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by Shusham Shrestha, 

KATHMANDU, Jan 23 (AFP) - A ban on discos in the Nepalese capital following a fatal dispute between two night club owners, could hit the struggling tourism industry, officials and tourists say.

On Sunday the authorities in Kathmandu decided to indefinitely close all eight clubs in the city and those at five-star hotels, after a fight between rival discotheque owners left one of them dead.

"The banning of night clubs and discos may be for a temporary period, but they will remain shut until the main accused is apprehended," a senior police official said.

"The administration has banned night clubs in Kathmandu which has hit hard over 14,500 employees including dancers working in them," he said.

The incident which triggered the ban began when Raju Gorkhali, owner of the Royal Disco, went to the rival Babylon Disco and left without paying the bill.

He called an hour later telling Babylon owner Rakesh Limbu to come over to his club to get the cash.

When Limbu reached the club he got into an argument and was attacked with swords. He was killed on the spot and two others were injured and sent to hospital, police said.

Gorkhali, who allegedly has close links with politicians and government officials, fled and police are searching for him.

Police said Monday they had arrested another man, Tejendra Gurung, also allegedly involved in the killing.

Bahadur Krishna Paudel, manager of another club in the city, said Friday's fight had happened because of a row over a woman.

"We have nothing to do with the Royal Disco bloody incident and others should not be penalized where peace and order are prevalent," Paudel said.

The disco ban comes as tourism is facing a crisis. The number of visitors arriving by air in Nepal dropped more than 27 percent last year mainly due to an increasingly violent Maoist rebellion which has killed some 7,800 people since 1996.

Tourism is a major source of foreign currency earning for Nepal which also provides direct employment for more 250,000 people across the country.

There are eight discos for the general public in Kathmandu, as well as several at five star hotels.

One of the main attractions for Indian and other tourists in Kathmandu are the casinos, which are unaffected by the closure.

"The five star discos are meant for the higher class of Nepalese or tourists but our discos are meant for the general public where the locals, foreigners including young Indian tourists, enjoy their night life," said Puran Thapa, who owns one of the clubs.

Around 2,000 Nepalese, Indians and foreigners visit the eight public discos each night and there are hardly ever any arguments between the young people, Thapa said.

"Even if there are some brawls, they are not serious ones," Thapa said.

"At the five star hotel discos, the entrance fees are about 1,000 rupees (12.5 dollars) with a free beer and a couple of pegs of foreign liquor thrown in," he said.

"While the entrance fees at the local tourist class discos are only 400 rupees (five dollars) and a can of beer is provided with for free."

French tourist Muriel Miguet, 34, said she was annoyed by the closures.

"I am disappointed now because we cannot go out to at night to have a drink, dance and have some fun," she said.

"I am fed up with this. Holidays are meant for fun and trekking but there is nothing in Kathmandu to attract tourists now," she said.

"I think tourists will now go to (the western tourist town of) Pokhara instead of staying in Kathmandu because there is nothing here," she said.

"The closing of the discos has definitely disappointed the younger group of Nepalese who are children of mostly ex-British Gurkhas or industrialists who can afford a couple of hundred dollars every night for drinks and dinner with their young partners," said a senior police officer, who did not want to be named. 

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