Investors rush to Lumbini as tourist arrivals take off

Bhairahawa: A growth in tourism at the Buddha’s birthplace of Lumbini has sparked a flurry of domestic and foreign investments in the hospitality sector.

Demand for hotel accommodation has been rising sharply in recent years in Lumbini and Bhairahawa, the gateway to the holy site which is located 22 km to the east. And investors have been erecting new properties in the area while old hotels have been engaged in a refurbishment drive to enhance the quality of service. Travel trade entrepreneurs said that eight to 10 new hotels have been planned in Lumbini and the Bhairahawa-Butwal area.

Meanwhile, a Rs 60-million hotel named The White Lotus has been constructed in Bhairahawa. The promoter of the tourist-standard property Nirmal Shrestha said that construction was in the final stages. “We are also planning to construct a three-star hotel in Lumbini after the Lotus is completed,” he added.

Shrestha said that the Bhairahawa-Lumbini area had become a centre of attraction for investors. The major reason is a rise in international pilgrimage tourism at the birthplace of the Buddha. Mounting arrivals in Lumbini and its future prospects have prompted investors to see a strong demand for mid- and upper scale hotels.

The Maoist conflict which raged from 1996 till 2006 badly affected tourism activities in Lumbini. Last year, the government launched a tourism promotion campaign entitled Visit Lumbini Year 2012 in a bid to restore its image.  Similarly, the government has been upgrading Gautam Buddha Airport in Bhairahawa into a regional international airport to attract more visitors. Besides, with the town of Bhairahawa becoming a centre of the Kapilvastu-Nawalparasi postal road, investors have seen a lot of potential in the area. 

There are no official statistics regarding the volume of investments that have been made in the Bhairahawa-Lumbini area. However, more than dozen hotels have been constructed since Hotel Yeti was established in Bhairahawa one and a half decades ago. Foreign investors have also been keeping a close eye on Lumbini due to its growing potential.

After the Hokke Hotel began operations in 1991, the Hotel Kasai was established at a cost of US$ 5 million. The hotel exhibits a combination of Japanese and European architectural designs. A new property under a Sri Lankan investor is at the construction phase. A five-star hotel has been planned by Chinese investors.

The Buddha Maya Garden Hotel and Resort, Peace Land, Bamboo Resort, Crystal, Siddhartha and other hotels are currently operating in Lumbini. “In the past, visitors to Lumbini used to return the same day to India due to lack of quality accommodation even if they wanted to stay longer,” said Shankar Lal Shrestha, president of the Lumbini Hotel Association. However, after the end of the conflict and the restoration of peace, investors have started to realize the potential of Lumbini. “As a result, there are many hotels in the area now, and a number of new properties are in the pipeline.”  Since 2003, Lumbini has witnessed a gradual rise in visitor numbers. Last year, the pilgrimage destination received more than 758,000 travellers including domestic visitors.

source: The Kathmandu Post, 24 Jan 2013