Cover Story (Spotlight Weekly)

TOURISM
Limping Ahead For Life

The sheer volume and frequency of adverse events in the last few years have overwhelmed the entire country. Tourism, the major foreign exchange earning industry, has not been spared by the gale of incidents shaking the very foundations of the nation. However, entrepreneurs, the government and the Nepalese people have no option other than to persevere and bring the industry back on track - because tourism is one of the few industries that holds promise for people from the entire spectrum of society.

By SANJAYA DHAKAL

Chandra Lal has been selling flutes and other items to tourists for many years. From Thamel to the three Durbar Squares to Swoyambhu, Chandra Lal used to frequent all the major tourist centers, urging visitors to buy his items. "I used to make enough money to support my family. But since last year, sales have dipped, with fewer tourists coming to the country," said Lal. He is planning to switch work.

A street in Thamel : Waiting for tourists

Lal is not alone in feeling the heat generated by the free fall the tourism industry is experiencing since the last few years. Whether it be small-time vegetable vendors or workers in top private airlines and five-star hotels, there is a palpable feeling of frustration and fear of job insecurity.

Already, restaurants and hotels are laying off or sending employees on forced leave and imposing other cost-cutting measures. Nowhere is the despondency clearer than on the streets of Thamel. Once teeming with tourists from all parts of the world, the lanes and by-lanes of Thamel sport a deserted look today. And all this at a time when the tourists were supposed come in their hundreds. The months between September and February usually represented the top tourism season.

"Earlier we had to skip festivals like Dashain and Tihar, as there used to be many tourists we needed to tend to. We had a hard time convincing our families that we could not have holidays for Dashain. But this year, I think I have all the free time for the festival," quipped a tourist guide.

Tourists in Kathmandu : Lured by nature

The pall of gloom that has set over the industry has engulfed the entire country as well. In the past, the country had always witnessed stable growth in the tourism sector. Although the government hardly did its best to encourage tourists, they came in herds, attracted by the peace and serenity the country's mountains offered. The sudden inauspicious turn of events has changed all this. Now the country is yearning to see tourists.

As if all the violence and strikes were not enough, the Tribhuvan International Airport (TIA) - the only aerial gateway to the country - closed down for nearly two days last week after an army helicopter crash-landed and created a big hole on the runway.

The next two to three months would be vital for tourism entrepreneurs. According to senior entrepreneur Tek Chandra Pokharel (See box), the worst will start happening soon. "Tourism entrepreneurs managed to survive somehow in the last six months. But as the promise of this new tourism season, too, seems set to shatter, I don't think they can hold any more."

Pokharel predicts that at least 40,000 employees associated with the tourism business (including restaurants, hotels, airlines, travel agencies, etc.) will lose their jobs in the coming two to three months. Already, the hotels are running in less than 20 percent occupancy rate. Tourism experts estimate that the industry has come down by 50 to 70 percent this year.

Foreigners in Thamel : Scene of the past

What Is DNC?

Troubled by the downturn, the government has announced a new package called Destination Nepal Campaign (DNC) 2002-2003. Coinciding with the international year of eco-tourism and the golden jubilee anniversary of the first ascent of Mount Everest, the DNC is expected to provide a much-needed fillip to the sagging sector.

After the success of the Visit Nepal Year 1998 campaign, the prospects were beginning to look brighter for tourism. But since the infamous IC 814 hijack in December 1999, the industry has been caught in a bizarre blizzard of incidents that is rocking the very foundations of Nepalese nationhood. The Hrithik Roshan episode in December 2000 severely affected Indian tourists' inflow. The hotel strikes, Maoist violence and several bandhs made matters worse. The grisly royal massacre of June 2001 shook the entire world. The subsequent increase in Maoist violence and the imposition of the state of emergency made sure that tourists skipped Nepal. Amid all these gory events back home, the international sector, too, witnessed an unprecedented fall in global tourism thanks to the threats posed by terrorists who hit America on 9/11 last year.

As such, some event to improve the country's image and its potentials as a tourist destination was eagerly felt. Tourism entrepreneurs, too, have largely welcomed the DNC initiative. "We need to continue our efforts of improving the sector and establishing Nepal as a prime tourist destination in the world," said Tek Bahadur Dangi, senior director at the Nepal Tourism Board (NTB).

The government recently passed the programs and budgets for the DNC on the eve of the World Tourism Day. The DNC aims to salvage the tourism sector and give it a new thrust. "The DNC targets to put Nepal as a primary tourist destination in the world," said Bal Bahadur KC, Minister for Culture, Tourism and Civil Aviation, during the meeting that passed the DNC program.

The government has agreed to allocate Rs.28 million to organize the DNC. Although entrepreneurs feel that the budget is not adequate, they say a focused approach might bring some results.

"As the DNC aims everything from creating awareness to organizing international publicity and from developing infrastructure to promoting rural tourism, there is a fear that the budget will be scattered and none of the objectives will be realized," said a member of NTB and a well-known senior tourism entrepreneur. "It would be more prudent if the budget is used with more focused approach."

Hyatt hotel in Kathmandu : Infrastructure in place

Currently, the world is observing the international year of mountains and the international year of eco-tourism. Besides, Nepal is also observing the Mt. Everest Golden Jubilee celebration. The DNC also aims to link up its programs with these celebrations. Among others, DNC programs include organizing familiarization trips to foreign tour operators and media, setting up regional sales missions and information centers.

Various promotional events like rafting, rock climbing, Everest marathon will be held and successful Everest climbers invited for felicitations. Besides, the government and the NTB also want to expand tourism facilities to places like Ilam, Baraha Chhetra, Halesi Mahadev and Gosain Kunda to promote their potentials as new destinations.

Road Ahead

Nepal enjoys many advantages in the tourism sector. Some time back, a British newspaper had conducted a poll that showed that Nepal was the second best destination option behind only New Zealand. The mountains, the natural beauty and the hospitality of the Nepalese people score over many obstacles. "We don't need help from anyone in increasing the competitive advantage of our country in tourism sector," said Pradeep Raj Pandey, chief executive officer at the NTB. According to him, the NTB will continue to engage in promotional events like familiarization trips to market Nepal abroad.

Like senior tourism entrepreneur Karna Shakya said (see box), the hands of the government, the private sector and the public should be joined in overcoming the present difficulties.

"Till now, we have not seen any tourist being hurt by the violence. So, we must start telling our tourists that they will be safe in Nepal. This message needs to sounded heavily and frequently," said Hari Man Lama (See box), chief of Incentive Tours and Sansui Treks. According to him, the country presently has 1.9 million annual air seat capacity of which less than 700,000 is actually used. Likewise, the hotel capacity per annum is 1.5 million persons. With such an impressive infrastructure already in hand, the entrepreneurs and the policy-makers need to engage in aggressive marketing abroad.

Another prospect could be domestic tourism. Till now neither the government nor the private sector has done anything to promote internal tourism in the country. Even among Nepalese, there are hundreds of thousands who can afford to travel once in a while. The government and the private sector need to tap this potential.

"In our context the government and the private sector do not seem to be terribly interested in internal tourism. The government should bring about proper facilities and awareness on domestic tourism. And the entrepreneurs like hoteliers, too, should bring about a change in the attitude they exhibit to Nepali tourists," said Surendra Bhakta Pradhananga, a tourism expert. According to him, the increase in the internal tourism would also increase interactions among Nepalese people and will go a long way in strengthening their culture and traditions.

Agrees Ajaya Ratna Sthapit, second vice-president at the Hotel Association of Nepal (HAN). "As international terrorism is keeping away long-haul tourists, it would be prudent to encourage domestic tourism." According to him, if the government provides incentives like paid holidays, holiday allowances, etc., there will be a big boost to the sector.

As things stand, tourism entrepreneurs have very limited options before them. They have to apply a two-pronged approach - market themselves aggressively abroad to lure as many foreign tourists as they can and also concentrate on boosting domestic tourism. Until and unless there is a long-lasting solution to the political problems in the country, however, there is little they can do.

‘Tourism Should Be Recognized As Major Industry’

— Hari Man Lama

Hari Man Lama is the chief executive officer of Incentive Tours and Sansui Treks. Lama is also associated with the Trekking Agents Association of Nepal (TAAN) and has been long involved in the tourism sector in the country. He spoke to SANJAYA DHAKAL on a few issues related to the sector. Excerpts:

What is the state of the tourism sector?

It is down. The entrepreneurs are feeling depressed. The situation is really very bad. Although there has been no direct threat to tourists or trekkers, the overall environment of violence has hit the industry.

What about the trekking sector?

Well, as trekking is also a part of the larger tourism sector, naturally it has also been affected. But we need to tell our tourists that there has been no direct threat to trekkers and tourists from the ongoing insurgency in the country. We must start sending out positive signals and bring the industry back on track.

The government is organizing the Destination Nepal Campaign (DNC) to revive the industry. What do you say?

As a promotional event, DNC is fine. But one has to be sure that such campaigns bring about some tangible changes in the industry. I have heard that the budget for the DNC is insubstantial. Without adequate resources, it would be difficult to inject fresh life in the industry.

What do you think is the road ahead for the industry, now?

I believe the government needs to recognize tourism as the major industry in the country. In fact, there is no other industry in the country that is so all encompassing. From small-time vegetable vendors to top executives, tourism can provide employment opportunities to all and sundry.

‘First, There Should Be Political Solution’

— Tek Chandra Pokharel

Tek Chandra Pokharel, chief of Himalayan Journeys, is a respected senior tourism entrepreneur in the country. He spoke to SANJAYA DHAKAL on related topics. Excerpts:

What is the mood of tourism entrepreneurs at present?

The mood is very somber. We did celebrate the World Tourism Day last week but with a very heavy heart. At no point of time in our short history, have we felt so much depressed. We had hoped for a better season now but with the continued violence and talk of election, it has been dashed. Usually during election time tourists try to keep away.

So how are the entrepreneurs coping?

Well, they managed to survive the last six months. Now I think in next two to three months more than 40,000 employees will lose their jobs. I think the wave of laying employees off will start shortly as entrepreneurs will be unable to sustain themselves.

What will be the solution to this imbroglio, then?

Naturally, without the political solution, nothing will be alright. There are two ways of doing that. Either the government should end this problem through dialogue or it should quash the rebels. As it has not been able to do the latter, the viable option now is to engage in dialogue and bring a peaceful end to this problem.

In the meantime, can't tourism entrepreneurs continue with their business?

They cannot. Yes, there are many examples where countries have tried to salvage their economy even during civil wars. But these examples are not good enough. Look at Sri Lanka, had that country not suffered civil war, its tourism would have shot astronomically. As things stand, its tourism figures at present hovers around those in 1984.

‘Morning Will Surely Come’

—Karna Shakya

Karna Shakya is one of the most noted tourism entrepreneurs of the country. The owner of Kathmandu Guest House and many other tourism ventures, Shakya spoke to SANJAYA DHAKAL on the prospects of tourism industry. Excerpts:

How do you feel about present developments and how have they affected the tourism industry?

I must say that I am a very optimistic person. However long and dark the night is, it cannot escape the light of morning. There are problems everywhere. We just have to learn to take these problems in our stride. Similar problems were witnessed by Sri Lanka, Philippines and so on. We must not lose heart.

So, what should we do?

This does not mean we can stay idle. In fact, we have to search for heaven even in hell. Opportunities exist in problems. Just the other day, I went to a restaurant with a friend. I was told that till few months ago it used to be a dance restaurant where the owners used scantily clad girls and vulgar dances to entice customers. But now it had been turned into a Dohari restaurant where talented singers engage in traditional singing competition and entertain their guests. This was because after the imposition of emergency, the dance restaurants were closed down and were replaced by these novel and good concepts.

How can we overcome the difficulties faced by the tourism sector?

There has to be a triangular approach. The government, the private sector and the public have to join hands, as all three are equal stake-holders of this industry. If we three join hands and work for the common objectives, no difficulty would be insurmountable.

You were the coordinator of the successful Visit Nepal Year (VNY) 1998. The government has declared the Destination Nepal Campaign this time. What do you say about its preparation?

During the VNY, we made sure that the public understood and became part of the campaign. We had the logos of VNY pasted in all public buses and tempos. I don't find similar zeal and enthusiasm in organizing the DNC. Until and unless you seek public participation, there is very little room for success.