Tourism entrepreneurs from Pokhara have met with Finance Minister Rameshwor Khanal to draw attention to the pressing challenges faced by the sector and discuss measures for its revival. The delegation, led by Taranath Pahari, chairman of the Pokhara Tourism Council, visited the Ministry of Finance at Singha Durbar to present their concerns and proposals aimed at boosting the tourism industry, which has been severely affected in recent months.
During the meeting, the delegation submitted a memorandum to Minister Khanal outlining key demands for the recovery and development of the tourism sector. The team included prominent figures such as former chairman of the Pokhara Tourism Council and former member of the Nepal Tourism Board, Tikaram Sapkota; Rewan Pokhara Chairman Bishwaraj Paudel; former chairman Naresh Bahadur Bhattarai; Natta Gandaki Province Chairman Kishor Dahal; and Chief of Nepal Tourism Board’s Gandaki Province Office, Maniraj Lamichhane.
Damage to Tourism Sector from Protests
The memorandum highlighted the severe damage caused to the tourism sector due to recent protests led by the “Gen-Z” movement. The demonstrations, which coincided with the peak tourist season, resulted in incidents of arson, vandalism, and looting targeting commercial establishments. The delegation requested that authorities identify and take legal action against individuals or groups responsible for these activities and ensure prompt compensation for affected business owners.
The memorandum also emphasized that tourists are canceling their packages and bookings due to the unrest, creating a challenging environment for the tourism industry. It urged immediate interventions to restore confidence among travelers and revive tourism activities in affected areas.
Financial Relief and Support Demands
Entrepreneurs stressed that the combination of protests, political instability, and the announcement of elections in the tourist season has significantly reduced the likelihood of tourist arrivals. This situation, according to the memorandum, may severely impact the ability of business owners to repay bank loans and installments by the end of Chaitra (mid-April). Consequently, the delegation requested extensions for loan and interest repayment deadlines, waiver of penalties, and provision of additional concessional credit facilities to support business operations during the recovery period.
The memorandum further called for tourism-related loans to have a repayment period of at least 25 years, along with renewed re-credit facilities to support long-term business sustainability. For small and medium enterprises, the delegation proposed a revival scheme similar to past provisions, offering up to NPR 15 million in “Business Life-Saving Loans” for at least five years at zero interest, with further interest rate reductions to ease financial burdens on entrepreneurs.
Tax and Regulatory Relief
Considering the international market and competition, the Pokhara Tourism Council urged the government to reduce overall value-added tax rates and immediately abolish VAT imposed on airline tickets and trekking activities. The delegation also recommended reviewing trekking permit fees in controlled and regulated areas, and facilitating operations at key entry points such as the Korala border. Furthermore, they highlighted that tourism businesses are yet to receive industry-level benefits as announced in the current fiscal year’s budget, and requested urgent implementation of these provisions.
Previous Engagements and Follow-up
The Pokhara Tourism Council has been actively engaging with government officials to support tourism sector revival. According to chairman Taranath Pahari, the council leadership also met on Sunday with Governor Dr. Bishwapaul, and CEO of Nepal Tourism Board, Deepkaraj Joshi, to discuss strategies for reviving the industry and ensuring sustainable tourism growth. These engagements reflect the concerted efforts of local entrepreneurs and industry leaders to secure government support and mitigate the adverse impacts of recent disruptions.
Urgency of Intervention
The meeting with Finance Minister Khanal underscores the urgency of addressing financial, regulatory, and operational challenges facing tourism entrepreneurs. The delegation emphasized that immediate actions such as timely compensation, financial relief, regulatory reforms, and tax adjustments are essential for restoring investor confidence and encouraging tourist arrivals during the ongoing festive and peak seasons.
Tourism in Pokhara, a major destination for both domestic and international travelers, contributes significantly to the local economy. The recent setbacks caused by protests, coupled with ongoing political uncertainty, threaten livelihoods, employment, and the broader economic ecosystem associated with tourism. Therefore, the council’s proposals focus not only on immediate relief but also on long-term sustainability of the industry.
The Pokhara Tourism Council’s delegation highlighted the critical situation faced by entrepreneurs, emphasizing the need for prompt government intervention to protect investments, ensure continuity of operations, and revive tourism confidence. By addressing financial constraints, tax and regulatory hurdles, and the aftermath of civil unrest, the council aims to secure a path for the sustainable development of the tourism sector in Pokhara and the Gandaki Province at large.
Minister Khanal’s response to the delegation’s memorandum and proposed solutions will be pivotal in determining the trajectory of tourism revival in the region. With the combined efforts of government authorities, local entrepreneurs, and tourism stakeholders, the sector can anticipate gradual recovery and growth, ensuring that Pokhara continues to remain a premier destination for travelers from across the globe.
