Promotion of tourism after the reopening of Nathula cross-border trade in Sikkim: An economic analysis

Abstract

Trade through Nathula pass route is one of the three open trading border posts of India in the Himalayan mountain boundary of Sikkim State. It is an oldest Pass from Sikkim to Tibet, now TAR -China (Tibet Autonomous Region- China). The continuation of cross-border trade from Nathula Pass on 6th July, 2006 gave the way to more benefits to India through trade along with the promotion of the tourism in the region. After reopening of India- China cross-border trade on 6th, July 2006 through Nathu La pass, it not only shows a benefit in trade but there is a growth of tourism in this region. With the increasing inflow of tourists to Nathu La, the economic benefit is open the region and its people. In this context, the present study examines the impact of reopening of cross-border trade through Nathu La pass on the promotion of tourism in the region. The rising trend of exports shows the positive impact of Nathula trade to India. The data, obtained through secondary sources shows that the exports of Indian goods to China is more than imports. The export of Indian goods to China has increased from 8.87 Lakhs in 2006 to 4.02 Crores in 2010. The import for the year 2010 is Nil against 4.02 crores of exports. With the rising trend in the volume of export, it is clear that the cross-border trade through Nathula Pass is beneficial to India. The impact of reopening of Nathu La pass for trade between India and China is not only results in economic benefits from trade but also results in the promotion of tourism in the region and its impact on tourism. The study revealed that there is a growth in the tourism after the reopening of Nathu La pass for international trade and expected to grow further more in the future, providing the income and employment to the local people but along with maintaining the sustainability in the region. The sustainability of tourism, in this highly natured sensitive zone, is equally important and most. The further research is required to analyse the tourism and its sustainability in the region.