How Cable Cars Are Reshaping Tourism

High above the terraced hills of Kailali, workers are erecting towers that will soon carry passengers 3.1 kilometres between Chisapani and Rajkanda, a route set to become Nepal's longest operational cable car. In Kalinchowk, buses carrying thousands of pilgrims inch up steep mountain roads as devotees make their way to the Bhagwati temple.  

Near the birthplace of the Buddha, Austrian engineered gondolas glide above forests and rice fields, transporting thousands of visitors each day to hilltop shrines. In Pokhara, meanwhile, a nine-minute cable car ride has replaced what was once a long, winding pre-dawn drive to Sarangkot for sunrise. Taken individually, these projects serve different markets. Together, they illustrate how Nepal's cable car industry is undergoing one of the biggest transformations in the country's tourism sector.  

Nearly three decades after the Manakamana Cable Car began operation, Nepal's ropeway network has expanded across pilgrimage, leisure and adventure destinations. At least a dozen operating, under construction and planned projects now stretch across the country, linking religious sites, tourist attractions and mountain landscapes into what developers increasingly describe as an emerging national cable car circuit.  

The first generation of cable cars was built primarily to shorten difficult pilgrimages. The new generation is being designed around a much broader commercial model. Chandragiri combines a ropeway with a temple, a five-star resort, restaurants, conference facilities and event tourism. Maulakali and Lumbini follow similar models, linking religious destinations with hotels and leisure facilities.  

Bandipur is expanding into adventure tourism, while Annapurna Cable Car has integrated temples, viewing decks, giant swings and sky cycling into its upper station. Future projects are even more ambitious. Jalpa Devi in Kailali is being developed with hotels, a casino, banquet facilities, a resort, a skywalk and walking trails. The planned Sikles Kori project in Kaski is expected to combine a cable car with Nepal's first mountain ski resort.  

The shift reflects a broader transformation in the industry. Cable cars are no longer being developed simply as transport infrastructure. They are becoming anchor investments around which developers hope to build complete tourism destinations capable of attracting visitors, extending their stays and stimulating wider local economies.  

From Religious Devotion to Full Blown Hospitality  

Nepal's cable car industry was born out of religious tourism. "The Manakamana Cable Car project started with a heavy investment driven primarily by religious tourism, and it proved to be an immense success," says Ashok Siwakoti, Executive Director of Kalinchowk Cable Car. "Over time, this evolved to embrace general tourism and hospitality."  

That evolution is perhaps most visible at Chandragiri Hills, only 16 kilometres southwest of Kathmandu. Visitors board Swiss engineered gondolas at Thankot before ascending to an elevation of 2,551 metres through dense forest. At the summit sits the Bhaleshwor Mahadev Temple, one of the valley's best known pilgrimage sites, alongside viewing decks overlooking Kathmandu Valley and, on clear days, mountain ranges stretching from Langtang to Annapurna and even Everest.  

Unlike Nepal's earliest cable car projects, however, the attraction no longer ends with the ride. The hilltop also features a five-star resort, restaurants, conference facilities and landscaped public spaces. Weddings, corporate events and weekend holidays have become as important to the business model as religious tourism itself.  

Siwakoti says that the combination of faith and hospitality has become the industry's defining characteristic. Not every destination follows the same formula. At Kalinchowk, Siwakoti says religious devotion remains the overwhelming driver of demand despite the area's spectacular alpine scenery. "The area boasts breathtaking alpine landscapes reminiscent of Switzerland, complete with yak pastures and majestic Himalayan views," he says. "But the overwhelming driver of visitors is not nature or leisure tourism, rather deep-rooted religious devotion."  

He points to the month of Jestha, which coincided with Purushottam Masa, as an example. Visitor numbers climbed to between 30,000 and 35,000 during the month. Of those, only around 4,000 to 5,000 travelled primarily for leisure. "The influx was overwhelmingly propelled by the sacred presence of the Kalinchowk Bhagwati Temple," he says. Even so, the economic benefits extend well beyond the temple itself. Hotels remain busy regardless of whether visitors come for pilgrimage or recreation, while restaurants, transport operators and local businesses all benefit from higher tourist spending.  

Dr Roman Man Shrestha, Chief Executive Officer of Bandipur Cable Car, believes Nepal's cable car industry has entered an entirely new phase. "Earlier cable cars primarily served transportation purposes, while projects such as Manakamana were strongly associated with religious tourism," he says. "Today, cable cars have become integral to tourism development itself." Bandipur reflects that changing strategy. Rather than relying solely on its ropeway, the project is positioning itself as a broader tourism destination built around culture, nature and adventure. Developers are adding an 80-foot Adiyogi statue, expanding adventure activities and integrating the cable car with the town's established heritage tourism. "By combining religious attractions with adventure, culture and nature," Shrestha says, "destinations can appeal to a much broader range of visitors."  

For Chandra Dhakal, Chairman of IME Group, Nepal's largest private cable car developer, that evolution extends far beyond individual projects. Three IME promoted cable cars, Chandragiri, Maulakali and Lumbini, are already in operation. Jalpa Devi in Kailali is expected to open within weeks as Nepal's longest operational cable car at 3.1 kilometres, while Pathibhara in Taplejung is targeted for completion by December. Together they will increase the group's operating portfolio to five cable cars.  

IME is also advancing the Sikles Kori project in Kaski, where it plans to combine a ropeway with what is intended to become South Asia's first large scale mountain ski resort. The same pattern can already be seen across Nepal's newer cable car destinations. At Maulakali in Nawalparasi, pilgrims visiting the hilltop temple now find restaurants, landscaped resting areas, shops selling local products and a boutique resort overlooking the Narayani River.  

Lumbini Cable Car similarly combines pilgrimage with hospitality. The 2.65 kilometre ropeway carries visitors from the plains to the shrines of Maa Kamakhaya and Maa Durga, while restaurants, recreational facilities and visitor amenities encourage travellers to spend more time at the destination rather than treating the cable car simply as transport. Across the industry, the business model is steadily shifting from moving passengers to creating destinations.  

A New Mode of Transportation  

Even as developers transform cable cars into tourism destinations, the industry has not abandoned its original purpose. In many parts of Nepal, cable cars continue to solve a basic problem, connecting communities separated by steep terrain where road travel remains slow, difficult or unreliable. "Given Nepal's mountainous geography, cable cars have become an important mode of transportation as well as a tourism product," says Dr Roman Man Shrestha. He argues that better roads have not reduced the relevance of cable cars. Instead, they have changed their role. "Even where road connectivity has improved, cable cars continue to play a vital role because they are part of a much broader tourism experience rather than merely a means of transport," he says.  

That combination of convenience and experience is perhaps most evident in Pokhara. Annapurna Cable Car links Lakeside with Sarangkot in just nine minutes, replacing what was once a lengthy early morning drive or an uphill hike for visitors hoping to watch the sunrise over the Annapurna range. "Annapurna Cable Car serves as a vital alternative transportation link connecting Lakeside to the top of Sarangkot in just nine minutes," says Dinesh Poudel, General Manager of Annapurna Cable Car. For Pokhara's growing mix of domestic holidaymakers, international trekkers and religious visitors, the time savings have become one of the project's biggest attractions.  

"Traditional early morning car drives or hikes have been replaced with a streamlined, time saving journey," Poudel says. The attraction, however, extends well beyond the ride itself. Visitors arriving at the upper station find centuries old temples, a 51-foot Panchamukhi Ganesha statue, 108 Shiva Lingams, ritual water spouts symbolising Muktinath, observation decks overlooking 16 Himalayan peaks and recreational attractions including sky cycling and giant swings. The journey itself has been carefully designed as part of the visitor experience. Over nine minutes, passengers travel from the shores of Phewa Lake across terraced farmland before panoramic views of Pokhara Valley gradually give way to the Himalayan skyline.  

Built by Doppelmayr and installed by Nippon Cable, the system operates 17 passenger cabins and one freight carrier with a capacity of up to 500 passengers an hour. Free shuttle services connect the base station with Lakeside, making the attraction accessible for both tourists and local residents. Poudel believes cable cars could eventually play a larger role beyond tourism. "As urbanisation increases density and parking challenges in major cities, cable cars represent a practical, time saving and space efficient urban transit and tourism solution for the future," he says.  

Chandra Dhakal sees similar potential at Jalpa Devi, although in a very different setting. Scheduled to open within weeks, the 3.1-kilometre ropeway will connect Chisapani with Rajkanda above the Karnali River, reducing travel time while opening one of western Nepal's most scenic landscapes to visitors. The project is being developed at an estimated cost of Rs 5 billion. Yet for IME Group, the cable car itself is only one part of a much larger investment. Plans include a hotel, casino and banquet hall at the lower station, while the upper station will feature a resort, temple, restaurant, skywalk, children's park and walking trails overlooking the Karnali River and Chure hills. The approach reflects a broader industry trend. Cable cars may still solve transport problems, but developers increasingly view mobility as the foundation for much larger tourism businesses.  

Policy Hurdles Slow the Climb  

Despite the industry's rapid expansion, developers say the biggest obstacles are no longer engineering challenges but regulatory ones. Across interviews for this story, operators repeatedly pointed to lengthy approval processes, overlapping government agencies and land acquisition as the principal barriers to new investment. Ashok Siwakoti argues that bureaucracy remains the industry's greatest constraint. "Private investors face significant friction due to convoluted government policies, particularly regarding land acquisition and regulatory approvals," he says. Launching a new cable car project typically requires approvals from numerous government agencies, including local governments, forest authorities, Guthi institutions, land revenue offices and multiple ministries responsible for tourism, transport and physical infrastructure. The process can take years before construction even begins.  

"Obtaining initial licences and clearances can easily stretch across five to eight years," Siwakoti says. He believes many projects lose momentum long before construction starts. "For experienced investors, these delays reduce productive business years. For new investors, they often discourage investment altogether."  

His proposed solution is a genuine single window approval system that would allow one designated authority to coordinate environmental clearances, land acquisition and licensing rather than requiring developers to navigate multiple government offices. Dhakal describes a similar experience from the perspective of a company managing several projects simultaneously. "Environmental clearances, approvals from local, provincial and federal governments, land use rights and local level issues require considerable time and coordination," he says. Many proposed cable car routes pass through remote mountain areas lacking basic infrastructure such as roads, electricity and water supply, making the transportation of heavy equipment a major logistical challenge even after approvals have been secured. Pathibhara Cable Car illustrates both the opportunities and the constraints. Although construction is progressing rapidly, with most equipment delivered and major civil works already completed, the project has still faced delays related to approvals and local level coordination.  

Dhakal notes that once approvals are finally secured, construction itself is comparatively fast. "Most of our projects have been completed within around 12 to 15 months after construction begins," he says. "The real challenge lies before construction starts."  

For Annapurna Cable Car, the constraint is different. Poudel says the project's long-term growth depends not only on the cable car itself but also on wider transport infrastructure. Travel times between Kathmandu, Chitwan and Pokhara remain longer than they should because of delays in highway expansion and maintenance. He also believes that fully operationalising Pokhara International Airport is essential if western Nepal is to attract substantially more international visitors. Taken together, the industry's concerns point to a common conclusion. Nepal has demonstrated that it can design, finance and build modern cable car systems. The bigger challenge now is creating a policy environment that allows projects to move from approval to construction far more quickly.  

Building Ecosystems, Not Just Rides  

If Nepal's first generation of cable cars focused on moving people uphill, the next generation is focused on giving them reasons to stay. Developers increasingly see the ropeway as only one component of a much larger tourism business that includes hotels, restaurants, retail outlets, recreational facilities and religious attractions.  

"The cable car itself is no longer the main product," says Chandra Dhakal. "The objective is to build an entire tourism ecosystem." IME Group's projects illustrate that strategy. Rather than following a standard blueprint, each destination is designed around its own geography, visitor profile and tourism potential. At Chandragiri, the cable car is complemented by a five-star resort, conference facilities and event venues that have helped transform the hilltop into one of Kathmandu Valley's most popular locations for weddings, corporate retreats and weekend holidays.  

At Maulakali, the emphasis is on pilgrimage supported by boutique accommodation, restaurants and landscaped public spaces overlooking the Narayani River.  

Lumbini follows a similar approach. While the ropeway carries pilgrims to the shrines of Maa Kamakhaya and Maa Durga, the wider investment is intended to encourage visitors to extend their stay rather than returning immediately after darshan. Jalpa Devi represents the next stage of that evolution. The project includes hotels, a casino, banquet facilities, restaurants, a temple, walking trails and a skywalk overlooking the Karnali River valley. Rather than relying solely on ticket revenue, the development is intended to generate income from hospitality, events and recreation throughout the year.  

"Not every project follows the same model," Dhakal says. "Each destination is developed according to its own tourism potential." That philosophy extends to the group's most ambitious proposal, the Sikles Kori Cable Car in Kaski.  

The planned 6.5-kilometre ropeway will climb to an elevation of around 3,900 metres, where natural snowfall lasts four to five months each year. Artificial snow making facilities are also planned to support year-round skiing.  

Dhakal says the Environmental Impact Assessment has already been completed and construction will begin once land lease approvals are finalised and the Jalpa Devi and Pathibhara projects are completed. If realised, Sikles would introduce an entirely new tourism product to Nepal, combining mountain recreation with a cable car and ski resort in a single destination. Bandipur Cable Car is pursuing a similar objective through a different strategy. Rather than constructing large hotels, the project seeks to integrate existing local businesses into a broader tourism network. "Sustainable tourism requires the participation of every stakeholder, including transport operators, hotels, homestays, restaurants and local communities," says Dr Roman Man Shrestha.  

"Rather than replacing existing businesses, the objective is to integrate them into a larger tourism ecosystem." Adventure tourism forms an important part of that strategy.  

Paragliding, kayaking, rock climbing and rafting have already been introduced, while a Sky Peak Adventure Park featuring a cantilever skywalk is expected to become another major attraction. Shrestha says Bandipur's objective is not simply to attract more visitors but to encourage them to stay longer and spend more within the local economy.  

Siwakoti sees similar benefits emerging around Kalinchowk. Successful cable car projects, he says, create economic opportunities that extend well beyond the companies operating them. Hotels, restaurants, transport operators, local farmers and handicraft producers all benefit as visitor numbers increase. Regions that once depended on seasonal pilgrimage now support year round tourism businesses. With tens of thousands of public shareholders invested in several cable car companies, Siwakoti argues that these projects increasingly function as community enterprises rather than conventional private businesses. "The socio-economic transformation is significant," he says. "Cable cars create opportunities for entire local economies."  

Longer Stays, Bigger Bets  

For Nepal's cable car developers, the industry's future is no longer measured simply by passenger numbers. Instead, success depends on whether these investments can persuade visitors to spend more time and money in the destinations they serve. International tourists currently spend an average of only 12 to 13 days in Nepal.  

Dhakal believes that figure can be increased substantially if every province develops destinations capable of retaining visitors for an additional two or three days. "Cable cars should not be viewed only as transport infrastructure," he says. "They should become anchors for wider tourism development."  

That strategy is already beginning to produce visible results. Around 80 to 90 percent of employees across IME's cable car projects are recruited from surrounding communities, while local workers are increasingly being trained for technical and operational roles. Chandragiri has developed into a popular wedding destination, particularly for Indian visitors, who account for roughly one third of arrivals. At Lumbini Cable Car, Indian pilgrims make up more than 60 percent of visitors. Dhakal expects both Pathibhara and Jalpa Devi to generate significant cross border tourism into Koshi and Sudurpashchim provinces once they begin operations. The economic impact extends beyond tourism businesses themselves. Hotels, restaurants, transport operators, farmers supplying food products and local retailers all stand to benefit from higher visitor spending. Pathibhara already offers an early indication of that potential. Even before opening, construction activity has stimulated demand for accommodation, restaurants and local services in Taplejung. Shrestha believes the opportunity is even larger. Data from Uttar Pradesh alone, he notes, show roughly 575,000 people travelling to Nepal during the off season each year. Capturing a larger share of that market will depend on offering experiences that encourage visitors to travel beyond traditional destinations and extend their stay.  

For Siwakoti, sustaining that momentum requires more than investment. It also requires political stability and policy consistency. "Business infrastructure must never be targeted, politicised or used as leverage during political disputes," he says. He argues that long term investment in tourism depends on a predictable policy environment in which investors have confidence that projects will not be disrupted by political uncertainty. Nepal's cable car industry has already demonstrated that it can overcome difficult terrain and complex engineering challenges.  

The next test is whether those ropeways can become the foundation for a new generation of tourism destinations. If they succeed, the country's cable cars will no longer be remembered simply for making mountain journeys easier. They may instead be recognised as the investments that helped reshape Nepal's tourism economy by extending visitor stays, diversifying local businesses and creating entirely new destinations across the country. Nearly three decades after Manakamana introduced modern cable cars to Nepal, the industry is entering a new phase. Ropeways are no longer being built simply to shorten difficult journeys. They are becoming anchors for investment in hotels, resorts, adventure tourism and local businesses. If developers can overcome regulatory hurdles and deliver the next generation of projects, Nepal's cable cars may ultimately be remembered not only for changing how people travel through the mountains, but also for reshaping how the country builds tourism destinations.

(Originally published in August 2026 issue of New Business Age magazine.)