KATHMANDU, DECEMBER 22
Despite the arrival of a decent number of foreign tourists in the country over the past 11 months, the number of visitors participating in river sports activities has declined - from estimated 15 per cent of total foreign visitors in the country during the peak rafting seasons in the past to just three per cent at present.
In addition, the deteriorating condition of rivers as a result of hydropower operations and illegal sand mining have further discouraged foreign tourists from engaging in such activities causing businesses to downsize or even shut down, stakeholders say.
According to Shiva Adhikari, president of the Nepal Association of Rafting Agencies, the river sports sector, once with the most potential in terms of adventure tourism in the country and second to mountaineering, has hit rock bottom.
"The number of companies associated with river sports has decreased from 120 to around 80 in recent years.
From 50 to 60 river expeditions just in the Karnali River prior to 2020, we struggle to conduct even half the number now," he said.
Stating that the lack of interest among international tourists in joining rafting activities is the major factor in declining customers over the years, Adhikari also blamed government authorities for falling short in promoting the country's adventure tourism in western countries.
Adhikari also cited the state's failure to make scientific decisions for the construction of hydropower projects and illegal sand mining activities for dampening the demand for river sports activities. "Our complaints and repeated requests for action have not yielded any positive results," Adhikari added.
Mangal Rai, a former rafting operator for Himalayan River Exploration Ltd, used to lead multiple groups a few years ago. "There used to be huge number of tourists during the September-October and March-April seasons due to the increase in water levels," Rai recalled.
However, the drop in customers has led him to trade his oars for a new profession.
At present, Rai works as an operation manager at the same company. "The low demand for rafting operators over the years has led many like me to change their profession or leave for abroad," he told The Himalayan Times.
Furthermore, Adhikari opined that guidelines introduced by the Nepal Rastra Bank in August to tighten the distribution of working capital loans have failed to facilitate small and struggling businesses. "Not a single rafting company has received any loan so far. The government authority did not even consider classifying existing sectors including trekking, hotels, and rafting through a proper survey," he complained.
As per the provision, a firm with a turnover of Rs 20 million or less per year will be eligible to receive loan up to 20 per cent of the turnover amount while firms with turnover of more than Rs 20 million can receive loans up to 25 per cent of their turnover amount.
Narayan Prasad Pokharel, information officer of NRB, said NRB had introduced the guideline as BFIs were found to be providing loans up to 50 per cent of the total turnover to some firms. "As many firms were found to be increasing their turnover amount to receive more loans, the NRB had to implement the guideline for systematic disbursement of loans," he explained, adding, "The guidelines have certainly affected borrowers but the provision was deemed necessary and is in favour of maintaining a systematic banking practice."
CEO of Independent Power Producers' Association of Nepal Shailesh Mishra said, "However, hydropower projects have so far had very little impact on the country's rivers."
A version of this article appears in the print on December 23, 2022, of The Himalayan Times.
