Postcard from Pokhara

I have made Pokhara my new home after relocating from Kathmandu for work a few weeks ago. The city, renowned for its serene lakes and the backdrop of the majestic Annapurna and Machhapuchchhre mountains, is not unfamiliar to me. I have been drawn to its natural beauty, rich culture, and vibrant nightlife on numerous occasions in the past. After all, Pokhara is just a 200-kilometer drive away from Kathmandu.

However, this time, I decided not to take the risk of driving due to the ongoing expansion of the Prithvi Highway, which unfortunately remains dusty, muddy, or heavily congested with traffic. Instead, I opted for the more expensive option of taking a 25-minute flight from Kathmandu. To my surprise, most of the passengers on the flight were locals rather than the tourists that Pokhara is eagerly awaiting. This raised some questions in my mind.

In January, Pokhara made headlines for the wrong reasons when a tragic Yet Airlines plane crash occurred, claiming the lives of all onboard just moments before landing at the newly inaugurated Pokhara International Airport. The airport opened on New Year’s Day. This unfortunate incident dealt a severe blow to the city’s tourism industry which was already struggling due to the Covid-19 pandemic. Nevertheless, in June, there was a glimmer of hope with the first-ever Dragon Boat Festival and the arrival of the first international flight from Chengdu, China, followed by another chartered flight from Bhutan on Sept 9.

The international airport, built with a Chinese soft loan of $216bn, lacks international flights. Nepal has welcomed over 601,260 tourists so far this year. Of them, about 40 percent are believed to have reached Pokhara which, besides being a destination in itself, remains the launching spot for white water rafting, trekking and mountaineering expeditions. Despite its international airport, Pokhara is yet to fully recover from the impact of the Covid-19 pandemic.

Without a doubt, Pokhara, with its tranquil lakes reflecting the grandeur of the Himalayan peaks, remains a major tourist draw in the country. It is liked by both Chinese and Indians, as well as visitors from the Western and Eastern worlds, and adventure enthusiasts. However, in recent times, Pokhara’s reputation as a tourist destination has been tarnished by subpar road conditions. Most notably, the Prithvi Highway expansion project is progressing at an agonizingly slow pace.

This raises important questions: What are entrepreneurs and local governments doing to promote and market Pokhara and Gandaki Province, with its world-famous mountains, trekking routes, and pilgrimage sites, as a world-class destination? What hurdles must they overcome to facilitate the swift economic recovery of the city and the province as a whole?

In the wake of Covid-19, Pokhara saw a sharp decline in visitors, leading to significant financial hardships for local businesses. While the government's efforts to kickstart economic recovery through infrastructure development were well-intentioned, they have been plagued by several glaring issues, including project delays, insufficient alternate routes for vehicles, and detours in and around Pokhara.

The government’s response to the economic downturn was to initiate a road expansion project, which was welcomed by the local population. However, the progress of construction along the Mugling-Pokhara stretch of the Prithvi Highway has been frustratingly slow, exacerbating the inconveniences caused by construction work and delaying the anticipated economic revival. Furthermore, there seems to be a lack of corrective measures, such as strict deadlines, timely budget allocation, and incentives for completing projects ahead of schedule.

With the highway situation showing no signs of immediate improvement, people are starting to question whether it’s time to begin a billion-rupee road expansion project along the entire Prithvi Highway. Many residents and business owners in Pokhara have voiced their frustration over the delays and mismanagement along the Muglin-Pokhara stretch, which they blame for worsening their economic woes and eroding their confidence in the authorities.

Inadequate infrastructure dissuades tourists from choosing Pokhara as their destination. The expected economic rejuvenation through tourism has yet to materialize, prolonging the struggles of local businesses. The once bustling Lakeside area, a vibrant hub, now faces a grim slowdown, with entrepreneurs relying primarily on Nepali visitors and a few international travelers.

Due to the slowdown, most businesses are unable to hire or retain employees, leading to severe financial hardships for the local workforce. Additionally, low occupancy rates in restaurants and hotels have resulted in suspended additional earnings such as tips and salary increases, prompting some to seek better opportunities abroad. Yet, it appears that government ministers are more focused on their political agendas than addressing national issues, such as expediting the expansion of highway or promoting Pokhara International Airport by offering enticing offers and incentives to major international airlines.

To address the dire economic situation in Pokhara, the government must prioritize and accelerate the road expansion project to ensure that the city's infrastructure can support the revival of tourism and economic activity. Additionally, temporary arrangements should be made to ensure smooth access to Pokhara, minimizing disruptions for travelers. The government must ensure transparency and accountability in all projects, particularly those aimed at economic recovery. Timely release of funds based on progress, regular updates, and clear communication can help rebuild trust among residents and business owners. Periodic interventions and oversight from senior officials are crucial.

Gandaki Province contributes around nine percent to Nepal’s national Gross Domestic Product and holds significant growth potential. Only through collective efforts and responsible governance can the city hope to regain its status as a thriving tourism destination and an economic powerhouse in western Nepal. First and foremost, Nepali officials and diplomats must prioritize introducing regular international flights to Pokhara International Airport. Equally important is expediting the completion of the highway expansion project. Plans for developing the Kathmandu-Pokhara-Lumbini railway line with Chinese assistance can wait for now.

The author is the manager at a leading financial institution in Gandaki Province, Pokhara