Local Governments in Gandaki Province Face Revenue Challenges Due to Conservation Areas

Pokhara. The Manaslu Conservation Area Project (MCAP), which has extensively promoted and conserved Manaslu, falls within the Chumanubri Rural Municipality of Gorkha. Due to being within the conservation area, the municipality was unable to generate any income from natural resources. The municipality decided two years ago to collect an entry fee from foreign tourists visiting their municipality. Chumanubri, which used to earn a meager 1.1 million annually, collected 11.7 million in its first year of implementing the tourist fee in 2081/082 BS. This amount increased to 14.9 million in the fiscal year 2082/083 BS. 'There was strong opposition to the fee, with arguments that tourism would be devastated and tourists would be diverted. Elected representatives also feared it would affect their political future,' said Chief Administrative Officer Manoj Lamichhane. 'We explained and convinced everyone, and now the fee collection is going smoothly.' The municipality is collecting a fee of 1,000 per person from foreign tourists through a decision made in the village assembly. 'The collected amount has been used for disaster relief, trail construction, and sanitation. Toilets have been built in various places,' said Chief Administrative Officer Lamichhane. 'Tourists have not decreased, nor has anyone protested since the municipality imposed the fee.' MCAP, which covers this municipality, has earned 41.25 million from tourists. MCAP charges foreign tourists an entry fee of 3,000 per person. According to MCAP data, 16,671 people visited the area in the fiscal year 2082/083 BS. Among them, 634 were from SAARC countries and 15,253 from other countries. Project Chief Santosh Sherchan informed that 784 Nepalis also visited MCAP throughout the year. This number is 41 percent higher than the previous year, 2081/082 BS. The government has collected 162,000 rupees in revenue from herbs in MCAP, while the conservation area management committee has earned 303,000. Sherchan stated that these amounts do not come to MCAP. The Annapurna Conservation Area (ACAP) has earned more than 210 million from restricted areas alone. Restricted areas include parts of Narpa Bhumi Rural Municipality in Manang, Lo Manthang and Lho Geker Damodar Kund Rural Municipalities in Mustang, and Baragung Muktichhetra. Tourists have to pay 500 dollars at the immigration office to visit these places. Currently, the federal government has reduced this fee to 50 dollars per day. According to ACAP data, 4,424 people visited Mustang and 1,338 visited the restricted area of Manang. In the year 2081/082 BS, Narpa Bhumi in Manang earned only 2.632 million in internal revenue. Lho Geker in Mustang earned 1.373 million, Lo Manthang earned 1.875 million, and Baragung earned 4.368 million. Calculating for all four municipalities, the total is 10.2 million. These municipalities, with resources worth millions, have not found ways to earn income themselves, and even the income they do generate is kept by the federal government, leaving them without sufficient budget for annual policies and programs. After the federal government imposed restrictions on resources, they have repeatedly demanded the removal of restricted areas. 'In the name of restricted areas, we are unable to conduct economic activities. Tourists do not come, and the hotels we open remain empty throughout the year,' said Namdu Gurung, a people's representative and Forest Minister of the province from Upper Mustang. 'This must be removed immediately. If the world takes pride in calling it Lo Manthang, but our citizens get nothing, then why do we need it?' In the last fiscal year 2082/083 BS alone, 508,000 tourists visited the ACAP area. Among them, 384,000 were from SAARC countries and 124,000 were from other countries. The data shows that only 1.13 percent of the total tourists visited the restricted areas. Minister Gurung argues that if the restricted areas are removed, all tourists will go to the upper regions, and locals will be able to earn income. 'Millions of tourists have reached Muktinath. If there were no restricted areas, those tourists would have reached Lo Manthang as well,' he said. 'I regret to say that only a few thousand cross Chusang throughout the year.' Machhapuchhre Rural Municipality in Kaski also decided to collect fees from tourists trekking on the trails within its territory. Some revenue was collected in 2081/082 BS. However, due to opposition from entrepreneurs and stakeholders, it did not continue. There was opposition from many sides. The truss building set up for fee collection was demolished. Sixteen municipalities in Gandaki fall within conservation areas. Chumanubri Rural Municipality is in MCAP, while the remaining 15 municipalities are within the Annapurna Conservation Area Project (ACAP). They are disgruntled with the conservation areas for not being able to utilize resources. Diva Kumari Tilija Pun, Vice-Chairperson of Annapurna Rural Municipality, Myagdi, complains about not being able to use resources due to ACAP. 'ACAP falls in three wards of our municipality. Their rules and regulations are followed more than the government's,' she said. 'We had called for bids after conducting an EIA for riverbed material excavation. ACAP has stopped it. Local levels have not received the right to collect and sell.' Not only are they unable to earn income, but local government representatives are also concerned about obstacles in the work of protecting settlements. Mohan Singh Lalchan, Chairman of Mustang's Gharpa Jhong Rural Municipality, is tired of talking about the Kali Gandaki river erosion. He raises concerns in every forum about the rising Kali Gandaki river level encroaching on settlements. 'Stones, gravel, and sand accumulate in the river every year. The river is changing its course. Now the river is about to flow through the settlement,' he said. 'These stones, gravel, and sand will eventually flow downstream anyway. Let's sell them, use them as a mine. The money is just flowing away.' Just as local levels are seeking help from the province, Gandaki Province has also been demanding the transfer of conservation areas to lower levels in every meeting of the National Development Problems Resolution Committee and Coordination Council. Chief Minister Surendraraj Pandey said, 'There is no meeting where the issue of ACAP and MCAP has not been raised. We are tired of saying it, but the federal government is not paying attention.' He emphasized that the province and local levels should also receive a share of the income generated by both conservation areas. He also demanded facilitation in development and construction work within the conservation areas. 'Even when building roads, we have to ask ACAP. Even when providing water to the public, we cannot work without asking ACAP, which is wrong,' said Chief Minister Pandey. 'We are the government ourselves. We do not need another government here. It should be transferred to the province.' He argued that the revenue collected by ACAP and MCAP going directly to the federal government is against fiscal federalism. Currently, the Gandaki government earns only about 3 billion in internal revenue. Chief Minister Pandey stated that they are continuously working to bring ACAP and MCAP under the province. ACAP Director Dr. Rabin Kadel also admits that the distribution of resources is justified. 'Since the direct revenue collected by local levels themselves is very low, it is natural for them to seek a share in tourist fees,' he said. 'However, it is not wise to dismantle the established successful conservation model while making demands.' He suggested that the benefit-sharing should be clarified in the revised regulations of the conservation areas. 'According to the revised regulations, if ACAP receives 50 percent and the province and local levels receive 25 percent each as dividends, the resource needs of the local levels will be met, and everyone's ownership in conservation will be maintained,' said Kadel.

How much is earned annually from the ACAP area?