"High Fees and Restrictions in Upper Mustang Force Hotel Owners Abroad, Stifle Tourism"

MYAGDI, SEPTEMBER 20:Nima Bista, the owner of Nyutara Hotel in Ward No. 5 of the Lomanthang Rural Municipality, Mustang, has left the business and migrated to the U.S. due to low returns on his investment. He handed over the hotel’s operations to relatives before leaving. According to Chewang Gurung, Secretary of the Lomanthang Hotel Entrepreneurs’ Association, many hotel owners are facing similar challenges and are leaving the area.

“Upper Mustang is a 'virgin area' for tourism. With the identification of tourist destinations, infrastructure development, and promotion, modern hotels were established with investments in the millions," said Gurung. "However, due to its semi-restricted status and the cumbersome, expensive process required for entry, even interested tourists can't visit. This has forced hotel owners to leave.”

Upper Mustang is known for its artistic mountains, desert-like terrain, mud-built houses, Himalayan lifestyle, ancient Tibetan culture, historical palaces, monasteries, and the Korala Pass. Damodar Kunda, a pilgrimage site for both Buddhists and Hindus, is also located here.

Deserted Hotels Despite Heavy Investments

Due to restrictions, foreign tourists have limited access to the area, affecting local businesses. Upper Mustang's tourism and hotel industry currently depends on Nepali visitors during holidays and festivals. Though Lomanthang’s 25 hotels can accommodate 400 tourists daily, most remain empty, says Ram Bahadur Gurung, owner of Mystic Hotel. The situation has become dire for 70 hotel operators due to the low number of tourists.

Secretary Chewang noted that setting up a hotel in the area requires an average investment of 35 million rupees. Though Upper Mustang's hotels have a combined capacity to host 1,500 tourists daily, only about 3,000 tourists visit the area annually. While more Nepali tourists visit than foreign tourists, there is no official data tracking their numbers.

The semi-restricted status and high fees have become significant barriers to tourism development in Upper Mustang, says Lakpa Wangdi Gurung, a business owner and local ward member. “If tourist entry were made easier, it would benefit the government, businesses, and the community,” he said. “The restrictions are driving young entrepreneurs to abandon their businesses and migrate abroad.”

High Fees: $500 for a 10-Day Permit

Lomanthang, Loghekar Damodarkunda, and parts of Ward 5 in Baragung Muktichetra have been designated as restricted areas due to security concerns. Foreigners wishing to visit Upper Mustang, which is part of the Annapurna Conservation Area Project (ACAP), must pay a $500 fee for a special 10-day permit from the Department of Immigration. Beyond 10 days, an additional fee of 50 rupees per day applies. Foreign tourists are not allowed to travel beyond Nechung in Lomanthang Rural Municipality-1. Since 1992, foreigners have been permitted to visit Upper Mustang for a limited time with a fee and permit.

3,000 Tourists Annually

According to Madan Poudel, a ranger at the Annapurna Conservation Area Project (ACAP) in Lomanthang, 3,484 foreign tourists from 70 countries visited Upper Mustang in 2023, with a similar number expected in 2024. In comparison, 3,112 foreign tourists visited in 2022, 332 in 2021, 62 in 2020, and 3,918 in 2019. The highest recorded number of foreign tourists was in 2017, with 4,115 visitors.

Despite the overall number of tourists entering Mustang, less than 10% visit Upper Mustang. Many who do visit often leave in a rush due to time constraints, preventing them from exploring all the major sites. Gandaki Provincial Assembly member Bikal Sherchan stated that the lack of a flexible fee structure and procedure for tourists of varying economic backgrounds has hindered tourism growth in Upper Mustang.

Calls to Lift Restrictions

Tasi Norbu Gurung, Chairman of Lomanthang Rural Municipality, said locals are urging the provincial and federal governments to remove the restrictions that are impacting local livelihoods and the economy. “Keeping Upper Mustang as a restricted area has reduced the number of tourists and affected the tourism industry here,” he said. “The fees are also too high, which is why we have demanded the removal of the restricted status.”

Chairman Gurung noted that they have met with high-ranking officials, including Prime Minister KP Sharma Oli, former Prime Minister Pushpa Kamal Dahal 'Prachanda,' Gandaki Chief Minister Surendra Raj Pandey, and several Home Ministers to demand an end to the semi-restricted status. This has now become a prominent political issue for the region. Local stakeholders suggest that instead of maintaining the restricted status, the government should increase the security presence along the China border.

In case the restricted status cannot be lifted, locals propose reducing entry fees and offering concessions to tourists from neighboring countries like China, India, and other SAARC nations. Residents of restricted areas complain of a dual legal system within the same country. Vinod Gurung, chairman of Ward 3 in Baragung Muktichetra, said residents are deprived of state services despite being in restricted areas, putting them in a difficult position.

Yogesh Gauchan (Thakali), Mustang's elected Member of Parliament, stated that the process to amend the necessary laws to lift the restricted status is ongoing while increasing the security presence along the border. “The Ministry of Home Affairs has sought recommendations from relevant authorities based on district-level proposals,” he said. “During a meeting with Home Minister Ramesh Lekhak on Thursday, I raised the issue of lifting the semi-restricted status.”

Gauchan also mentioned that the government is planning to partially lift restrictions in Chhusang and Sangta of Baragung Muktichetra in the first phase. In the next phase, decisions will be made on whether to lift or partially remove restrictions in Loghekar Damodarkunda and Lomanthang Rural Municipalities.

 

 

 

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