Abstract

Homestay tourism, where hosts offer lodging, food, and services to guests, either individually or as a community, has emerged as a key strategy for rural development in Nepal. The Nepal Tourism Year 2011 initiative significantly boosted this sector, recognizing its potential to contribute to biodiversity conservation, sustainable development, and increased tourist satisfaction. This study focuses on assessing homestay operators' income, expenditure, and overall economic contribution in Lwangghalel and Sirubari. Employing a descriptive research design and a random sampling method, the study is quantitative in nature and based on primary data. Statistical tools such as frequency, average, percentage, standard deviation, correlation, and regression have been used for analysis. Findings reveal that homestays significantly enhance family incomes and contribute to agriculture and remittance flows, with high profitability and favorable revenue-cost ratios confirming their economic viability. Strong correlations are observed between improved lifestyles, migration patterns, and socio-economic development. The study also highlights the role of infrastructure changes and cultural preservation, though their impacts vary. For policymakers, the research offers insights into targeted infrastructure improvements. It also suggests that homestay operators can further optimize their income by focusing on education, family size, and accommodation capacity, ultimately supporting sustainable regional development.

Keywords: Demographic, Economy, Homestay, Lwangghalel, Sirubari