Kathmandu, Nepal, July 28, 2021: Increased private-sector investment in the Annapurna Conservation Area could bring in more high-spending tourists to help boost the local economy in a post-COVID market, according to a new IFC report.

The report-Architectural and Cultural Heritage Tourism Products in Nepal: An Assessment of New Private Sector Investment Opportunities in the Annapurna Conservation Area-examines the opportunities for investors to capitalize on the area's triple offering of landscape, architecture, and culture.

The Annapurna Conservation Area now caters to two main visitor groups: Hindu and Buddhist pilgrims visiting Muktinath, an important site for both religions, and adventure tourists-hikers, trekkers, and mountaineers. The Annapurna Area has long been the most popular trekking destination in the country, accounting for roughly 60 percent of all trekking holidays.

The report says the area could attract higher value tourists who could spend about 20 percent more if there was greater action to boost accommodation. While there are over 1000 hotels, lodges, and tea shops, these cater to low-budget travelers. In order to appeal to higher-value tourists, the report lays out four potential investment concepts: converting old, abandoned houses in a street in Tukuche village into boutique hotels; redeveloping an abandoned, heritage house in Jharkot into a boutique luxury hotel; establishing a network of lodges along the Seven-Passes trail in Manang; and setting up a coffee shop franchise in Lower Mustang and Manang.

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