Nepal’s burgeoning tourism sector has welcomed a unique addition: motorboat tourism. Approximately 120 motorboats are currently operational across various rivers and reservoirs from east to west, fostering both economic and tourism growth in local areas. These motorboats not only serve as a revenue stream for local governments, generating annual revenues ranging from NPR 1 million to nearly NPR 10 million, but they also create thousands of direct and indirect jobs, according to industry experts. However, despite its potential, motorboat tourism faces hurdles due to the lack of comprehensive regulations.
Economic Impact and Growing Popularity
While many motorboats are operated for recreational purposes, they are also utilized for passenger transport and cargo delivery in some areas. This dual-purpose usage has significantly boosted local economies and opened new tourism opportunities. Vishnu Dhakal, Chairperson of Botebora Company, a leader in motorboat production and operation in Nepal, highlights that the lack of clear regulations has created challenges in managing, registering, and operating motorboat businesses uniformly.
Dhakal’s company operates motorboats in several locations and produces them through the Nepal Sheep and Boat Building. However, he notes that due to regulatory gaps, Nepal has yet to achieve international recognition in the sector.
Legal Vacuum Impeding Growth
Nepal’s water transport office, established on February 14, 2019, under then-Prime Minister KP Sharma Oli’s initiative, aimed to regulate and promote water-based transport, including motorboats and larger vessels. However, progress has stalled due to delays in drafting and implementing new laws. The current legal framework relies on outdated regulations from over five decades ago, such as the Ship Registration Act, of 2027 (1971) and other related rules, which are insufficient for the present context.
Rajan Pradhan, an official at the water transport office, confirms that a draft bill addressing the legal shortcomings is ready for parliamentary discussion. “Once the law is passed, foreign investments can be regulated, and existing motorboat operations will become streamlined,” says Pradhan.
Unexplored Potential
Major tourist destinations like Fewa Lake in Pokhara and Rara Lake in Mugu could significantly enhance their attractions by introducing cruise boats. Dhakal emphasizes that a robust legal framework would allow the development of such water bodies into prime tourist hubs, boosting Nepal’s appeal on the global tourism map.
Insurance and Safety Concerns
The absence of clear laws has led to difficulties in insuring motorboats and engines, despite provisions for accident insurance. Establishing training institutions for necessary personnel, such as operators and rescue professionals, also hinges on legislative support.
Broader Implications for Water Transport
The lack of legal clarity also impacts Nepal’s ability to utilize international water transport agreements. For example, the 1999 Nepal-India Transit Treaty renewal opened the possibility of using waterways for trade. Yet, without proper laws, Nepal cannot fully capitalize on these agreements, including introducing small vessels to regions like Dasdhunga.
Local Challenges
The federal structure further complicates motorboat operations, with overlapping jurisdictions among central, provincial, and local governments. Disputes over the ownership of dammed water bodies and associated rights have stalled potential projects.
Need for Industrial Support
While two companies currently produce motorboats domestically, importing ready-made boats remains cheaper due to high taxes on raw materials. Dhakal suggests that tax reforms favoring local production could reduce dependency on imports and foster Nepal’s industrial growth.
The Road Ahead
A draft law awaiting parliamentary approval promises to address these issues by enabling systematic registration, insurance, and personnel training for motorboat operations. Experts believe that passing this law would unlock Nepal’s water transport potential, creating opportunities for tourism, trade, and employment.
Motorboat tourism in Nepal holds immense potential as a driver of economic and tourism growth. However, its success depends on swift legislative action to address regulatory gaps, enhance safety standards, and provide a conducive environment for investment and development. With the right policies in place, motorboat tourism could transform Nepal’s waterways into thriving economic and tourism hubs.
