Nepal's tourist industry suffers slump

Nepal's tourism has never had such a bad year

By the BBC's Sushil Sharma in Kathmandu

There has been a sharp drop in the number of tourists visiting the Himalayan kingdom of Nepal.

Officials say there has been a 17% decline in tourists this year.

Nepal receives an estimated half-a-million tourist every year.

Analysts attribute the decline to the recent surge in Maoist violence and the palace massacre of June in which King Birendra and 10 other royal family members were killed.

The tourism industry is one of the main sources of foreign currency in Nepal and provides employment to hundreds of thousands of people.

Worst impact

The Nepal Tourism Board said the worst impact was felt in the month of November - usually the busiest for the industry.

Kathmandu's attractions are famed around the world

Last month saw the worst violence in six years after Maoist rebels called off a ceasefire and pulled out of peace talks.

The tourism board said tourist arrivals fell by 43% in the month.

They said western tourists had been particularly discouraged by the violence.

This followed a substantial drop in Indian tourists in the last two years, blamed largely on the hijacking of an Indian Airlines plane from Kathmandu on Christmas Eve, 1999.

Ray of hope

Security across the country had been tightened following last month's violence.

The government had declared a state of emergency and the army had been called in to counter the rebels.

People in the capital, Kathmandu, have been asked to carry identification cards while travelling at night.

Officials at the tourism board say the security situation has improved and they hope the trend will be reversed.