Thamel remains a popular destination for foreign tourists visiting Nepal, particularly during the peak season from mid-September to mid-December. Despite the influx of tourists this year, business activity in the area has failed to meet expectations, according to local traders.
Business owners in Thamel report a noticeable decline in high-spending tourists compared to previous years.
Nawaraj Thapa, managing director of Susmita Creation Enterprises, stated that although there are more visitors, many are unwilling to spend. "Tourists come, but they don’t buy much. This season, sales in trekking shops are sporadic, and other businesses are struggling," said Thapa, who has been operating in Thamel for nine years. His daily earnings have dropped from Rs 50,000–100,000 before the 2015 earthquake to barely Rs 10,000 during the peak season.
Many traders attribute the downturn to the predominance of budget tourists and competition from counterfeit products. While Indian, Chinese, and Bangladeshi tourists tend to buy in bulk, European and American visitors, who typically purchase higher-quality goods, are spending less. The influx of Chinese-made pashmina has further hurt local producers, with customers opting for cheaper alternatives.
According to Ajay Bindakar of Newa Cold Store, the economic slowdown has discouraged tourists from shopping. Similarly, Prakash Raj Giri of The Northfield Cafe noted that restaurant business has also been slow despite the tourist influx.
The nightlife scene in Thamel, traditionally a draw for tourists, is facing challenges as well. Although clubs and cafes remain open, liquor stores are closing early, reducing overall economic activity.
Bhavishwar Sharma, former chairman of the Thamel Tourism Development Council, highlighted that budget travelers dominated this season, spending minimally and staying for shorter durations. He also cited adverse weather conditions, including floods and landslides in late September, as factors that dampened tourism activity.
In previous years, Thamel’s hotels experienced full occupancy during peak seasons, often leading to price surges. However, this year saw only an 80% occupancy rate, according to Sajan Shakya, general secretary of the Hotel Association of Nepal. While this figure is satisfactory, it reflects a decline compared to previous years.
Statistics from the Nepal Tourism Board show that 1,055,533 foreign tourists visited Nepal in the first 11 months of 2024, compared to 1,014,778 in 2023. While tourist arrivals have increased, the spending patterns suggest a shift toward budget travel, impacting businesses reliant on high-end tourists.
As the main tourist season winds down, Thamel's streets are quieter, with tourists returning home after trekking and sightseeing. Local traders and business owners hope for better economic activity in the coming seasons, potentially aided by policy adjustments and efforts to attract high-spending travelers. -- RSS
