Many tourism entrepreneurs in Nepal have welcomed the arrest of executives accused of orchestrating fake rescue operations on the country’s Himalayan trekking trails and swindling millions of dollars from insurers.
The arrests follow a nearly three-month investigation by Nepal Police’s Central Investigation Bureau into a long-running insurance fraud scheme where travel and rescue companies allegedly staged helicopter evacuations from the mountains to pocket insurance money from foreign travel insurance companies.
The racket has drawn international scrutiny, and travel entrepreneurs say it poses a reputational risk to the country, which is known for its adventure tourism.
“We’re taking the right step by arresting those involved in wrongdoings,” Raj Gyawali, founder of the Socialtours travel company, told This Week in Asia. “It’s common knowledge in the industry that such scams are prevalent, but we haven’t been able to do much without any proof. So, the cleaning up of our industry is very much required.”
