Metro rail idea seizes planners

SANGAM PRASAIN
KATHMANDU, JUN 30 - If all goes well, like any other capital Kathmandu also may have a metro rail in the future. Establishment of a Rail and Metro Department is one of the policy issues that the budget planners are brainstorming on for the upcoming budget. 
Finance Minister Surendra Pandey on Tuesday said that a study would be conducted on metro possibility in the Ring Road areas of Kathmandu.  “Imagining Kathmandu as a modern capital city, the feasibility study for the metro rail will be carried out next year,” he said.
According to him, in the first phase the study will be conducted in the Thankot-Budhanilkantha sector and gradually extend to other Ring Road portions. Expenditure for the first phase study will be allocated in the upcoming budget, he said.
The ever increasing traffic woes of the Capital have forced planners to think of mass transportation. The necessity for a separate railway department is also felt along with the feasibility study on East-West Electric Railway being carried out. RITES, an Indian government entity, is currently into initial feasibility study on East-West Electric Highway.
The MoF is currently thinking of three railway lines for the Capital. “There is no option but to go for railway transportation to manage the Capital’s traffic woes,” said a senior MoF official.
Urban planners say the establishment of a railway system in the Capital is technically feasible. However, its economic feasibility needs to be studied. “It is an ambitious project as it needs high investment compared to other public transportation systems,” said Bhusan Tuladhar, technical expert at the Environment and Public Health Organisation (ENPHO).
According to Tuladhar, there is potential for light rail and mono rail in the Capital compared to metro railways. At present, the country has only one operational railway line — the 29-km Janakpur-Jayanagar railway line that links Nepal to India.

Valley to suffer fuel woes again

SANGAM PRASAIN
KATHMANDU, JUN 29 - Long queues of motorists formed outside gasoline stations in the capital on Monday as supplies have run short of demand.

Nepal Oil Corporation (NOC) said the shortage was caused by India Oil Corporation's (IOC) move to cut deliveries by 50-60 percent as NOC had fallen behind in its payments.
NOC's import bills have crossed Rs. 800 million, said NOC spokesperson Mukunda Dhungel. IOC had reduced fuel shipments from June 16. 

As a result, NOC's diesel and petrol stocks across the country have come down to 35,000 kl from its normal amount of 42,000 kl, Dhungel said.
IOC has been exporting only 1,000 kl of petroleum products per day compared to the daily requirement of 2,300 kl.

Saroj Pandey, president of the Nepal Petroleum Dealers Association, said that the valley's petrol pumps had not been replenished for two days. "Petrol pumps did not receive fuel on Saturday and Sunday; as a result, pressure mounted on Monday," he added.
Bhuwaneshwor Rajbhandari, chief of the NOC's Thankot depot, said that demand had increased as the supply went down. He added that the shortage occurred due to road disturbances on Saturday and India's
public holiday on Sunday. India does not deliver petroleum products on public holidays.

"Similarly, two consecutive public holidays have resulted in a shortage in the Kathmandu Valley," he said. 
According to him, petrol stocks in the valley have come down to 1,300 kl from the  usual 1,800 kl, diesel down to 3,200 kl from 8,400 kl and kerosene down to 3,600 kl from 4,200 kl. The total capacity of the Thankot depot is 14,400 kl.

NOC said that that it had started distributing the petroleum products in storage to avert a shortage.
Dhungel said that NOC had asked the government for Rs. 1 billion as it had ruled out increasing fuel prices.
The government has asked NOC to try to borrow money from banks, but NOC is not in a position to take loans as it already owes Rs 10.74 billion.

"NOC has incurred losses amounting to Rs. 1.30 billion on LPG and diesel as of May
31," Dhungel said. He added that NOC was losing Rs. 177 per cylinder of LPG.

Buddhist Circuit planned

 SANGAM PRASAIN
JUNE 26, JUN 27 - Keeping in mind the development of Nepal’s major Buddhist destinations and promoting it as a key product in the upcoming Nepal Tourism Year 2011 (NTY-2011), the Himalaya Expedition (Himex) is soon launching a Buddhist pilgrimage tour package entitled “Buddhist Circuit”.
Two 42-seater deluxe shuttles buses are coming for this purpose. The organiser said it would start its trial in November.
The tour package is a ten-day affair that will cost around US$ 300 per person.  The tour package will be officially launched in January will manage the pilgrimages to different places in Nepal and India that are associated with the life and teachings of Lord Buddha.
Himex president Bikrum Pandey said that Buddhism holds a 40 percent market share of the total tourist movement in Asia, and Nepal being a major destination could reap huge benefit if it was promoted and marketed. According to him, the planned tour will begin from Lumbini, the birthplace of Buddha, and will go through Kapilvastu, Shravasti, Kushin-agar, Sarnath, Bodhgaya, Vaishali, Rajgius, Nalanda and Patna before returning to Lumbini.
“In the preliminary stages, we will operate just two shuttle buses. As and when the tour gets momentum, we will add more to the fleet,” Pandey said.
Pandey said India had been operating such tours since long focusing on the India side while Nepal had failed to capitalise on it due to lack of innovations as Nepali tours operators focus only on adventurous tourism. As a result, over 90 percent tour operators for Buddhist pilgrims are from India.  
More importantly, the presence of just one international airport has deprived Nepal of attracting more Buddhist pilgrims to country, the organiser said. At present, there are four gateways to Buddhist tours, and surprisingly all of them are through India. The package, according to Pandey will help lure more domestic and international tourists in the Nepal Tourism Year 2011.
The organiser said that the estimated business for Buddhist Circuits was about 300,000 tourists. Of this, Nepal gets day journey from Indian itinerary for Lumbini sector and the benefit was very little.
Nepal is becoming a major spiritual tourism destination for East Asian travelers attracted by Lumbini, the birthplace of the Buddha, and other religious spots. The World Bank South Asia Economic Update 2010 reveals that travelers from East Asia made up 26.5 percent of the total tourist arrivals in Nepal.
Tourist arrivals from China, South Korea and Thailand for Buddhist pilgrim have been increasing in the past few years.
The number of Chinese arrivals in Nepal has increased by 185.97 percent in the last three years. Around 19,000 Chinese tourists visited Nepal in 2009. In the three years, tourist arrivals from South Korea, Singapore, Thailand soared by 68.40 percent, 164.26 percent, 83.48 percent respectively.

Nano to arrive here in July-end

SANGAM PRASAIN

KATHMANDU, JUN 24 -

Come July and the much-awaited cheapest car on the planet will be here in Kathmandu.
Sipradi Trading Pvt. Ltd, an authorised distributor for Tata Motors in Nepal, on Thursday said five Nano cars will be arriving in Nepal for a “test-drive” by July end.

“We have opened the Letter of Credit (L/C) for five Nanos,” Shambhu Prasad Dahal, chief executive officer of Sipradi Trading, told the Post. The company had initially planned to bring in the car in mid-March. Sipradi will conduct extensive trials of the car across the country as Tata Motors sells all vehicles only after testing them locally.

“We want to see how the car is suited for Nepali road conditions. All aspects need to be studied before launching the Nano commercially,” Sundaram Ragunathan, regional head, South and West Asia, Passenger Car Business Unit of Tata Motors, said.

However, those who have been dreaming of owning the cheapest car will have to wait untill January 2011 to have one. Raghunathan said Nano will be commercially launched in Nepal in 2011, the country being the first international market for the car.

According to Dahal, Sipradi will start with 10-15 cars in the beginning and increase the sales volume as per the response they will get.

Sipradi has so far received inquires on Nano from over 1,000 customers. “We normally get three-four enquiries daily,” Dahal said.

The 624 cc Nano, launched in January 2008 in India, had been priced there at IRs 100,000 making it the cheapest car in the world. However, Tata Motors has now increased the price by IRs 15,000. Nano’s price is one of the reasons why car lovers in Nepal are eagerly waiting for it.

However, Nepalis will have to pay around Rs 700,000 for a Nano. “We are planning to sell it at Rs 650,000; however, the price could near the 700,000 mark due to high customs duty here,” Dahal added.

HAN calls for easing VAT level

SANGAM PRASAIN
KATHMANDU, JUN 23 - The Hotel Association of Nepal (HAN) has urged the government to reduce the value added tax (VAT) on hotel sector to 10 percent from the existing 13 percent.
HAN will be content with withdrawal of 3 percent VAT in the matter of import of goods such as agriculture products where VAT is not imposed.
Talking about the new budget, HAN also asked the government to look into the main concerns of the hospitality industry by giving high priority to infrastructure development and tax breaks which are vital for boosting the growth of hotel sector in the coming fiscal year budget 2010-11.
With Nepal Tourism Year 2011 (NTY-2011) in sight, adequate infrastructure such as accommodation has become an immediate necessity in view of the possible surge in tourist arrivals. The government aims to attract a million tourists during NTY-2011.
A number of hotels have been been lying closed due to the decade-long conflict and the ongoing political instability is also hurting the industry.
“Private sector investment in hotel sector is Rs 150 billion and the sector is providing direct employment opportunities to a million people and indirectly to 3 million people,” said Madhav Om Shrestha, Executive Director of HAN.
HAN has also suggested the government operate Nepal Airlines Corporation in Public Private Partnership  model, converting it into a company. The government should immediately create an environment to make the national flag carrier competitive with other international airlines.
The government should enlarge the scope of Tribhuvan International Airport and rope in the private sector for the construction of Pokhara and Bhairahawa airports as regional airports under the Built, Owned, Operated and Transferred (BOOT) model. 
Considering that NTY-2011 is a national campaign, HAN has also
suggested the government provide free visa system for two years in
order to promote Nepal at the international level.
“In order to attract both domestic and international visitor beautification projects should be initiated in the periphery of Narayanhiti Museum and replaced the existing walls with wire-fence so that it can give a proper glimpse of museum from outside also,” Shrestha said.

Sherpa Women taking rest at Khumjung, Syanboche.

Rs 2.3b to ease fertiliser woes
SANGAM PRASAIN
KATHMANDU, JUN 21 -
The Ministry of Finance (MoF) has pledged Rs 2.30 billion for subsidised chemical fertilisers for the next fiscal year after the Ministry of Agriculture demanded more budget to meet the rising fertiliser demand.

The government has allocated Rs 1.50 billion for 100,000 tons of fertilisers, which covers only 20 percent of the total demand.

“The MoF has principally agreed to allocate the said amount in the next budget that will support about 250,000 tons of subsidised fertiliser import,” Hari Dahal, the spokesperson at the Ministry of Agriculture and Cooperatives (MoAC), said.

The ministry had proposed the amount to support import of 300,000 tons of fertiliser to the National Planning Commission.

The MoF has taken the move after fertiliser shortage mounted across the country.

With the existing supply, farmers across the country are suffering from an acute shortage of fertilisers.

After the government announced a subsidy in fertilisers to boost production, the private sector has completely stopped selling fertilisers that was highly expensive compared to the subsidised ones.

Agriculture covers over 4.4 million hectares of the country land, while the overall demand for fertilisers is 500,000 tons. “The amount proposed by the MoF for the next fiscal year is still not enough. However, farmers will surely be a relieved lot,” Dahal said.

He added that about Rs 7-8 billion is required to address the existing demand, while the government is not in a position to spend so much on fertilisers. While the use of fertilisers in Nepal is 20 kgs/hectare, China uses 260 kgs per hectare and India uses over 260/hectare.

Managing director of Agriculture Inputs Company

(AIC), Pashupati Gautam, said the fertiliser shortage will ease to some extent in a week as some amount of it has been imported.

He said the government’s “small budget” is to blame for the shortage.

According to him, the AIC has already distributed 82,000 tons of subsidised fertiliser. As 2,500 tons of fertilisers has arrived, it will ease the shortage in Kathmandu and its periphery to some extent.

The government had stopped distributing subsidised fertiliser in 1998. However, after 12 years, the government again started it after production in the country started to drop significantly and over 35 districts were declared as food deficit.

However, consumer rights activists blamed the shortage on the control of fertilisers by private sector entrepreneurs. They said private sector entrepreneurs are opening the letter of credit for the consignment of fertilisers in the name of AIC “following pressure from ministers.” The activists said there were massive irregularities in the AIC.

Buddha Air's new ATR 72 arrives

SANGAM PRASAIN
KATHMANDU, JUNE 20

Buddha Air has brought in an ATR 72-500 aircraft in a move to expand its services.

The new plane arrived at Tribhuvan International Airport (TIA) on Sunday flying from Abu Dhabi to Kathmandu via Ahmedabad.

The ATR 72 is a twin-turboprop built by French-Italian aircraft manufacturer ATR and seats up to 70 passengers in a single-class configuration.

Buddha Air purchased the aircraft for US$ 7.75 million with payment to be made in instalments spread over three years.

“This aircraft features the lowest seat-mile cost in its class and has great efficiency and reliability and is technically sound,” said Birendra Bahadur Basnet, managing director of the airline.

The new ATR 72 will initially operate on the Kathmandu-Biratnagar sector while the older ATR 24s in its fleet will be reassigned to the Bharatpur, Dhangadhi and Pokhara routes.

Basnet said that the fare for the Biratnagar-Kathmandu flight was expected to go down considerably after the aircraft comes into operation due to its low operating cost.

Buddha Air has recently spread its wings to Paro, Bhutan. The airline was scheduled to launch flights to different cities in India from June, however, the plan has been postponed until September due to technical problems.

The airline had planned to link Kathmandu with Patna, Lucknow and Kolkata using ATR 72 and ATR 42 aircraft. “All these flights will operate at the same time,” Basnet said.

As per the air service agreement (ASA) signed between Nepal and India, Nepali airlines are allowed to operate flights to 26 destinations in India. Buddha Air plans to operate flights to most of these destinations depending on market viability.

Buddha Air owns a fleet of five 18-seater Beechcraft 1900D and three 47-seater ATR 42 and serves nine destinations across the country.

NTCDB holding its breath for coffee logo

SANGAM PRASAIN, JUNE 20, 2010

The National Tea and Coffee Development Board (NTCDB) has been making regular visits to the Department of Industry to get its coffee logo registered after it was assured that it would happen within two weeks.

However, more than three weeks have passed and the board is not sure about getting the much-awaited logo.

“We are making frequent visits after the Department of Industry assured us that the logo would be issued, but things are not going as expected,” said Binay Kumar Mishra, executive director of the board.

He added that the Department of Industry had already awarded the tea logo, and there was no need to delay the coffee logo.

However, the Ministry of Industry said that issuing the trademark might take some time as it was in the process of endorsing the terms of reference.

“The directives regarding the collective trademark have already been issued, and the ministry has sent them to the Department of Industry for implementation,” said Yam Kumari Khatiwada (Banskota), spokesperson at the Ministry of Industry.

According to her, after the issuance of the directives, the Department of Industry will endorse the terms of reference for separate products which will be finally approved by the ministry, so issuance of the coffee logo will take some time.

She said that the Department of Industry was busy assessing the terms of reference as issuing a collective trademark should be clear and sustainable.

With regard to issuance of the trademark, all the private, state-owned or cooperative coffee producers will get a collective trademark confirming that the coffee is produced and certified in Nepal. Coffee produced in any part of the country will be marketed under this single logo.

The board has been raising its voice for the logo for the last four to five years. The board plans to apply for registration of the coffee logo in the international market as soon as the logo is issued here, Mishra said.

The tea logo has already been issued with the brand "The Nepal tea -- A symbol of quality from the top of the world".

Mishra said that the board would start registering coffee producers across the country to gather systemic updates and information about production, export, cultivating areas and the farmers.

According to the NTCDB, the area under coffee cultivation in Nepal has increased to 16,000 hectares in 2009.

Nepali farmers produce the Arabica variety of filter coffee. This is the most popular variety and enjoys a 70 percent share in the global coffee market.

At present, coffee is commercially produced in Nepal in more than a dozen districts including Gulmi, Palpa, Syangja, Arghakhanchi and Lalitpur. In the fiscal year 2007/08, Nepal exported coffee worth Rs. 950 million compared to Rs. 360 million in the previous year.

According to the NTCDB, 40 percent of the coffee produced in Nepal is consumed locally. The annual production of coffee presently stands at 267 tons out of which 127 tons has been exported this year, an increment of 10 percent compared to last year.

Nepali coffee is exported to Korea, Japan, the US and a number of Arab countries.



Strategic plan aims to Boost tea, coffee yield

The National Tea and Coffee Development Board (NTCDB) has proposed a budget of Rs. 1.27 billion to the National Planning Commission in the upcoming fiscal year's budget for a strategic programme aimed at boosting tea and coffee production.

According to the NTCDB, Rs. 1 billion will be spent on developing the tea sector under its five-year strategic plan. Similarly, Rs. 110 million has been earmarked for development of the coffee sector under its three-year strategic plan.

Binay Kumar Mishra, executive director of the NTCDB, said that Rs. 270 million would be spent in the first year (first phase) under the programme.

He said that the strategic plan aimed at increasing production, enhancing and assuring quality and developing markets for Nepali coffee through strong and coordinated action by the agencies concerned.

The board said that production of tea would increase to 30,000 tons annually in five years from the existing 16,700 tons under the strategic plan. Similarly, coffee output would be boosted to 650 tons annually in three years from the existing 300 tons.

The strategic plan aims to generate greater employment in rural areas which will boost the rural economy by opening up new development opportunities.

“If this strategic plan is carried out, the contribution of tea and coffee to the GDP will stand at the top position,” said Mishra. He added that the contribution of tea to the GDP of India was at the second position. “The government should realize the potential of tea and coffee and invest in the sector."

Fertiliser crisis won’t go away
SANGAM PRASAIN

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KATHMANDU, JUN 11 - As chemical fertiliser shortage worsens across the country, farmers are expressing rage at the government by vandalising depots and distribution units in several districts.

Farmers have recently vandalised fertiliser distribution depots in Bhaktapur and Nuwakot. Farmers’ delegations from Bhaktapur and Nawal-parasi met Agriculture Minister Mrigendra Kumar Singh Yadav on Wednesday and Thursday respectively and demanded solution to their problem at the earliest. Farmers in Kavre, Dha-ding, Nuwakot, Dolakha, Sindupalchowk, Bha-ktapur and Kathmandu district are affected by the shortage in particular since paddy planting season has started there with an early monsoon. Minister Yadav responded that the government subsidy in fertiliser had fallen short for this fiscal year.

“The annual national demand of fertiliser has soared to 500,000 tonnes but the government subsidy covers only 100,000 tonnes,” Yadav said. “Considering the problem, we have requested the finance minister to increase the amount for 300,000 tonnes,” he said, adding that fulfilling

the national demand requires Rs. 5 billion while the budget ceiling for the agriculture ministry is Rs 2.30 billion.

On the other hand, the state-owned fertiliser supplier Agriculture Inputs Company (AIC) had only 11,000 tonnes of fertilisers for the current fiscal year. “We imported 2,500 tonnes from India on Wednesday,” said Pashupati Gautam, managing director of the AIC.

According to him, the government had an agreement of importing 50,000 tonnes of fertilisers. “We have paid for importing 15,000 tonnes and had a due for the same quantity,” he said, adding that 7,000 tonnes of the paid for amount would be obtained within two weeks. Similarly, 7,500 tonnes of fertiliser will be imported from Assam in the same period.

“We have the plan of importing 20,000 tonnes of DAP and 10,000 tonnes of Urea from Turkey,” said Gautam. According to him, the letter of credit (L/C) for the shipment of 10,000 tonnes of Urea and 10,000 tonnes of DAP from Turkey has been opened.

Although the government has claimed that the shortage has aggravated in Kathmandu and its periphery, farmers in Tarai districts are hit harder as Indian authorities have tightened unlawful export.

CIAA orders CAAN to halt payment

SANGAM PRASAIN
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KATHMANDU, JUN 11 - The Commission for Investigation of Abuse of Authority (CIAA) has issued an order to the Civil Aviation Authority of Nepal (CAAN) to halt the release of a sum of Rs. 60 million as approved by its board to Sambu Construction Co. of Korea.

A contract to expand the international terminal building, operation airlines complex and car park at Tribhuvan International Airport (TIA) for Rs. 1.20 billion had been awarded to Sambu Construction on July 9, 1999, the CIAA said.

Citing delays in construction due to technical problems that emerged while levelling

the ground inside TIA and bandas and other hassles, the company had claimed Rs. 160 million more as compensation from CAAN.

The CAAN board had approved a sum of Rs. 60 million to be paid as compensation two weeks ago. It decided to release the money by increasing the variation order under the TIA improvement project package 1 as it said Sambu Construction had refused to accept compensation of less than Rs. 60 million.

The board consisting of coordinator Ratish Chandra Lal Suman, (CAAN deputy director general), member Phanindra Gautam (under secretary at the Ministry of Law and Justice), officiating member Alok Chandra Shrestha (joint secretary at the Ministry of Tourism and Civil Aviation), member Basudev Lal Shrestha (director, finance department, CAAN) and member Prem Raj Lohani (director, TIA improvement project) endorsed the decision to release Rs. 60 million.

Phanindra Gautam had registered a note of dissent saying that CAAN would end up paying Rs. 12.8 million more if it approved the release of Rs. 60 million. “I was not satisfied with the board’s decision to release the said amount,” Gautam said.

“The CIAA has seized documents related to the TIA improvement project and payment procedures for further investigation,” said CIAA spokesperson Ishwori Poudel.

The government had released an additional Rs. 6.7 million to complete the ground levelling and earth removing work. However, the contractor had submitted a bill for Rs. 54.7 million in 2001 citing technical reasons and delays. Technicians have said that Rs. 7 million would have been sufficient for the work.

East Asian arrivals take to Nepal sky

SANGAM PRASAIN

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KATHMANDU, JUN 15 - Nepal is becoming a major spiritual tourism destination for East Asian travelers attracted by Lumbini, the birthplace of the Buddha, and other religious spots.

Although not much attention has been paid to marketing and promoting Buddhist sites, the number of religious visitors has been growing each year.

The World Bank South Asia Economic Update 2010 reveals that travelers from East Asia made up 26.5 percent of the total tourist arrivals in Nepal.

The statistics of the Nepal Tourism Board also reflect a similar trend. Tourist arrivals from China, South Korea and Thailand have been increasing in the past few years. The numbers have surged since 2006 after the signing of the comprehensive peace accord.

The number of Chinese arrivals in Nepal has increased by 185.97 percent in the last three years. Around 19,000 Chinese tourists visited Nepal in 2009. In the three years from 2006 to 2009, tourist arrivals from South Korea, Singapore, Thailand and Malaysia have soared by 68.40 percent, 164.26 percent, 83.48 percent and 46.32 percent respectively.

Travel trade analysts attribute the increment in East Asian arrivals to their rising income levels, desire to visit the birthplace of the Buddha and better air connectivity. Currently, three Chinese airlines operate flights to Nepal with China Eastern Airlines being the latest entrant.

"The Budhha's birthplace and Buddhist stupas and monasteries are major attractions that have helped in the growth of East Asian arrivals in Nepal," said Ram Kaji Koney, past president of the Nepal Association of Tour and Travel Agents (NATTA).

He added that arrivals could be doubled if adequate attention was paid to promoting Lumbini and other Buddhist sites in East Asia.

The growth in inbound from East Asia has prompted the concerned stakeholders to pay special attention to the region.

Nepal is expecting 100,000 tourists from China during Nepal Tourism Year 2011 while it has targeted a 20 percent increment in tourist arrivals from other East Asian countries.

With immediate neighbours China and India also targeting East Asian tourists, Nepal will have to play its card smartly to woo East Asian visitors. Both China and India have also targeted East Asia as a prime tourism source.

Nepal has not capitalized on Lumbini’

SANGAM PRASAIN
APR 01 -2010
Dr. Victor Wee is chairman of Malaysia Tourism Board and also chairman of the United Nations World Tourism Organization (UNWTO) Programme Committee. He is a former secretary-general of Malaysia's Ministry of Tourism. He was also chairman and overall coordinator for the Visit Malaysia Year 2007 campaign, which saw a 19.5 percent hike in tourist arrivals in 2007 compared to the previous year. The Kathmandu Post talked with Dr. Wee about how Nepal's ambitious target to bring one million tourists during Nepal Tourism Year 2011 could be realised. Excerpts:



Tell us about your relationship with Nepal.



I was invited to speak at the 40th annual general meeting of Hotel Association Nepal (HAN). Before this, I had been invited to speak at the PATA conference held on Feb. 1. I had also been invited by Nepal's Ministry of Tourism and Civil Aviation. At that time, I had talked about how the country could make NTY 2011 a success. At the previous conference, I had mentioned how Lumbini could be accessed as a gateway for pilgrims by linking up and bringing low-cost carriers.



Which markets should we be concentrating on?



My latter presentation was titled "Breaking into new markets with product innovation". I have noticed that the national campaign run by the government aims to attract tourists from Europe. If you look at the global mega trend, Asia has become a rich market for tourism, and more emphasis and marketing should be done for this region. A successful campaign will require close cooperation between the government and tourism players.

Tourism in Asia Pacific is growing rapidly. By 2010, it is estimated that about 400 million tourists will come from this market. In context of Nepal, the two emerging markets, China and India, are the potential markets due to short-haul routes. Really, Nepal is in a strategic position.

For the Asia Pacific market, Lumbini needs to be developed. Air Asia, Malaysia is prepared to come to Nepal. Apart from Malaysia, the Buddhist pilgrims market for Nepal are Thailand, Vietnam and Sri Lanka. Nepal still has not capitalised on or taken advantage of Lumbini.



What would you suggest to Nepal's tourism players and the Nepal Tourism Board to make NTY 2011 a success? What lessons can be learnt Malaysia?



The success of the Malaysian tourism sector is due to the highest commitment of the government. Second, close coordination with the industrial players and local levels; and third, organising regular promotional events. The tourism players should not only focus on the traditional source markets in the Western countries when you draw up your marketing plans and overlook the mega trend of the big increase in income and travel that is occurring in the Asia Pacific region.

New markets are opening up in Eastern Europe, Central Asia, Russia and the Balkan countries; and attracting tourists from these new destinations requires your participation in international expos and trade fairs.



Malaysia is a prominent destination for Nepalis, but arrivals from Malaysia are small.



Yes, there are more than half a million Nepali workers in Malaysia. It's very huge, and the flights are largely filled by the workers. In addition, there is only one airline, Nepal Airlines, connecting Malaysia. You need to have more flights. Some Malaysian airlines are showing interest to connect Kathmandu. They will sell the destination so Nepal needs to embark on an awareness campaign early.



What must Nepal do to meet the envisaged target of one million tourists?



Nepal needs to start its promotional campaign right now so that tourists interested in visiting Nepal know about the new products and destinations. Similarly, Nepal should decentralise its destinations. Instead of concentrating on Kathmandu, Pokhara and Chitwan need to be explored as new destinations.

Likewise, tourist sites should be kept clean. More infrastructure must be developed. Most importantly, creation of a business friendly environment and peace and stability are the key to propelling tourist growth.

Hotels hike tariff 25-40pc

SANGAM PRASAIN
KATHMANDU, JUNE 7

Kathmandu's five-star hotels have upped their rates by 25-40 percent encouraged by a steady increase in tourist inflow.

According to the hoteliers, expanding arrivals, additional facilities and renovation costs are the reasons behind the increase in tariff.

The Shangri-La, de l’ Annapurna, Hyatt Regency, Yak & Yeti and Everest have hiked their accommodation charges by 20-45 percent.

The cost of a standard single room at these hotels ranges from US$ 85-200 while a double room goes for US$ 120-250 excluding service charge and taxes.

The Shangri-La has increased its room rates by 30-40 percent. “With the renovation done recently, the hotel offers improved facilities, and the price is reasonable considering the additional comforts and quality of service,” said front office manager Rabina Dali.

Dali added that the tariff for a single room has been revised to US$ 100 excluding service charge and taxes. A double room costs US$ 120 without taxes. Indian guests are charged IRs. 4,000 and Nepali guests pay Rs. 3,500 excluding taxes.

Amir K. Pradhananga, director of sales at the Everest, said their accommodation charges had been hiked by 30 percent. A single room now costs US$ 85 and a double room US$ 90 excluding taxes. He added that the rates of five-star hotels in Nepal were lower than in India and other South Asian countries.

Raj Bahadur Shah, sales manager of the de l’ Annapurna, said they had been forced to increase the tariff because costs had gone up because of double-digit inflation. A single room now costs US$ 85 and a double US$ 95 excluding taxes. The charge for Indian tourists is IRs. 4,000 for a single and IRs. 4,500 for a double.

The Hyatt Regency charges US$ 110 for a single and US$ 120 for a double. Indian tourists are charged IRs. 5,000 for a single and IRs. 5,400 for a double.

“We revise the rates on a regular basis, however, the recent increase is the first in two years,” said Anee B.C., reservation officer of the Hyatt.

The Yak & Yeti charges an average of US$ 190 for a single and US$ 205 for a double.

Travel trade entrepreneurs said that hotels used to charge US$ 135-185 for a single room in 1999 when the country recorded the highest tourist arrivals. In 2009, the number of tourists arriving by land and air amounted to half a million.