Managing knowledge in the field of tourism and the hospitality industry will carry significant importance as most people are not aware of knowledge management (KM) implications. As the importance of knowledge management is not well captured in the tourism sector of Nepal, this study aims to identify the awareness level of knowledge management among the tourism entrepreneurs in Nepal and suggest managerial implications for the same. The primary data were collected through 276questionnaire surveys. Tourism entrepreneurs saw the benefits of KM for tourism development despite the costs and challenges it poses. Awareness of knowledge management of entrepreneurs differs according to the people, process, technology, organization structure, and the organization culture dimension. It was further influenced by the demographic characteristics of the tourism entrepreneurs. Enterprises are in more need of knowledge management awareness and several amendments in tourism development policies and programs. Therefore, this study recommends increasing entrepreneurs’ awareness of knowledge management by the joint effort of tourism enterprises and the Nepal Tourism Board. Various knowledge management seminars (integrating tourism experts with tourism entrepreneurs) and training programs should be conducted to manage knowledge effectively.