PICS: KONG YEN LIN

At Pokhara's Lakeside, the streets are quiet. The crisp snipping of scissors at a barber shop amplifies the silence. It's noon, but boatmen at Phewa Lake are still waiting for customers.

After last autumn's tourism rebound, Pokhara's hoteliers expected visitor arrivals to peak this spring, but then the global economic crisis hit.

"You can see for yourself, this is supposed to be the peak season, but we have only 30 per cent of expected arrivals," says Samir Baral of Lovely Mount Tours and Travels.

After enduring a slump during the war years, Pokhara's tourism was just beginning to pick up when it was hit by the global crisis. Although adventure tourism in the Annapurnas and Everest regions is less affected, the recession in Pokhara's main sources of tourism in Japan and Europe has taken its toll.

"Tourists are more careful about spending and they are demanding better value," says Subba Thapa of Acme Adventure Treks," it's hurting profits in Pokhara but not in trekking areas."

Not everyone blames the global crisis alone. Political instability, frequent highway blockades, strikes and the degradation of the sole tourist entry point of Kathmandu are turning away tourists, they say. Last month alone, transport between Pokhara and Kathmandu was disrupted for 25 days.

"We've experienced an 80 per cent drop in businesses since eight months ago," says Buddha Gubhaju, of the Pokhara Hotel, Restaurant and Bar Association, "if there was real peace, it wouldn't be this bad."

With an estimated 200,000 of Pokhara's population dependent directly or indirectly on tourism, unemployment rates in the hospitality sector are climbing. "For every one tourist who visits, nine to 13 locals get a job," says Govinda Pahari of the Hotel Association of Nepal in Pokhara, "but with tourism down the sector has been forced to lay off."

However, Pokhara's loss seems to be the gain of the rural areas of Kaski where trekking numbers are up. Surprisingly, the Annapurna Conservation Project (ACAP) has seen a dramatic increase in the trekking permits issued this spring, with an average of 150 issued per day. Last year, nearly 70,000 trekkers visited the region, and with the target of one million tourists during Visit Nepal Year 2011, this number is sure to rise further.

The extension of the highway up the Kali Gandaki Valley and the highway to Manang in Lamjung, however, are putting off trekkers. ACAP's Yam Bahadur Gurung says plans are underway to promote alternative trekking trails in these areas and also in Sikles up to Huju in Kaski district.

Everyone seems to agree that the development of the long-delayed international airport in Pokhara is necessary so tourists can fly direct. Land for the airport was set aside 30 years ago but construction has yet to begin.

Says Samir Baral: "For 2011, we need to decide whether we want volume or value. Instead of going for big numbers, I
think it's better to go for big spenders."