Reports of the emergence of yet another variant of the coronavirus have unnerved restaurants and party venues in Kathmandu Valley, just as things were beginning to look up since its forerunner left them in ruins.

"It is extremely worrying," insiders said of the new Omicron variant.

Delta left devastation behind—it took people's lives, left tens of thousands of people jobless, shattered the country’s economy and hit low-income people with heightened inflation.

“Now again, it appears that another strain of the virus could prolong the depression,” Araniko Rajbhandari, president of Restaurant and Bar Association Nepal (REBAN), told the Post.

Omicron has roiled markets and led to fears that a possible fresh round of virus restrictions could slow down the economy and prolong inflation.

The government has indicated that some harsh rules will be put in place to contain the spread of the virus, and restaurant entrepreneurs fear yet another lockdown. “This is bound to happen.”

Countries like the United Kingdom and France have forecast a next Covid-19 wave in January due to the emergence of the new, more contagious Omicron variant.

On December 6, the Ministry of Health and Population confirmed two cases of this new iteration of the coronavirus in the country. The World Health Organisation has called Omicron a “variant of concern”, warning that the global risks posed by it are “very high”.

“With the situation since the pandemic improving for more than a year, we were hopeful that business would gradually revive. But again, a new concern has befallen us,” said Rajbhandari.

“We cannot imagine the damage the new variant will bring in the business as restaurants have still not been able to clear their rent dues going back to the lockdown days or make interest payments on their bank loans,” he said.

“More than 90 percent of restaurants operate out of rented premises," he said. “Several establishments have got into rent disputes with their landlords, and they are being asked to vacate the place. A few cases have even gone to court,” he said.

“The government has not made up its mind whether the restaurant sector falls under the tourism industry or the industry category. Because of this indecision, restaurant entrepreneurs have not been able to get refinance service till now," Rajbhandari said.

Rajbhandari said that strict monitoring should be done in the border areas, and the government should impose a quarantine system for tourists coming from India and other countries. “This initiative will not completely stop the spread of the virus, but it will minimise the damage.”

Shovan Malakar, owner of Trisara Restaurant on Durbarmarg, said the new variant had not yet caused any harm to the restaurant business with customer flow remaining normal despite its discovery in the country.

“I do not think things will come to a situation where the government will need to impose a lockdown as many people have been vaccinated,” he said.

Malakar is hopeful that the restaurant business will not be affected like it suffered during the first and second waves of the Covid-19 pandemic.

Restaurants were completely closed for months during the first lockdown. They were later allowed to operate a take away system before in-person dining resumed.

There are around 450 restaurants affiliated with REBAN in Kathmandu, Pokhara, Sauraha, Butwal, Narayanghat and Surkhet. Each restaurant employs 30-35 persons.

Nepal on Sunday reported 242 new coronavirus cases in the last 24 hours with no deaths, taking the nationwide infection tally to 824,222.

Most restaurant workers who returned home during the lockdown have not come back to work. Restaurants in Thamel, Lazimpat and Jhamsikhel that depend on foreign tourists are still struggling.

The emergence of the new variant has got party venues worried too.

“I have been receiving phone calls daily from party venue owners outside the valley asking if the government was going to impose the lockdown or any restriction,” said Krishna Prasad Pandey, spokesperson for the National Party Palace and Catering Federation. “The situation is uncertain.”

The impact of the Omicron virus has not been yet observed, but entrepreneurs have started feeling anxious, he said.

According to the federation, around 7,000 party venues across the country with a combined investment of around Rs25 billion are affiliated with the federation. Around 100,000 people are directly employed in these establishments.

“We don’t have the exact data on how many businesses have collapsed,” he said. “Most small party venues have folded after not being able to pay the rent.”