NEPAL'S TOURISM INDUSTRY BENEFITS FROM CEASE-FIRE

UNCLAS KATHMANDU 002326 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON EIND PTER PINS NP SUBJECT: NEPAL'S TOURISM INDUSTRY BENEFITS FROM CEASE-FIRE REF: KATHMANDU 1637 MAOIST CEASEFIRE DRAWS MORE TOURISTS TO NEPAL -------------- ¶1. (U) According to recent figures released by Nepal's Ministry of Culture, Tourism and Civil Aviation (MOCTCA), tourist arrivals grew by a record 46.5 percent in September compared to the same month in 2004. The increase is largely attributed to the three-month unilateral ceasefire declared by the Maoists on September ¶3. A total of 27,511 tourists visited Nepal in September as compared to 18,785 tourists in September 2004. The number of Indian tourists increased by more than 150 percent, and arrivals from third countries grew by more than 23 percent, according to the figures released by MOCTCA. The Nepal Tourism Board (NTB) stated that arrivals from Europe increased by 12.3 percent and arrivals from the United States increased by 3.7 percent in the same period. Ujjwala Dali, Marketing Manager for Tourism Promotion for NTB, told EmbOff that despite the rise in tourist arrivals over the past two months, the numbers for overall tourist arrivals in the first nine months of 2005 were still 11.4 percent below numbers for the first nine months of 2004. HAPPY DAYS ARE HERE AGAIN: TOURIST ARRIVALS IN NAMCHE GROW -------------- -------------- ¶2. (U) Namche Bazaar in Solukhumbu District is one of the most popular tourist destinations in Nepal, as it serves as the entry point to Everest Base Camp for mountain expedition teams. According to media reports, due to the Maoists' unilateral ceasefire, coupled with good weather for the fall climbing season, Namche Bazaar enjoyed a growing number of foreign tourists. Local tourism entrepreneurs stated that hotels, lodges and local stores in Namche did good business during August, September, and October. According to Dali, because of the growing number of visitors, airline operators flew an average of 30 flights daily to the region, as compared to 5 or 6 daily flights during March and April. Lok Bahadur Khatri, Under Secretary of MOCTCA, told EmbOff that the number of mountaineering expedition teams that applied for expedition permits in 2005 was also encouraging. By October 21, 2005, the total number of permits issued to mountaineering expedition teams had reached 119, and Khatri expected this number to be even higher by the end of the year. (Note: However, due to an avalanche that hit the Mt. Kang Guru region the week of October 17, seven French mountaineers and their eleven staff died. End note.) COMMENT -------------- ¶3. (SBU) The increase in the number of tourist arrivals is a positive sign for Nepal's tourism industry and demonstrates how dependent that industry is on political stability. However, considering the uncertainty surrounding the Maoists' unilateral ceasefire, and Nepal's political impasse, this upward trend in tourist arrivals is likely to be short-lived. MORIARTY