism for long term sustainability (Butler, 2006). In Nepal, most of the settlements along the Nepal-China Friendship Highway are expected to experience increases in tourism, economic activities and urbanisation under the B&R Initiative. Considering the transformation of Dhulikhel and Banepa, two key towns along the Nepal-China Friendship Highway, this paper explores the potential impacts of the development of cross-border transport infrastructure projects on tourism. Empirical data collected from a semi-structured questionnaire survey with residents as well as tourism entrepreneurs and tourists is used alongside in-depth interviews with key informants and participant observation to inform the comments made in this study. This paper highlights the perceived impact of tourism, and identifies locations experiencing rapid growth of tourism with the completion of cross-border transport infrastructure projects. Finally, the paper proposes strategies that will guide future tourism development of the destinations from a sustainability perspective.