"We are preparing Master Plan for broader Touristic Development of Thamel"
Sahadev Dhamala has been serving as the Vice President of the Thamel Tourism Development Council for the past year. Additionally, Mr. Dhamala is also involved in operating Kathmandu Eco Hotel in Thamel. In an exclusive interview with aarthiknews.com, he articulated his perspectives on the current state, challenges, and opportunities of the country's tourism industry, with particular emphasis on the Thamel area, in a straightforward and precise manner. Below is an edited excerpt from the conversation:
Could you elaborate on the current tourism scenario in Thamel, which is recognized as a significant tourist destination?
Thamel is undoubtedly a region intrinsically linked to the overarching tourism industry of the country. This sector was severely impacted by the major earthquake approximately a decade ago, followed by the global COVID-19 pandemic. However, recent years have witnessed a resurgence in the influx of foreign tourists. In 2024, arrivals reached a substantial figure of 1.2 million. Consequently, the tourism industry in Thamel, which had been stagnant, is experiencing revitalization.
How is the tourism business in Thamel showing signs of improvement?
The pandemic and the ensuing economic downturn led to the displacement of a significant number of tourism entrepreneurs in Thamel. However, with the improving situation, they have resumed their businesses. This revival is primarily attributed to the increased movement of both international and domestic tourists in the Thamel area. Notably, 80% of all international tourists entering Nepal visit this area. Statistics from last year (2024) indicate that 800,000 foreign tourists explored Thamel. Additionally, domestic tourists have positively contributed to the economic momentum of Thamel. These visitors account for 30 to 40 percent of the economic transactions in Thamel.
It is noteworthy that approximately nine months ago, the government's decision to keep Thamel open 24 hours a day has also significantly boosted business in the area.
Thamel may be unparalleled globally as a tourist destination with more than 5,500 commercial units of 17 different types within a 1-kilometer radius
What are Thamel's unique tourist attractions?
Thamel may be unparalleled globally as a tourist destination with more than 5,500 commercial units of 17 different types within a 1-kilometer radius. These units include hotels, restaurants, curio shops, nightclubs, wellness and recreation centers, and shops offering pashminas and clothing items.
What is the monthly turnover of these businesses?
Based on their business nature, these units generate a monthly turnover ranging from a minimum of 500,000 to as much as 3 million.
What initiatives is the Thamel Tourism Development Council undertaking for the area's tourism development?
The council is committed to the comprehensive tourism development of Thamel. In alignment with this commitment, we are currently formulating a master plan for Thamel's extensive tourism development. We have prepared a concept paper and submitted it to the Kathmandu Metropolitan City.
Could you provide insights into the concept paper for this master plan?
The concept paper categorizes Thamel's development into three segments: social, economic, and infrastructure. The first segment addresses issues such as ensuring peace and order in the area, while the second focuses on measures to protect the rights and interests of the local entrepreneurs. The third segment includes plans for improving parking, traffic, street lighting, and beautification of the Thamel area.
The implementation strategy for the topics outlined in the concept paper will be executed in three phases over time. The first phase is a short-term phase of 5 years, the second is a mid-term phase of 10 years, and the third is a long-term phase of 15 years.
Discussions regarding this concept paper are currently ongoing between the council and the metropolitan city officials. Subsequently, a detailed project report of the master plan will be prepared in collaboration with both parties.
The estimated cost for Thamel's master plan is to the tune of 2.5 billion rupees.
What is the estimated cost of implementing Thamel's master plan?
The estimated cost is 2.5 billion rupees.
What are the main obstacles to the growth of the nation's tourism industry?
The state has consistently failed to assume the role of a guardian for this industry. For instance, the tourism sector was the most adversely affected by the COVID-19 pandemic. Yet, the relevant authorities did not introduce any "stimulus package" (government relief programs such as cash transfers) to support this industry.
Even in such challenging economic conditions induced by the pandemic, tourism entrepreneurs received no tax relief or concessions on bank loan interest. Another example of the state's extreme apathy towards tourism businesses is the recent prohibition of commercial helicopter flights in the Everest area, citing environmental and other reasons. This has impeded tourist activities in that area.
What are the other challenges faced by this industry?
The absence of direct air connectivity between Nepal and Europe, exorbitant insurance premiums for foreign tourists, and aggressive competition among tourism entrepreneurs are other significant issues. Due to the lack of direct air connectivity, tourists from European countries must transit through another country to reach Nepal, leading to both financial and time-related inconveniences. Moreover, European visitors to Nepal are required to pay insurance premiums amounting to 800 to 900 Euros, which is prohibitively high and diminishes their interest in visiting Nepal.
Furthermore, some tourism entrepreneurs, disregarding business ethics, are solely focused on profit-making. They offer tour packages to foreign tourists at lower prices than necessary, providing substandard services and facilities. This has resulted in a negative perception of Nepal in the international tourism market.
The state has consistently failed to assume the role of a guardian for this industry. For instance, the tourism sector was the most adversely affected by the COVID-19 pandemic but the relevant authorities did not support the very sector
What measures should be taken for the overall growth of the nation's tourism industry?
This industry plays a pivotal role in strengthening the Nepali economy. It contributes 6 per cent (equivalent to 300 billion rupees) to the annual gross domestic product. Furthermore, the industry has generated over 1 million jobs, accounting for 7% of Nepal's total employment. Joint efforts by the state and the private sector are essential to develop tourism as a robust tool for the country's social and economic transformation.
Such efforts should include addressing the current challenges faced by the industry and implementing additional measures. These measures include policy arrangements for the marketing and branding of Nepal's major tourist destinations in the international market, the development and expansion of air services (targeting the international tourism market), and the production of skilled manpower. If all the said measures are adopted, the tourism industry will surely take a big leap forward.
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