MYAGDI: Nima Bista, the owner of Nyutara Hotel in Lomanthang Rural Municipality-5 of Mustang, has left the business and went abroad after failing to see a return on his investment.
He left the hotel in the care of a relative and moved to America.
Chhewang Gurung, Secretary of the Lomanthang Hoteliers Association, reports that many business owners are considering a similar exit.
Upper Mustang is known for its stunning landscapes, including artistic mountains, barren deserts, mud houses, and rich Tibetan culture, featuring historical palaces, monasteries, and sacred sites like Damodarkunda, a pilgrimage destination for both Buddhists and Hindus.
However, many hotels that were established with significant investment are now lying empty.
Due to the restricted area status, foreigners face challenges in accessing this region, impacting local livelihoods.
The tourism and hotel industry in Upper Mustang relies heavily on Nepalese visitors during holidays and festivals.
Lomanthang is home to 25 hotels that can accommodate up to 400 tourists per day, yet most remain vacant, according to Ram Bahadur Gurung, owner of Mystic Hotel.
The owners of 70 hotels in Upper Mustang are struggling due to low tourist numbers.
Secretary Chhewang notes that the total investment for establishing a hotel is around Rs 35 million.
While Lomanthang has the capacity to accommodate 1,500 tourists daily, only about 3,000 tourists visit each year.
Although there are more Nepalese tourists than foreigners, no official statistics confirm this trend.
Lakpa Wangdi Gurung, a businessman and ward member of Lomanthang Rural Municipality-5, highlights that the semi-restricted area and high fees are major barriers to tourism development.
A fee of $500 is required for a ten-day tour.
The government has designated parts of Lomanthang and nearby areas, including Loghekar Damodarkund and parts of Manang and Gorkha, as prohibited zones due to security concerns.
Non-Nepalese tourists must obtain a special permit for 10 days at a fee of $500, with an additional charge of $50 per day for extended stays.
Access beyond Nechung in Lomanthang Rural Municipality-1 is prohibited.
Since 1992, foreign nationals have been allowed to visit Upper Mustang under specific conditions.
In 2023, ranger Madan Paudel from the Annapurna Conservation Area Project (ACAP) reported that 3,484 foreign nationals from 70 countries visited Upper Mustang.
The numbers show fluctuations: 3,112 in 2022, 332 in 2021, 62 in 2020, and 3,918 in 2017.
Statistics indicate that 10 percent of tourists entering Mustang do not make it to Upper Mustang.
Many who do visit are forced to cut their trips short due to time constraints.
Bikal Sherchan, a member of the Gandaki Provincial Assembly, attributes the lack of growth in tourist arrivals to inadequate fee structures and procedures catering to all economic classes.
Tashi Norbu Gurung, Chairman of Lomanthang Rural Municipality, expressed concerns that high fees in restricted areas negatively affect the local economy.
He and other stakeholders have approached provincial and federal governments to advocate for the removal of the semi-restricted status.
The issue of removing Upper Mustang from semi-restricted status has become a political topic, with stakeholders recommending increased security presence in border areas with China and a reevaluation of the semi-restricted designation.
If the status remains unchanged, they propose reducing entry fees and offering concessions to tourists from neighboring countries, including China, India, and those in the SAARC region.
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