Thamel, renowned as a prime destination for foreign tourists in Nepal, has once again witnessed an influx of visitors during the peak tourist season from Ashwin to Mangsir. However, local businesses report a lack of significant economic activity despite the crowded streets, highlighting a stark contrast to previous years.
Business owners in Thamel have expressed concern over the absence of high-spending (luxury) tourists. According to Navaraj Thapa, Managing Director of Sushmita Creation Enterprises, while tourist numbers have increased, their spending habits have not matched expectations. “Tourists are here, but they are not the kind who shop or spend much. Trekking stores are seeing occasional business, but other shops are struggling,” Thapa, a veteran of nine years in the industry, remarked.
Shift in Tourist Spending Patterns
Thapa further explained that in previous years, tourists from European and American countries significantly contributed to the sales of high-value items like pashmina and handicrafts. However, the market has been disrupted by counterfeit goods, particularly Chinese-made pashminas, reducing the demand for authentic Nepali products. “There are around 200 pashmina shops in Thamel, but business has been far from encouraging,” he added.
Ajay Bindakar, who operates Newa Cold Store in Satghumti, shared similar concerns. “Tourists are here, but they are mostly budget travelers who spend on basic necessities like accommodation and food. The economic slowdown might be a factor in their limited spending,” he explained.
Hotels and Restaurants Face Decline in Revenue
Despite an 80% occupancy rate in hotels, as reported by Sajan Shakya, General Secretary of Hotel Association Nepal, business enthusiasm has been muted. Restaurants and night-time establishments, typically bustling during this season, have also struggled to generate significant revenue. Prakash Raj Giri, a staff member at The Northfield Café, noted, “Although there is tourist movement, the hotel and restaurant businesses are not performing as well as before.”
Impact of Weather and Natural Disasters
Unfavorable weather conditions have also contributed to the lackluster season. Bhabishwor Sharma, former President of the Thamel Tourism Development Council, mentioned that incessant rainfall in early Ashwin and subsequent landslides negatively impacted the tourism sector. “Budget tourists dominated this season, and their average stay was shorter. The adverse weather only made things worse,” he said.
A Glimpse at Tourism Statistics
According to Nepal Tourism Board, 1,055,533 foreign tourists visited Nepal in the first 11 months of 2024, compared to 1,014,778 in 2023. While the numbers indicate growth, the economic contribution from tourists appears to have stagnated.
Challenges Ahead for Thamel Businesses
With approximately 1,200 shops and 12,000 commercial enterprises in Thamel, ranging from trekking gear stores to high-end souvenir shops, sustaining business has become increasingly challenging. Many establishments are still recovering from the economic downturn following the Gorkha earthquake and the COVID-19 pandemic.
As the peak tourist season winds down, Thamel’s vibrant streets are beginning to empty, with foreign tourists departing after their treks and expeditions. Local entrepreneurs now look ahead with hope for a more robust recovery in the coming years, as they adapt to changing tourist demographics and spending patterns.
Source: RSS