Seasonal Tourism and Income Volatility: Evidence from the High-Altitude Trekking Corridor Annapurna Base Camp

Abstract

In remote mountain regions tourism is widely promoted as a pathway of income growth, since it is strongly seasonal nature it may expose households to substantial income instability. Using primary survey data from 31 residential household and tourism enterprises, including census of hotels and lodges beyond Upper Sinuwa this paper examines the relationship between trekking tourism and household income volatility in Nepal’s Annapurna Base Camp (ABC) trekking corridor. The study analyzes income dynamics across different season like peak and off-peak seasons rather than focusing on annual average. Income volatility is measured by normalizing between peak-season and off-seasons earning.

The results reveal a clear trade-off between income level and income stability. Households and enterprises with greater exposure to trekking tourism earn significantly higher peak-season incomes but experience pronounced seasonal income volatility. In contrast, household who are not only relied in tourism involvement earn lower income but they have more stable income flows throughout the year. Enterprises specialized in tourism in the upper corridor face the highest volatility, with income concentrated within a narrow seasonal window.  Income diversification and access to savings mitigate, but do not eliminate, seasonal vulnerability, particularly in higher-altitude settlements with limited economic alternatives.

These finding shows that tourism-led growth in high altitude regions reshapes household risk rather than simply increasing the welfare of resident and entrepreneur. For sustainable tourism-based development strategies in highly seasonal mountain economies it is essential to incorporating income stability alongside income growth.