Path Breaking Step in Promoting Domestic Tourism
RAJESH BABU SHRESTHA
PILGRIMAGE OF THE HEART
Manakamana (Desire of the Heart) is the name of a popular Hindu goddess who fulfils the wishes of her devotees. Her shrine lies in Gorkha District, where King Prithvi Narayan Shah began his campaign for the unification of Nepal in the 18th century. Located about 12 kilometres south of the town of Gorkha (Pokharithok) and six kilometres north of Mugling, a town on the Prithvi Highway, the temple is situated on a prominent ridge in Manakamana VDC overlooking the Trisuli River to the south and the Marsyangdi River to the west.
The legend of Manakamana Devi goes back about a century and half before Prithvi Narayan Shah to the reign of King Ram Shah (1614-1636) of Gorkha. It is believed that Queen Mahimavati (also known as Lilavati or Chandramukhi) possessed the combined powers of three devinities-Mahakali, the goddess of power; Mahalaxmi, the goddess of wealth; and Mahasaraswati, the goddess of learning. Because of her divine powers, the kingdom’s subjects enjoyed justice and freedom from discrimination. In those days a popular saying in the principalities of the Middle Hills of present day Nepal was ‘NyayajnajpaeyjGorkhaj anu’ (‘If you have not got justice, go to Gorkha’). Only the queen’s devotee Lakhan Thapa knew that Queen Mahimavati possessed divine powers. A religious preceptor (siddha) of Bakarang Village, Lakhan belonged to the clan of Thapa Magars which had received blessings from the sage Gorakhnath.
One day King Ram Shah saw his wife sitting in the form of a goddess amidst other goddesses. Perhaps he should have kept his vision a secret, but he mentioned it to her and it became the cause of his death. The king was cremated at the confluence of the Daraundi and the Marsyangdi rivers. As was the custom then, the Queen agreed to commit sati, or self-immolation on the funeral pyre of her dead husband. Lakhan Thapa was extremely distressed by the Queen’s decision, but she promised him that she would re-appear near his house.
A few months later, a farmer who was ploughing his field struck a stone, chipping it. Blood and milk began to flow from the fracture and the farmer he could not stop it. Lakhan Thapa was informed of the incident and summoned to the palace to explain what had happened. He immediately understood that, Queen Mahimavati, the goddess incarnate, had kept her promise and reappeared Lakhan Thapa rushed to the site and worshiped the stone. With his tantric power, he managed to stop the flow of blood and milk. He decided to venerate the stone as the embodiment of the Goddess, and because she had returned in fulfilment of his wishes, the shrine came to be known as ‘Manakamana Devi’. It is said that the present temple was erected at this very spot.
The two-storey pagoda-style temple stands on a square pedestal. The temple’s entrance is on the western edge of a large square between two old trees, two stone pillars and a sacrificial pillar. The descendants of Lakhan Thapa serve as the priests of Manakamana temple, carrying out religious rituals and duties. The present priest is a 17th generation descendant from Lakhan Thapa’s clan.
Thousands who seek Manakamana’s blessing flock to the temple every year to have their wishes fulfilled. Devotees take a vow (bhakkal) to visit the temple in order to make their unfulfilled wishes materialise. If their desires are fulfilled, they must make a follow-up visit to the temple no matter how difficult it may be. According to legend, visiting the temple three times will fulfil one’s wishes. In the past, accessing the temple necessitated walking a three to four hours up a steep trail from Khaireni Bazaar on the Gorkha-Mugling Highway. The hike was a challenge for the young, and almost impossible for the old, disabled and unfit. Many could only dream of visiting the temple.
The lack of hygienic food and clean drinking water along the way compounded the difficulties of the pilgrims. In the summer, extreme heat made climbing unpleasant, while in the monsoon, the trail became muddy and slippery and hiking risky. Regardless of lowland the journey to get Manakamana’s blessing (darshan)jwas, thousands visited the temple every year. It was estimated that there were around 207,000 worshippers annually before the cable car was installed. After the arduous walk, the sense of achievement and exhilaration made pilgrims forget all the troubles they had faced. For many families, though, a visit to Manakamana was just a dream until the Manakamana Cable Car was installed. Infirmities or disabilities no longer keep potential pilgrims away. As using the cableway requires comparatively little effort and time, all can pay homage to Manakamana Devi.
INITIATION OF THE CABLE CAR
Helping devotees visit the temple with ease had been in the offing for a long time, but it was not until Gorkha-born business entrepreneur Laxman Babu Shrestha, chairman of the Chitawon Co-E Group, proposed the idea that the plan for constructing a passenger ropeway to the temple began to gain momentum. By installing the cable car, he made it possible for physically disabled, elderly and infirm devotees to pay homage to Manakamana Devi. Soon the temple and the region became accessible to everyone who wished to visit. The religious significance of Manakamana Devi and the fact that so many devotees were deprived of darshanjwere Shrestha’s main motivations.
Shrestha was confident that the cable car would be an economically viable venture. His dream of installing a cable car system came true in 1997, when a contract was signed between Chitawon Co-E Group and Doppelmayr Company, a leading cable car system manufacturer in Austria which has installed more than 8,000 ropeways around the world. The company provided the technical assistance needed to install the system. The feasibility study took about one year and the loan finalisation took about six months. Financial closure was achieved in a year and a half and immediately after wards the construction started. Ten months later, commercial operation began. Information about the cable car system and the initial financial projections is provided in Annexes E and F.
This cable car is the first of its kind in Nepal. His Royal Highness (Late) Crown Prince Dipendra Bir Bikram Shah Dev inaugurated the enterprise on 24 November, 1998, at which point regular operation started. His Majesty (Late) King Birendra Bir Bikram Shah Dev awarded Laxman Babu Shrestha the state award the Suprabal Gorkha Dakshinbahu for his entrepreneurship.
The bottom station of the cable car is 94 kilometres from Pokhara, 36 kilometres from Narayanghat and 102 kilometres from Kathmandu. The system is 3.02 kilometres long. The bottom station is located at Kurintar on the Prithvi Highway at an elevation of 258 metres above sea level, while the top station is below Manakamana temple at an elevation of 1302 metres. The time it takes to cover the distance from bottom to top varies from eight to 15 minutes, depending on the speed of operation. The system is sensor sensitive, and because it is fully automatic is considered safe. Nepali personnel were trained to operate the system and have now gained substantial experience in handling complications and in directing rescues if and when the need arises.
A total of 600 pilgrims can be transported in an hour. There are thirty-six six-person gondolas to ferry people and three freight carriers to transport the goods of local people as well as the sacrificial goats that pilgrims bring. Because the cable car does not transport any construction equipment or commercial goods, the business of local porters and mules has suffered no ill effects. Since the beginning of its operation in 1998, over two million pilgrims have used the cable car to visit Manakamana. Devotees and tourists from Nepal and India and from abroad visit the temple.
Though the bulk of the equipment came from Austria, local components were also used. The Butawal-based Nepal Hydro and Electric Company, for example, fabricated the towers and the yokes as per the specifications of Doppelmayr. This arrangement provided a chance for local industries to manufacture high-quality products that meet international standards and thus enhanced local capacity. The rough terrain between the two stations and the need to cross the Trisuli River made transporting the towers by mules impractical, so helicopters were used for the heaviest of loads. Local porters and mules did, however, transport other equipment required to construct the towers and station buildings. This helped create jobs for local porters and owners of mule caravans.
Because the number of devotees has increased ten-fold, the demand for the local products of the Manakamana region has also increased dramatically. The cable car has made the region accessible in all seasons, whereas in the past pilgrims visited the temple only in the winter. As a result, local business efforts have been extended throughout the year. With improved and easy access, a wide range of visitors with diverse interests visit the temple� it is not only Nepalis but also Indians and other foreigners who make the trip. The increased flow of tourists is not limited to Manakamana temple alone; the whole region has the potential to develop cultural, village based eco-tourism.
OVERCOMING FINANCING HURDLES
The total capital investment in the project was 430 million rupees, making it the largest investment by a private company in the field of tourism and transport in the history of Nepal. Given the country’s uncertain political climate, it was a high-risk investment. Its success has been an eye-opener in terms of demonstrating that passenger ropeways are a viable means of alternative transportation over remote mountainous terrain. The people involved provided overwhelming and encouraging support. The government, for its part, was not supportive. Since the cable car was an innovative venture, it was expected that the government, in order to encourage other private companies to invest in similar projects, would accord it special consideration in terms of registering it and providing it with exemption from taxes. Such support was not forthcoming. The investment was not treated as innovative, it was not exempted from taxes and rebates normally provided to official development projects were denied.
In contrast, the support and cooperation provided by financing companies and local banks was encouraging. The past record of Chitawon Co-E Group proved beneficial in gaining the prompt collaboration and assistance of financial sector. The risk factor was a major concern as the project was the first of its kind in Nepal and there was no track record. After hearing the details, Nepal Bank Ltd. (the lead bank), Karmachari Sanchaya Kosh (Provident Fund), NIDC (whose loan was later assumed by Nepal Bank Ltd.), and Nepal Bangladesh Bank Ltd. agreed to finance the project with a consortium loan. Despite their lack of experience in lending money for this type of project, the bankers demonstrated trust, faith and courage, all of which were instrumental in seeing the project to fruition.
Manakamana Cable Car demonstrated that the Nepali private sector has the capacity to invest in and manage a complex infrastructure project. It also showed that funds for investment can be generated locally and that Nepal does not always need to depend on foreign loans or bilateral funding. Ropeway projects will create opportunities for generating an internal base, as well as an opportunity to channel foreign aid to those priority sectors with the greatest need. By creating a suitable investment climate, the private sector can make productive use of idle but abundantly available local funds in order to build infrastructure projects which meet the needs of the country. The long-term benefits to the country are self-evident.
The project was evaluated on the basis of the facts and details that we provided the banks in our techno-economic feasibility study. The economic aspect of the project depended on the flow of passengers and the projected growth after the cable car was installed. Data on the number of people travelling along the traditional route from Anbu Khaireni were collected. Serious thought was also given to pricing. On the one hand, the company had to consider how much Nepali devotees would be willing to pay, while on the other, the loan had to be repaid. A price of Rs 250 per passenger was set. This price was charged till the fourth year of operation. From the fifth year onwards the price was increased by 10% to Rs 275 to cover inflation.
From the first year of operation Manakamana Darshan started repaying the interest and principal of its loan. This is an achievement in itself because many banks often face difficulties in collecting repayments. In fact, the lead bank told Chitawon Co-E Group that Manakamana Darshan has been one of its most successful investments.
OVERCOMING BUREAUCRATIC HURDLES
Many challenges had to be overcome in the field during the construction phase. The highest priority was given to the safety and convenience of the passengers and to reliable service. As the difficult terrain limited access to the sites selected, erecting towers posed a considerable hurdle. Helicopters were used to lift and erect towers. This provided hands-on experience in new ways of construction. Modern-day communications helped in placing orders and procuring items at short notice. The response from Doppelmayr was prompt and professional.
The latest technology available was used and sensitive sensors were placed at various locations to detect the most minute of faults, which are indicated on panel boards located in the top as well as in the bottom station. Nepali engineers, technicians and labourers carried out the installation and make periodic check-ups and carrying out regular maintenance according to the recommendations of the manufacturer. They operate the system and conduct day-to-day maintenance including checks before operating the system. The management of the enterprise is the responsibility of Nepali professional staff and local jobs have been generated.
In sharp contrast to the prompt and professional responses of Doppelmayr, while importing equipment, Chitawon Co-E Group faced delays and unnecessary hassles at the hands of HMG�N’s Customs Office . Another challenge stemmed from the fact that there was much uncertainty with regard to the government’s policy and regulations. In fact, the government did not even have a policy governing the cable car and ropeway industry. We requested exemption from duties on the machinery imported from Europe on the grounds that the ropeway industry was the first of its kind and highly suitable for Nepal from the point of view of tourism as well as the country’s geography. We demonstrated that the system was environmentally friendly and non-polluting and that damage to the natural environment would be minimal compared to that caused by road construction, but HMG�N did not respond positively.
In the absence of a clear-cut formulation of acts, rules and regulations no one at the Ministry of Finance (MoF)could decide in a timely fashion what to do when we applied for permits when the equipment had only just arrived at Birgunj, experts had already reached the site. Despite our vigorous lobbying, it took more than four months to get clearance for the release of the equipment. While it sat in Birgunj Customs Office for over two months, we had to pay remuneration to the foreign technicians though they had nothing to do. Not only were technicians annoyed, they threatened to leave the country and take assignments elsewhere. This was the most frustrating experience in the entire process of project execution.
We took a stand with the government and finally succeeded in getting the cable car machinery categorised as a duty-privileged item. Though we ourselves did not secure any duty breaks, we were satisfied that at least we had made it easier for future investors. An important lesson is that the government should act promptly to ensure that it maintains an investment friendly business climate. Regulations and acts should not be made adjhoc, whenever the need arises, government officials should be in a position to tackle issues in a timely manner and to make enabling decisions. Much homework needs to be done before formulating regulations; the opinions of investors, for example, must be sought. That the Ministry of Finance (MoF) bases many of its decisions on immediate revenue generation is understandable, but too frequently its perspective is short-sighted. Benefits to the economy will be robust if revenue is assured on a long-term basis; this should be the new strategy of HMG�N. Ropeways can be developed as an industry by giving attractive incentives to potential investors.
GARNERING LOCAL SUPPORT
The cable car system to Manakamana was a new initiative for Nepal in that it was the country’s first passenger ropeway. At first, both local villagers and city dwellers were sceptical about its viability. The idea of installing a cable car to the temple also raised concerns that the social and environmental sanctity of the locality might be negatively impacted. Locals worried that the cable car would take away their livelihoods and that an influx of external businessmen would pose a threat. People feared that the cable car would, in particular, take away the jobs of mule-train operators. Such concerns were understandable. With no experience of cable car system operation to draw upon, it was natural that questions were raised. Within a few months after operation began, however, it had become clear that such concerns were unfounded.
The company has attempted to maintain congenial relations with local residents. The cable system does not haul goods that are transported by mule caravans. In fact, the company discourages the transportation of all goods. Cable car tickets are valid for one week in order to encourage people to stay long enough to benefit local businesses. The company also solicits suggestions from passengers and their feedback is used to help improve services. Safeguarding the environment and local traditions was given high priority to ensure that neither the local economy nor the way of life, culture or traditions of villagers were harmed. The ropeway itself is environmentally friendly� the system, since it runs on electricity, does not emit any poisonous gas. In the process of installing the cable car, several trees posed a threat to the safety of the gondolas and passengers and had to be cut down. The company compensated villagers for every tree it felled. The plots where the towers rest were purchased from local landowners. The company has also planted 30,000 tree saplings in the region.
In any business venture, profit is the primary motive; at the same time, however, a business must be aware of its social responsibility. A company can pursue genuine business interests while still providing benefits to the community and the region where it is located. Keeping in mind local concerns, the company offers a special tariff to locals (Rs 50 instead of the regular fare of Rs 275). A lunch break of about one-anda-half hours was introduced to ensure that local hoteliers have sufficient time to cater to pilgrims. The company has also promoted development programmes and education. The company provides two VDCs, Darechok at the bottom and Manakamana at the top, with a sum of Rs 500,000 annually. This amount is expected to meet the development needs of those villages. The company also provides regular supervision to ensure that the funds are utilised well.
LESSONS FOR PROSPECTIVE ENTREPRENEURS
The success of Manakamana Cable Car shows that ropeways can be a suitable and easy means of moving people in hilly regions. Building ropeways is a good business investment but also helps to transport goods and provide local jobs. A ropeway induces people to travel and thus, by opening possibilities for tourism and new businesses, promotes economic activity. At an intangible level, a ropeway, by providing exposure to different people, can help generate new ideas too.
Manakamana Cable Car shows that investment in this sector has not only encouraged business prospects but has also helped develop a particular region by creating opportunities for local inhabitants. If the government formulates a suitable policy for registration, gives tax exemptions to facilitate importing equipment, and provides subsidies, more Nepali entrepreneurs will invest in ropeway projects. Both roads and cable cars are effective means of transporting goods and people. What makes a mode practical and fruitful depends on where it is implemented. Practicality and suitability should form the basis of the choice. Building roads in the hills of Nepal involves many problems� the practice is highly capital dependent and involves many indirect costs such as forest cutting, inducement of landslides, carbon emission from vehicles and recurrent maintenance costs. Road building also requires the acquisition of a lot of land.
A cable car system, on the other hand, requires little land for installation and is environmentally friendly. The cost of maintenance is lower than that for roads though operation and maintenance must be of a high standard in order to meet safety considerations. Furthermore, a ropeway can be built faster than a road. The choice is obvious for Nepal� ropeways can transport people as safely and much more cheaply than roads can. Although Chitawon Co-E is a civil contractor with the expertise and institutional capacity to build roads in any part of the country, it believes that cable car transport will eventually be a more viable option in the hills of Nepal as it ranks better in terms of cost, environmental considerations, job opportunities, development of domestic and foreign tourism, low maintenance costs and longevity.
The future is what we make of it, and Nepal has immense potential in various areas of resource use. The Himalaya and the country’s cultural mosaic provides the basis for the greater promotion of Nepal as a tourist destination. A large number of tourists visit Nepal to enjoy its natural beauty and cultural diversity. Many come to trek or to venture to the country’s remote settlements, but find that poor access makes it difficult. Installing a cable car system could increase accessibility and thereby boost tourism and the associated local opportunities. In addition, convertible foreign currency would be generated. Ropeways offer another prospect in their linking of mountaintops with valleys. Many of the herbs grown on mountain ridges are used to produce ayur�edic medicines, some of which have become very popular in Western countries. Ropeways would make transporting such products easy and, with suitable backup from the government, local producers would have access to new markets.
Both industrialists and the government need to explore the possibility of introducing ropeways as a new form of transport. This focus makes sense because ropeways can be daytime end-users of hydropower produced from the country’s rivers. Manakamana Cable Car is a viable and environmentally friendly investment. Its benefits are wide; in fact, even the government receives more revenue from the increased business. An effective partnership between the government and the private sector will create more awareness about the need to formulate constructive policies and regulations that make it easy to install such systems throughout the country for the benefit of all.
Source: Ropeway in Nepal
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