Hotel occupancy rate in Pokhara down by 50 percent

POKHARA, (KASKI), October 23:  Despite the start of the tourist season in the prominent tourist city of Pokhara, the number of visitors here remains low, causing concern among tourism businesses. Typically, October and November are peak tourist months. In previous years, hotel occupancy during this period would reach around 90-95%, but it has now dropped by almost 50 percent to approximately 40-45%, leading to disappointment among business owners. Lakshman Suvedi, president of the Pokhara Hotel Association, stated that the sluggishness in the tourism sector following the COVID-19 pandemic is still having an impact.

"The tourism sector has not yet returned to pre-COVID conditions. Hotels that once had 70-80% occupancy are now struggling with only half that," he explained. "COVID weakened the economies of many countries, forcing tourists to spend less, and internal tourists also have reduced spending capacity. The entire tourism sector has been suffering from these effects for a long time."

Suvdedi noted that while investment in the tourism sector has increased since the construction of the international airport, the influx of foreign tourists has not risen proportionately. He added, "As hotels have increased and room capacity has grown, the arrival of external tourists has not followed suit. Domestic tourists alone cannot sustain this large investment, leading to heightened concerns among businesses."

He further explained that the inability to operate regular flights from Pokhara International Airport and high ticket prices are also hindering the arrival of foreign tourists. Naresh Bhattarai, operator of Hotel Mount Kailash, recalled that guests would book rooms a month in advance during this season.

"This season used to be quite busy, with calls from friends about bookings, but now we are operating with just 30-35% occupancy," Bhattarai said. "The area has been continuously affected by various issues like COVID, plane crashes, road accidents, and landslides."

He emphasized the need for improved infrastructure and reliable management to make Pokhara a safe destination. Bhattarai suggested that roads, hotels, and other facilities must be improved to ensure safe and comfortable travel. "The weather is getting better, and it's the perfect time to enjoy the beautiful views of the mountains and partake in adventurous activities, but there simply aren’t enough tourists to enjoy them."

Sangita Paudel, operator of Tika Resort and vice president of the Nepal Association of Tour and Travel Agents Gandaki, noted that various factors have contributed to the stagnation of the tourism sector, which has significantly impacted local businesses and the economy. "The mountains are visible, and the environment is calm, but there aren’t enough tourists to enjoy this pleasant atmosphere," she said. Paudel added that they are currently operating hotels with only 30-40% occupancy this season.

Taranath Pahari, president of the Pokhara Tourism Council, stated that while the construction of the international airport and the declaration of Pokhara as a tourist capital have motivated businesses, the anticipated activities have not materialized, leading to stagnation in the sector.

He remarked, "We may call it a tourist capital, but necessary infrastructure development and promotional efforts have not been prioritized. Tourism cannot thrive solely on private sector efforts; it requires integrated thinking and collective effort." Pahari urged the government to create tourism policies and focus on their implementation to boost tourist arrivals.

He expressed confidence that if ticket prices are made affordable in collaboration with airlines, and if Pokhara is promoted internationally and digitally as an adventurous and cultural tourism destination, the tourism sector would quickly regain momentum.

Krisna Acharya, president of the Trekking Agencies' Association of Nepal (TAAN) Gandaki, mentioned that weak coordination between the government and the private sector has hindered Pokhara's establishment as a competitive destination in the international market, leading to a decline in tourist arrivals.

"Even this tourist season, the expected improvement in tourism has not been realized, particularly in trekking activities where the number of tourists has significantly decreased, with trails being replaced by motorable roads," he said. He noted that there has been insufficient government interest in preserving and managing the world-famous Annapurna trekking routes and that the private sector alone cannot handle this.

Acharya emphasized that tourism in Pokhara will only gain momentum if both external and internal tourists come for trekking, which will lead to increased occupancy rates in hotels and lodges. He highlighted the need to create special packages to attract both domestic and international tourists to revive tourism in Pokhara.

Dhanraj Acharya, the mayor of Pokhara Metropolitan City, shared that they are prioritizing sustainable tourism development and its international promotion with special plans. He stated, "'Pokhara Visit Year 2025' is being targeted with policies and programs that will encompass sustainable planning, international promotion, and internal tourism development."

He informed that efforts are underway to develop Pokhara as an excellent destination for meetings, incentive trips, conferences, and exhibitions. In this context, preparations are being made to host three major international events in Pokhara, aiming to keep tourism vibrant and active.

Acharya expressed confidence that the construction of the Muglin-Pokhara highway will be completed by December 2025, and regular international flights from Pokhara International Airport will be ensured after that period. According to him, plans have been made to provide tourists with new experiences by implementing environment-friendly programs based on local culture, rural life, and green tourism concepts.

There are over 1,200 tourist-standard hotels around Lakeside, Damside, and nearby Pokhara, with a total capacity of 40,000 guests. Suvedi claims that a total of Rs 600 billion has been invested in the tourism sector, with hotels alone accounting for 83 percent i.e. Rs 500 billion of the total investment.

The sluggishness in tourist arrivals has affected many employees, as around 15,000 people are directly employed in the tourism sector. Business owners believe that only through collaboration among the government, private sector, and local communities can these challenges be addressed and Pokhara reestablished as an attractive and safe destination.

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