A multimillion-dollar fraud scam using rescue helicopters teams has been shaking the Nepali tourism business since last year. Even after being revealed by “Travel Assists” and continuously followed by the “Travel Insurance Fraud Journal”, the shady business still thrives on the back of an increasing amount of travelers throughout the Himalayan regions. A worrying fact as the busy trekking season is on its way and around 80% of the Sherpa community depends on this income.
The authorities have confirmed that rescue fraud exists but are watering down its extent that has been traced downed to high profile members of government and industries by International press.
Krishna Prasad Devkota, the Secretary of the Ministry of Culture, Tourism and Civil Aviation, declared that only 186 rescues had taken place in 2018. That is a 88 percent drop compared to the previous year. And is justified by “new government guidelines.” Still, these numbers are far to concur with the 4million $ scam the assurance companies claim they have been victims of.
Credit: Traveller Assist
How does the scam Work?
It’s a nice sunny day, and you have decided to make the most of it. You hire a mountain guide, pack a bag, and decide to climb one of Nepal most impressing mountain tops. It’s maybe your first time in the country, or in the region, so you don’t want to waist a single minute.
The walk up the hill is hard, but you want to catch that sunset before it is too late. Drips of sweat beads on your entire body screaming of pain and tiredness. Your guide seems to be fine. To prove him how tough you are you decided to continue.
Suddenly, you fall on the ground and feel dizzy.
Worried, The Mountain Guide runs towards you and frows on you a diagnostic even faster than a doctor would. “You have mountain sickness”. Or sometimes “you have a fever, a broken ankle…”
Then he will leave you alone. Grab his radio and a few seconds later you hear the sharp whip of a helicopter cutting his way through the wind.
But the real pain comes once you have reached the bottom of the valley and find yourself with a $24,000 dollar tab.
Credit: Nepal Trekking
What Happened?
It is pretty obvious the mountain guide called the helicopter. He will justify it by a generic fact like: he “was worried for your safety” or “it’s dangerous to leave you in the mountains in this condition”, “I had to”.
But what really happens behind the scenes is simply a bribe. Helicopter rescuers company reportedly paid large amounts to guides who would call them for a rescue.
According to the Nepal National Mountain Guide Association, this concerns the unregistered or fake official guides. I was told only 60 can be 100% trusted by the government.
The trick consists in insisting you take an expensive helicopter ride instead of slowly climbing down on your own or resting.
Another twisted trick is making your client sick by poisoning his food with products such as baking soda which can cause vomiting and diarrhea. It frightens the victims into taking the helicopter option without expressing any doubt or concerns.
For the hopefully insured scammed hikers, the money is then drained from their assurance chests. And they are not happy about it. This is why they were the first one to blow the whistle. Using their resources to create an international headline that could no longer be ignored.
Who are responsible?
Since August 2017, Traveller Assist, an international medical assistance and cost containment company based in Dublin, has been conducting a travel insurance fraud investigation in Nepal. In May 2018, they wrote a letter to the Nepali minister of tourism, pointing fingers to the guilty and indicating the scam has been going on since 2013.
Travel Insurance Fraud Journal: “Logos of 23-brands, under the umbrella of 18-companies, connected by only 10-people who control over 90% of Nepal’s insurance fraud”
We tried to contact the listed companies, few of them answered but denied any responsibility in the matter.
The corruption also thrives inside the government infrastructures. Last month, two official members of the tourism board were arrested and sentenced to jail for their involvement (update 12/04/19: this information needs to be checked).
Recently, the government has been reacting as they are afraid of the long-term impact it will have on tourism, especially with their Visit Nepal 2020 project. But Himalayan Mafia is still standing in the way.
The only advice we can give you: be careful what food is given to you once you are up in the wild and do your research before inquiring a Guide.
