Investments pouring into Sunsari's hotel industry

ITAHARI, JAN 15 -

The number of hotels has risen rapidly in Sunsari district in recent years, thanks to the end of the decade-long conflict.

A total of Rs 250 million has been invested in the hotel business in Dharan, Itahari and Khanar over the last year, entrepreneurs have said.

Itahari, the transit point between the eastern hills and tarai, alone witnessed an investment of over Rs 200 million. Half a dozen of big hotels have already opened, while preparations are underway for opening three- and four-star hotels in Ithari within next two years.

Around Rs 15 million was invested in the newly opened Ilameli Hotel. Proprietor of the hotel, Rabin Gautam, who was earlier involved in small-scale business, said he ventured into this big project considering the lack of luxury hotels in the area despite other infrastructural development.

Other big hotels in Itahari include Kumari Hotel with an investment of Rs 20 million, Mechi Kali Lakeside with Rs 15 million and London Hotel with Rs 10 million.

Former Administrator Ram Kumar Subba has established an artistic hotel ‘Chintan Chautari’ injecting around Rs 25 million. Former Prime Minister Madhav Kumar Nepal had praised the hotel after having a meal there during his visit to Ithari.

“Investment in the sector is likely to increase further,” said Subba. The hotel spent over Rs 1 million to build a sculpture of an indigenous Tharu woman carrying a water pot.

Amrit Karki, an entrepreneur, who has established Royal Resort on the land owned by Kendra Shamsher, father in-law of former king Gyanendra Shah, has made an investment of Rs 30 million. “With the development of Ithari as an economic centre of the eastern region, it is attracting a huge investment in the hotel industry,” said Gautam, who is also the coordinator of the Hotel Entrepreneurs’ Association of Itathari.

“Dozens of large industries and multinationals companies in the Sunsari-Morang corridor are the sources of customers for the hotel industry here,” said Arjun Gairipippli, operator of Sumeru Hotel. “Investments are also being made in small hotels.”

Of late, almost all banks and financial institutions having head office in the Capital have opened their branches in Ithari. “Increase in land and property prices also contributed to increased investment in the hotel industry and financial sector,” said Tanka Dulal, former president of Ithari Chamber of Commerce. “Ithari and nearby areas have the potential to attract investment in areas other than hotels too.”

Source: Kantipur