Nepal had just welcomed an all time high 1.2 million visitors in 2019 and was aiming to bring 2 million tourists the following year. Come March 2020 and everything ground to a halt. Thousands of Nepalis lost incomes, and faced an uncertain future. While foreign tourists have returned to Nepal after three years, tourism entrepreneurs now must consider how best to safeguard the sector from future crises. Covid-19 wasn’t the last of the pandemics, and now there are more conflicts and disasters. One solution is a shift to a sustainable and inclusive model through community-based homestay tourism, which is already spreading across Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050728_22ed6aac00eae7f5a4d4084ee827df1ce74afc6ce7be68c8305a6069cd6c77ad.jpg" data-media-id="editor_0" data-image-id="20230701050728_22ed6aac00eae7f5a4d4084ee827df1ce74afc6ce7be68c8305a6069cd6c77ad" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestays in Butwal Nepal"> <figcaption>The city of Butwal seen from a hillside, a short hike from a new homestay.</figcaption> </figure>  Homestays in Nepal allow visitors to pay for living in family homes rather than in guest houses or hotels, and to eat whatever the family eats, rather than ordering off a standardised menu. But there is significant diversity in the types of homestays available, ranging from simple rooms in traditional village homes to multi-room outbuildings with attached bathrooms and wifi. Homestays can be privately run by individual families or belong to a community homestay program, in which neighbours form a governing committee and agree to rotate hosting duties between households and contribute a share of profits to local development funds. Community homestays started to proliferate just a decade ago with support from government bodies and travel enterprises such as the <a href="https://www.communityhomestay.com/">Community Homestay Network</a>. According to Krishna Chaudhary of the Homestay Federation of Nepal, as of summer 2022 there were around 6,500 registered homestays across 1,500 villages in the country. Saroj Tamang opened his homestay in Gre village of Rasuwa district shortly before the first Covid lockdown, and believes many tourists prefer staying in village homes over large guest houses so that they can experience local culture. “It’s more fun for them to stay with families, here the tourists can live how our grandfathers lived,” says Tamang who had no guests at all during the pandemic but is optimistic for the future of homestays and the benefits to his village. “Development will come with the tourists. The town will be clean, we will share the benefits, and income would stay here in Gre.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050720_896404d078b748c24ea30a57f74fd8a51b50ce7005317ae9879e2a2fbb0bf100.jpg" data-media-id="editor_2" data-image-id="20230701050720_896404d078b748c24ea30a57f74fd8a51b50ce7005317ae9879e2a2fbb0bf100" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestays in Rasuwa Nepal"> <figcaption>The view from a homestay in Gre, overlooking the Trishuli valley with Langtang Himal in the distance.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050720_e7f24c567dfdaa8339fc72d2b87fb98e045f9ea726ab53575a9773992a4cec12.jpg" data-media-id="editor_3" data-image-id="20230701050720_e7f24c567dfdaa8339fc72d2b87fb98e045f9ea726ab53575a9773992a4cec12" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestays in Rasuwa Nepal"> <figcaption>The dining area of Pema Homestay in Gre village, Rasuwa, featuring prayer flags and traditional Tamang window carvings.</figcaption> </figure>  Profit-sharing and collective investment by homestay operators now allow development of local tourism infrastructure such as community halls for cultural performances, signposts, and footpaths. The homestay business is by definition integrated into home and family life, so homestays have lower operating costs than hotels and are thus more resilient to economic shocks. The economic impact of the lockdown may therefore not have been felt as harshly for village homestays as they were for hotels. “In the homestay sector, we own our houses and land, and it’s a family business, 99% of homestay job holders are family members,” says Krishna Chaudhary, the Homestay Federation official who is also the chair of Gabhar Valley Community Homestay in Banke district. “But many hotels must pay rent for their land and buildings, and they have to hire staff and pay them.” Chaudhary is expanding his homestay and sees some silver linings in the tourism shutdown: “Here we can grow our own vegetables, we have land and jungle. During the lockdown we could rest with our families and do renovations to create more opportunity going forward.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050720_c508f1fd792e470700b3d340ef037c2772a5edffe6cd8a904c0708589141493a.jpg" data-media-id="editor_4" data-image-id="20230701050720_c508f1fd792e470700b3d340ef037c2772a5edffe6cd8a904c0708589141493a" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestay in Bardia Nepal"> <figcaption>A sign marks the entrance to a homestay in Dalla village in Bardia.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050720_a41ffe77923e2be769b43de459e95fc2d63dd8e44c175b69eb753ebab01600ea.jpg" data-media-id="editor_5" data-image-id="20230701050720_a41ffe77923e2be769b43de459e95fc2d63dd8e44c175b69eb753ebab01600ea" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestay in Bardia Nepal"> <figcaption>A courtyard at Gabhar Valley homestay, showcasing the traditional art and architecture of the Tharu culture.</figcaption> </figure>  Additionally, homestay tourism can provide positive spillover effects to the broader community beyond homestay operators. Salik Ram Chaudhary, who has operated a homestay in Dalla village in Bardia district for 11 years, says, “Other households in Dalla sell chicken and eggs to the homestays, and vegetable farmers sell food to us too. So other local people also benefit.” The homestay program in Dalla has also attracted outside funding to build a community hall, and tourism proceeds are used to finance conservation efforts in the village’s community forest, which is part of an important wildlife corridor on the Bardia National Park.&nbsp; “There’s a good relationship between tourism and the environment,” he says. “Conservation has improved with homestays." Husband and wife Dhanishwar and Janaki Bashyal have run their homestay in Tansen of Palpa district for 12 years. Their homestay was initially a private family business, but five years ago the Bashyals and a few other homestay operators in Tansen joined hands to form a community homestay group with government support. In addition, the homestay committee in Tansen collaborates in knowledge sharing and in hosting joint cultural programs for tourists which is educational even to the locals. Says Bashyal: “Young people in Tansen also see the traditional culture and dress… because of the homestays, our culture is preserved.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050728_eb90f96870bc6f48f123254fc544baee25efc9c793bbe354b768ccc8963338f2.jpg" data-media-id="editor_6" data-image-id="20230701050728_eb90f96870bc6f48f123254fc544baee25efc9c793bbe354b768ccc8963338f2" data-rendition-name="original" width="1500" height="1230" loading="lazy" alt="Homestay in Palpa Nepal"> <figcaption>The view from a homestay in Tansen, Palpa.</figcaption> </figure>  There are challenges. Many foreign tourists are unaware of community homestays unless they hire a homestay-focused travel agency while domestic tourists view homestays as a downgrade to hotels. Additionally, inequality within communities can cause tension, as some homestay operators are able to afford larger investments in guest rooms and facilities, and thus end up with a greater share of revenue than others. Promotion and advertising, which many homestay operators see as a priority for post-pandemic growth, can be costly and difficult, especially for locations not on traditional tourism circuits. In established tourism hubs such as Ghandruk in Kaski district in the Annapurna Conservation Area, homestays can struggle to find a foothold in a highly competitive tourism environment. “Tourists see the big hotels and stay there, they ignore the homestays,” says one operator.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050716_cdc8fbd772e7bdc7d5dd62bf5c6acac86eb0334ff997fca2fd88c215dc4e7b1c.jpg" data-media-id="editor_7" data-image-id="20230701050716_cdc8fbd772e7bdc7d5dd62bf5c6acac86eb0334ff997fca2fd88c215dc4e7b1c" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestay in Ghandruk Nepal"> <figcaption>A view of the old town of Ghandrukin Kaski district. The town’s distinctive Gurung architecture is being replaced by concrete hotels in much of the village.</figcaption> </figure>  In contrast to the collaborative spirit often seen in smaller village homestay groups, the homestay operator in Ghandruk felt that the members of the homestay committee there did not support each other because they were competing among themselves for a limited customer base, especially in the aftermath of the lockdown. Juma, a homestay operator in Thini village near Jomsom in Lower Mustang, also noted a rise in competition. “The guest houses compete with the homestays here. The guest houses have attached bathrooms and more facilities. Here we have simple, local food. But homestays offer cultural programs and are cheaper.” The post-pandemic boom in domestic travel filled Thini’s homestays to capacity in peak tourism months, and Juma was planning to recruit neighbours into the program. “In the high season we have to turn back tourists because all the homestays are full,” she adds. “We need more houses to join.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050728_a1600accf79ec74442a3a6b0be356c42a79e2e624373427e20152b731124f0ee.jpg" data-media-id="editor_8" data-image-id="20230701050728_a1600accf79ec74442a3a6b0be356c42a79e2e624373427e20152b731124f0ee" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Homestay in Mustang Nepal"> <figcaption>A view of Thini village in lower Mustang, with agricultural fields and the Jomsom airport below.</figcaption> </figure>  Seeing the success of homestays in other parts of Nepal, tourism entrepreneur Rabin Karki is seeking to create a community-based homestay tourism program in his hometown of Butwal. “Right now this neighbourhood is only a residential area, it’s not a source of income for anyone,” says Karki. “But homestays could make it a business area as well.” Karki has seen enthusiasm from his fellow young people in Butwal for developing a community-centric tourism industry in the city, which is a transit hub in southern Nepal with highway links to popular tourist sites like Lumbini, Chitwan and Pokhara. Homestay operators, especially in rural areas, still must contend with the economic realities that posed difficulties even before the pandemic. In Narchyang village in Myagdi, some residents who had supplemented their income by operating homestays have moved away for better opportunities. “Before the pandemic, 20 people were on the homestay committee here,” says Hukum Pun, a homestay owner in Narchyang. “But now there are only four or five homestays. It was destroyed by corona. Some people moved abroad for work, some left the village for the city, some have gotten too old.” Narchyang is close to Tatopani, an established stop along the Annapurna Circuit and the site of many large hotels. This meant that the lockdown’s effects were less severe in Narchyang than in Tatopani. “There were no tourists here, but we are not reliant on tourism. So here it wasn’t hard. We grew vegetables…there is a lot of agriculture here. In Tatopani there is only tourism,” he explains.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230701050728_f3606186efd2dcd7870c18b17ba4a376db85011c10da2c376fc7617bd2d9cc8a.jpg" data-media-id="editor_9" data-image-id="20230701050728_f3606186efd2dcd7870c18b17ba4a376db85011c10da2c376fc7617bd2d9cc8a" data-rendition-name="original" width="1500" height="2000" loading="lazy" alt="Homestays in Nepal"> <figcaption>A waterfall above terraced fields, seen from a homestay in Narchyang village.</figcaption> </figure>  Nepal recorded 600,000 arrivals in 2022 and Nepal Tourism Board has a goal of 1 million in 2023. The tourism landscape has changed drastically post-pandemic and in the age of the climate crisis. Now is the time to build a more resilient tourism industry that shares benefits at the community level. Promoting and supporting homestay tourism may provide one path forward.&nbsp; Jack Shangraw is a Fulbright scholar documenting the impacts of the pandemic lockdown on community-level tourism in Nepal.

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Home away from home in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151116/636a64fd9c7e80680e059908jpeg.jpg" alt="" width="1500" height="978"/><figcaption>A guest is welcomed at the Ayodhyapuri homestay cooperative located in the Chitwan National Park buffer zone. Photo : WWF</figcaption></figure>Hari Bahadur Pun from Madi Valley in <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/how-chitwan-was-opened,4159" target="_blank" rel="noopener">Chitwan</a> returned from Malaysia three years ago, and has been running his own homestay since then. He is thankful he made that decision, and spends his day welcoming guests into his home.“The rooms are never empty because guests keep coming and I spend my time taking care of them. This is great work for myself, and good income for the village."The boundary of <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/More-trouble-in-Chitwan-National-Park,2956" target="_blank" rel="noopener">Chitwan National Park</a> is 1km north of Ayodhyapuri village and the Indian border is to the south. An ongoing problem in the village is wild animals from the park raiding crops, which is why most young people here migrated overseas for employment.But today, homestays have given jobs  to villagers. The guests are visitors from Nepal and abroad attracted by the rustic lifestyle, and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Conservation-and-tourism-Chitwan-National-Park,2957" target="_blank" rel="noopener">wildlife tourism</a> in Chitwan.Ward Chief Krishna Raj Adhikari says there is no shortage of guests, especially from October to May. Bookings need to be made by July, or visitors won’t find a room. Says homestay operator Om Bahadur Pun Magar, “Many times, we have had to send tourists to hotels after serving them meals but we don’t like it when we have to do that. It spoils the whole homestay experience.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151116/636a65009c7e80680e059909jpeg.jpg" alt="" width="392" height="500"><figcaption> </figcaption></figure>Many people from the area who had migrated abroad for work have returned to open their own homestays, attracted by the income that can be made in their own houses. Many earn about Rs35,000 per month. The benefits go beyond individual homes. Previously there was no electricity in area villages, and streets were filled with mud during the monsoon and dust in winter. Today, roads are paved, and in the evenings the villages light up because of new solar-powered street lamps.The locals are less dependent on Chitwan National Park as well. “Before the homestay was established, everyone owned cows and buffaloes, and when we went into the jungle for grass we used to have run-ins with army rangers guarding the park,” says Som Maya Pun. “Now, people have stopped raising livestock or stall-feed them, and are busy with running their homestays.”The homestays have also allowed locals to reconnect with their culture. Years ago,Dambar Bahadur Pun, who migrated here from his home in Myagdi in the mountains, joined the Indian Army like many of his forebears. He used to return home every year for 45 days of vacation, travelling from Raxaul through Sauraha. But that trip took at least a month. Tired of spending most of his holiday travelling, he moved to Ayodhyapuri, which is just three hours from his Indian Army base.“We didn’t know much about our culture because we had not seen much of it,” says Khil Bahadur Pun, also from Myagdi. “But after we started our homestay, everyone was interested in the Magar culture again. We reconnected with our roots, and discovered our songs, dances and festivals.”To perform for guests, locals learnt Maruni and Soreti, traditional Magar dances. Now a ‘cultural home’ has been set up so homestay visitors can gather for performances.Supporting homestays can be a way of helping not only local economies but also conservation. People who live near national parks like Chitwan are often poor and rely on farming and livestock. <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/more-rhinos-means-more-encounter,4045" target="_blank" rel="noopener">Wild animals put livelihoods at risk</a>. But by providing income from tourism, national parks can ease the burdens on those living around them.Through the Tarai Arc Landscape program, the Worldwide Fund for Nature (WWF) Nepal supported buffer zone communities to set up homestays, and the Madi cooperative is one of them. The 13 houses have hosted 11,000 visitors in the last three years, and the homestays are marketed by the adventure travel company Intrepid Travel.Tul Bahadur Pun Magar, the secretary of the cooperative and operator of one of the homestays, himself used to work as a driver and a construction supervisor in Bahrain, earning Rs70,000 a month. He is happy to be back near nature, and planning for the future.“Through the homestays, we have learned to live with wild animals. Our guests love to see them and we have realised that they are precious,” he says. With the 13 homestays fairly well-established, Pun Magar has plans to create a bird sanctuary near his village.Many operators of Ayodhyapuri’s homestays are women, who have been empowered by the income and exposure. “We never used to deal with people from outside the household,” says homestay operator Sharmila Rai. “Now we feel confident  engaging with anyone.”While only a few of Ayodhyapuri’s households host homestays, they generate income beyond lodging fees. All vegetables needed for feeding tourists is grown organically in the village, dairy products are made locally, and the fish and poultry are also raised by the village.The growth of economic disparities within the village is a problem faced by homestay programs, particularly in places where for reasons of caste, there is already a socio-economic gap. In Ayodhyapuri, at least, the distribution of income-generating activities as well as the limit of one homestay per operator, seems to be keeping these disparities in check.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=37172&amp;preview_nonce=98944df42f&amp;preview=true" target="_blank" rel="noopener">Nepalis open doors to a better life,</a> Sanghamitra Subba<a href="https://www.nepalitimes.com/opinion/migrant-worker-finds-farming-in-nepal-more-rewarding/" target="_blank" rel="noopener">Migrant worker finds farming in Nepal more rewarding</a>, Naresh Newar<a href="https://www.nepalitimes.com/from-the-nepali-press/no-need-to-migrate-for-work/" target="_blank" rel="noopener">No need to migrate for work</a>, Nepali Times

Homestays keep former migrants in Nepal

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.