# Visitors trickle back, but climbing mecca Nepal seeks more
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-28
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Revamping Nepal's Tourism Sector to Boost Economy
Meta Description: Experience bungee jumping, paragliding, and more in Nepal's revamped tourism sector. Uncover the beauty of the Himalayas and new investment in hotels.
URL: https://financedigest.com/visitors-trickle-back-but-climbing-mecca-nepal-seeks-morehtml

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By Gopal Sharma and Manoj Kumar

KATHMANDU (Reuters) – Nepal is putting a 21st-century spin on a tourism sector dominated by activities unchanged for generations as it looks to boost a vital part of an economy decimated by the COVID-19 pandemic and soaring import bills.

As part of broader plans to lure more tourists to the home of eight of the world’s 14 highest peaks, authorities are promoting bungee jumping, paragliding and sky diving on top of traditional trekking and climbing, said Taranath Adhikari, director general at the Department of Tourism.

We are adding new tourism [infrastructure and investment](https://www.financedigest.com/invest-in-infrastructure-to-escape-the-starvation-cycle-warns-leading-nonprofit-sector-strategist.html "Invest In Infrastructure To Escape The ‘Starvation Cycle’, Warns Leading Nonprofit Sector Strategist") in hotels is (also) rising,” he told Reuters in the capital Kathmandu.

The country has additionally called on its envoys to promote tourism, promised to ease visa rules and urged China to allow more people to visit despite [COVID curbs](https://www.financedigest.com/were-going-to-be-free-chinese-cheer-as-covid-curbs-are-loosened.html "‘We’re going to be free’: Chinese cheer as COVID curbs are loosened").

Nepal suspended climbing and trekking in early 2020 because of the pandemic, and Adhikari called the [rate at which visitor numbers were rising](https://www.financedigest.com/russian-retail-sales-fall-deeper-jobless-rate-rises-in-sept-data.html "Russian retail sales fall deeper, jobless rate rises in Sept – data") again “inspiring.

In the first quarter of 2022, foreign arrivals more than doubled year on year to almost 79,000, and he said he expected the [recovery to continue](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer") in coming months.

But numbers remain less than half of [pre-pandemic levels](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels"), leaving the economy more vulnerable to shocks at a time when prices for imports including crude, edible oils and coal have soared.

On Tuesday, Prime [Minister Sher Bahadur Deuba’s government imposed a complete ban on imports of some luxury goods including cars](https://www.financedigest.com/german-minister-says-on-right-track-to-solving-co2-emitting-car-row.html "German minister says ‘on right track’ to solving CO2-emitting car row") until mid-July amid dwindling foreign exchange reserves and mounting debt.

Regardless of that, hoteliers are ready to cater for the hoped-for tourism resurgence.

Binayak Shah of the Hotel Association Nepal (HAN) said the country could now accommodate up to 2.5 million visitors, more than double the [record 1.2 million](https://www.financedigest.com/ireland-fines-instagram-a-record-400-million-over-childrens-data.html "Ireland fines Instagram a record 0 million over children’s data") of 2019.

‘WORST BEHIND US’

While tourism is Nepal’s most famous industry, it is however far from its biggest source of income, accounting for around 5% of foreign exchange reserves compared with around 60% from remittances sent home by Nepali working abroad.

They also dropped during the pandemic as many expatriates were forced to return home, [leaving many of its 29 million citizens facing](https://www.financedigest.com/analysis-euros-20-year-low-leaves-ecb-facing-costly-choices.html "Analysis-Euro’s 20-year low leaves ECB facing costly choices") hardship.

In mountain areas that depend largely on tourism, nearly 80% lost their [income during the pandemic](https://www.financedigest.com/uk-income-inequality-widens-after-pandemic-dip.html "UK income inequality widens after pandemic dip") and the trekking ban, and about 3,500 tourism-reliant enterprises in the Thames area of Kathmandu alone closed, according to industry estimates.

Despite tourists trickling back, niggling worries persist.

More visitors come from neighbouring India and China than anywhere else, and both [countries are taking measures to prevent another wave of COVID](https://www.financedigest.com/u-s-cdc-lifts-covid-do-not-travel-recommendations-on-about-90-countries.html "U.S. CDC lifts COVID ‘Do Not Travel’ recommendations on about 90 countries") cases.

Nepal, with a $36 billion economy, has [recorded fewer than 50 COVID-19 cases and zero deaths](https://www.financedigest.com/china-records-worlds-first-human-death-from-h3n8-bird-flu-who.html "China records world’s first human death from H3N8 bird flu -WHO") in more than a month. So far 66.8% of its population have been fully vaccinated.

“I am fully vaccinated … Nepal is a safe place,” Swiss tourist Katharine Loosli, 65, told Reuters in Thames’s normally teeming streets.

She has been coming to Nepal regularly since 1998, and was preparing to trek to Pun hill, near the [world’s 10th tallest peak](https://www.financedigest.com/world-stocks-rally-nikkei-closes-at-33-year-peak.html "World stocks rally, Nikkei closes at 33-year peak") Mount Annapurna.

The [Ukraine conflict](https://www.financedigest.com/gorbachev-died-shocked-and-bewildered-by-ukraine-conflict-interpreter.html "Gorbachev died shocked and bewildered by Ukraine conflict – interpreter") also deterred tourists from there and Russia, while air fares and other costs are rising.

[Despite the headwinds](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL"), some restaurant and hotel owners are looking forward to better times.

Agni Dhakal, 47, who has [run a souvenir shop in Thamel for 30 years](https://www.financedigest.com/london-ranked-as-europes-most-attractive-city-for-businesses-and-employees-for-second-year-running.html "London ranked as Europe’s most attractive city for businesses and employees for second year running"), said most people in the business felt the worst was behind them. “It looks like that the black era for Nepal tourism is over.”

($1 = 122.4200 Nepali rupees)

(This story has been refiled to correct the name of the person in the last paragraph and to correct Thames to Thamel)

(Editing by Mike Collett-White and John Stonestreet)


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