POKHARA: Although the weather in Pokhara is currently freezing with biting winds, the city's signature "Warm Hospitality" usually makes visitors forget the cold. During the recently concluded 'Pokhara Street Festival,' the streets were so packed there was barely room to stand. However, immediately after the festival ended, a haunting silence and emptiness descended upon the city.

While business owners are still eager to offer "service with a smile" to the few tourists visible, it is palpable that behind the artificial smiles and hospitality lies the restlessness of a stagnant business climate and the deep pain of an impending "debt trap."

Key Reasons for the Crisis in Pokhara’s Tourism Sector

1. Airport Failure and the Private Sector’s ‘Debt Trap’

Despite Pokhara International Airport (PIA) officially coming into operation on January 1, 2023, regular international flights have yet to materialize. Relying on assurances from political leadership and the promise of the airport’s future, the private sector invested billions of rupees. According to hoteliers, the city now boasts over 1,000 hotels with a capacity of 40,000 beds. However, due to the lack of tourist arrivals, these investments are at risk. Data suggests that approximately 100 hotels have reached the stage of auction due to an inability to pay bank loan installments, leaving many entrepreneurs trapped in debt.

2. Low-Yield Tourism

While there is a numerical presence of domestic tourists, as well as visitors from India and Bangladesh, their Length of Stay (LOS) and Spending Capacity are significantly lower. The arrival of "Third Country" (Western/International) tourists—who typically spend in dollars and stay for extended periods for trekking, bird watching, and nature tours—has declined. While tourists from neighboring countries help sustain the "season," their contribution is insufficient to provide a Return on Investment (ROI) for the massive infrastructure built.

3. Poor Road Connectivity

Although the Chitwan-Muglin and Muglin-Pokhara road sections have seen some improvement, the slow pace of construction on the main lifeline connecting the capital—the ‘Kathmandu-Muglin road expansion’—has made travel arduous. A journey that should take 5 hours is taking 8–9 hours. The dust and traffic jams have led many "High-end Tourists" to cancel their trips to Pokhara entirely.

4. Displacement of Paragliding

Paragliding, considered a premier adventure attraction in Pokhara, was displaced from its historic location at Sarangkot to Mandre Dhunga, citing 'airspace safety' for the new airport. Due to the inconvenient location and technical challenges at the new site, the commercial appeal of paragliding has diminished, causing further stagnation in tourism activities.

Pokhara International Airport: Inauguration, Controversy, and Corruption Probes

The airport was inaugurated on January 1, 2023, by then-Prime Minister Pushpa Kamal Dahal ('Prachanda'). During the ceremony, the Chargé d'Affaires of the Chinese Embassy, Wang Xin, declared the airport a "flagship project of China-Nepal BRI (Belt and Road Initiative) cooperation." This sentiment was later reiterated by the newly appointed Ambassador Chen Song in June 2023.

These diplomatic statements sparked controversy, linking the airport to the BRI and the narrative of a "Chinese Debt Trap," although high-ranking officials, including the Prime Minister and Finance Minister Bishnu Paudel, remained silent at the time. To date, regular international flights have not commenced.

Furthermore, allegations of irregularities during construction have surfaced. A parliamentary sub-committee led by Rajendra Lingden, Chairman of the Rastriya Prajatantra Party (RPP), concluded that corruption amounting to approximately NPR 10 billion had occurred. Based on these findings, the Commission for the Investigation of Abuse of Authority (CIAA) investigated and filed a corruption case at the Special Court. Pradip Adhikari, the Director General of the Civil Aviation Authority of Nepal (CAAN), is currently in judicial custody facing corruption charges.

Decline in Western and Chinese Tourists

According to business owners, there has been a significant drop in the arrival of Western and Chinese tourists. High airfares, poor infrastructure, and rising costs are cited as the main reasons. Additionally, stakeholders believe that the destruction of old trekking trails and natural heritage sites in the name of development has reduced the destination's appeal.

Quality tourists seek quality services. However, some hotels are forced to sell high-quality services at low prices to survive. Conversely, it is observed that even quality tourists are now bargaining for lower prices, reducing their travel budgets and shortening their stays.

Rise in Indian and Bangladeshi Tourists

There has been a reported increase in Indian and Bengali tourists. However, local feedback suggests a shift in travel culture; many reportedly enjoy loud festivities and alcohol, travel in their own vehicles, cook their own food, and crowd many individuals into single rooms. Some locals feel this has increased litter and crowding without proportional economic benefit. However, it is noted that many tourists, particularly from South India and Bengal, remain high-quality visitors. The recent Pokhara Street Festival was largely filled with Indian, Bengali, and domestic Nepali tourists.

Feasibility of Airport Operations: The Reality of Charter Flights

Successful international landings have proven that Pokhara International Airport is technically capable of handling flights. However, these were not regular scheduled flights but "Charter Flights" conducted through the special initiative and financial risk-taking of business owners and organizers.

Key International Flights (Facts and Dates):

1. Sichuan Airlines: On June 21, 2023, the first international flight arrived from Chengdu, China. It carried athletes and guests for the 'Nepal-China Dragon Boat Race Festival.' The successful landing of the narrow-body Airbus A319 signaled that the airport is suitable for large aircraft.

2. Drukair (Royal Bhutan Airlines): On September 9, 2023, a Drukair flight from Paro, Bhutan, landed in Pokhara. This flight was initiated by businessmen, arriving with only 3 passengers but departing with 42 foreign tourists.

The Core Issue:

These flights were not operated spontaneously by airlines. They only occurred when tourism entrepreneurs "cut the tickets themselves" or provided a "Seat Guarantee"—meaning they agreed to bear the loss if seats went unfilled. Once the private sector stopped chartering flights and taking financial risks, neither Chinese planes nor other international tourists arrived.

Despite having massive infrastructure, the airport currently remains without regular international scheduled connectivity.

Minister Kulman Ghising’s ‘Geopolitics’ Remark and the City’s Hope

On December 28, 2025, Minister for Energy, Physical Infrastructure, and Urban Development, Kulman Ghising, arrived in Pokhara as the Chief Guest to inaugurate the 27th Pokhara Street Festival. Tourism entrepreneurs seized the opportunity to present their grievances regarding the economic recession and the non-operation of the airport.

In response, Minister Ghising clarified that the failure to operate Pokhara International Airport is not just technical but also linked to "Geopolitical" causes. He stated, "The government is trying to operate the airport with high priority, but this issue is also connected with geopolitics."

Because of his public image as a "man of action," the people of Pokhara and the business community view Kulman Ghising as their "Last Hope." Minister Ghising has reportedly issued strict directives to relevant bodies to immediately accelerate the Kathmandu-Muglin road expansion and other development works.