POKHARA, July 12: Hotels first began operating inside the Annapurna Conservation Area in 1981 (2038 BS). As foreign trekkers started visiting the region, traditional makeshift shelters were gradually converted into basic lodges to provide them with accommodation. What began as a handful of simple huts has since evolved into a flourishing hospitality industry. Over the past four and a half decades, more than 1,400 hotels have come into operation across the Annapurna region alone, attracting investments worth billions of rupees.
The growth has not been limited to an increase in the number of hotels. It has also significantly boosted local incomes, created employment opportunities for thousands of people, and expanded the market for locally produced goods. Billions of rupees have been invested in tourism infrastructure across rural destinations, while the hotels themselves generate billions of rupees in annual economic transactions. The state has also benefited through tax revenues generated from the tourism industry.
The Annapurna region itself only came under organized conservation efforts in 1986 (2043 BS), when the Annapurna Conservation Area Project (ACAP) began its work. After the region was officially declared a conservation area in 1992 (2049 BS), both conservation initiatives and tourism activities began to grow rapidly, according to local residents. In recent years, as tourist arrivals have continued to increase, entrepreneurs have become increasingly encouraged to make larger investments.
“Over the past four and a half decades, the Annapurna region has undergone a complete transformation. In recent years, rising visitor numbers have encouraged the private sector to expand its investments. Conservation efforts have also continued regularly, while tourism activities have remained active throughout,” said Dr. Robin Kadariya, chief of the Annapurna Conservation Area Project (ACAP). “As commercial opportunities continue to emerge, investment has also continued to increase.”
According to ACAP, a total of 1,413 hotels are currently operating within the Annapurna Conservation Area. Of these, 1,032 are privately owned, while 381 have been built on public land. Altogether, these establishments offer 11,721 rooms with a combined capacity of 26,861 beds.
Among the settlements within the Annapurna region, Ghandruk alone has 325 hotels, including 222 privately operated establishments and 103 located on public land. The nearby village of Lwang has 243 hotels, comprising 78 private hotels and 165 built on public land. In Sikles, there are 68 hotels, including 36 privately operated and 32 on public land. Bhujung has 47 hotels, of which 35 are privately owned and 12 are situated on public land.
In the Himalayan district of Manang, there are 375 hotels, including 320 privately owned establishments and 55 located on public land. Jomsom has 276 hotels, comprising 264 private hotels and 12 on public land, while Lo Manthang has 79 hotels, including 77 privately operated establishments and two built on public land, according to ACAP statistics.
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Among the hotels constructed on public land, 27 are located along the Machhapuchhre Model Trek, 103 along the Mardi Himal Trek, 92 on the Annapurna Circuit, 91 along the Ghorepani–Ghandruk–Annapurna Base Camp trekking route, 32 on the Kori route, and two in Upper Mustang. Likewise, there are four hotels in the Bhujung area, six along the Khopra route, 16 on the Hidden Lake route, six on the North ABC route, and two along other trekking routes, bringing the total number of hotels built on public land to 381.
“In recent years, competition to expand investments has become even more intense. Places like Ghandruk, Jomsom and Manang are witnessing a race to build more hotels. As visitor arrivals continue to rise, entrepreneurs have recognized the commercial potential and have become increasingly enthusiastic about investing,” Dr. Kadariya said.
“Although additional infrastructure is currently not permitted on public land, the scale of investment by the private sector continues to grow as entrepreneurs are allowed to invest on privately owned property,” he added.
According to ACAP, more than 500,000 visitors travelled to the Annapurna region during the 2025/26 fiscal year.
“The increase in tourist arrivals has naturally encouraged entrepreneurs to expand their investments. During the peak season, visitors sometimes struggle to find accommodation. To cater to the growing number of trekkers, business owners have continued to invest in upgrading and expanding their facilities every year,” Dr. Kadariya said.
“Over the past four and a half decades, the Annapurna region has not only attracted substantial investment but has also generated employment, contributed significant tax revenue to the state, and transformed the livelihoods of local communities,” he added.
“We have not only built new infrastructure, but professionalism has also grown among the entrepreneurs,” he said. “ACAP has been providing training while simultaneously strengthening conservation efforts. Entrepreneurs operating within the Annapurna region generate an estimated Rs 10 billion in annual business turnover. This remarkable transformation has taken place over the last four and a half decades.”
What started as a few makeshift shelters has now evolved into comfortable hotels offering modern amenities. The hospitality industry has also increasingly embraced eco-tourism principles. Every year, these hotels welcome thousands of foreign visitors, providing access to everything from pristine rivers and streams to the region’s towering Himalayan peaks, Dr. Kadariya added.
Local entrepreneurs also say that sustained growth in tourist arrivals has encouraged greater private-sector investment in recent years.
“Nowadays, tourists visit throughout both winter and the monsoon season. With visitor numbers steadily increasing, it is only natural that investment has followed,” said Jagan Raj Gurung, a tourism entrepreneur at Annapurna Base Camp and chairman of the Chhomrong Tourism Management Committee.
“Entrepreneurs have expanded their investments because of the growing influx of visitors and the region’s increasing popularity,” he said.
According to him, attractive, well-equipped hotels continue to emerge at various points along the trekking trails.
“At present, constructing hotels on public land has been prohibited. However, private investors are continuing to develop new facilities on their own land,” he said.
