KATHMANDU: This article advances the argument that trade is the foundation of Nepal’s prosperity. The discussion presents a new and different approach, aiming to invite debate among development stakeholders.

Achieving prosperity is the cumulative result of multi-dimensional efforts. However, looking at the timeline of progress many countries have achieved, success in trade has become the first condition for real and long-term prosperity.

When America adopted Adam Smith’s concept of the free market with a focus on international trade about two and a half centuries ago, it became what it is today. We don’t need to go that far, but countries like China, South Korea, Vietnam, Singapore, and Switzerland—nations that have risen through trade—stand before us today as subtle examples.

Among the countries that have achieved progress through trade, Switzerland is somewhat different. Switzerland’s watch trade and tourism are its main drivers of prosperity. The watch trade is direct trade, but tourism is also a form of trade—where customers come to your home. Over 20 million tourists who visit Switzerland every year contribute to its prosperity in this way.

Nepal’s dream of becoming a wealthy nation must also be fulfilled through trade. There are many trade possibilities for Nepal, such as high-altitude products, minerals and herbs, and the export of electricity and clean water, which could become Nepal’s equivalent of Switzerland’s watches.

This, however, requires long-term planning, significant economic resources, and thoughtful execution. On the other hand, tourism is a high-potential area that can be developed now with relatively low economic burden compared to other endeavors.

When talking about tourism, China and India are our large neighboring markets. Westerners, too, are equally attracted to our world-class tourist destinations. Trekking, mountaineering, and Lumbini have already been among our main sources of tourism income.

In addition to these, diversity tourism—which has been somewhat overlooked in discussions among policymakers and stakeholders—holds great significance for Nepal. This is not only a strategically important tourism development initiative that can be executed quickly and at low cost, but its rate of return and economic impact are also substantial.

This area has no less potential than Everest, other Himalayan mountaineering destinations, or culturally significant Lumbini.

In Nepal’s small geography, such diversity—whether in demographic composition, topography, culture, or biodiversity—is rarely found elsewhere in the world.

These diversities, in and of themselves, make Nepal a unique world within the larger world. All tourists, especially those from Western countries, are eager for such diversity, and we can eventually become their preferred destination.

Coming to the main point, the immediate implementation of diversity tourism can be achieved through the construction of a Diversity Highway. While the construction of such highways is feasible in various parts of the country, one that can be developed quickly and at low cost is the Siddhicharan Highway, commencing from Madar on the Nepal-India border in Siraha district and extending all the way to the Everest Base Camp.

This route can be designated as a Diversity Highway immediately with the allocation of only a small amount of additional resources for its upgrade. Just as the Tribhuvan Highway is known as the “Byroad” among us, the Siddhicharan Highway can also be made internationally recognized as the Diversity Highway.

Throughout the fascinating journey along this approximately 300-kilometer highway—just slightly longer than the distance from Kathmandu to Pokhara—tourists can experience a rich diversity of landscapes, cultures, and climates. From the perspective of tourism promotion, this highway can be divided into six segments.

The first segment is the flat terrain from Madar to Mirchaiya along the Mahendra Highway. The second is the mild hilly region stretching from Mirchaiya to Ghurmi, from where heading west leads to Kathmandu and heading east connects to Dhankuta, Dharan, and back to the Mahendra Highway. The third segment is the high hilly region from Ghurmi to Phaplu, passing through Okhaldhunga.

The fourth is again high hilly terrain, extending from Phaplu to Lukla, which can also be accessed by air. The fifth segment is the journey from Lukla to Namche Bazaar, followed by the sixth and most adventurous leg—a high Himalayan trek from Namche Bazaar to Everest Base Camp.

Across and within each of these segments lies a remarkable abundance of climatic, topographical, biological, demographic, and cultural diversity. For example, in terms of climate, one can experience temperature variations ranging from +40°C in the lowlands to -40°C in the high Himalayas.

In terms of cultural diversity, the Madhesh culture of the plains and the Sherpa culture of the high Himalayas represent two starkly contrasting ways of life, each with unique customs and beliefs. From a biodiversity standpoint, this route spans habitats ranging from the tropical forests inhabited by Royal Bengal tigers to the icy highlands roamed by snow leopards. These are just a few examples of the many layers of diversity present along this route.

To promote tourism along this diversity-filled corridor, various cultural activities—such as homestays and local festivals—can be organized year-round, offering tourists immersive experiences.

Conservation areas could be established in strategic locations to showcase biological diversity. Local art and product exhibitions, similar to the agricultural tourism model seen in Peru’s Sacred Valley, could also be introduced. Again, these are just a few of many possibilities.

Such initiatives would generate numerous employment opportunities for the region’s unemployed population. Through backward and forward economic linkages, agriculture would prosper, and businesses such as hotels, airlines, and other tourism-related services would flourish.

Furthermore, the promotion and preservation of Nepalese art and culture on an international stage would be a major added benefit, as the influx of tourists increases. Since many of these initiatives can be implemented at the local level, costs would remain relatively low while yielding high returns.

In terms of infrastructure, the roadway has already been constructed up to Phaplu. The major cost of the project lies in building the segment from Phaplu—or slightly north of it near Dudhkunda—to Lukla. While this segment remains incomplete, tourists can currently travel between Phaplu and Lukla by air as a short-term solution.

From Lukla to Namche Bazaar and on to Everest Base Camp, the well-established trekking route is already operational. However, in the long term, the goal should be to establish a fully operational, year-round highway from Madar to Namche Bazaar. This would provide tourists with a complete and continuous diversity experience by road, making the construction of the Phaplu–Lukla road a top priority.

Once this final stretch is complete, travelers will be able to experience the full range of natural and cultural diversity along the route in a short journey—perhaps through a 10-day travel package.

Adventurous trekkers can then proceed from Namche Bazaar to Everest Base Camp, and mountaineers can venture further to climb Mount Everest or other nearby peaks.

While maintaining a long-term vision of full road connectivity, this project is already partially operational, requiring only modest investment in maintaining existing roads, developing additional tourist attractions, and promoting the route internationally.

The Diversity Highway is more than just a road—it is a small but strategic project aimed at driving national prosperity through tourism. It has the potential to serve as a milestone in Nepal’s diversity tourism, opening doors for similar routes to the west and east.

The goal of this article is to initiate discussion on this new topic, so it may reach individuals with a long-term vision, genuine commitment to Nepal’s development, and the authority to bring such projects to fruition.

Just a few days ago, Dr. Biswo Nath Poudel, Governor of Nepal Rastra Bank, remarked that Nepal’s internal resources could transform the country’s road infrastructure within the next ten years. He emphasized that while project initiation lies with the government, Nepal Rastra Bank can help channel the necessary financial resources to support such initiatives.

With visionary leadership and actionable plans in place, the construction of the Diversity Highway can blaze a trail for full-scale infrastructure development in Nepal and set the stage for long-term national prosperity.