According to the Cambridge Dictionary, “gentrification” refers to the process by which a place, especially a part of a city, transforms from a poor area into a wealthier one, typically inhabited by people from a higher social class. The term gentrification was first coined by Ruth Glass in 1964 when she observed the redevelopment process taking place in London. It is a global issue, particularly in developed countries, and numerous efforts have been made to address its challenges.
What is Tourism Gentrification?
Tourism gentrification, a term first introduced by Kevin Fox Gotham, describes the transformation of a middle-class neighborhood into a wealthier, more exclusive area, often dominated by big-brand entertainment venues and tourist-oriented businesses. While traditional gentrification and tourism gentrification, also known as transnational gentrification, may seem similar, they differ significantly in their processes and impacts on urban neighborhoods. Traditional gentrification involves affluent local residents moving into lower-income areas, often displacing existing communities. In contrast, tourism gentrification reshapes neighborhoods to cater to visitors rather than residents, bringing a distinct set of challenges.
Nepal’s tourism industry witnessed a remarkable rebound in 2024, with international visitor arrivals reaching 1,147,567, a significant 13.1% increase compared to 2023. Tourism constitutes one of Nepal’s main sources of revenue. Among its cities, Pokhara, Nepal’s second-largest city, is widely recognized as the country’s tourism hub.
Pokhara Valley is renowned for its natural beauty, cultural heritage, artistic expression, and inspiring environment. The surreal visual connection between the majestic mountains and Phewa Lake, along with the intricate details of the city’s planning, creates a truly magnificent view. On March 17, 2024, Pokhara was officially declared the tourism capital of Nepal.
The 1970s marked a major turning point for tourism in Pokhara, driven by several key developments. These included a clear policy shift recognizing tourism as a vital source of foreign income, the completion of major infrastructure projects such as the Siddhartha Highway (which connected Pokhara to other cities), and a growing global interest in international travel. This socio-culturally diverse city, surrounded by mountains and home to nine lakes including the iconic Phewa Lake, continues to be an irresistible attraction for both domestic and international tourists.
The Lakeside area of Pokhara, located along the eastern shore of Phewa Lake, has evolved into a lively hub filled with high-end hotels, diverse restaurants, and facilities tailored to international tourists. This transformation has made it the epicenter of tourism in the city. However, just a few streets beyond this bustling zone, long-established local neighborhoods present a very different reality. It is one that sharply contrasts with the polished image portrayed to visitors. The broader community and cultural fabric of Pokhara are slowly and steadily being replaced by a landscape dominated by hotels, restaurants, cafes, and entertainment venues.
Hidden Cost of Gentrification
Even without a unified development strategy, the determination and entrepreneurial spirit of local business owners have played a central role in shaping Lakeside as a successful tourist hotspot. In many modern tourist destinations, large-scale international investments such as global hotel chains and amusement parks tend to dominate, shifting ownership away from individuals and small enterprises to multinational corporations. In contrast, the growth of Lakeside has largely remained locally driven, with most businesses still owned and operated by families.
As people increasingly pursue business opportunities that attract more tourists and generate greater revenue, places like Pokhara are seen as prime locations for profit. Not only Lakeside, but also surrounding areas like the hills of Sarangkot, once known for serene views of the valley, are now densely populated with hotels, restaurants, and cafes. The commodification of visual pleasure and leisure into business ventures has made everyday life more difficult for local residents. With rising land values, these areas are becoming unaffordable for the average person, displacing original communities. As a result, the city’s authenticity is gradually fading and is being replaced by large-scale infrastructure catering to tourists rather than locals.
Opportunities
- Through gentrification, the development of old buildings is seen which helps in the increment of property values.
- Better-looking areas attract more money for parks, roads, and public spaces, improving the city overall.
- Crime rates often go down in gentrified areas, making streets and public spaces feel safer.
Challenges
- Gentrification often forces long-time or low-income residents to move out because they can no longer afford the rising rent and living costs.
- As original residents leave, the neighborhood loses its sense of community, identity, and shared traditions.
- The cost of living increases, making basic goods and services more expensive for the remaining locals.
- Traditional culture and heritage may be replaced or commercialized to attract wealthier newcomers or tourists.
When gentrification coincides with tourism, it brings both opportunities and challenges to a place. Pokhara continues to grow as an integral part of Nepal’s tourism sector, linking its development with ideas of progress and inclusion. The transformation from the 1970s to the present has marked a significant phase of development in the city. As future plans take shape, sustainable planning, community participation, and culturally sensitive design will be crucial to ensuring that tourism benefits both visitors and the local population.
References:
- Angotti, Tom. “Https://Www.architectmagazine.com/Design/The-Gentrification-Dilemma_o.” https://www.architectmagazine.com/design/the-gentrification-dilemma_o, 13 Aug. 2012,
- Cambridge Dictionary. “GENTRIFICATION | Meaning in the Cambridge English Dictionary.” Cambridge.org, 2019, dictionary.cambridge.org/dictionary/english/gentrification.
- Ehrenfeucht, Renia. “Gentrification.” Obo, 27 June 2017, www.oxfordbibliographies.com/display/document/obo-9780199874002/obo-9780199874002-0162.xml.
- https://www.facebook.com/greatnepaltreksinnepal. “Nepal Tourism Statistics 2024.” Great Nepal Treks and Expedition (P) Ltd., 2 Jan. 2025, www.greatnepaltreks.com/nepal-tourism-statistic-2024/.
- Lu, Wei Jen. “The Role of Culture in Tourism Gentrification: A Case Study of Pokhara, Nepal since the 1970s.” Thesis.eur.nl, 10 Jan. 2024, https://thesis.eur.nl/pub/75138. Accessed 5 Jul. 2025.
