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ECONOMY

Pokhara hoteliers worried as room occupancy falls

POKHARA, April 2: The second best tourist season of Nepal, March-April, is in full swing at the moment. However, Pok...

By Santosh Pokharel

POKHARA, April 2: The second best tourist season of Nepal, March-April, is in full swing at the moment. However, Pokhara hoteliers say room occupancy is not as per the expectations this season.


In the same season last year, Pokhara hotels had enjoyed room occupancy of around 80 percent. This year, room occupancy stands at around 40 percent only. With most of the hotel rooms lying empty, some hoteliers are finding it difficult to meet even their operational cost, according to Pashchimanchal Hotel Association Pokhara (PHAP) – lobby group of hoteliers. 


Bharat Raj Parajuli, former chairman of PHAP, remembers how they used to divert guests to other hotels due to over booking in the past years. “The situation has taken a turn this year, with more than half of the total rooms left empty,” Parajuli stated. “Even though statistics indicate a growth in tourist footfalls, hoteliers are not benefiting.”


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According to Parajuli, mid-range hotels having 25-30 rooms are suffering the most. While renowned, large-scale hotels continue to receive adequate number of guests as usual, mid-range hotels are facing challenges. Large hotels are getting tourists due to their brand identity. But mid-range and small hotels are suffering, he added.


Bikal Tulachan, chairman of PHAP, agreed with Parajuli. “Hotels need at least 50 percent room occupancy to break even. Hoteliers will make profit if occupancy rate is higher than 50 percent,” he said, adding: “At present, the main challenge for most of the hotels is to meet their operational expenses.”


Local tourism entrepreneurs say tourism industry of Pokhara had made a swift recovery after the 2015 earthquakes. Most of the hotels enjoyed good occupancy in the past two years. “This year, however, room occupancy rate has dropped to the 2016 levels. Most of the hotels were empty even during New Year when hotels enjoy all-time high occupancy,” added Parajuli.


Situation of hotels in Sauraha is no different. Owner of Landmark Forest Park Hotel Om Prakash Pandey states that hotel occupancy rate in Sauraha has fallen in this season. “We enjoyed an average of 60 percent room occupancy last year. This year occupancy rate has fallen to around 35 percent,” Pandey said, adding that foreign tourist footfalls have come down by a half. “Though room occupancy was satisfactory in January-February, we have witnessed decline in occupancy with the beginning of March,” he added.


Election in India, heavy snowfall which blocked popular trekking trails and increment in hotel rooms are some of the factors that have affected room occupancy rate, according to hoteliers. “Current hostility between India and Pakistan and recent incidents of bombings in Nepal have also affected movement of tourists to Nepal,” added Parajuli.


Many trekking trails in the Annapurna Region still remain blocked due to heavy snowfall. This has affected movement of trekkers. 


Tikaram Sapkota, former board director of Nepal Tourism Board (NTB), told Republica that tourism sector of the lake city is facing some problems. “Business in this season is not as per the expectations. I think the decision to shut runway for repairs has also affected travelers,” added Sapkota. He also added that many Chinese tourists diverted to Sri Lanka and Thailand which have offered cheaper packages.

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