KATHMANDU: Nima Bista, the owner of Nyutara Hotel in Lomanthang Rural Municipality-5 of Mustang, has abandoned his business and moved abroad due to poor returns on his investment.

He left the hotel in the care of a relative and relocated to America, reflecting a growing trend among local business owners.

Chhewang Gurung, Secretary of the Lomanthang Hoteliers Association, reports that many others in the region are contemplating similar exits.

Upper Mustang is renowned for its breathtaking landscapes, featuring artistic mountains, barren deserts, mud houses, and rich Tibetan culture.

The area is also home to historical palaces, monasteries, and significant pilgrimage sites like Damodarkunda, important to both Buddhists and Hindus.

Despite its attractions, many hotels built with substantial investments now stand empty, indicating a troubling trend in the local tourism sector.

The restricted area status complicates access for foreign visitors, directly affecting local livelihoods and the tourism industry.

Upper Mustang’s tourism economy relies heavily on Nepalese visitors during holidays and festivals.

Lomanthang hosts 25 hotels with a combined capacity for up to 400 tourists daily, but most remain unoccupied, according to Ram Bahadur Gurung, owner of Mystic Hotel.

The owners of 70 hotels in Upper Mustang are struggling to attract sufficient tourist numbers.

Secretary Chhewang notes that establishing a hotel in the area requires a total investment of around Rs 35 million.

Although Lomanthang can accommodate 1,500 tourists daily, only approximately 3,000 tourists visit each year.

While there are more Nepalese tourists than foreign ones, there are no official statistics confirming this observation.

Lakpa Wangdi Gurung, a businessman and ward member, highlights that the semi-restricted area and high fees are significant barriers to tourism development.

A fee of $500 is required for a ten-day tour in the area, creating additional challenges for potential visitors.

The government has designated parts of Lomanthang and nearby areas as prohibited zones due to security concerns.

Non-Nepalese tourists must obtain a special permit for a ten-day visit at a cost of $500, plus an additional charge of $50 per day for extended stays.

Access beyond Nechung in Lomanthang Rural Municipality-1 is strictly prohibited, further limiting tourism potential.

Since 1992, foreign nationals have been allowed to visit Upper Mustang under specific conditions, but the process remains complicated.

In 2023, ranger Madan Paudel reported that 3,484 foreign nationals from 70 countries visited Upper Mustang, indicating fluctuating tourist numbers.

Tourist statistics reveal fluctuations: 3,112 visitors in 2022, 332 in 2021, 62 in 2020, and 3,918 in 2017.

Data shows that 10 percent of tourists entering Mustang do not venture into Upper Mustang, and those who do often cut their trips short due to time constraints.

Bikal Sherchan, a member of the Gandaki Provincial Assembly, attributes stagnant tourist growth to inadequate fee structures that fail to accommodate all economic classes.

Tashi Norbu Gurung, Chairman of Lomanthang Rural Municipality, expressed concerns that high fees in restricted areas harm the local economy.

Gurung and other stakeholders are advocating for the removal of the semi-restricted status to stimulate tourism, suggesting increased security in border areas with China and a reassessment of the current designation.