Towards social equity and sustainable economic prosperity through ecotourism: A case of caste diversified community along Annapurna Sanctuary trail (AST), Nepal

•Diverse socio-ethnic tourist entrepreneurs perceived similar impacts of ecotourism.•Ecotourism diversified economic activities and livelihoods for rural ethnic groups.•Ecotourism fostered social equity & fair resource access across genders and castes.•Ecotourism raised local costs, spurs agriculture abandonment, widened income gap.•Inflation control and waste management are vital for sustainable ecotourism. The key to social equity and sustainable economic prosperity rests on the inclusion of diverse socio-cultural and ethnic groups in socio-economic activities. Ecotourism promotes the fair and equitable sharing of available opportunities among local people to ensure social equity, sustainable economic prosperity, and tourism sustainability. This study presents an analysis of how ecotourism has contributed to social equity and sustainable economic prosperity within multicultural communities in three villages: Ghandruk, Landruk, and Dhampus along the Annapurna Sanctuary Trail (AST) in Nepal, through the lens of the local community with 120 face-to-face questionnaire surveys, five key informant interviews, six focus group discussions, and field observations. Ecotourism is found to be an effective mechanism for fostering social equity and economic prosperity through socio-economic empowerment, particularly among marginalized groups such as women, Dalits, and Janajatis through the reduction of gender-based income disparities, increased access to micro-financial services, enhanced social cohesion, and increased participation in decision-making processes. Furthermore, the study reveals that households from diverse castes and ethnic backgrounds have benefitted from ecotourism through various income-generating activities, including the sale of local handicrafts and agricultural products, leasing land and property, and infrastructure development. However, it also identifies challenges such as rising living costs, land prices, abandoned agricultural lands, and income inequality. For the sustainability of ecotourism in the region, the need for regulatory measures to control local prices, and integrate agricultural activities into tourism experiences is proposed. Additionally, it emphasizes the importance of engaging marginalized groups, particularly Janajatis and Dalits, in ecotourism development initiatives.