Nepal truce gives hope to depressed tourism sector
KATHMANDU, May 7 (Reuters) Nepal expects foreign tourist arrivals in the scenic but troubled Himalayan kingdom will pick up after last week's truce between the government and Maoist insurgents, industry officials today said.
Nepal, wedged in the mountains between Asian giants China and India, is home to eight of the world's 10 tallest peaks, including Mount Everest.
It also offers visitors ancient temples, luxury resorts, casinos and game parks. But tourism has been hit hard by an increasingly violent Maoist revolt and political turmoil over the last few years.
Industry officials are confident things will change after last week's truce between the rebels and a new, multi-party government, formed after weeks of mass protests against King Gyanendra's absolute rule.
''We hope there will be a manifold increment in tourist arrivals from the coming season,'' said Narendra Bajracharya, a top official of the Hotel Association of Nepal.
''Due to security concerns because of the revolt, tourism has really gone down dramatically,'' he said.
Tourism accounts for about four per cent of Nepal's GDP and officials said tourist arrivals fell from a peak of about half a million in 1999 to 277,000 last year.
Nepal's new government and the Maoist rebels, fighting to topple the monarchy, are preparing for peace talks to try and and end the revolt which has killed more than 13,000 people since 1996.
STRIKES, BLOCKADES The two sides are also preparing to hold elections to an assembly to write a new constitution and decide the future of the monarchy.
The Maoists have rarely targeted tourists.
But visitors have been scared off by raids on airports, general strikes and road blockades called by the rebels who also sometimes demand money from hikers along mountain trails.
Tourism took a further beating after King Gyanendra assumed absolute power in February 2005, triggering mass protests that led to frequent curfews and shutdowns.
Curio shops, bars and restaurants were closed for weeks last month and taxis were off the roads as pro-democracy protesters launched an often bloody mass campaign to force the king to give up power.
Hotels faced the brunt of the fall in tourist arrivals with occupancy rates down to 20 per cent in some cases, officials said.
Several hotels and restaurants in the tourist hub of Kathmandu and the resort town of Pokhara in west Nepal had gone out of business, they said.
But with the new tourist season beginning in autumn after the June-September monsoon rains, industry officials are optimistic.
''The ceasefire is very positive for tourism. Definitely it will increase tourist arrivals,'' said Prakash Shrestha, the head of the Hotel Association of Nepal.
''Political parties should also stop calling general strikes because they benefit none and affect tourism,'' he said.
REUTERS OM PM1616