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To check the spread of Covid-19, cinema halls across the country were asked to shut down on 19 March 2020. Following the directive, the movie theaters in Kathmandu valley—the hub of the country’s cinema business—were closed for around 10 months.

They have now been allowed to reopen by adopting standard safety and hygiene measures and at 50 percent capacity to ensure social distancing. Sushil Manandhar, a manager at QFX, a cinema chain in Nepal, says reopening is the result of continuous protests and pressure. “Otherwise, the neglected entertainment sector and especially the cinema halls would still have been closed,” he says. 

After the government green signal, halls in the valley reopened on 25 December 2020, hoping to soon get back on track. But that has not been the case; making any kind of profit is still a distant dream.

The estimated total loss for Q’s Cinemas housed in Rising Mall, Durbarmarg, from the lockdown stands at Rs 40 million, informs Sumit Mainali, its Managing Director. Resumption of services has only added to the cost. “Our operational costs have increased while the number of audiences has drastically decreased,” he rues.

Manandhar of QFX puts the chain’s monthly loss following the reopening at around Rs. 20 million as the number of visitors per hall has dropped from 40,000 to 1,000-1,500. “The income is hardly enough to pay our electricity bills, let alone staff salary,” he says. 

Likewise, Dipesh Sharma, CEO at Big Movies at City Center, Kamalpokhari, says the multiplex now sees around 50-100 customers daily on average. The figure used to be 15 times more (1,500 to 2,000) before the lockdown.

FCube Cinemas, Chabahil, fares no better. Ramhari Koirala, HR manager, says they are unable to even pay monthly salary, which comes to around 1 million for a staff of 47. “We need around 20 audiences per show to break even but currently even getting 10-15 people a show is a struggle.”

One Cinemas, located at Eyeplex Mall, New Baneshwor had started operation in October 2019, six months before the lockdown. It faced the loss of around Rs 1 million a month during the lockdown period, according to Umesh Giri, manager. Reopening has been no relief as monthly operational expenses have ballooned to Rs 2 million.

“We are operating at a loss just to keep our presence in the market,” adds Giri. Most other multiplexes and cinema halls are doing the same.

Especially the stand-alone cinema halls are struggling to bear the added burden. Sohit Manandhar, owner at Asta Narayan Pictures at Bypass, Kathmandu, informs that his theater had to be shut down only 2-3 weeks after reopening given the lack of audience interest.

“The expenses were unbearable and there is also no new exciting movie on the pipeline,” Manandhar says.

So, how are other cinema halls running without movies? They are either showing old releases or extending show times of a handful of new releases. 

“No new movie means no audience and no audience means loss. Then, what is the meaning of all those safety guidelines?” Mainali asks. He says many Nepali producers have delayed the release of their movies because of the decline in the number of visitors. 

Big Movies had, on the occasion of Valentine Day, re-released old hits such as Kabaddi Kabaddi Kabaddi and Sano Sansar.

Santosh Kumar Thapa, a Kathmandu-based film journalist at Koribati.com and Koribati TV, also cites the paucity of new movies as the reason for poor cinema-going. “Only the release of big-banner movies will help improve the condition,” he says.  

Big releases can bring in audiences, according to Manandhar of QFX. “I am eagerly awaiting releases such as Lappan Chhappan 2.”

Cinema halls in Nepal are dependent on Indian movies. Nepali and Hindi big movies are not being releasing for at least another month and until then visitor numbers are bound to be small, adds Koirala. Moreover, in his view, Nepali movies are reluctant to release at 50 percent occupancy. “India is allowing 100 percent occupancy. Why not Nepal?” he questions.

To make a quick recovery, there is no option to reverting to full occupancy, adds Giri of One Cinemas.

Manandhar of Asta Narayan Pictures says if new movies start coming it could take around two years to recoup the Covid-time losses. QFX expects to break even after one and half years of full operation.

Giri, on the other hand, is unsure about recovery. But he does think that with the arrival of vaccines, Covid fear has considerable lessened and hence audiences will return.

Yogesh Khatiwada, an IT expert from Balkot and a regular movie-goer, has not visited cinema halls since he watched ‘Aama’ before the lockdown. He says he will go if there is a good movie on show. “For instance, I am now waiting for the release of KGF 2,” says Khatiwada. 

The Covid-19 pandemic pummeled the global airline industry. Many airline companies had to cut costs, downsize, even sell off properties. Some airlines collapsed and had to declare bankruptcy, including the famous Virgin Australia.

According to a report published on the International Civil Aviation Organization (ICAO) website, the year 2020 (January-December) saw 51 percent reduction in the number of seats offered by airlines, as 2,851 million potential passengers could not travel, resulting in an approximate $391 billion loss in operating revenues.

In Nepal, the Airlines Operators Association of Nepal (AOAN) estimates a loss of around Rs 10.62 billion for domestic airlines in the March-December period last year. Among them, Buddha Air—one of the oldest private airline companies in the country—was the biggest loser, with approximately Rs 3.60 billion in forgone revenues. Shree Airlines came second (Rs 2 billion loss), and Yeti Airlines and Tara Air joint third (Rs 1.5 billion each).

When more developed countries were planning huge stimulus packages for their airline industries, the Nepali government waived off 75 percent parking fees, as well as ATC fees and other customary charges. But that was small relief for airline operators.

Although things are seemingly getting back to normal—even without vaccines or other interventions to cut Covid-19 infection rates—the airline operators are still struggling. The current reduced fares ensure most flights are occupied and the domestic terminals are busy as ever. But airline operators tell us that without international tourists, they can never hope to recover their losses.

“These are just survival flights,” says Anoj Rimal, CEO of Yeti Airlines. “The fares for Nepali passengers is too low for us to recover our losses. We can’t pull through without international tourists.” Rimal explains that even when regular flights are filled with domestic passengers, tourism hotspots like Pokhara, Bharatpur and mountain flights will not bring the airlines enough revenue without international tourists.

As for the cheap fares, Rimal attributes them to greater competition among airline operators in Nepal. The airfares should always be affordable to Nepali passengers, Rimal adds, and currently, almost all airline companies are looking to ensure cash flow rather than to make profits.

Will the fares start going up when tourists start coming? Rimal says that depends on the revenue management system of airline companies. Also, the plane fares are priced within the limits set by the government. But the current prices are definitely not sustainable, Rimal adds, and they might go up.

In 2020, the recently ousted Tourism, Culture and Civil Aviation Minister Yogesh Bhattarai was planning to remove the practice of “dollar fare” in Nepali aviation and ensure equal fares for all passengers. “Dollar fare” is a mechanism where foreign tourists pay more for flights to the same destination compared to Nepalis. When asked about the propose change, Rimal retorts that the rule is not applicable to Nepal. “Nepalis get to fly at reasonable rates only because tourists pay more,” he says.

No airline in Nepal would survive without the tourists paying more. You see the same practice in other countries, Rimal adds, with a warning that if the rule is enforced, almost all Nepali airlines will go bankrupt.

Rupesh Joshi, Director of the Marketing, Sales and Ground Handling Department for Buddha Air, also deems the equal fare rule impossible to apply in Nepal. Buddha Air has protested against its possible enforcement in the past and will continue to contest it.

On the operations front, Joshi informs that owing to its many years of operations and legacy, the airline company is in a better shape than most of its competitors. With Rs 3.6 billion of total projected revenue loss, Buddha Air’s actual monthly losses were around Rs 70 to 80 million when operations were closed.

The company is now on a stable road to recovery, Joshi informs, with almost 95 percent occupancy on all routes. Buddha Air expects to reach breakeven soon at this rate. But even for this airline, which owns 13 aircrafts and operates 33 flight routes over 15 destinations across the country, the chances of profits are low without foreign tourists. “We can’t think profits without foreign tourists,” Joshi says. “Domestic passengers will only help us sustain till international travel resumes.”

As for the influx of domestic passengers and reduced fares, Joshi informs that besides tough competition, you also have to factor in decreases in fuel price and other operation costs. Owing to low fuel prices, airlines are attracting passengers who previously took road transport because the total cost of reaching the destination has become almost the same and flights are comparatively safer and faster.

Compared to airplane services, which have become a major mode of transport in Nepal in last few years, the helicopter industry that makes remote areas accessible and is almost exclusively dependent on foreign tourists is under greater threat. According to data provided by AOAN, between March and December 2020, the helicopter industry lost almost Rs 800 million. The total foreign exchange revenue loss for the two tourist seasons in 2020 amounted to approximately Rs. 1.8 billion.

“As the helicopter business gets over 95 percent of its revenues from tourism-activities in the Everest Area and Pokhara, it is going to have the hardest time recovering,” says Yograj Kandel, spokesperson for AOAN. “Overall revenues for helicopter industry was almost nil in 2020 and a swift revival looks unlikely. So, this segment of Nepali aviation is headed for a total collapse.” The collapse, if it happens, will also affect the banking sector as the helicopter industry alone has a debt of approximately Rs 4.3 billion as of December 2020.

Yogesh Sapkota, chief marketing officer at Simrik Air, informs that although there is small amount of business from the local market, the company is dependent on foreign tourists. “For us, if there are no foreign tourists, there is no work,” Sapkota says. “What we make from some chartered flights and domestic tourists is not even enough to pay the insurance fees of our helicopters.”

Adding to the woes of helicopter companies is that even when there is no business, operating costs are still almost the same. “It is not an industry that can be shut for a while and then resume when the business is back,” Sapkota says. “Owing to mechanical and technical requirements and to adhere to the norms of civil aviation, we have to keep our machines operational. We have to move our rotors every day.”

Even as domestic flights are generating day to day expenses for domestic airlines, the helicopter industry has no such fallback option. As things stand, there is no scope for recouping operating costs let alone breaking even. “Still, the hope that there will be a vaccine someday and tourists will start coming again is what’s keeping the helicopter businesses from shutting forever,” Sapkota says. “We go to work every day dreaming that the next day will be better. That’s how we spent the whole of last year.”

As of 13 August 2020, the Nepal Stock Exchange (NEPSE) data showed 278,101 active clients doing business with 59 listed broker companies. The same list on September 30 had 337,360 active clients. 

Similarly, as per the Central Depository System and Clearing Ltd (CDSC), Nepal’s sole depository, the number of Demat accounts—the online financial securities accounts—had crossed 1.8 million by August 25, from 1.5 million previous May and 1.2 million in April 2018. These datasets show the number of people engaged in the share market is increasing by the day. The fastest growing investor segment is comprised of those aged 20-30.

Pramod Khanal, an employee with broker Number 40, says that the number of young investors in the share market increased drastically after 2015-16. Before that, the 20-30 age segment comprised only 5-10 percent of all investors. Now the proportion has climbed to 25-30 percent. “Most recently, the covid pandemic has brought countless first-time investors into the Nepali share market.”

Kabita Shah, 24, a student of agriculture in Kathmandu, says she first got involved in the share market indirectly through her relatives’ accounts two years ago. “Once I was at a bank and was absolutely fascinated by a big throng that had descended to the place to invest in an IPO,” she recalls. She then started actively researching markets.

Kabita Shah

Shah says the share market is the perfect illustration of her life motto: “Work smart, not hard.” As a student, Shah rued having to depend on her parents for every single rupee. “So I thought, why not invest a little of own savings and make some money on my own?”

Santosh Sapkota, 30, from Kavre, says it has been seven years since he took the plunge. For him, it has since been a career-defining move. “This is how I hope to make my living,” he says. Sapkota these days spends most of his time investing, trading, technical analysis, and studying market behavior. 

Santosh Sapkota

Narayan Aryal, 23, from Palpa, for his part, considered the share market the perfect investment avenue for his middle-income family. When he started trading shares 3-4 years ago, most of his other family members were already in it.

Narayan Aryal

Manju Magar, 27, a secondary school teacher in Kathmandu, joined the frenzy eight months ago following a long research. Magar had heard a lot about the share market from her parents. “I had practically nothing to do during the pandemic-induced lockdown. I decided to join the share market with the belief that I could make some money on the side without having to exert myself too much,” she says. 

Manju Magar

Similarly, Rubi Suwal, 28, an accountant from Bhaktapur, has been trading shares for five years. He says he was interested when he heard of his friends and relatives buying expensive homes and vehicles with the income from the share market.

Junu Karki, 26, recently started investing in the share market as well, even though she is not very active. She says it was her husband, an active investor, who got her interested.

Junu Karki

For Laxmi Bahadur Pachhai, 25, from Jumla, who is himself a student of finance, the inspiration was his college seniors who just could not stop talking about the market. He also thinks it’s a good way to make money. 

Laxmi Bahadur Pachhai

Most responders APEX talked to said that though they were in it largely to make money, they were also enjoying the learning process.

Manju Magar says that investing is also an art, and that without patience and risk tolerance, you could soon lose all your money. “People lose money in the market owing to both greed and fear,” she asserts. 

Kabita Shah attributes her investment success to her rigorous research and financial analysis. 

Santosh Sapkota lost a lot at the start. He then started reading financial books and online articles on wise investing. “People think it’s easy. Actually there is a lot more to investing than choosing a company at random and putting your money into it. I learned that I needed to control my emotions and to ignore gossip if I wanted to succeed,” he suggests. 

For Narayan Aryal, “the most important thing is not to panic if your stock value decreases and not to get greedy when it spikes.”

Owing to the pandemic, the share market was closed for 98 days starting 24 March 2020. Since its resumption, the market has literally taken off.

More and more people are trading online, again partly due to the pandemic. According to NEPSE, 20.55 percent investors traded online as of August 13; the percentage had jumped to 36 percent by September 30. 

The charm of e-commerce is increasing by the day. These days, people can explore and buy almost everything online, from items of day-to-day use to heavy machines, and get them delivered to their doorsteps. So why not books? 

Book Hill, a reputed publisher, went online for selling seven months ago. Says Bhupendra Khadka, its founder, Book Hill’s main strength is its fast delivery. At Book Hill, the demand for non-fiction books is higher compared to fiction books. The reason for this, he speculates, maybe that customers who visit his online platforms are mostly the intellectual kind.   

Bhupendra Khadka

“We deliver books within the valley on the same day we get the order,” he says. The orders themselves are received via Facebook, Instagram and its website.

Having gotten encouraging feedback, Book Hill even plans to sell audiobooks and e-books online. But Khadka does not believe online buying will replace traditional bookstore visits. “It’s a good alternative though, especially in these precarious times,” he says.

Bikesh Bhattarai, CEO at Kitab Yatra that started in 2017, says his company’s larger goal is to promote reading culture but it also sells books online. Within the valley, Kitab Yatra delivers with its own staff. For other places, it has tied up with various courier services. Customers can order online through Facebook or its website.

Bikesh Bhattarai

Regarding the customers’ book choice, Bhattarai says, “Mostly, Nepalis read fiction, but more and more people are also reading non-fiction.” Bhattarai says he gets plenty of recommendation requests from prospective book buyers. “Many of them are looking for a reliable guide.”

MBSH Nepal, an online shopping platform, started three years ago. Says Satya Bahadur Shrestha, chairman at MBSH Nepal, low prices are the platform’s main strength. MBSH Nepal is planning to open branches to ease book delivery.  

Satya Bahadur Shrestha

He also thinks it will take a long time for people to abandon traditional bookstores for online platforms. “Older folks generally tend to visit the store while younger ones buy online. Only when these youngsters mature will the old way of book-buying be gradually replaced.”

Anurag Paudel, CEO of Wonder Books Nepal, has been selling books online since 2018. It delivers both in and outside the valley.

“This year, I find most people are ordering self-help and motivational books online,” Paudel says. Wonder Books has also seen an increase in demand for books related to the share market. The bestsellers in recent months have been titles like ‘Rich Dad Poor Dad’, ‘Think and Grow Rich’, and ‘Power of Sub-conscious Mind’.

Anurag Paudel

Paudel is sure that online bookstores will completely displace brick-and-mortar bookshops if the current craze of online buying continues unabated.

Lekha Ram Sapkota, owner at Sampurna Kitab (Chitwan), has long been operating bookstores in Kathmandu, Chitwan, Sandhikharka, Biratnagar, and Birtamod and selling books online for the past two years.

According to Sapkota, customers can put their orders via Facebook, Twitter, and Instagram.

Lekha Ram Sapkota

Sapkota says most books sold online are novels. He has no idea why. He says online delivery is especially helpful for the readers who are determined to read particular books. “But, those unsure about what to read want to personally feel and select the books. So online buying won’t replace traditional buying soon,” he concludes. 

Nepal Mandala Book Shop, at lakeside Pokhara, has been running for past 25 years. At first, they were selling from the store. “But in 2017 we went online with the name BooksMandala through Instagram. After a positive response, we became active on other social media sites as well and also started our own website,” says Saurab Sharma, co-founder at BooksMandala. 

Saurab Sharma

BooksMandala sells and delivers books all over Nepal. Regarding the choice of books, Sharma adds, “People prefer to buy self-development books online.”

Sharma says his platform’s strength is that it has books that are not easily available elsewhere.

More and more people are buying books online in this pandemic and the business is booming. “Sales have increased as people are taking to book to relieve their covid stress,” Shrestha adds. “Even those who never read for recreation started doing so during the pandemic.”

All online booksellers APEX talked to accept payments from e-Sewa, Khalti, bank transfer, or take cash on delivery.

Book buyers are satisfied too as online platforms have increased their access to books even when they can’t venture out freely.

Saguna Shah, founder of Bookaholics, a well-known Facebook group, and a writer, says online buying is convenient. Though she loves picking books from the stores, there are times she has bought books online. “Especially in the pandemic, online book delivery has been a blessing,” she says.

She adds that her translation of Sheeba Shah’s ‘The Other Queen’, published as Kanchha Maharani during the pandemic, could reach a wider audience because of the ubiquity of online platforms.

Aneekarma, a social activist based in Pokhara, says buying books online now makes her feel safe during the pandemic.