Nepal's tourism industry received yet another blow from the pandemic Severe Acute Respiratory Syndrome (SARS) as it struggled to regain its balance under the negative impact of the Iraq war. Cancellations are becoming commonplace and some international airlines are axing operations between Kathmandu and affected metropoles in Southeast Asia. The Royal Nepal Airlines Corporation suspended flights to Singapore and is planning to temporarily pull out from Shanghai beginning 3 May.

Air China, that recently merged with China South West Airlines, also stopped plying the Kathmandu-Lhasa route. "The situation is getting worse," says Joy Dewan, President of the Nepal Association of Travel Agents. "We expect tourist arrivals to drop by at least 30 percent."

With a decrease of almost 40 percent in tourist arrivals last year, the tourism industry had pinned its hopes on the Everest golden jubilee celebrations to lure visitors back to Nepal. A record number of mountaineers were expected to commemorate the first human ascent of the highest peak on 29 May.

Unfortunately, SARS dashed hopes of a tourism renaissance. Tourists arriving from the east are declining rapidly, as are those willing to go to Tibet through Nepal. The Chinese Embassy told us they would continue to issue visas for Tibet but were unsure if authorities at the Khasa border would allow tourists through.