Discotheque business in record slump

Discotheque business in record slump
eKantipur, 2-April-2007
BY UTTAM BHLON

Shani Shrestha, a young entrepreneur, was once the owner of Yale Pub and Café, a discotheque located in Patan, Lalitpur. After running the club for around two years, he recently sold it away due to soaring losses.

“I was doing good business in the initial days….hordes of youngsters used to come to the club for dance parties,” Shrestha told the Post. But with the decline in the business and sudden intensification in extortion spree, the financial burden started mounting, forcing its disposal, he said.

Beset with bitter experiences, the person, who was once determined to stay in the country and make some contribution, is now contemplating going abroad for some years.

This is just a case in point. There are more than 20 other investors like Shrestha who are either planning to close their discotheques or switch to other business, putting a question mark on the investment of millions of rupees. Of around 20 discotheques operating in Kathmandu Valley about a year ago, more than nine have already shut down, according to the Restaurant and Bar Association of Nepal (REBAN).

“The closure, on one hand, has inflicted a loss of around Rs 40 million to promoters along with the loss of hundreds of jobs,” said Narendra Man Singh, secretary general of REBAN.

Disco culture hit Nepal around a decade ago. But its future, which looked prosperous in the initial days, has suddenly started to look bleak, as investors have lost enthusiasm and those existent are also planning to fold up.

“Our business has gone down by almost 40 percent. Our daily sales used to hover at Rs 120,000 around a year ago. But now it has gone down to Rs 72,000 mainly due to fragile law and order condition,” said Mohan Shrestha, bar in-charge of Fire Club of Thamel.

Robin Sitaula, founder of PartyNepal.com, shares the same argument but added that unlike in the previous days, more people are now interested in going to lounge bars or family restaurants rather than discotheques.

Talking to this daily, various promoters said that at a time when business is at an all time low, pressures from various groups to provide donations is virtually pushing the 'disco business' to the verge of collapse. “Maoists and police officials each demand huge donations per month, which is not affordable under present circumstances,” a proprietor of one of the discotheques said requesting anonymity.

According to him, both police and Maoists force them to close the discotheques at 10 pm if the demanded amount is not paid in time, customers who have paid charges to enter the place are harassed.

“By doing this they are indirectly discouraging our customers from visiting our place,” he said. He opined that the problem would be solved if the government introduces a new regulation and allows entities registered as discos to conduct business till late at night.