Upper Mustang Tourism Value Chain Project

Within ICIMOD’s overall strategic framework and in response to the priority formulated by regional member countries, the Sustainable Livelihoods and Poverty Reduction Programme will explore, strengthen, and promote innovative and sustainable livelihood options for mountain people, to make rural economies more resilient to climate change and its effects.

With support from the Ford Foundation, a project has been designed aiming to enhance the livelihood opportunities and reduce poverty of mountain people by developing high value product and service value chains. The project described here focuses on tourism value chain analysis and upgrading in the rangeland areas of Upper Mustang.

Rangeland areas are generally recognised to be among the most vulnerable areas for climate and global change, threatening the traditional means of livelihood of herders, pastoralists, and other vulnerable groups (such as women) in the rangeland area. Studies have shown that although tourism is the most promising alternative livelihood option to livestock and agricultural production in the rangeland area of Upper Mustang, local vulnerable groups are currently receiving limited benefits from local tourism developments in the area.
Strengthening a pro-poor tourism destination value chain allows local communities to capitalise on the local economic opportunities of tourism, thereby decreasing their vulnerability to climate change and its effects.

The main objectives of the project are:

1. To make tourism more pro-poor in Upper Mustang, and to increase the spread of tourism income, especially for indirect beneficiaries of tourism (herder and farmers).
2. To diversify sustainable employment opportunities as an adaptation strategy to climate change and other drivers of change.

In contrast to the current practice of sourcing food provisions for tourists from outside Upper Mustang, it was decided to support local tea houses in the development of a local tourist menu consisting of high quality locally sourced agricultural produce. The main aim is to strengthen the flow of income in the local agricultural and livestock economy by increasing the demand for locally produced vegetables and livestock in the tourism sector. This provides direct benefits to poor producers (the small farmers and herders who are producing local vegetables and meat).

Geographical Coverage

Upper Mustang, Nepal

Duration

The project is implemented in two phases:

An assessment phase – in which the tourism destination value chain of Upper Mustang is analysed and mapped, and upgrading strategies are recommended (October-December 2009).

An implementation phase – in which the upgrading strategies are prioritised and implemented together with partners in the field (March-December 2010)

Core Financial Partners

Ford Foundation. Co-financing (in kind) provided by project implementation partners.

Implementing Partners

The project is designed as an innovative public-private partnership between government, non-government organisations and the private sector. Implementing partners are: 

1. International Centre for Integrated Mountain Development (ICIMOD)
2. National Trust for Nature Conservation (NTNC)
3. Royal Mustang Excursion
4. Asian Trekking
5. Gurkha Encounters
6. Base Camp Trekking & Expeditions
7. Glacier Safari Trek

Contact information

For more information, please contact:

Drs Ester Kruk
Tourism Specialist
Sustainable Livelihoods and Poverty Reduction
Email: ekruk@icimod.org