Visitors' Perceptions of Homestay Management in Nepal: Evidence From Structural Equation Modelling

Introduction

Nepal, a small country on the southern slopes of the Himalayas, borders China in the North and India in the East, West and South. This small Himalayan Democratic Republic shares an open border with India, the southern neighbor. Nepal is less industrialized but rich in natural beauty (Thapa, 2016). With its mild climates, Nepal enjoys one of the richest biodiversity and multiethnic communities to lure tourists from different geographical areas around the globe. To cash this rich biodiversity and multiethnicity of rural Nepal, rural entrepreneurs developed homestays as one of the viable tourism industries recently. However, the management of these homestays needs professional improvements. The homestay program enables tourists to experience the unique culture and lifestyle of the local people (Subedi, 2016). Homestays intend to attract tourists with a particular demographic profile who desire authentic experiences. Homestay tourism is popular in many destinations; it adds indigenous sociocultural richness to the tourist experience. Homestays strengthen local people’s social and economic capacities (Budhathoki, 2013).

Homestay started as a community-based initiative in the 1970s and has seen a significant rise in local community engagement. Muslim et al. (2018) state that varied ecological areas, abundant biodiversity and distinct cultural identity of different ethnic groups make Nepal one of the most interesting tourist destinations in the world. The mountainous landscapes of Nepal enable it to make a low-cost, eco-friendly tourist destination for socioeconomic development and poverty reduction. The purpose of homestays depends on the sociocultural context of a county. Homestay management not only helps local people to play their part in conserving the natural habitat but also serves to safeguard indigenous culture and livelihoods and raise wealth for community members as a change in sustainable growth (Zhang & Tang, 2021). Homestay management concept is ecotourism, promoting local resources, well management leadership, the discipline of every host family and quality services and facilities available to the tourists (Basak et al., 2021). Homestays must consider basic facilities like toilets and bathrooms with standard sanitation practices. Despite the emerging concept of homestays as an industry, the regulatory authority has not yet developed a monitoring and assessment system to maintain the quality standard. An authentic monitoring and assessment system would help visitors, stakeholders, and local governments (Walter et al., 2018). The development of the homestay industry involves comprehensive planning, infrastructure construction, and aggressive promotion. In the meantime, the homestay industry also significantly contributes to generating income for local people and preserving the cultural legacy of indigenous people.

The concept of rural tourism is popular these days. Visiting the pristine natural beauty of rural Nepal creates opportunities for recreation and rural economic growth. Homestays promote rural tourism. Homestays in different countries have different quality measurements. Standard quality management attracts local and foreign tourists, enabling local entrepreneurs to earn more. Generating income in the local area contributes to sociocultural development and higher living standards by reducing local people’s poverty and exploring the local culture, food, art and handicraft, and natural beauty (Biswakarma, 2015; Pasanchay & Schott, 2021). Tourism can affect community development; it may impact local population structure, transform the forms and types of occupation, change values, influence traditional lifestyles, and modify consumption patterns (KC, 2021).