The Sherpa-inhabited Mount Everest region of Nepal has become a leading center of Himalayan tourism. This article examines the increasing role of tourism in the Sherpa economy and assesses changes in land use, environment, and culture. As a result of tourism, the standard of living of most of the population has risen without severe environmental or cultural effects. Increasing regional differentiation in wealth, inflation, out-migration, and changes in pastoralism and forest use may have long-term adverse effects. Efforts are now under way to address some tourism-associated environmental problems.

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