The city is the urban core of the Kathmandu Valley in the Himalayas, which contains two sister cities: Lalitpur (Patan), 5 kilometres (3.1 mi) to its south and Bhaktapur or Bhadgaon, 12 kilometres (7.5 mi) to its east, and a number of smaller towns. In the last census (2001), the city of Kathmandu had 671,846 inhabitants. Kathmandu is not only the capital of the of Nepal but also the headquarters of the Central Region (Madhyamanchal) among the five development regions constituted by the 14 administrative zones of Nepal located at the central part of the country. The Central region has three zones namely, Bagmati, Narayani and Janakpur. Kathmandu is located in the Bagmati Zone. Kathmandu, as the gateway to Nepal Tourism, is the nerve centre of the country’s economy. With the most advanced infrastructure among urban areas in Nepal, Kathmandu's economy is tourism centric accounting for 3.8% of the GDP in 1995–96 (had declined since then due to political unrest but has picked up again).
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