US embassy cable - 05KATHMANDU2326

UNCLAS KATHMANDU 002326 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, EIND, PTER, PINS, NP, Maoist Insurgency 
SUBJECT: NEPAL'S TOURISM INDUSTRY BENEFITS FROM CEASE-FIRE 
 
REF: KATHMANDU 1637 
 
MAOIST CEASEFIRE DRAWS MORE TOURISTS TO NEPAL 
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1.  (U) According to recent figures released by Nepal's 
Ministry of Culture, Tourism and Civil Aviation (MOCTCA), 
tourist arrivals grew by a record 46.5 percent in 
September compared to the same month in 2004.  The 
increase is largely attributed to the three-month 
unilateral ceasefire declared by the Maoists on September 
3.  A total of 27,511 tourists visited Nepal in September 
as compared to 18,785 tourists in September 2004.  The 
number of Indian tourists increased by more than 150 
percent, and arrivals from third countries grew by more 
than 23 percent, according to the figures released by 
MOCTCA.  The Nepal Tourism Board (NTB) stated that 
arrivals from Europe increased by 12.3 percent and 
arrivals from the United States increased by 3.7 percent 
in the same period.  Ujjwala Dali, Marketing Manager for 
Tourism Promotion for NTB, told EmbOff that despite the 
rise in tourist arrivals over the past two months, the 
numbers for overall tourist arrivals in the first nine 
months of 2005 were still 11.4 percent below numbers for 
the first nine months of 2004. 
 
HAPPY DAYS ARE HERE AGAIN: TOURIST ARRIVALS IN NAMCHE 
GROW 
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2.  (U) Namche Bazaar in Solukhumbu District is one of 
the most popular tourist destinations in Nepal, as it 
serves as the entry point to Everest Base Camp for 
mountain expedition teams.  According to media reports, 
due to the Maoists' unilateral ceasefire, coupled with 
good weather for the fall climbing season, Namche Bazaar 
enjoyed a growing number of foreign tourists.  Local 
tourism entrepreneurs stated that hotels, lodges and 
local stores in Namche did good business during August, 
September, and October.  According to Dali, because of 
the growing number of visitors, airline operators flew an 
average of 30 flights daily to the region, as compared to 
5 or 6 daily flights during March and April.  Lok Bahadur 
Khatri, Under Secretary of MOCTCA, told EmbOff that the 
number of mountaineering expedition teams that applied 
for expedition permits in 2005 was also encouraging.  By 
October 21, 2005, the total number of permits issued to 
mountaineering expedition teams had reached 119, and 
Khatri expected this number to be even higher by the end 
of the year.  (Note:  However, due to an avalanche that 
hit the Mt. Kang Guru region the week of October 17, 
seven French mountaineers and their eleven staff died. 
End note.) 
 
COMMENT 
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3.  (SBU) The increase in the number of tourist arrivals 
is a positive sign for Nepal's tourism industry and 
demonstrates how dependent that industry is on political 
stability.  However, considering the uncertainty 
surrounding the Maoists' unilateral ceasefire, and 
Nepal's political impasse, this upward trend in tourist 
arrivals is likely to be short-lived. 
 
MORIARTY