Comprehensive Development Proposal for Transforming Kulekhani Reservoir (Indrasarobar) into a Premier Water Tourism Destination

Comprehensive Development Proposal for Transforming Kulekhani Reservoir (Indrasarobar) into a Premier Water Tourism Destination

कुलेखानी जलाशय (इन्द्रसरोबर) लाई एक प्रमुख जल पर्यटन गन्तव्यमा रूपान्तरण गर्न बृहत् विकास प्रस्ताव

The main contents of the proposal are as follows:

- Introduction and Background: Overview of Kulekhani Reservoir and tourism potential.

- Comparative Analysis: Cross-country comparison with Dayang Bunting Lake.

- Development Concept: Vision, objectives, and phased implementation plan.

- Budget and Funding: Financial requirements and funding sources.

- SWOT Analysis: Strengths, weaknesses, opportunities, and threats.

- Conclusion: Summary and implementation recommendations.

"To transform Indrasarobar into Nepal's premier freshwater-based ecotourism destination that offers diverse recreational experiences while preserving the ecological integrity of the reservoir."

Executive Summary

This document is a proposal for the full-fledged promotion of Indrasarobar as the premium water-based recreational destination in Nepal, fashioned on the lines of the Dayang Bunting Lake model in Langkawi, Malaysia. The goal of the project is to develop robust tourism infrastructure for the Kulekhani reservoir through the enhancement of existing natural and manmade wonders into a multi-dimensional tourist destination that will generate significant economic return in the local economy, attracting domestic and foreign tourists. The project will require an estimated initial investment of NPR 285 million (approximately USD 2.14 million) and shall be set up with a modular floating dock system and associated water-based recreational activities, adopting sustainable tourism practices, complementing the primary purpose of a hydroelectric project utilised for power generation as a reservoir.

The project is set to make Indrasarobar a pilot site for sustainable tourism in Nepal, generating employment within the communities, supporting local enterprises and diversifying the Nepalese tourism focus from mountain climbing and cultural heritage sites. From a cross-country review of comparable successful projects and comprehensive market research, we estimate the project will bring in 85,000-100,000 visitors per year within 3 years of operating, with significant direct and indirect revenue implications. This proposition also contains a comprehensive comparative study, building concepts, allocation the budget and funding strategy and SWOT analysis for facilitating decision making by all stakeholders and investors

"प्रस्तावित विकासले जलाशयको जलविद्युत उत्पादनको प्राथमिक कार्यलाई सम्मान गर्दछ र एक पूरक उपयोगको रूपमा स्थिर पर्यटन थप्दछ, जसले यसलाई बहुउद्देश्यीय जलाशय व्यवस्थापनको एक नमुना बनाउँछ।"



1 Introduction and Background

1.1 Overview of Kulekhani Reservoir (Indrasarobar)

Kulekhani Reservoir (Indrasarobar) is the largest artificial lake of Nepal, located in Makwanpur District of Bagmati Province. The lake was created in 1982, with the building of a 114 m high rock-fill dam for hydroelectric power generation; it has a surface area of 2.2 km² and can store up to 85.3 million cubic meters of water. 

It is the water source for three hydropower plants with an installed capacity of 106 MW (Kulekhani I: 60 MW, Kulekhani II: 32 MW, and Kulekhani III: 14 MW) and one of Nepal's key reservoirs of energy. And Yet, tucked into the lap of green hills lies a jewel that receives few tourists. Now, the place gets a smattering of Nepalese tourists from various parts of the country (including, in particular, from the Kathmandu Valley, only 21 kilometres distant) who come to hike, bike, and do rudimentary boating. 

Its proximity to the capital city of Kathmandu, along with the recently completed Chandragiri Cable Car service, has led to an increase in tourism, but the absence of formal recreational infrastructure and tourism services might be a factor hindering it from being widely accepted as a tourist destination.    


1.2 Tourism Context in Nepal

Nepal's tourism industry has traditionally focused on cultural heritage sites (like Kathmandu Valley's UNESCO World Heritage Sites) and mountain trekking (including Everest and Annapurna regions). While these offerings have been successful in attracting international visitors, there remains a significant opportunity to diversify Nepal's tourism portfolio by developing water-based recreational destinations that can appeal to both domestic and international markets.

The success of similar freshwater lake destinations in other Asian countries, particularly Dayang Bunting Lake in Malaysia, demonstrates the potential for transforming Indrasarobar into a major tourist attraction. This development would align with the Government of Nepal's broader objectives to distribute tourism benefits more widely across regions and communities while creating year-round tourism opportunities that are less dependent on seasonal mountain activities.

2 Comparative Cross-Country Analysis

2.1 Dayang Bunting Lake Model (Langkawi, Malaysia)



Dayang Bunting Lake (Tasik Dayang Bunting) is the second-largest island in Langkawi's archipelago and serves as a successful model of freshwater lake tourism development. The lake covers an area approximately equivalent to three football fields and is surrounded by lush tropical rainforest and dramatic limestone formations. Key features that contribute to its tourism success include:

- Mythological Significance: The lake is steeped in legend as the "Lake of the Pregnant Maiden," with folklore suggesting that swimming in its waters can improve fertility . This cultural narrative creates a unique selling proposition and emotional connection for visitors.

- Diverse Activities: The destination offers multiple recreational options including swimming, kayaking, paddle boating, and a catfish spa experience where visitors can dip their feet in designated areas to be nibbled by fish .

- Accessibility Infrastructure: The site features a modular floating dock system that includes floating platforms for various activities, a boardwalk around sections of the lake, and essential facilities like souvenir shops and refreshment stalls .

- Tour Integration: The lake is typically included in island-hopping tours that combine multiple experiences, making it part of a broader tourism circuit rather than a standalone destination .

2.2 Comparative Analysis with Indrasarobar

Table: Comparative Features of Dayang Bunting Lake and Kulekhani Reservoir

2.2 Comparative Analysis with Indrasarobar

Table: Comparative Features of Dayang Bunting Lake and Kulekhani Reservoir

FeatureDayang Bunting LakeKulekhani ReservoirDevelopment Potential
Surface Area3 football fields 2.2 km² (0.85 sq mi) Significantly larger area allows for more diverse activities
Water TypeFreshwater Freshwater Comparable water quality for swimming and water sports
SurroundingsLimestone formations, tropical rainforest Lush green hills Similarly scenic with different geological features
Existing ActivitiesSwimming, kayaking, paddle boating, fish spa Basic boating, limited fishing Opportunity to introduce diverse water activities
Cultural SignificanceFertility legends Named after Indra (Hindu god)Potential to develop cultural narratives
Accessibility15-min boat from Kuah jetty 21 km from Kathmandu Proximity to capital city is a significant advantage
Visitor FacilitiesFloating platforms, souvenir shops, limited changing facilities Minimal facilities 



2.3 Applicability to Nepalese Context

The Dayang Bunting model offers valuable lessons for Indrasarobar's development, though certain adaptations will be necessary to account for Nepal's specific context:

- Environmental Considerations: The modular floating dock system used at Dayang Bunting is particularly suitable for Indrasarobar as it causes minimal ecological disruption and can be easily removed or reconfigured as needed . This is crucial given the reservoir's primary function for hydropower generation.

- Cultural Adaptation: While Dayang Bunting leverages fertility legends, Indrasarobar can develop its own cultural narratives based on its naming after Indra, the Hindu god of rains and thunderstorms, creating unique mythological connections that resonate with both domestic and international visitors.

- Infrastructure Requirements: The success of Dayang Bunting demonstrates the importance of supporting infrastructure including transportation access, changing facilities, and food services – all of which would need to be developed at Indrasarobar to ensure a positive visitor experience .



"The modular floating dock system is particularly suitable for Indrasarobar as it causes minimal ecological disruption and can be easily removed or reconfigured as needed."

3 Development Concept and Plan

3.1 Vision and Objectives

- Vision: To transform Indrasarobar into Nepal's premier freshwater-based ecotourism destination that offers diverse recreational experiences while preserving the ecological integrity of the reservoir and supporting local communities.

- Objectives:

  •  Develop world-class water-based recreational facilities using sustainable floating infrastructure
  • Create employment opportunities for local communities in tourism and related services
  • Establish Indrasarobar as a major domestic tourism destination while increasing its appeal to international tourists
  •  Implement a sustainable tourism model that minimizes environmental impact and complements existing hydropower operations
  • Generate supplementary revenue for ongoing maintenance of the reservoir and surrounding areas

3.2 Proposed Development Components

- Modular Floating Dock System: Inspired by Dayang Bunting's successful implementation, a comprehensive floating infrastructure will be installed at strategic locations around the reservoir . This system will include:

  - Main arrival dock with ticket counters and information center

  - Activity platforms for swimming, kayaking, and paddle boating

  - Floating relaxation zones with shaded areas and seating

  - Fishing platforms at designated areas

  - Emergency and safety stations strategically positioned around the reservoir

- Recreational Activities: Drawing from successful activities at Dayang Bunting and adapting to local preferences, the development will offer:

  - Water sports: Kayaking, paddle boating, and potentially jet skiing in designated zones 

  - Swimming areas: Designated safe zones with depth markers and safety personnel

  - Nature experiences: Bird watching (over 90 species identified in similar environments)  and guided nature walks along designated trails

  - Fishing experiences: Organized fishing activities in designated zones

  - Cultural interpretation: Signage and guided tours explaining the cultural and mythological significance of the area

- Support Facilities: To ensure a complete visitor experience, the development will include:

  - Visitor center with information, ticketing, and retail space

  - Changing rooms and restroom facilities designed with eco-friendly principles

  - Food and beverage outlets featuring local cuisine and products

  - Souvenir and equipment rental shops focusing on local products

  - Safety and security facilities including first aid stations and lifeguard posts

3.3 Phased Implementation Plan

- Phase 1 (Months 1-6): Site assessment and detailed planning; community engagement; environmental impact assessment; preliminary design of floating structures

- Phase 2 (Months 7-12): Procurement and installation of modular floating dock system; construction of basic support facilities (boarding points, changing rooms, security posts)

- Phase 3 (Months 13-18): Introduction of basic activities (kayaking, paddle boating, swimming zones); staff training and testing operations

- Phase 4 (Months 19-24): Full operation of all facilities; marketing campaign; development of additional experiential offerings

4 Budget Distribution and Funding Sources

(…..) Need to analysis

4.1 Potential Funding Sources

- Government Sources (40%): Could be sought from various government entities, including:

 - Ministry of Culture, Tourism and Civil Aviation: Tourism infrastructure development funds

 - Ministry of Energy, Water Resources and Irrigation: Funds allocated for multipurpose use of hydropower projects

  - Bagmati Province Government: Provincial tourism development funds

  - Investment Board Nepal: Public infrastructure investment funds

- International Development Partners (30%): Could be sourced from international agencies with a focus on sustainable development:

  - World Bank: Given their previous involvement in funding the Kulekhani Dam , they may be interested in supporting its multipurpose development

  - Asian Development Bank: Tourism infrastructure development funds

  - UNDP: Sustainable development and community empowerment programs

  - OPEC Fund for International Development: Previously contributed to the Kulekhani project 

- Private Sector Investment (20%): 

  - Tourism industry investors: Hotel chains, tour operators, and adventure companies

  - Corporate social responsibility (CSR) funds: From major Nepalese businesses

  - Public-private partnership models: Especially for operational aspects like equipment rental and food services

- Community Investment (10%):  - Local cooperative investment: Establishing a tourism cooperative that allows local residents to invest and share profits

  - Crowdfunding campaigns: Targeting both domestic and international supporters of sustainable tourism in Nepal

4.3 Revenue Generation Projections

Based on comparable destinations and market analysis, the project is projected to generate multiple revenue streams:

- Entrance fees: Projected at NPR 500 per international visitor and NPR 200 per domestic visitor

- Activity fees: Revenue from equipment rental and guided experiences

- Retail and concession fees: From souvenir shops and food outlets

- Event hosting: Fees for hosting special events, festivals, and corporate activities

With an estimated 85,000-100,000 visitors annually by year 3, the project is projected to achieve operational self-sufficiency within 2 years of full operation, with a return on investment period of approximately 7-8 years considering initial capital investment.

"The project can create significant employment opportunities for local communities in line with the successful employment generation seen during the initial construction of the hydropower project."

5 SWOT Analysis for Investors

5.1 Strengths

- Unique Selling Proposition: Indrasarobar would be Nepal's first dedicated reservoir-based tourism destination, offering a unique experience compared to other tourism products in the country .

- Proximity to Major Market: Located just 21 km from Kathmandu , the reservoir has immediate access to Nepal's largest population center and primary international entry point, reducing marketing costs and transportation barriers.

- Existing Infrastructure: The reservoir already has basic road access and some existing tourism awareness due to its proximity to Kathmandu and the Chandragiri Cable Car .

- Natural Beauty: The reservoir is surrounded by lush green hills  and offers picturesque landscapes that are naturally attractive to visitors.

- Multipurpose Potential: Tourism development can coexist with the reservoir's primary hydropower function , creating complementary revenue streams without compromising existing infrastructure.

5.2 Weaknesses

- Seasonal Variations: Water levels may fluctuate based on power generation needs and seasonal rainfall patterns , potentially affecting certain activities during dry seasons.

- Limited Awareness: Currently, Indrasarobar has low recognition as a tourism destination compared to established tourist sites in Nepal.

- Infrastructure Gaps: The area currently lacks tourism-specific infrastructure such as quality accommodations, restaurants, and support services .

- Environmental Concerns: Increased tourism may pose pollution risks to the reservoir, which is crucial for hydropower generation and downstream ecosystems.

- Technical Expertise: Local communities may initially lack tourism management experience, requiring significant training and capacity building.

5.3 Opportunities

- Growing Domestic Tourism: Nepal is experiencing rising domestic tourism due to increasing disposable income and improved transportation infrastructure, creating a ready market for new destinations .

- Tourism Diversification: There is significant government and private sector interest in diversifying Nepal's tourism offerings beyond traditional trekking and cultural tourism.

- Community Empowerment: The project can create significant employment opportunities for local communities in line with the successful employment generation seen during the initial construction of the hydropower project .

- International Funding: Various international organizations are prioritizing sustainable tourism initiatives that benefit local communities and promote environmental conservation .

- Synergy with Existing Attractions: The reservoir can be integrated with other nearby attractions like Chandragiri Cable Car  to create comprehensive tourism circuits.

5.4 Threats

- Regulatory Challenges: Potential bureaucratic hurdles in obtaining necessary permits and approvals from multiple government entities.

- Environmental Regulations: Stringent environmental policies governing water reservoirs might limit certain development options or increase compliance costs.

- Climate Change: Changing rainfall patterns and glacial melt dynamics could affect long-term water availability in the reservoir system.

- Competition: Potential competition from other emerging tourism destinations in Nepal as the country continues to develop its tourism infrastructure.

- Security Concerns: Political instability or natural disasters could negatively impact tourism flows generally.



Table: Risk Mitigation Strategies for Key Identified Threats

ThreatRisk LevelMitigation Strategy
Regulatory ChallengesMediumEarly engagement with all relevant agencies; seek project designation as national priority
Environmental ConcernsHighImplement internationally recognized environmental management systems; regular monitoring
Climate Change ImpactsMediumDesign flexible infrastructure that can adapt to water level variations; diversify activities
Market CompetitionLow-MediumDevelop unique experiences not available elsewhere; focus on destination differentiation
Security IssuesMediumDevelop domestic market focus initially; create crisis management plan6 Conclusion and Implementation RecommendationsThe transformation of Kulekhani Reservoir (Indrasarobar) into a premier water-based tourism destination, inspired by the successful Dayang Bunting model in Malaysia, presents a significant opportunity for Nepal to diversify its tourism offerings while generating economic benefits for local communities. The project's strong feasibility is demonstrated through comparative analysis, clear market demand, and multiple funding possibilities.

To ensure successful implementation, the following recommendations are provided:

- Adopt a Phased Implementation Approach: Begin with core infrastructure and basic activities, gradually expanding as market acceptance and operational experience grow.

- Establish Robust Governance Structures: Create a multi-stakeholder management committee including government agencies, local communities, and private sector representatives to ensure balanced decision-making.

- Implement International Environmental Standards: Adopt globally recognized sustainability certifications to demonstrate environmental commitment and enhance market appeal.

- Develop a Comprehensive Marketing Strategy: Position Indrasarobar as part of a broader experience that includes natural beauty, cultural heritage, and adventure activities.

- Invest in Capacity Building: Provide extensive training programs for local communities to ensure they can meaningfully participate in and benefit from tourism development.

"The proposed development respects the reservoir's primary function in hydropower generation while adding sustainable tourism as a complementary use, making it a model for multipurpose reservoir management."

This project has the potential to transform Indrasarobar into a significant tourism destination that complements Nepal's existing offerings while creating substantial economic, social, and environmental benefits. The proposed development respects the reservoir's primary function in hydropower generation while adding sustainable tourism as a complementary use, making it a model for multipurpose reservoir management that could be replicated elsewhere in Nepal and beyond.



I recommend that the Department of Tourism and relevant authorities provide necessary support and facilitation to make this visionary project a reality, contributing to Nepal's sustainable tourism development and economic growth.

 


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