Unfreezing the Everest economy

AFTER closing its mountains to climbers in March because of the coronavirus pandemic, Nepal is trying to restart the economy that revolves around Mount Everest. But it's pretty clear that 2020, which officials had christened "Visit Nepal Year", is going to be a washout.

The tiny nation is home to 8 of the 14 highest mountains on Earth. Tourism accounted for almost 8 per cent of gross domestic product in 2018, according to the London-based World Travel and Tourism Council, with the sector supporting more than 1 million jobs. Everest expeditions alone contributed more than US$300 million last year.

The Nepali government had set an ambitious target of welcoming 2 million visitors to the country this year, almost double 2019's number. Instead, international arrivals totalled just 180,131 through October, compared with 795,199 in the same period last year.

None are more dependent on the Everest economy than the 100,000-plus Sherpa people living in Nepal, who are famous for their ability to labour at high altitudes where the air contains less oxygen (nearly a third of its land surpasses an elevation of 3,500 metres, or 11,400 feet). Climbers depend on Sherpas to prepare hazardous climbing routes with ropes and ladders, and transport up to eight tons of supplies to prepare campsites.

Without tourists, most Sherpas have barely had any income this year. "I spent the last seven months in my village helping my mother in potato fields, working in maintenance of my own lodge, and other regular activities. It was very difficult," says Phurba Tenzing Sherpa, a prominent mountain guide who's logged 14 ascents and is managing director of Nepali adventure company, Dreamers Destination Trek and Expedition Pvt Ltd.

Some expedition companies have started fundraising campaigns on GoFundMe to support the community of porters, cooks, and guides.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

More than 320 mountains are available for mountaineering expeditions, but Everest is the main attraction. It generated US$4 million in royalties last year, four times more than the rest combined. Expeditions to reach the 8,850-metre (29,035-foot) summit have a maximum of 15 climbers per permit, with a per-head cost ranging from US$35,000 to more than US$100,000. The sum covers transportation within Nepal, provisions, base camp tents, and other gear, as well as the wages of mountain guides, porters, and cooks.

Most expeditions have a 1:1 ratio of trekkers to hired climbing Sherpas. During the spring climbing season, which starts in May and ends around the first week of June, a Sherpa guide can pocket US$6,000 to US$12,000 - a princely sum in a country where the minimum monthly wage is less than US$200. It's hazardous work that involves installing around 40 ladders and more than 12 kilometres (7.5 miles) of rope to create a secure path across the melting Khumbu Glacier. Meanwhile, a Sherpa cook working at base camp can earn around US$2,000, while porters transporting baggage and camp supplies on foot make approximately US$1,000 per season.

Authorities banned incoming international flights in March out of fear the novel coronavirus would overwhelm the country's limited health-care infrastructure. (The nation of 29 million has recorded approximately 213,000 Covid-19 infections since the start of the pandemic, and 1,259 deaths as of Nov 17.)

Proof of a negative Covid-19 test

The Ministry of Culture, Tourism and Civil Aviation permitted flights to resume in September, subject to several restrictions. But trekkers and mountaineers weren't allowed into the country until the middle of last month.

New arrivals must submit proof of a negative Covid-19 test administered in the previous 72 hours and are required to quarantine in a hotel for seven days before heading into the mountains. They must also be insured against the possibility that they contract the virus while in the country, so they won't saddle the government with the cost of caring for them.

Despite the lifting of the travel ban, there's little hope that Nepal can make up its tourist shortfall in what remains of the year. Spring is peak season in the Himalayas, with only 10 per cent of summits occurring in the fall, according to the Himalaya Database.

There's the possibility that this year's tourist drought could turn into a deluge next year, with potentially fatal results. The government, which doesn't limit the number of climbers on Everest, issued a record number of permits in 2019, leading to overcrowding near the summit that played a role in 11 deaths.

"I have a feeling that there will be a surge in climbers in 2021, as many climbers who had already planned their climb in 2020 had to postpone their climb due to the pandemic," says Ang Tshering Sherpa, president of the Nepal Mountaineering Association and chairman of Kathmandu-based Asian Trekking Pvt Ltd. However, he downplays the risks, saying "the traffic jam on Everest in the previous years was due to lack of coordination among the expedition operators and government officers at base camp."

At the same time, he worries that economic difficulties in the US, Europe, and elsewhere could lead to a drop in new bookings, with climbers struggling to raise corporate sponsorship money to defray the cost of the ascent. "I would say I have a mixed feeling, but at the same time I am keeping a positive thought for 2021." BLOOMBERG