As new hotel buildings crop up around Phewa Lake in Pokhara, the old ones are literally being overshadowed. Ask Govinda Bahadur Pahari, a long-time hotelier, whose clients can no longer enjoy the lake’s view, thanks to the new hotel building that towers over his. 

“There was a time when you could see the lake, the surrounding hills and mountains from the windows and balconies of my hotel. The view drew a lot of guests. Now it’s all gone.” 

As the latest building regulation enforced by the local government bars old buildings from adding new storeys, Pahari is in a bind.      

“The local government charges a huge sum to issue a permit for adding a new storey. We simply can’t afford it.”  

Rajendra Dhakal, another hotelier, was slapped with a huge bill when he decided to add new storeys to his hotel building. He coughed up the money to be able to compete in the hotel business that is attracting lots of investors with money to spend. Dhakal plans to apply for a bank loan to add new storeys to his hotel.   

Folks like Pahari and Dhakal fear they will be put out of business by new investors looking to build towering hotels around Pokhara’s Lakeside. 

“We are still recovering from the effects of Covid pandemic, and now we have a new problem,” says Dhakal. 

According to the Pokhara chapter of Hotel Association of Nepal, more than 80 percent of hotel owners in the Lakeside area have bank loans that they took to renovate and expand their business in anticipation of the ‘Visit Nepal 2020’ campaign. 

Laxman Subedi, Pokhara chair of the association, says the pandemic not only ruined the ‘Visit Nepal’ campaign, it also dealt a economic blow to the local hotel owners. 

Chakra Subedi, who runs a hotel at Lakeside, says with most hoteliers already burdened by bank loans, they have no option but to endure silently or quit. “The new building regulations are not doing any favors to old hoteliers.”
After spending decades in the hotel business, Santosh Pokhrel has decided to leave the profession for good. “The competition is no longer fair, and the local government does not care.”