Catchy Kathmandu
About 5 years ago when my Nepalese friend Jyoti bought his apartment in Kathmandu, he got it for about USD5000. Those were turbulent days for Nepal. Heavily dependent on tourism, the Maoists rebels (conveniently branded as terrorists by the government back then) did little to reassure tourists that acute mountain sickness and toxic local moonshine were the only things they had to worry about. Times were bad for many operators. The economy was in shambles and if there was ever a maverick to suggest making investments in the troubled, backward Himalayan kingdom, he would be certainly be mocked by people from every corner of the globe ranging from Lehman minibonds investors to Shincorp shareholders.
Back then, Singapore was crippled by SARS while Thailand’s most unconventional Prime Minister shocked and awed the world by whipping the ailing economic tiger back to life. With a prompt return of IMF loans, a proud roar could be heard in this part of the world. Thailand is not just back in business. Funds were channelled into new areas which yielded surprising returns. Generations of crippling, delusionary norms, mindsets and standard practices were about to be cremated. Like many people, I was rather excited.
Alas, the movement did not last. Funds and focus were quickly diverted back to their traditional abode. The old pathways to success, often out of reach to the common people, were reinstalled. Once so clearly the next big thing in the early 2000s, those who invested courageously in Thailand during those days are now not better off than the crowds at Hong Lim Park.
But just as Nepal has not been moving in sync with the rest of the world for a few centuries, the current financial storm that has been raging throughout the world may not have quite the same effect on a land where you can travel forward and backward in time within the same day. The Maoists are no longer fighting the government. They are now the government. Still in an idealistic mood, they are managing better than the blatantly corrupt, totally useless politicians they replaced. No guns and bullets were used to rid Nepal of its monarchy. I’m not aware of anyone shedding tears when the palace was vacated.
In spite of all the rubbish choking up the streets, the 16 hour power cuts (due to an infrastructure that lags way behind growth in consumption), Jyoti’s apartment is now wanted for 100 times its purchase price. I would be ashamed to tell him how much the value of my property in Chiangmai has dropped. But I’m not jealous of Jyoti. I’m proud of him and I will certainly recommend people to his new hotel. I stayed in one of his very nice suites. It’s not 5-star by Singapore standards, but it was certainly one of the best I’ve seen in Kathmandu. I could have brought my laptop and made use of the wireless internet. I brought my 3G mobile and was able to SMS even in the Everest region. Porters are still carrying monstrous loads, but they now have their mp3 players to entertain them while they worked.
Last year was the best year that Jyoti ever had. A lot of the business came from Tibet. Noways, touts no longer konichiwa me. They ni hao me. Affluent mainland tourists are now entering Nepal from Tibet. Familiar Westerners are making multiple return trips. In spite of the pollution, the beggars, the stray dogs (much fewer cows this time), the mountains of garbage on the streets, the chaotic traffic, escalating room rates and transport costs, tourists just kept pouring into the Kathmandu Valley. Like the unexpected ways our investments turn out, some booms and busts just can’t be explained by economic theories.


















