Excerpt from

6 September 2002

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Tourism in Khumbu hit by insurgency, low tourist arrivals
Himalayan News Service
Lukla (Solukhumbu), September 5,
Despite vigorous lip-services being provided by the authorities to boost tourism, local entrepreneurs in Khumbu region, where the world's highest peak Mount Everest lies, are struggling today. Growing Maoists insurgency in the area has severely crippled local business and resulted in an acute drop in the number of tourists arrivals.
"People of Chaurikharka, Namchhe and Khumjung village development committees depend heavily on tourist activities for their livelihood. But a massive decline in tourist arrivals for the last two years has resulted in a grave crisis, which has been further aggravated by the increasing insurgency," says Pemba Dorjee Sherpa, former VDC chairman of Chaurikharka.
With declining tourist numbers, not only entrepreneurs but the local population in general has also been severely hit with unemployment, as hotels and lodges opt for drastic lay offs.
"There is no way left but to send them home," says Sherpa, justifying the massive lay offs. He also lambasted the underground rebels for their inhumane and terrorist activities, which is the main cause of the malaise. "A simple hotel owner used to earn about eight to nine lakh rupees every season till a few years back, but today the amount stands merely at two to three lakhs."
About 150 hotels are registered with the district administration office in the Khumbu region and most of them are operating at a heavy loss, according to an official at the Sagarmatha National Parks, warden office in Namchhe.
"Fewer tourists is not the big problem. We are having problem mainly due to the flourising insurgency and havoc created by them," says Chungba Sherpa, proprietor of Khumbu Resort at Lukla airport. The Maoists group has listed even local entrepreneurs and social activists under 'hit-list', it is learnt.
"Business activity has been completely down. Local businessmen are compelled to leave their place and live like domestic refugees," Sherpa adds.
Business activities were further hampered following the Maoist attack on Salleri, the district headquarters in November last year. "People in the area were terrified after the rebels looted the Rastriya Banijya Bank office in Lukla in February this year," he said. At the time Maoists also looted his 0.22 rifle.
Meanwhile, Gyalzen Sherpa, a local cadre of the Nepali Congress and the hotel owner at Phakding, explains the challenges faced by the tourism industry and the environment.
He pointed out to the need to formulate a balanced approach to promote tourism as well as preserve the environment. "Tourism has made significant contributions towards the socio-economic development of the region and people. It has also created adverse impact on the local environment," he adds.
Khumbu is one of the most popular tourist spot in the Himalayan region, especially for trekkers. Tourists are attracted by the majestic peaks and mountains in the Khumbu region.
With the initiative of the local people as well as environmentalists, some parts of the Khumbu region was declared as Sagarmatha National Park in 1976. Three years later in 1979, the United Nations Scientific, Educational and Cultural Organisations listed the park as a World Heritage Site.