Tourism and local welfare: A multilevel analysis in Nepal’s protected areas

While environmental conservation is sometimes criticized for limiting the sources of income for the poorest populations, tourism in protected areas is often viewed in the literature as a mechanism that helps to increase local welfare and reduce poverty in developing countries. However, there are still few quantitative studies assessing how nature-based tourism is directly linked with welfare. In this article, we examine the relationships between: (1) tourism and the monetary welfare of local populations in Nepal’s protected areas and (2) self-reporting being constrained in the use of natural resources, and the welfare of the same population. We develop a two-level hierarchical linear model to take into account the database structure. We estimate that households involved in a self-employed occupation directly linked to tourism are associated with a significantly higher consumption compared with non-involved households. In addition, results suggest that tourism may generate positive externalities on the community’s welfare. We conclude that tourism development in Nepal’s protected areas should be included in a broader sustainable development agenda.