Festive buzz shifts to tourist hotspots outside Kathmandu valley

KATHMANDU: With only four days left for the English New Year 2025, Nepal’s tourism and hotel industry is grappling with sluggish activity. While this season typically draws a surge in domestic and international tourists, filling hotels and boosting the tourism sector, the current scenario paints a quieter picture.

Hotels in Kathmandu Valley remain under-occupied, with tourism entrepreneurs citing the ongoing off-season and a global economic slowdown as major reasons. According to General Secretary of the Hotel Association of Nepal, Sajan Shakya, international tourists are scarce, and domestic travelers have limited impact on urban hotel occupancy.

“Most foreign tourists prefer celebrating New Year in their home countries with family and relatives. This season, we usually see tourists from Bangladesh and India, but their numbers have declined significantly. Poor road infrastructure and rising airfare have further discouraged arrivals from neighboring countries,” Shakya explained.

He added that large hotels in the Kathmandu Valley depend heavily on international tourists, but the current occupancy rates are merely 30 to 40 percent.

Quiet Hotels in Kathmandu

Senior Vice President of the Hotel Entrepreneurs Federation, Sher Bahadur Thapa, lamented the lack of enthusiasm among hotel operators as the New Year approaches. “Hotel bookings haven’t increased, and the occupancy rate is only around 50 percent, far below the 80 percent required for profitability,” Thapa said.

He also pointed to Nepal’s unstable economy and political issues as contributing factors to the decline in tourist arrivals. “Limited recreational spots in the Kathmandu Valley during New Year also play a role in reducing tourist activity,” he added.

Buzz Outside the Valley

In contrast, tourist hotspots outside Kathmandu, such as Nagarkot, Dhulikhel, Pokhara, and Chitwan’s Sauraha, are witnessing increased activity. Domestic tourists are flocking to these destinations, providing some relief to the local hospitality sector.

Pokhara, in particular, has seen a surge in events targeting tourists. A balloon festival that began on December 24 has boosted hotel occupancy, with many establishments reporting 90 percent bookings. The Restaurant and Bar Association of Nepal (REBAN) is set to host a street festival starting December 28, which is expected to attract more visitors.

“Our goal is to draw both domestic and international tourists to Pokhara,” said REBAN coordinator Bikash Bhattarai.

Chitwan’s Sauraha Hosts Tourism Festival

Chitwan’s Sauraha is also gearing up for the New Year with the “Elephant and Chitwan Tourism Festival,” which commenced on Thursday. Former Regional Hotel Association President Suman Ghimire shared that the festival has drawn significant crowds, although the number of overnight guests remains low.

“Hotels are expected to be fully booked on New Year’s Day, with current occupancy rates hovering around 60 percent,” Ghimire said.

Hotels Offering Discounts and Events

In Kathmandu, some hotels like the four-star Hotel Manang have managed to maintain comparatively better occupancy rates of 50 to 70 percent. “Our location in Thamel, along with a loyal customer base, has helped us attract domestic tourists,” said Melina Rai, Operations Manager at Hotel Manang.

To mark the New Year, the hotel is offering up to 40 percent discounts and hosting live music events.

As Nepal’s tourism sector navigates these challenges, industry leaders are hopeful that upcoming festive events and targeted promotions will help reignite momentum, ensuring a brighter outlook for the hospitality sector in 2025.