A rush of domestic tourists to Pokhara for the New Year celebrations has boosted business at hotels which had been facing hard times due to a drop in foreign tourist arrivals to the lakeside city.

Bharat Raj Parajuli, president of Hotel Association Nepal, Western Regional Chapter, said that increased movement of domestic visitors had driven up room occupancy levels to 70 percent from the usual 20 percent recorded since September-end. The annual street festival has been a boon for the hospitality sector, he said.

As some hotels were unable to cope with the sharp increase in demand, they had to transfer guests to other hotels. Tourism entrepreneurs said that the street festival and New Year celebrations had always been a big draw for domestic visitors.

The Restaurant and Bar Association (Reban) has been organising the street festival for the past 17 years in Pokhara.

Tourist arrivals to Pokhara have been in the lows since the April 25 earthquake. India’s trade embargo that led to a severe shortage of fuel added to the industry’s woes as it scared away potential foreign travellers.

However, the scenario has changed now. Cheerful hoteliers are busy arranging rooms for their guests who have been arriving in droves. However, they are concerned by what is in store for them after the New Year euphoria wears off.

According to Atithi Resort and Spa, all its 51 rooms have been filled since the street festival began. The resort said that domestic visitors and Chinese tourists were their main customers. “The arrival of tourists just before the New Year has given us some relief,” said Bharat Raj Sharma, proprietor of the hotel.

Hotels and restaurants in Pokhara have unveiled special discount offers targeting the annual occasion. According to hoteliers, people from various parts of the country have been converging on Pokhara to celebrate the festival, raising hopes of a rebound in tourism.

Pokhara is the second most popular tourist destination in Nepal after Kathmandu, and draws around 400,000 international visitors annually. The tourism potential has led to massive investments in the hospitality sector . Hotel and restaurant capacities have doubled in the lakeside city. Within three years, Pokhara has added 8,000 room nights. At present, its hotels can accommodate more than 16,000 tourists. There are around 500 tourist standard hotels in Pokhara, and many more are coming up.