KATHMANDU, July 19: Until about 15 years ago, Butwal and Bhairahawa did not have a single star-rated hotel. Lumbini, the birthplace of Buddha, had barely eight to 10 large tourist hotels, while the number of small and medium sized hotels was also limited. Butwal was home to hotels such as Sindoor, Siddhartha, Kandara and Royal, while Bhairahawa had Yeti, Himalaya and Nirvana.
There were comparatively more small and medium sized hotels in Butwal and Bhairahawa. It was only after the 2006 People's Movement that large, high-standard hotels began to emerge in the two cities.
The development of hotels in Lumbini is closely linked to the implementation of the Lumbini Master Plan designed by renowned Japanese architect Kenzo Tange. Work on the master plan began in the 1980s, bringing Japanese officials and Buddhist pilgrims to Lumbini during its implementation.
To accommodate these visitors, Japan's Hokke Club opened Hokke Hotel inside the Lumbini premises in 1991. The hotel was established on land leased from the Lumbini Development Trust for 50 years.
It is believed to have been Lumbini's first major tourist hotel offering high-quality services with significant investment. Outside the Lumbini complex, only a few small hotels operated at the time. Tourism activity increased after UNESCO listed Lumbini as a World Heritage Site in 1997, leading to the construction of larger hotels with accommodation facilities outside the heritage area.
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A major wave of hotel investment began only after the foundation stone for Gautam Buddha International Airport in Bhairahawa was laid on January 15, 2015. Expectations grew that the airport would directly connect Lumbini to the international community and attract large numbers of foreign tourists. Successive governments and political leaders promoted the airport as a project that would transform not only Lumbini but the entire country. Encouraged by those promises, the private sector invested heavily in the hotel industry.
As a result, investors rushed to establish hotels in Lumbini. According to Madhav Khanal, president of the Rupandehi Hotel and Restaurant Entrepreneurs Association, more than Rs 100 billion has been invested in the district's hotel sector alone. Around 2,100 hotels are currently registered and in operation.
Butwal, Bhairahawa and Lumbini now have 13 star-rated hotels, including three five-star properties: Hyatt Palace in Butwal, Tiger Palace in Bhairahawa and Siddhartha Vilasa. The region also has 10 four-star hotels, including Buddhamaya Garden, Hokke, Kasai and Lumbini Heritage in Lumbini, and Nirvana, Nans, Dreamland Gold Resort, Bodhi Red Sun, Landmark and Asian Buddha in Bhairahawa.
In addition, another 15 to 20 hotels have received star classification. Khanal said the district has around 300 large tourist hotels, about 700 medium-sized hotels and nearly 1,000 small hotels, farm stays and restaurants. Boutique hotels, large agritourism farms and nature-oriented resorts are also increasing in number as investors seek to diversify tourism offerings. The hotel industry currently provides employment to around 30,000 people.
Several major business groups continue to acquire land for new tourism projects. Some are constructing star hotels, while others have already completed construction and begun operations.
Chandra Prakash Shrestha, central executive member of the Hotel Association Nepal (HAN) and president of its Lumbini Province chapter, said the construction of Gautam Buddha International Airport and early signs of improvement in tourism encouraged investors to pour money into the hotel sector.
Lumbini alone has 73 large and medium-sized hotels, according to Lilamani Sharma, president of the Lumbini Hotel Association. High standard tourist hotels have also opened in Chhapiya, an area better known for fish farming. Although investment in hotels has created jobs, entrepreneurs say the expected returns have failed to materialize because of the lack of long-term tourism promotion programs.
Many investors poured millions of rupees into hotels believing Gautam Buddha International Airport would boost international tourism by providing direct access to Lumbini. However, even four years after the airport's inauguration, regular international flights have yet to begin from Bhairahawa. As a result, many hotel operators who invested based on those expectations are now struggling. Some hotels have even reached the point of auction because they cannot repay their bank loans.
"We believed the government had a long-term plan to operate an airport built with billions of rupees. Unfortunately, even after four years the airport has failed to operate regularly. The hotel investments made in anticipation of its success are now collapsing, and occupancy at large hotels remains very low," Shrestha said.
He urged the government to facilitate Nepal-India flights from Bhairahawa and improve air connectivity with Buddhist countries to promote tourism in Lumbini. He also said the industry remains hopeful that the current government will take concrete steps.
Chandra Thapa, president of the Nepal Association of Tour and Travel Agents (NATTA) Lumbini chapter, said the government must make special efforts to launch regular international flights from Bhairahawa to protect billions of rupees invested in the region. He said a joint campaign by the government and private sector to promote Lumbini could help prevent those investments from being lost.
Khanal said the private sector invested heavily in tourism after considering projects such as Gautam Buddha International Airport, the International Convention Center in Butwal, the Exhibition Center and the designation of the provincial capital. However, because these projects have not delivered the expected results, the tourism industry is now facing a severe downturn.
"Some large hotels are struggling even to cover their operating costs," Khanal said.
He stressed that Lumbini should be promoted internationally as the spiritual center for Buddhists and a global symbol of peace.
"It is the state's responsibility to promote Lumbini internationally, develop tourism infrastructure and ensure that completed infrastructure is fully utilized. We are ready to support the government in that effort," Khanal said.
Lilamani Sharma said tourism development should extend beyond Lumbini to include Buddhist sites in Kapilvastu and Nawalparasi, Swargadwari in Pyuthan, Palpa, and the eco-tourism destinations of Banke and Bardiya.
He also called for the development of four major tourism circuits across eastern, western, mid-western and far western Nepal.
"We are in the mid-western region. If Lumbini is developed as the hub of a broader tourism circuit linking all nearby attractions and promoted effectively, Nepal's tourism market will grow significantly," Sharma said.
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