Business Opportunities in Upper Mustang

A project report of educational tour

By

Aarati Mahat
Aashish Maharjan
Anjana Khatri
Barsha Rai
Sophia Lama
To

Ms. Sarita Agarwal

(BBM Coordinator)

In partial fulfillment of the requirement for the assignment of

Educational Tour

Bachelor of Business Management (BBM, Seventh Semester

At the

Madan Bhandari Memorial College

New Baneshwor, Kathmandu

4 poush, 2080
 STUDENT’S DECLARATION

We hereby declare that this project work entitled “Business opportunities in upper mustang”
prepared under the supervision of Mr.Anjaya Kumar Mishra, Madan Bhandari Memorial
College , Anamnagar Kathmandu is an original piece of work. This project has not been
submitted to any other institutes or colleges for the award of any degree.

Signature

Aarati Mahat

Aashish Maharjan

Anjana Khatri

Barsha Rai

Sophia Lama
 ACKNOWLEDGEMENT
We wish to express our sincere gratitude to our report advisor, Mr. Anjaya Kumar Mishra, for
his unwavering support and guidance through this study. We would not have been able to
complete this undertaking without your constant encouragement and help.

A heartfelt thank you extends to Dr. Babu Ram Adhikari, our respected campus chief, the
BBM department, and the entire Madan Bhandari Memorial College. Your contributions,
both financially and in terms of emotional and moral support, were instrumental in aking our
educational tour a grand success.

Furthermore, we would like to thank the local people, APF officers and our travel guide for
helping for the project.
 Table of content

Table of Contents
STUDENT’S DECLARATION.....................................................................................................................ii
ACKNOWLEDGEMENT...........................................................................................................................iii
 CHAPTER-1

INTRODUCTION

Upper mustang located in the northern part of the Nepal, is like a hidden treasure surrounded
by big mountains. It is called as the “Last Forbidden Kingdom,” offering a unique blend of
breathtaking landscapes, ancient history, and vibrant traditions. The capital of upper mustang
is Lo Manthang, having a traditional Tibetan- style architecture, narrow winding streets, and
historic monasteries.

Upper mustang is distinguished by the warm hospitality of its people with its unique blend of
Nepali and Tibetan influences, welcomes visitors with open hearts. Interacting with local
offers a chance to understand their way of life, customs, and the challenges they face in this
region.

Upper Mustang's allure extends beyond its natural beauty and cultural heritage. The restricted
access and controlled tourism have maintained an air of exclusivity, attracting travelers
seeking authenticity and a sense of discovery. The stringent regulations imposed by the
Nepalese government for entry into this restricted area have safeguarded its essence, offering
a glimpse into a world seemingly frozen in time.

Despite its remoteness, Upper Mustang holds promise and potential for business ventures,
primarily in the realms of sustainable tourism, cultural exchanges, and preservation efforts.
While embracing modern opportunities, the region strives to maintain its identity, presenting
a delicate balance between development and conservation.

Long ago, Korala border was a busy route for trade between Nepal and Tibet. Because of
some unavoidable circumstances the border was closed for the time since 1960s. On Nov13,
2023 Korala border was officially opened. Nearly 1000 mustang residents took pass for
visiting Tibet through Korala border point.
 Chapter-2

Advantages

Some of the business opportunities we have discovered while visiting there are listed below:

1) Hotel and tourism business

2) Cattle rearing (Yak, sheep etc)

3) Apple farming

4) Trade business

5) Locally made alcohols

The advantages these businesses contain are listed below:

1.1 During peak season high number of domestic as well as international tourist visits there.

1.2 The region offers fantastic trekking opportunities, establishing hotels that cater to trekkers
and adventure tourist can be another competitive advantage.

1.3 Only limited number of competitors are there.

2.1 The climatic condition is suitable for these animals.

2.2 They don’t require more manpower and caring.

2.3 They can also be used for transporting goods.

3.1 There is a huge market demand for the apples of mustang.

3.2 The Climatic condition is best for the apple farming.

3.3 It can be used to make wines.

4.1 Korala border is open for the local residents of upper mustang, so they can bring goods
from china in cheaper price.

4.2 There is wider market access for local products.

4.3 There will be less language barrier while doing trade between locals of upper mustang
and china.

5.1 Availability of proper raw materials required to make alcohols, wines.

5.2 Huge market demand and opportunities.

5.3 Primitive techniques and method makes it unique.

CHAPTER-2

BENEFITS

Some of the benefits that this business offers are listed below:

1) It helps to improve the living standard of the local people.

2) It can create jobs for locals, which reduce migration to urban areas for work.

3) It helps to increase the GDP of the country.

4) It helps to strengthen the relationship between two neighboring countries.

5) Cattle rearing will provide multiple source of income. They can sell their meats, milk,
wool, skins and their byproducts.

6) Apples which are stored underground contain gink which helps to control the anger issues.

7) The art and culture of the village will get its exposure and can be one of the top tourist
destination in the world.
CHAPTER-2

CONSTRAINTS
There are various constraints face by the business in Upper Mustang due to its unique
geographical location and specific conditions. Some of these constraints include ;

1) The area's remote location and difficult terrain pose logistical challenges for businesses,
including transportation of goods and access to essential services.

2) Businesses may struggle with inadequate infrastructures like roads, electricity, and
communication networks, affecting operations and connectivity.

3) Costs associated with logistics, transportation, and infrastructure maintenance are

relatively high

4) The economy heavily relies on seasonal tourism, leading to fluctuations in business

activity throughout the year.

5) Businesses might face challenges in scaling up and finding a sustainable customer base.

6) Small local population limits the size of the consumer market.

7) Reliance on non-renewable energy sources due to limited access to alternative energy

options.

8) Few financial institutions and limited banking services restrict financial transactions and
access to capital.

9) Inadequate tourism-related infrastructure limits the growth of the hospitality and travel
industries.

10) Maintaining and respecting cultural heritage might involve additional costs for
businesses.

11) Limited access to quality healthcare services affects the workforce and community
well-being.

12) Vulnerability to natural disasters like earthquakes and landslides affects infrastructure
and business continuity.