Traders in Thamel blamed tourists with lower purchasing power as the major reason behind sluggish business. [break]
Global economic crisis is blamed to have dented the purchasing power of tourists. Traders said that the daily sales which stood at around Rs 7,000 to Rs 8,000 per day has remained constant this year as foreigners have reduced their spending by almost 50 percent.
Like handicrafts and pashmina, the sale of Nepali tea and spices has also not been encouraging. Sobin Dhungel, proprietor of Nepali Tea and Spices Shop, said that unlike some years ago when tourists purchased Nepali tea and spices, the sale of these items has not gone up despite the tourism year campaign.
Dhungel further added that the tendency among tourists visiting in groups to purchase products at shops in the hotel premises itself has worsened the business environment. According to traders, shops at hotels are nowadays attracting more foreign clients by offering wide varieties of products at reasonable price.
Hridaya Chandra Shrestha, proprietor of Hridaya Store at Thamel, said that there has been no improvement in sales this year as compared to the last year.
“Though the government has announced 2011 as Nepal Tourism Year, sales have remained constant as tourists arriving in Nepal are not much spending on shopping,” Shrestha told the Republica, adding that there is however an increase in the number of tourists coming to the country.
Traders said that the few tourists who visit the shops in Thamel area were mostly purchasing metal handicrafts priced from Rs 100 to Rs 6,000.
The inability of businessmen to offer new range of products to the tourists is also another reason behind constant sales figure.
Mobin Alam, sales executive at Malakar Handicrafts, exporter and retailer of woolen products at Thamel, said that in comparison to last year the number of tourists visiting their store has increased but sales haven´t. Local products have not been able to charm the tourists, he said.
“We used to sell products worth Rs 7,000 to Rs 8,000 to tourists per day and the sales figure has remained similar this year as well,” said Alam.
According to him, his store has introduced Nepali handmade products such as woolen bag, shoes, hand purse, hair band, earring, pendant, décor items, T-shirt and many more to attract foreign buyers. These products are priced from Rs 25 to Rs 7,000.
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