The casino industry in the Himalayan nation of Nepal is slowly returning to pre-pandemic levels, but better airline access and improved infrastructure will help in the long-run, said Binod Shrestha, president of the Casino Association of Nepal.
Nepal’s 11 casinos in 5-star hotels and 11 mini casinos (electronic gaming rooms) in 4-star hotels, were forced to close due to Covid-19 in March 2020 for 18 months. They reopened in late September last year, but shut down again at the end of 2021 due to Omicron. Shrestha said, “The first four-to-five months were very slow. We were shut down for another 10 days, but have been open again now for about a month. The vaccination rate in Nepal is between 60 and 80 percent and we are seeing some movement in the casino industry.”
Tourism surged 116 percent in February over the same month in 2021, with 19,766 visitors, up from 18,000 in January. Most of the visitors, 5,998, came from India. Shrestha said Indians make up about 90 percent of the market in Nepal’s foreigners-only casinos, so understanding their gaming preferences is vital to success.
Prior to the pandemic, foreign investors were interested in Nepal’s casino industry, mainly because of its proximity to India, where casinos are banned except in Goa and Sikkim. Recently China has become the largest foreign investor in Nepal, creating growing demand for casino gaming from Chinese workers in the country. According to official figures, Chinese investors pledged 11.15 billion Nepali rupees ($94.65 million US) in Nepal during the first two months of fiscal 2021-22, starting in mid-July, or about half of all investment in the previous fiscal year.
Shrestha said investors primarily are interested in areas of Nepal bordering India, which allow visa-free entrance. “People are investing in the border. People are taking much more interest because of the foot traffic,” he said.
Shrestha said most of the major Indian casino operators now have a presence in Nepal, with four new venues opening in the past two and a half years. The 5-star Hotel Aloft, a brand of the Marriott Group, opened in Kathmandu in July 2019, offers the Casino Waldo, backed by Chinese investors. The Hotel Mechi Crown, near the Indian border, opened in October 2020 and offers Casino Vegas, operated by India’s Big Daddy group.
Just prior to the Covid-19 crisis, Delta Corp., India’s largest casino operator, opened the 15,000-square-foot Deltin Casino International, offering 220 gaming positions, in the 5-star Marriott hotel in Kathmandu. India’s Pride Group of Casinos and Hotels operates a casino in the capital’s Hyatt Regency. And the Tiger Palace, developed by the Silver Heritage Group of Australia, is expected to reopen soon.
Shrestha said the Casino Association has been talking to airlines and the government about improving air connectivity to Kathmandu, for the casino industry and for tourism. Nepal has had an air corridor in place with India since the end of 2020; restrictions were eased in January to allow quarantine-free entry for vaccinated travelers. A negative Covid-19 test is required 72 hours prior to departure.
Shrestha added the new international terminal at the airport in Bhairahawa has been completed following 5-year delay and is expected to open to commercial traffic around May 8. The airport is a short drive from the Tiger Palace and will be a major driver for future growth, he said.
