Bhaktapur, once the capital city of the Malla reign has remained one of the major attractions for tourists from the beginning of tourism activities in Nepal. Since the downfall of the Rana-Regime, Nepal has opened up to the outside world and has observed gradual growth in incoming cultural tourists. Most of them have visited Bhaktapur as packaged tours organized by travel agencies in Kathmandu. Many tourism entrepreneurs established souvenir shops in Bhaktapur from 1964 onwards and by 1990 most of them had financially sound businesses.
In 1995 the Bhaktapur Municipality started imposing an entrance fee of US 5$ for foreigners of non – SAARC countries to enter the core city area. Travel agents and tour operators opposed the decision, as this added more cost on their tours, whereas tourism entrepreneurs opposed this very decision, based on fear of a decrease of foreign visitors and business. This, however, was not the case and in order to have an organization representing and advocating the interests of tourism related businesses, associated with the overall tourism development, the Bhaktapur Tourism Development Committee (BTDC)) was established by a group of enthusiastic tourism entrepreneurs in 1997.