Why Are There No International Chain Hotels In Pokhara There are more than 1,200 tourist hotels in and around Pokhara, the ‘capital of tourism’ of Nepal. Among them, there are limited hotels in Pokhara for ‘high-end tourists’ i.e. high-end tourists, which can provide high-level luxury service facilities.
Hotel rooms priced up to 350 dollars are available on the shores of Phewa Lake, which is very popular among Pokhara’s tourists, but those who reach Annapurna Base Camp, the world’s best tourist trail, have mixed reactions about the hospitality of Pokhara’s hotels.
The preference of ‘High-End Tourist’ depends on which country and generation they belong to. In general, Americans and Europeans are willing to pay higher prices based on the quality of service, exclusivity, and availability of luxury amenities. Chinese tourists stay indifferent and luxurious hotels and are more interested in food.
Pokhara has not been able to prepare a strong base to provide special services for such expensive tourists and earn a good income from them. Even though the service level is improving, the number of hotels offering world-class facilities is very low, and more potential benefits from tourism are also being lost.
But after problems started in hotel and staff management, it started going downhill. Due to the lack of efficient management, the resort was unable to pay its debts and was closed down after 2062/63 due to the labor movement.
A hotelier from Kathmandu claims that the current situation would not have happened if a foreign company had been allowed to manage the large investment Phulbari Resort in Sayam. “There were problems related to labor in hotels like Solti and Annapurna, they were handled easily because of the foreign management,” he says, “After the big investment, it would have been appropriate to bring at least an international chain in the management.”
International hotel chain brands have experience in providing quality service in many countries. They come with the latest technology, which helps in reducing the cost of the hotel and improves the service level. Their main objective is to plan and work for world-class services while also imbibing the skills of local management and ensuring investors’ profits. Because they get a certain percentage of profit, they also work hard to increase their income and make the hotel’s branding and internal control system agile.
Within Nepal, Marriott, Aloft, Hyatt, Taj, Radisson, Hilton, Sheraton, Thani International Acure, Intercontinental Hotel, Dusit International, Cintamani, Moxy, ITC, and others have entered to handle brand management. These hotels are mainly concentrated in Kathmandu and some in Bhairahawa and Chitwan. The American chain brand Sintamani has reached the Himalayan district of Mustang.
In such a situation, businessmen say that it is a matter of concern that even the big international chains that have entered Nepal for hotel management cannot reach Pokhara, which is considered to be the second most important destination in Nepal. Bharatraj Parajuli, the former president of the Hotel Association of Pokhara, believes that no matter what happens so far, hotels of good brands will gradually come to Pokhara. According to him, there has been a delay in the arrival of famous hotel chain brands in Pokhara as the environment for investing in hotels has not been comfortable recently.
Big investment in Pokhreli Hotel
In Pokhara, foreign investments have also come in some hotels, but foreign brands are not attached to them.
However, if we look at the number of visitors to this city and their level of spending, foreign chain brands are indispensable for Pokhara, says Hotel Association of Nepal (HAN) President Vinayak Shah. “The tourism industry of Pokhara is booming, the arrival of Indian tourists is encouraging,” he says, “so if the market demands, well-known chain brands will also reach there.”
It is estimated that around 1 million tourists visit Pokhara as a tourist city. According to the Hotel Association Pokhara, the hotel infrastructure is ready to serve 40,000 people in one day. The investment in the hotel has reached over 5 trillion 25 billion. However, there is a lot of investment in small and mid-level hotels in Pokhara.
Satisfied with his own management
There are resorts with luxury facilities, but the hotels in them have their own management. Pokhara’s tourist-level hotels are being run by the businessmen of Pokhara and the surrounding areas depending on their own investment and management skills.
Many small hotels in Pokhara are still running with the involvement of unskilled staff and family members who have not received hotel training. Even in medium and large investment hotels, due to the lack of management, there are many complaints about the service, from workers not staying.
The Water Front Resort, caught in the controversy over the erosion of the shores of Phewa Lake in Pokhara, is being operated under the management of Nepal’s KGH Group. Limited hotels and resorts in Pokhara, including this resort, which is an investment of tourism businessman Karn Shakya, are connected to the chain business in the country.
Pauwa is another group that invests and manages hotels in Nepal in Pokhara. The group has opened Hotel Pauwa on the lakeside of Pokhara. Similarly, the management of Pokhara’s luxury resort Fi-Tel Lez has been handled by ‘Annapurna’.
Big business houses and businessmen have not shown interest in investing in Pokhara. Solti Hotel has taken land in Khapaundi of Pokhara with plans to start construction. In Khapaundi, Pokhara’s business group ‘Lakshmi Group’ has also planned to open a big investment hotel.
Hotel Dwarika in Dhampus of Kaski has taken forward the business expansion plan. Suraj Vaidya of the Nepal Chamber of Commerce and Industry in Begnas, and Yogendra Shakya in Pumdibhumdi have also prepared to build a hotel.
However, why international chain hotels and international brands have not entered the management yet? Biplav Paudel, executive director of Barahi Group and central member of the hotel association, says, “It may be that there is no such tourist pressure and demand, and because international hotels have not been built in Pokhara, Pokhara may not be the main choice.”, now I believe that emptiness will be removed.’
Why do you need a chain?
In this way, when the international chain is without a brand, even the tourists coming to Pokhara have not been able to get the facilities of their ‘favorite’ brand. When an international chain hotel arrives in a city, it is believed that the tourism potential of that city will be more exposed. The marketing of chain brands and various activities at the destination increases with its strength. It increases the number of tourists and helps a lot in the promotion of the destination. The more spendthrift tourists come to the destination, the more competitive the environment will be and the more economic benefits will be achieved.
If chain hotels are involved in investment and management, it will help to raise the level of service and change the perception of the destination. Experts say that since the service will be of international level, it is considered beneficial to enter as many international chains as possible.
“Brand matters a lot, well-known brands are managing chain hotels in many countries and cities,” says Han’s president Vinayak Shah.
Businessman Shashikant Agarwal, who is increasing investment in big hotels, says that it will be easier to attract foreign tourists by connecting chain brands to hotels. He said that globally, tourists are looking for famous brand hotels, which will help to increase the trust towards such brand hotels and destinations. He says that international chain brands will help businessmen get better and faster returns on their investments. “The more chain hotels come, it will benefit all parties,” he said, “Even at the international level, the presence of chain hotels sends a good message.”
Naresh Bhattarai, President of Restaurant and Bar Association Pokhara, says that it is sad that there is not a single international chain hotel in Pokhara, where it is estimated that 40 percent of the 1.2 million foreign tourists visit Nepal annually. He said that the problem was also caused by the policy related to building construction in Pokhara to invest heavily in hotels and prepare large infrastructures.