Festive Economy Slumps

Dashain this year is anything but encouraging. People have not yet come out of the trauma following the tragic loss of lives and properties during the Gen Z movement. The death toll from the historic protest of young people has crossed 75. Many more are undergoing treatment in various hospitals. The festival economy has suffered a setback due to vandalism and arson at major hotels and business complexes. Floods and landslides have obstructed major trade route. The drop in sales of goods at the time of major festivals will certainly have a ripple effect on other economic sectors as well. This has dampened people's Dashain mood, marked by a spending spree. The people buy new clothes, jewelry, electronic devices, vehicles, home appliances, and other essential goods. 

As per the news published in this daily, more than 600 containers carrying Dashain-related goods — such as electronics, clothing, food items, and fruits — have been halted at Kerung. It seems impossible for these festive goods to arrive from the northern border before Dashain. As we all know, a flash flood from China swept away the Miteri Pul, and the customs facility sustained significant damage. The alternate Tatopani route is also frequently blocked due to landslides along the Araniko Highway. The transportation of garments and electronic products from China has been stopped. 

Chinese products typically account for over 70 per cent of the Nepali market during the festival, but the closure of Tatopani trade routes for more than two months has affected the sales during this time. Traders often complain that the market lacks fresh products. Wholesalers who buy garments from the northern neighbour are highly affected. This Dashain, a landslide and mudslide on a major highway and the blockage of the road at Tuin Khola, have made the transportation of other essential items from different parts of the country very difficult. Gold sales have dropped by nearly 70 per cent compared to the same period last year. Daily demand for gold has fallen below 15 kg, whereas it exceeded 40 kg per day during Dashain last year. 

Of Bhate Bhateni’s 28 outlets, 21 sustained damage. Amenities at Chandragiri and Maulakali Cable Car and the head office of Ncell were vandalised, while the corporate office of Simrik Air and Annapurna Post and Kantipur daily were torched. Thousands of people have lost their jobs, which has significantly diminished people's purchasing power. The consumption in Dashain, Tihar and Chhath amounts to 30-35 per cent of total consumption, but this year, businesses complain that their sales have dropped significantly. 

Although the market looks busy, this year the sales have dropped by more than 50 per cent. When people are worried about subsistence and are not assured about the future, they refrain from buying anything apart from essential goods. A combination of factors like political upheaval, natural disasters and people's diminished purchasing power has severely affected the festival economy. Political stability, robust transport infrastructures, and policy supporting traders are a must to make the festival economy vibrant again.