<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111120/636cd1159c7e80680e08f893jpeg.jpg" alt="" width="845" height="502"/><figcaption></figcaption></figure>Every crisis is also a chance to improve. The global pandemic wrecked Nepal’s economy in 2020, and its impact will be felt on tourist arrivals for at least the next two years. But it also provides us the opportunity to re-invent the existing model of tourism.This important sector of the economy could do with a <a href="https://www.nepalitimes.com/editorial/the-nepal-brand/">major overhaul.</a> The process should have started during the Covid-induced collapse of tourism, as the hotels, airlines, agencies were just trying to survive, with little indication of how long the crisis would last.It now looks like <a href="https://www.nepalitimes.com/here-now/survive-2020-revive-in-2021-and-thrive-in-2022/" target="_blank" rel="noopener noreferrer">global tourism will be affected</a> right through the 2020s. Which is why Nepal’s tourism entrepreneurs and planners need to think about riding out the next two or three years, and plan for a revival.The direction we have to take is clear: the benefits from climbing, hiking, wildlife, culture tourism must be more equitably distributed and conducted sustainably. Nepal’s new tourism model has to be high yield, the focus must be on maximum employment generation so people are not forced to migrate, while we also promote self-reliance in agricultural and other items that can be produced locally.Spreading the benefits of tourism also means ensuring that visitor spending is maximised in the regions where it can make the most difference in uplifting socio-economic wellbeing. The existing model diverts most of the money visitors spend on their Nepal package to tourism wholesalers in Europe and other source countries, or agency middlemen in Kathmandu.Nepal’s tourism has been sustained thus far by crumbs that find their way to rural areas. Which is why despite increasing trekking numbers, with some notable exceptions, there has not been significant impact on reducing out-migration from rural areas. In some cases, tourism has even driven up prices, making basic items unaffordable to locals.Tourism netted Nepal $700 million in 2019, making up 8% equivalent of the country’s GDP. There were over 1 million Nepalis employed directly in the hospitality industry, trekking and mountaineering, with many more benefiting indirectly from arrivals.But never has Nepal’s tourism sector suffered as badly as during this pandemic. Only 230,000 tourists came to Nepal in 2020— lower than during the worst years of the conflict, and less than during the Earthquake-Blockade of 2015. (See chart)Ironically, <a href="https://www.nepalitimes.com/latest/instability-to-cost-nepal-dear-in-2021/" target="_blank" rel="noopener noreferrer">Nepal’s foreign exchange reserves in 2020 </a>hit a record-breaking $12billion despite the pandemic. This was because products needed by the tourism industry and <a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/" target="_blank" rel="noopener noreferrer">petroleum products went down drastically</a>.<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/nepal-tourism-may-take-5-years-to-recover/" target="_blank" rel="noopener noreferrer">Tourism has hit rock bottom</a>, and there is nowhere to go but up. The question is do we keep on chasing visitor arrival numbers and tally annual hard currency income, or shall we try to redirect the focus to equity and spreading the benefits of tourism?<a href="https://www.nepalitimes.com/editorial/the-nepal-brand/">Visit Nepal 2020</a> tried to attract 2 million tourists last year, but with the pandemic the campaign was dead in the water. We might have hit the target for visitors had it not been mediocre and ad hoc planning. There was a lack of preparation in the main markets.Nothing had been done to improve the squalour and pollution of Kathmandu and the lack of amenities along the main tourist corridors that had spread a negative image of Nepal through travel blogs. Even Nepal’s once-pristine countryside is now mauled by <a href="https://www.nepalitimes.com/banner/new-high-way-to-dolpo/" target="_blank" rel="noopener noreferrer">messy road-building</a> which have wrecked scenic trekking routes.Interestingly, despite everything we have done to dissuade tourists from visiting Nepal with the decrepitude of Kathmandu and an inhospitable state, the <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/a-solid-tourism-brand-for-nepal,845">country is still a big draw.</a>The Covid-19 crisis has provided us breathing space. It gave us time to take stock of things, and set things right. The most immediate lesson is to refocus on Nepal’s nature as travelers in the post-pandemic era plan trips to pristine and tranquil areas in search of healing and rejuvenation.This means building comfortable homestays instead of view towers, <a href="https://www.nepalitimes.com/here-now/everest-trail-repaired-during-pandemic/" target="_blank" rel="noopener noreferrer">keeping trails clean and safe</a> instead of laying concrete steps, and making visa, arrival, local logistics as convenient and smooth as possible. Tourists are not all looking for rock-bottom prices, they want value for money. And despite everything we have done to it, Nepal is still a premium brand.The prediction of post-pandemic travel is that people will avoid long-distance flights. Our promotion must therefore be redirected to the immediate neighbourhood, as well as domestic and diaspora tourists. Visitors will want assurances of health and safety, and will be willing to pay premium rates for the diverse attractions Nepal has to offer.

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Survive, revive, thrive

<figure><img width="1400" height="933" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933619c7e80680e03df95jpeg.jpg" alt=""/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>Next week as Nepalis celebrate Tihar, the festival of lights, few will remember that it will mark the second anniversary of the end of paralysing power cuts.Sometimes lasting up to 18 hours a day, the <a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/" target="_blank" rel="noopener">load-shedding</a> increased the people’s hardship and crippled the economy. The man credited for ending power cuts, <a href="https://archive.nepalitimes.com/article/interview/interview-with-Kulman-Ghising,3409" target="_blank" rel="noopener">Kulman Ghising</a> of the Nepal Electricity Authority (NEA) said this week: “Light up your houses this Tihar, there is enough electricity.”The NEA estimates that demand next week will peak at 1,270 MW, but Ghising says there is enough supply from domestic generation and <a href="https://archive.nepalitimes.com/article/nation/nepal-india-thermal-power,3570" target="_blank" rel="noopener">Indian imports</a> to meet it. Read also:<a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">Climate climax</a>, Editorial <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener">From a fossil past to an electric future</a>, Om Astha Rai <img width="327" height="327" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933649c7e80680e03df96jpeg.jpg" alt="">The reason for Ghising’s confidence is that 30MW has been added this year, his efforts to manage supply and cut leakage have increased capacity, and the Kulekhani reservoir is full. Even all this would not have ensured enough power – the real reason there will not be a dark Tihar is because of electricity imports from India.This year, Nepal’s electricity demand reached 1,281MW, but domestic generation never exceeded 525MW. The shortfall was made up by importing up to 505MW of electricity from coal-fired thermal plants in Bihar. Even with that, industries and some districts still suffered power cuts. The end to <a href="https://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408" target="_blank" rel="noopener">load-shedding</a> has come at great environmental and economic cost. The average per capita carbon footprint of Nepalis is still low, but it has doubled because of fossil energy bought from India. The electricity import bill this year added Rs20 billion to the Rs150 billion Nepal was already spending to buy petroleum products from India.Read also:<a href="https://www.nepalitimes.com/opinion/decarbonise-now/" target="_blank" rel="noopener">Decarbonise now</a>, Ajaya Dixit<a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">Electri-City Cars</a>, Sikuma RaiThe government defends the power import, arguing that it is only a stop-gap measure and transmission lines built to import electricity from India can later be used to export Nepal’s surplus power to the Indian market.Former Minister of Water Resources Dipak Gyawali says that is not likely to happen because Nepal’s electricity demand is growing 100MW per year, and there is a lot of suppressed demand that not even big projects like Tama Kosi (440MW) can cover.Instead of building cross-border transmission lines, Gyawali urges the NEA to focus on connecting small hydro projects to the national grid to meet future domestic growth in consumption for cooking and transportation.Sadly, even while importing electricity generated from dirty coal from India, NEA cannot buy clean hydropower from private plants like the 6MW Khani Khola because they do not have transmission lines connecting them to the grid.Says one hydropower investor: “This is the irony of it all: we want to sell our electricity to NEA, but it is buying power from India.”

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The cost of light

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933419c7e80680e03df86jpeg.jpg" alt="" width="1400" height="1008"/><figcaption>PIPE DREAM: Part of a 69km petroleum pipeline connecting Amlekhganj in Nepal to an oil refinery in India, under construction in Patlaiya. The pipline is proof to many that the Nepal government has no intention of switching to renewable energy any time soon. Pic: Jiyalal sah</figcaption></figure>President Bidya Devi Bhandari will be leading the Nepali delegation at the Climate Summit (CoP24) in Poland next month, and environmental activists are lobbying with the Nepal government to get her to make a far-reaching policy statement on renewable energy.They say Nepal’s commitment of turning <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/">20% public vehicles into battery-operated ones by 2020</a> is not ambitious enough, and the President can announce in Katowice more meaningful steps towards electric mobility.In a symbolic move to end Nepal’s fossil fuel addiction, President Bhandari is already riding an electric  but activists say that is not enough. She needs to create political momentum by getting her government to announce a cut-off date for Nepal to turn all public vehicles into electric ones.Manjeet Dhakal, adviser to the Least Developed Countries (LDC) support group at the UN Framework Convention on <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/">Climate Change</a> (UNFCCC), says: “Nepal can move towards electric mobility if its head of the state announces a goal to this effect at the international climate change conference in Poland.”Read also: <a href="https://www.nepalitimes.com/banner/electri-city-cars/">Electri-City Cars</a>, Sikuma Rai<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933449c7e80680e03df87jpeg.jpg" alt="" width="327" height="327"><iframe id="datawrapper-chart-CZIOW" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/CZIOW/4/" height="472" frameborder="0" scrolling="no"></iframe><iframe id="datawrapper-chart-2DG41" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/2DG41/3/" height="472" frameborder="0" scrolling="no"></iframe>Last week, Prime Minister KP Oli flagged off Nepal’s first five electric buses in Kathmandu, and unveiled the country’s first National Plan of Action for Electric Mobility.Bhushan Tuladhar of Sajha Yatayat, the public transportation company that got the first lot of electric buses on loan from the Lumbini Development Trust for Kathmandu routes, says: “Public transport is directly related to public health, and it is also linked to Nepal’s economic well-being. This can be the beginning of a new era in clean transportation.”The National Plan of Action envisages a separate unit at the Ministry of Environment for the promotion of electric transport, but many are skeptical about it, given Nepal’s poor track record in implementing commitments.A recent <a href="http://www.cansouthasia.net/wp-content/uploads/N-CANSA-State-of-Climate-Action-in-Nepal-FINAL-7-October-2018.pdf?fbclid=IwAR0IOLO0TREa5UjbdMLsBnUyTRyeaRfP-iDMW-bI2-tFyddYbj5KstNKOCI">report by Nepal Climate Action Network South Asia (N-CANSA)</a> says Nepal is actually moving in a reverse, non-renewable direction despite many past policies, strategies and international obligations to lower its dependency on fossil fuels – the biggest source of CO2 emissions.Read also: <a href="https://www.nepalitimes.com/editorial/climate-climax/">Climate Climax</a>, Editorial<a href="https://www.nepalitimes.com/opinion/decarbonise-now/">Decarbonise now</a>, Ajaya DixitNepal’s Climate Change Policy 2011 and the Environment-friendly Vehicle and Transport Policy 2014 aimed to reduce greenhouse gas emissions by steadily reducing imports of petrol, diesel and LPG. In 2016, Nepal passed its National Determined Contributions (NDC) aiming to turn 20% public vehicles into battery-operated ones.But since then, the country’s addiction to fossil fuel has only deepened. All the policies and strategies did not make a dent on imports. In 1993/94, the year Nepal ratified the UNFCC, Nepal’s total import of petroleum products was worth only Rs5 billion. By 2008, it had grown to nearly Rs40 billion, and in the past ten years it has more than tripled to an annual Rs150 billion. (See graphs)The reason is the explosive growth in the number of <a href="http://archive.nepalitimes.com/blogs/kundadixit/2018/01/24/electric-cars-shock-fossil-industry/">fos</a>sil fuel vehicles from only 84,000 ten years ago to 438,000 today. Most of the increase was during the tenure of Maoist finance minister Baburam Bhatttarai in 2008-9. Part of the reason for the growth in petroleum imports was also the corruption-driven artificial shortage of electricity which saw a proliferation of diesel generators. Import of diesel grew five times in the past ten years.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933469c7e80680e03df88jpeg.jpg" alt="" width="640" height="848"><iframe id="datawrapper-chart-hKFc3" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/hKFc3/4/" height="390" frameborder="0" scrolling="no"></iframe>For every Rs100 earned from its exports, Nepal spends Rs169 just to import petroleum from India. Nepal is now also importing half of its electricity need from coal-fired thermal plants in India. Although it went down slightly with monsoon supply and new hydro powerplants coming on stream, Nepal imported 424MW of electricity from India this summer, which was about 35% of peak demand.Says Durga Upadhyay, a co-author of the CANSA report: “If it was not for remittances, our foreign currency earnings from exports would not even pay for petroleum imports.”Read also: <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">The cost of light</a>, Om Astha RaiDespite policies and symbolic moves to reduce petroleum imports, Nepal’s consumption is growing as the road network spreads and vehicle imports increase. The government’s plans to build a 36km cross-border petroleum pipeline from India and storage stockpiles in each Province indicates that there is no end in sight to the country’s fossil fuel addiction.Manjeet Dhakal says these moves indicate that Nepal’s policymakers believe the cost of ending the dependence on petroleum is too high. “But that is an outdated concept,” he says, “it is now possible to drive a country’s economy without using fossil fuels. PM Oli should learn from Costa Rica, a country he visited recently.”<iframe id="datawrapper-chart-ny5IE" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/ny5IE/5/" height="400" frameborder="0" scrolling="no"></iframe><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933489c7e80680e03df89jpeg.jpg" alt="" width="351" height="555">Some argue that Nepal’s economy is so petroleum dependent that it cannot switch suddenly to renewable without assistance for the conversion of cars, and to add new hydropower plants. Nepal’s per capita <a href="https://archive.nepalitimes.com/regular-columns/half-full/A-carbon-neutral-Nepal-is-possible-clean-Nepal,1064">carbon</a> footprint is negligible, they add, so whether or not Nepal goes for electric mobility is not going to save the planet.However, former energy minister Dipak Gyawali says: “The volume of carbon emitted by Nepal might be small, but the rate at which we are increasing it is even higher than the industrialised West.”Gyawali says Nepal should immediately declare a peak emission year, pass a policy to gradually replace all government vehicles with electric ones and impose a tax on fuel that can be used to subsidise electric vehicles.Nepal needs to do this more importantly to reduce its balance of payment deficit, save the country from bankruptcy, and reduce its political dependence on India, than to save the world from <a href="https://archive.nepalitimes.com/article/nation/melting-mountains-shake,3073">global warming</a>.

From a fossil past to an electric future

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The cost of light

From a fossil past to an electric future