Saturday, November 27, 2010

Release of budget revitalises NTY campaign

SANGAM PRASAIN
KATHMANDU, NOV 26 -
The budget has finally come out allowing the government and the private sector to start work on programmes to promote Nepal Tourism Year 2011. A line-up of actions is to be tabled at a meeting scheduled to be held on Sunday, a government official said.

“We have been allocated Rs 230 million for the promotion of NTY, and budgeting has to be done,” said Tourism Ministry spokesperson Laxman Prasad Bhattarai.

Although the NTY 2011 implementing committee and the government had planned to launch a massive campaign at the domestic and international levels, they had been hamstrung by a delay in the budget. “Now that the budget has been issued, the money will be spent on national and international promotion, capacity building and inaugurating the much-waited day on Jan. 14,” Bhattarai said.

The government has decided to launch advertising and promotional activities to make the NTY 2011 campaign a success and attract one million tourists in 2011, “We could not start international promotion without the budget. The budget may have been late, but it has brought cheer,” said Ranjit Acharya, member of the NTY 2011 promotion committee. According to him, a large chunk of the budget will be spent on international promotion.

The NTY 2011 promotion committee plans to focus on India and China. In India, NTY will be promoted through television and print advertisements. However, considering the high costs of conducting a publicity campaign in China, the committee has planned to do it through public relations, online and web-based programmes. News conferences, brochures and official websites will be used to attract Chinese visitors.

Apart from the neighbouring markets, NTY has targeted Thailand, Malaysia and Singapore in East Asia, Acharya said. In Europe, promotional campaigns will be launched in Germany, the UK, Switzerland and Denmark. “In the US, we are planning to do SMS and online campaigning,” he added. Likewise, the committee also plans to go to Qatar and Dubai.

“It is important to have coordination and communication with private stakeholders for a proactive and professional approach. In this regard, the private sector will focus on the trade aspect,” Acharya said.

Wednesday, November 24, 2010

Tourism on the Road to Recovery

SANGAM PRASAIN
KATHMANDU, NOV. 25

Nepal's tourism industry is recovering from a six-year slump following the ceasefire and the start of the peace process. According to the preliminary figures released by the Pacific Asia Travel Association (PATA), South Asia recorded a 3 percent decline in arrivals in 2009. However, arrivals rebounded strongly for Nepal during the period resulting in full-year gains of 1 percent.

Similarly, the preliminary data of the Ministry of Tourism and Civil Aviation for 2009 shows that arrivals increased by 1.1 percent compared to the previous year.

Last year, tourist arrivals numbered 509,752 including 378,712 by air and 131,040 by land. In 2008, arrivals stood at 500,277 including 374,661 by air and 125,616 by land.

Tourism entrepreneurs said that the gradual growth was a sign that tourism was getting better with an improvement in the political situation.

According to the International Trade Centre (ITC), Geneva, tourism earned Nepal US$ 352 million in 2008.

The ITC has identified tourism as a potential growth sector. The prospects are likely to expand with the Nepal Tourism Year 2011 campaign. The ambitious promotion plans to double tourist arrivals during 2011. Tourism entrepreneurs are hopeful that India and China will be a potential market to meet the envisaged goal.

The NTY implementation committee has projected that the southern and northern neighbours will contribute 40 percent of the arrivals out of the targeted one million.

"We are aiming for 265,000 visitors from India and 100,000 from China," said Yogendra Sakya, coordinator of the NTY implementation committee.

"The Chinese are attracted to Nepal for business opportunities," Shakya said. Pilgrimage is a chief lure for Indian tourists.

"We don't have new products presently, however, the focus will be on international events and activities," he said.

Apart from mountaineering and trekking, golf, cricket and other sports and adventure activities are expected to pull in young visitors.

The pledge made recently by 19 political parties not to organize bandas or strikes during 2011 is another encouraging development for NTY.

"This has removed the obstruction to marketing our products," said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board.

"With the commitment made by the political parties, there will be a substantial improvement in the travel advisories about Nepal," he added. "We can assure international visitors that Nepal is a safe destination to visit through the travel advisories."

Where fruits reap no benefit for growers

SANGAM PRASAIN
KATHMANDU, NOV 25 -

Nepal produces 250,000 tons of oranges annually, but only 10 percent of this output reaches the market due to inadequate transportation facilities, poor market access and dismal export performance.

According to the Ministry of Agriculture and Cooperatives, only 23,000 tons are shipped to buyers while the rest ends up as food for livestock. A ministry official said that although demand has not expanded and orange farmers are yet to learn how to get better prices, recent data shows that orange growers have been enlarging the area under cultivation.

Orange output amounted to 260,054 tons in the fiscal year 2009-10. The area under cultivation has increased to 23,098 hectares from 6,250 hectares in the last 10 years. Similarly, output increased to 260,854 tons from 66,654 tons during the same period, the ministry’s data showed.

Agriculture Ministry spokesperson Hari Dahal said that poor exports and supply in the domestic market due to inadequate transport facilities had prevented orange growers from reaping benefits.

The country exported 830 tons of oranges and 10,656 tons of orange juice in 2009-10. Orange is grown in over 54 districts, particularly in the hilly areas. Orange accounts for 25 percent of the total fruit production. Apart from poor transport facilities, ineffective collection, inadequate cold storage facilities, poor market access and low prices have prevented producers from getting the real value of their production, Dahal said.

Although the area under cultivation and productivity have increased in the last decade, the benefit for farmers has not grown proportionately. Orange production has overtaken mango production, which was at the top position. “In terms of value, oranges worth Rs. 10 billion are produced annually,” Dahal added.

Considering the increasing interest of farmers towards orange cultivation, the country could produce oranges worth Rs. 20 billion in a couple of years. However, the government should bring an appropriate incentives package to boost output, he said.

The Western Development Region is the largest producer of oranges accounting for 40 percent of the total output. Syangja is the largest orange producing district with a total output of 11,732 tons in 2009-10. Lamjung stood second with 10,814 tons followed by Tanahu (9,631 tons), Salyan (8,598 tons), Kavre (7,565 tons), Gorkha (7,011 tons), Dhading (6,341 tons), Terhathum (7,193 tons) and Dhankuta (95,935 tons).

Lukla No 8 in world’s 10 most thrilling airports

SANGAM PRASAIN
KATHMANDU, NOV 24 -

Lukla Airport, the gateway to the Everest region, has been ranked eighth among the world’s top 10 stunning and inspirational airport approaches by PrivateFly.com.

The private jet-booking agency based in St. Albans, Hertfordshire has suggested its 10 recommended airports to adventure lovers as “A View to a Thrill”.

The surrounding terrain, thin air, highly changeable weather and the airport’s short, sloping runway make it one of the most challenging landings in the world. History Channel’s Most Extreme Airports programme has ranked Lukla as the most dangerous airport in the world.

Lukla is a 35-minute flight from Kathmandu. It is the busiest domestic airport in the country, handling more than 50 flights daily during the tourist season. Only short take off and landing (STOL) airplanes can land at Lukla.

The runway is 351 m long and rises over 30 m from the bottom to the top, giving it an angle of about 10 degrees. The airport lies at an elevation of 2,800 m.

It was built in the 1960s with the support of Sir Edmund Hillary.

In January 2008, the airport was renamed Tenzing-Hillary Airport in honour of the first Everest summitters.

PrivateFly.com has named Sion Airport in Switzerland the perfect touchdown at Europe’s most stunning airport. St. Maarten-Princess Juliana Airport in the Netherlands was placed third.

St. Barts in the Caribbean, Gibraltar, St. Gallen-Altenrhein in Switzerland, Madeira Funchal in Portugal and London City airport come after Lukla as the most thrilling and adventurous airports.

Monday, November 22, 2010

Gasoline prices expected to increase

SANGAM PRASAIN
KATHMANDU, NOV 23 -

The budget has increased the charge levied on petrol and diesel under the road maintenance and upgrading head which means that Nepal Oil Corporation (NOC) will soon pass the additional burden to consumers.

The budget has hiked the road maintenance and upgrading charge on petrol to Rs. 4 per litre from Rs. 2 and to Rs 2 per litre on diesel from Rs 1, according to an NOC official.

The government has raised these charges as revenue from petrol and diesel for maintenance and upgrading of roads. With the increment, NOC will have to pay Rs 28.44 on a litre of petrol and Rs 11.56 on a litre of diesel as revenue.

NOC general manager Digambar Jha said that the hike in road maintenance and upgrading charges by the new budget has resulted in losses amounting to more than double to NOC.

“The move has compelled us to seek a revision of the existing price structure of petrol and diesel,” said Jha.

The hike has compelled NOC to bear additional expenses of Rs 32 million on petrol and Rs 65 million on diesel each month. The fresh hike will compel NOC to incur a loss of Rs 3.25 on a litre of diesel. The profit on petrol has dropped to Rs. 1 per litre.

The state-owned monopoly had increased the price of petrol by Rs 3 per litre and diesel by Rs 2.50 per litre on July 6. Since then, NOC had been enjoying a profit of Rs 5 per litre on petrol and Rs 0.76 on diesel. “We were optimistic that the new budget would consider the value added tax (VAT) on LP gas. Instead, the budget added a greater on NOC,” Jha added. It loses Rs 144 on each cylinder of gas.

NOC had been requesting the government for a VAT reduction on LP gas for a long time.

The country consumes 16 million litres of petrol monthly while diesel consumption amounts to 60 million litres.

“NOC’s total losses will climb to Rs 187 million per month from the existing Rs 90 million,” the NOC said.

Jha said that the government decision to hike the fuel price was not reasonable. “The increment on diesel will push up transport fares which will adversely affect the market price.”

Petroleum is the government’s largest revenue earning commodity. In the last fiscal year, the government raised Rs 12. 82 billion as revenue from NOC.

Sunday, November 21, 2010

Human error blamed for Agni Air crash

SANGAM PRASAIN

KATHMANDU, NOV 22 -

Human error appears to be the cause behind the crash of Agni Air's Dornier aircraft on August 24 during a scheduled passenger flight from Kathmandu to

Lukla, according to an Agni Air's accident report made public here on Sunday.

The investigation commission report said that the technical aspect of the twin-engine plane was a secondary cause. However, human errors -- not following the flight checklist and lack of advice to deal with the emergency -- were found to be the major cause of the accident.

Although the pilot had an option to prevent technical errors, he was unable to get suggestions from the ATC and Agni Air's pilots in such a critical situation that were in communication with him. "But nervousness ruled more in the last hour making the pilot take his independent decision and made him forget regular checklist procedures," a source said. "We assumed that the captain forgot to switch off the battery before lowering the landing gear," said engineer Sharada Bhakta Rajbhandari, presenting the technical aspect of the report.

When the two generators of the aircraft were died, its battery could provide power for about 30 minutes. "However, the battery lasted for only 13 minutes as a result of bringing the landing gear down using the electric hydraulic pump without switching off the battery power that had consumed maximum power," Rajbhandari said. As soon as the landing gear was lowered, the aircraft lost speed and balance that made the aircraft uncontrollable and it nosedived to the ground. The investigation commission determined that the accident took place due to spatial disorientation of the flight crew, after the loss of altitude indication because of the total loss of battery power causing the aircraft go into an uncontrolled dive to the ground. Weather at the time was severe in terms of rain, cloud and visibility. Visibility was less than 500 m.

On August 24, the Agni Air’s aircraft crashed at Bastipur of Sikharpur VDC in Makwanpur district killing 14 passengers

on board. The aircraft dived from an altitude of 11,500 ft and impacted the ground at an elevation of 1,760 ft and disintegrated completely.

The investigation commission report also said that there was no emergency declared despite using the emergency checklist for double generator failure, which required the aircraft to land (Aviation Safety Action Program) ASAP. "If the flight captain was able to declare an emergency after knowing that both generators had failed, it should be a different story," said Rajbhandari.

The flight had contacted Agni Air's instructor pilots and the ATC after problems were seen in the aircraft. "The ATC lacked proper information about the technical status of the aircraft and thus failed to understand the gravity of the situation." Agni Air's instructor pilots who were in communication with the aircraft failed to provide suitable suggestions to handle the situation, the report said.

The investigation commission for the Agni Air crash said that there was no recording of

the initial 15 minutes after take-off in the Cockpit Voice Recorder (CVR), which they said was a serous issue.

Meanwhile, minister for Tourism and Civil Aviation Sharat Singh Bhandari said that his ministry was committed to making an in-depth study of air crash reports. "Reports of past air accidents will also be studied and appropriate remedies implemented to make the Nepali skies more reliable,” he said.

Findings

• The aircraft had dual generator failure and was powered for about 13 minutes

on battery

• The landing gear was found extended in the aircraft

• Language spoken in cockpit was ambiguous and non-standard

• No emergency was declared despite using the emergency checklist for double

generator failure

• Agni Air's instructor pilot who were in communication with the aircraft failed

to provide suitable suggestion

• The aircraft was released by maintenance personnel for IFR operations despite its lacking of proper standby power supply

Tuesday, November 16, 2010

Nepali coffee gets its logo

SANGAM PRASAIN

KATHMANDU, NOV 17 -

The National Tea and Coffee Development Board (NTCDB) has finally received approval for its coffee logo from the Department of Industry after a three-year effort. The board had applied for the trademark in 2007.

The “Himalayan Specialty, Nepal Coffee” logo will be launched on National Coffee Day on Wednesday. All private, state-owned and cooperative coffee producers will get the collective trademark confirming that the coffee has been produced and certified in Nepal. Coffee produced in any part of the country will be marketed under this single logo.

Coffee traders will have to pay the board a fee amounting to 1 percent of the value of the invoice to use the logo, said executive director Binay Kumar Mishra of the board.

Nepali coffee producers and traders have been encouraged by the issuance of the much-awaited logo as it would promote the country’s organic coffee among international buyers. Coffee traders said that the logo would help Nepal to exploit the full potential in the existing markets besides opening up new markets. Nepal’s coffee is currently exported to Japan, the US, Korea and Europe. The board is also confident of gaining membership to the International Coffee Organization (ICO) after the issuance of the trademark. “We only have observer status; now we can apply for full membership,” said Mishra.

The board has sent a proposal in this regard to the Agriculture Ministry which will be further discussed at the Finance Ministry and the Foreign Ministry. Membership in the ICO costs Rs. 700,000 annually.

“After joining the ICO, information about Nepal’s coffee will be included in its database which

will be accessible to traders from across the world,”

said Mishra.

He added that the board planned to apply for registration of the coffee logo in the international market and was seeking government support to do it.

Royal’s exit bursts TIA seams

SANGAM PRASAIN

KATHMANDU, NOV 17 -
Given bad daylight along with the departure of Saudi Arabia’s Prince Al-Waleed bin Talal via Tribhuvan International Airport (TIA), the country’s sole international airport, over 70 domestic flights were affected on Tuesday. One international flight -Silk Air- was diverted from the Nepali sky due to difficulty landing at TIA, its official said. Silk Air diverted to Lucknow.

On Tuesday, TIA opened at 10:30 am as opposed to its usual opening time of 6:30 am. TIA general manager Dinesh Shrestha said it was due to bad weather conditions. However, the departure of the Saudi Arabian prince also contributed to cancellations of domestic departures and holding up numbers of arrivals in the sky. Yeti Airline cancelled 10 flights while sister airline Tara Air cancelled 35 flights. Buddha Air’s 13 flights were affected while other airlines’ movements were cancelled, private air operators said. However, TIA permitted all the international flights.

Flight cancellation stranded large numbers of passengers. Domestic air operators said operating cost rose to massive level even as they had to face the wrath of passengers. “Passengers to Pokhara scheduled for 8:30 am departure today were flown at 4:10 pm,” the airlines source informed. Likewise, aircraft that were looking to land on TIA were also given ‘hold in air’ direction. Holding for more than 60 minutes forced numbers of aircraft to return when they started running out of fuel. “We were ordered to hold flights for more than 60 minutes in the air. Aircraft do not have adequate fuel to hold for long

periods. That compelled us to divert flights,” he added. “We are not prioritized as compared to the international flights,” said Pradip Shah, marketing manager of Yeti Airlines. Delay in domestic flights is not new for TIA. Passengers and aircraft face long delays in departure and arrivals when TIA sees VIP departures or arrivals.

A TIA source said they are betweeen the devil and deep sea due to limited infrastructure and resources. “If we prioritize domestic flights, we face international pressure concerning safety and security.” General manager Shrestha, however, pointed out that international airlines make their flights by instrument flight rules (IFR) system that allows pilots to fly through clouds. “International flights used IFR to operate.”

Sunday, November 14, 2010

Coffee becomes a key cash crop for Nepali farmers

SANGAM PRASAIN
KATHMANDU, NOV 15 -

Nepal’s coffee production has soared over the last decade as an increasing number of farmers switched from poor-paying silk and honey to coffee.

According to the Agriculture Ministry, coffee output increased from 72 tons in 2000 to 384 tons in 2010. Production in 2009-10

was up 15 percent compared to 2008-09.

Higher earnings from coffee have encouraged farmers to expand the land under cultivation five-fold from 314 hectares in 2000 to 1,650 hectares in 2010.

The Agriculture Perspective Plan did not give priority to coffee and the Asian Development Bank did not incorporate it as a high-value product during the implementation period as silk and honey were considered to have high export potential. However, farmers took to growing coffee prompted by rising demand and better incomes.

Farmers in Lalitpur were the first to grow coffee in Nepal, which now has expanded to over 25 districts across the country.

Farmers in Palpa, Syangja, Arghakhanchi, Lalitpur, Makwanpur, Gulmi, Kavre and Sindhupalchok including 17 other districts across the country are aggressively engaged in commercial coffee cultivation with demand for organic coffee soaring in the global market. Lalitpur and Gulmi are the major coffee producing districts in Nepal.

“The country could reap huge benefits if Nepali coffee could be properly marketed at the international level,” said Agriculture Ministry spokesperson Hari Dahal.

In order to promote commercial coffee farming and boost its export, the government had prepared a three-year strategic plan. However, the plan has been stuck at Department of Industry. As per the plan, the National Tea and Coffee Development Board (NTCDB) had applied for the get its coffee logo registered at the department.

After the issuance of the logo by the department, all the

private, state-owned or cooperative coffee producers will get a collective trademark confirming that the coffee is produced and certified in Nepal.

Although coffee output was up significantly, it fell short of the target by 50 percent. The government’s three-year interim plan had projected production to cross 685 tons by the end of the plan period (2009-10). Dahal said the target could not be reached due to low productivity. Nepal’s productivity stands at 300 kg per hectare, way below the world average of 2 tons per hectare.

Nepal exports about 65 percent of the total coffee produced. The country started exporting coffee commercially in 2000 with a shipment of 9 tons. In 2008-09, it exported 88 tons of coffee worth Rs. 790 million.

Japan, South Korea, the US, Canada, India, the UAE and Bhutan are Nepal’s major markets. Exporters said that there was high demand for organic coffee in the international market.

According to the International Coffee Organization, world coffee exports in 2009-10 amounted to 93.8 million bags (one bag contains 60-70 kg). The US and Brazil are the largest importer and exporter of coffee respectively in the world.

Saturday, November 13, 2010

Soaltee, Tara Gaon gain

SANGAM PRASAIN
KATHMANDU, NOV 12 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 28.68 million and Rs 18.81 million respectively for the first quarter (July-September) of the current fiscal year. The five-star properties saw their incomes rise with tourist arrivals swelling during the period even though it is considered to be a non-tourist season.

The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year to some extent. The hotel was in the red by Rs 5.53 million in Q1 of the last fiscal year.

According to the analysis report released by the management of the Tara Gaon, improved tourist movement from July to September pushed up its occupancy to 57 percent from 36 percent in the same period in the last fiscal year.

“Hence, the hotel was able to make a good profit compared to the business it had in past years,” the report said. The hotel has targeted increasing the occupancy rate to 60 percent and earn a profit of Rs 360 million at the end of the current

fiscal year.

The hotel plans to offer a “special rate” to attract customers during the off-season. Meanwhile, the Soaltee’s profit increased 27 percent to Rs 28.68 million in Q1 from Rs 19.40 million in the same period in the last fiscal year.

According to the Soaltee’s analysis report, a 23 percent growth in tourist movement by air from July to September and non-occurrence of strikes and bandas, which have badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase its business in the days ahead.

Although July-September is considered to be a lean season, inbound tourism during the period has been rising steadily of late. According to the government’s statistics, arrivals by air in July amounted 29,338, up 26.09 percent from last year. Similarly, arrivals in August and September were up 24.30 and 20.60 percent to 34,415 and 41,331 respectively.

NTY to be launched at 8 border points

SANGAM PRASAIN
KATHMANDU, NOV 12 -
After the launch of Nepal Tourism Year 2011 in Kathmandu and other major cities across the country, the Tourism Ministry and the NTY 2011 implementation committee plans to take the campaign to all the major border towns.

NTY 2011 will be inaugurated in Kakkarbhitta, Birgunj, Biratnagar, Bhairahawa, Nepalgunj, Mahendranagar, Dhangadhi and Janakpur simultaneously on Nov. 16.

The programme will start with a cleaning campaign with the participation of government agencies, businesspersons and local residents.

“The objective of the campaign is to inform people about the need to keep the cities and border points clean besides providing warm hospitality to visitors who come overland,” said Tourism Ministry spokesperson Laxman Prasad Bhattarai.

A recent survey done by the Nepal Tourism Board showed that 429,455 tourists entered Nepal overland in 2009. Among them, Indian visitors numbered 298,821. NTY 2011 has targeted bringing one million tourists including 300,000 overland tourists. “The move is an effort to decentralize the NTY 2011 campaign and gather support at the regional level to make the campaign a huge success,” said NTB spokesperson Aditya Baral.

Baral added that the programme aimed to sensitize local people at the tourist entry points about the national campaign and revamp the existing facilities. “Improving immigration procedures, simplifying frontier formalities and building rest areas for tourists have been planned to make things as convenient as possible for visitors,” he said.

According to the NTB survey, Belhiya (Bhairahawa) was found to be the most important border point in terms of Indian tourist arrivals with almost 33 percent of them entering Nepal through here. Other major entry points are Vittamod (Janakpur) with 19 percent, Birgunj with 17 percent and Kakkarbhitta with 14 percent.

On Feb. 26, Prime Minister Madhav Kumar Nepal launched NTY 2011 in Kathmandu. The event then moved to Pokhara on April 12 and to Bhairahawa, Nepalgunj and Biratnagar on April 13, April 21 and April 23 respectively.

Thursday, November 11, 2010

Nepal-IRRI to sign deal

SANGAM PRASAIN
KATHMANDU, NOV 12 -

The Nepal government and the International Rice Research Institute (IRRI) are to sign an agreement to collaborate in rice research and rice technology development.

The Ministry of Agriculture and Cooperatives had submitted a proposal in this regard to the council of ministers that was approved by its bill committee on Oct. 27. The committee has also approved the memorandum of understanding signed between IRRI and the government. The secretary of the Agriculture Ministry and the director general of IRRI signed the memorandum on behalf of their respective organizations. According to a ministry official, the two sides will hold a discussion on the agenda and fix the date for the signing.

As per the proposed pact, the collaboration term will last for five years which can be renewed, the official said. “Collaboration with IRRI will be a milestone in research on Nepali rice and its development,” said ministry spokesperson Hari Dahal. He added that it would also contribute to formulating a rice policy in Nepal. Nepal is in the 17th place among the world’s rice producing countries. Last year, rice output amounted to 4.5 million tons. However, the country faces a rice deficit of 316,000 tons, said the Agriculture Ministry.

Nepal produces Rs 2.66b worth of bananas yearly

SANGAM PRASAIN
KATHMANDU, NOV 11 -
Nepal produces banana worth Rs. 2.66 billion annually, according to government statistics. The country produces 88,849 tons of banana on 5,714 hectares of land. The banana output accounts for 0.4 percent of the Agriculture Gross Domestic Product (AGDP).

Although, bananas are grown across the country, the Tarai plains lead in output. Kailali is the top banana producing district in Nepal with production in the last fiscal year reaching 11,558 tons.

Other large producers are Morang, Nawalparasi, Chitwan, Sunsari, Rupendehi and Kapilvastu. Production in these districts amounted 10,635 tons, 8,021 tons, 6,202 tons, 6,038 tons, 3,661 tons and 2,893 tons respectively.

According to the Food and Agriculture Organization (FAO), Nepal ranks 56th in banana production in the world.

India is the world’s largest producer. In 2008, India’s output amounted to 26.29 million tons worth US$ 3.73 billion. After India, the Philippines is the second largest banana producer with a total output of 8.68 million tons, followed by China (8.42 million tons) and Brazil (6.99 million tons).

Nepal has six different species of banana. “If the country steps towards commercial banana farming, Nepal’s land has the potential to yield 15-20 tons per hectare,” said Agriculture Ministry spokesperson Hari Dahal. Fruits traders said that the banana supply in Kathmandu amounted to 20,187 tons worth Rs. 600 million at wholesale prices in the first seven months of the current calendar year.

“Of the total supply, 76 percent is produced in Nepal while the rest is imported,” said Narayan Dhital, president of the Fruits Traders Association. About 24 percent of the bananas consumed in Nepal is imported from India.

Though the fruit are available in all seasons, Dashain, Tihar and Chhath are the major events when consumption of bananas surges in Nepal. With traditional crops like rice, wheat, maize and millet having lower yields in recent years, farmers are switching for cash-crops like banana of the late. According to Agriculture Ministry, there has been increment in the commercial banana farming in Nepal.

Wednesday, November 10, 2010

Target: Chinese outbound

National Tourism Council okays proposal to provide free visas to tourists from China

SANGAM PRASAIN
KATHMANDU, NOV 11 -

The seventh meeting of the National Tourism Council held recently under the chairmanship of Prime Minister Madhav Kumar Nepal has endorsed a proposal to provide free visas to Chinese tourists in a bid to attract more visitors from the northern neighbour during Nepal Tourism Year 2011.

If the Ministry of Finance and the Ministry of Home Affairs agrees to the plan, it will be sent to the cabinet for final approval, a government official said.

The Ministry of Tourism and Civil Aviation moved to provide free visas to Chinese tourists in response to the proposal

made by the Chinese side during the fourth meeting of the Nepal-Tibet Joint Tourism Coordination Committee held in Lhasa on Sept. 14. Visas will be provided gratis for the duration of the NTY campaign period.

“Chinese travellers are interested in visiting Nepal, and the free visa scheme proposed by the Tourism Ministry can be a major factor in attracting Chinese outbound,” said ministry spokesperson Laxman Prasad Bhattarai.

China has become one of the world’s most watched outbound markets. According to the China Tourism Academy, the number of Chinese tourists in 2010 is estimated to reach 54 million. China is also projected to become the fourth largest source of outbound tourism in the world by 2020.

Nepal has been providing free visas to visitors from the South Asian Association for Regional Cooperation (SAARC). Other

foreign travellers are charged

US$ 25 for 15 days and US$ 40 for one month.

Nepal has targeted bringing 100,000 Chinese visitors during NTY 2011. Since 2009, there has been a modest growth in Chinese arrivals to Nepal. According to the Nepal Tourism Board, Nepal received 18,677 Chinese visitors in 2009 against 14,076 in 2008, a growth of 32 percent. Arrivals in 2009 accounted for 5 percent of the total inbound.

Chinese arrivals by air as of October 2010 amounted to 20,933 to take the fourth place after India (85,655), the US (27,217) and the UK (26,033). According to the World Tourism Organization, rising middle class incomes and a pent-up demand to see the rest of the world have made China one of the most significant outbound tourism markets. Similarly, easing of controls on foreign travel has also contributed to a surge in Chinese outbound.

In terms of outbound travel spending, China is currently ranked fifth and is expected to be the fastest growing in the world from 2006 to 2015, jumping into the number two slot for total travel spending by 2015, said the WTO. Chinese nationals spent US$ 19.1 billion on tourism abroad in 2004. Chinese tourists are among the biggest spenders when they travel overseas, making them a highly desired market.

China has been the leading source of outbound tourists in Asia since 2003, though most Chinese tourists (71 percent in 2005) only go to Hong Kong and Macau. The WTO said that the impact of Chinese outbound tourism started to be felt in Asia (17 percent in 2005) with far fewer going to Europe (5 percent in 2005) and elsewhere. By 2020, China is projected to produce 100 million outbound trips. “Looking at the huge prospects of the Chinese market and being a close neighbour, issuing free visas will help boost Nepal’s tourism market,” Bhattarai said. If the plan works in 2011, the government could extend it, he added.

Meanwhile, the Tourism Ministry is mulling improving road access to Nepal for Chinese tourists as it has been a major hindrance to increasing arrivals.

Monday, November 8, 2010

Flying high

SANGAM PRASAIN
NOV 05 -
With the number of tourist arrivals increasing, domestic airline companies are doing brisk business this autumn. Almost all the domestic airlines have increased their flight movement in the major tourist destinations. Since October, there has been a surge in flight movement on the Lukla, Pokhara, Jomsom and Bharatpur sectors. Foreign tourists make up the major portion of the passengers during this season. According to recent statistics, Nepal recorded more than 62,000 arrivals in October, or more than 2,000 arrivals daily.

According to domestic air operators, flight movement on the Kathmandu-Lukla sector has swelled by 20 percent compared to the autumn season last year. Domestic airlines report making over 80 roundtrips daily between Kathmandu and Lukla, the gateway to Everest.

On Friday, Tara Air made 22 flights, Agni Air 15 flights and Sita Air four flights. According to the carriers, foreign tourists make up 90 percent of the passengers on the Lukla sector. “Our business has grown by 20 percent on the Lukla sector compared to autumn last year,” said Sailesh Shrestha, marketing chief of Agni Air. Autumn is one of the main seasons for business for airlines operating services on the Kathmandu-Lukla sector. Tara Air, Agni Air and Sita Air fly Twin Otter aircraft on their Lukla operations.

In terms of passenger movement, more than 600 tourists returning from Lukla to Kathmandu daily as the autumn season is coming to a close. Autumn is a popular trekking season. More than 30 percent of the tourists visiting Nepal go trekking in the Everest and Annapurna regions. Some of the most trodden trekking routes in the Everest region are Kalapatthar, Gokyo Lake, Everest Base Camp and Syangboche. Trekking in Nepal is an all season activity. However, the most popular seasons are spring (February-May) and autumn (September-November).

Other major tourist destinations like Pokhara, Jomsom and Bharatpur are also seeing greater flight movement these days. These three destinations attract a sizeable number of tourists during autumn.

The air operators say that flights between Kathmandu and Pokhara, Jomsom and Bharatpur have increased by 10-15 percent compared to the last autumn season, airline operators said.

Buddha Air has increased its frequency on the Pokhara sector to 10-12 flights daily from the usual five-six flights with the peak tourist season in full swing. “Flight movement on the Pokhara route has increased by 10-12 percent this autumn,” said Rupesh Joshi, marketing manager of Buddha Air. Agni Air and Guna Airlines operate three-four flights daily.

Pokhara attracts around 40 percent of the total number of tourists visiting Nepal. More than 70 percent of the tourists visiting Pokhara go trekking to Annapurna Base Camp and other trekking destinations. Last year, 203,527 tourists had visited Pokhara.

Travel traders said that they were encouraged that the country did not see any kinds of disturbances during the last seven months. Strikes, bandas and transport shutdowns have taken a heavy toll on tourism in previous years.

Hotels are reporting full bookings with the growth in tourist arrivals this year.

Tourism entrepreneurs said that business during the current tourist season was the highest in the year.

Fishtail chopper accident claims two

SANGAM PRASAIN
KATHMANDU, NOV 08 -
Three months after an Agni aircraft crashed, the Nepali sky witnessed yet another disaster on Sunday with a Fishtail Air chopper crashing in Mt. Ama Dablam range (6,812 m) in Solukhumbu district.

The accident took place at 9: 30 am when the chopper flown by Captain Sabin Basnet accompanied by engineer Purna Awale on a rescue mission in the range went out of control due to a sudden avalanche.

“The details are yet to be known,” said Civil Aviation Authority of Nepal’s Aviation Safety Department director Binod Giri. However, preliminary assessment says that the chopper was struck by an avalanche, he said.

Basnet, an experienced helicopter pilot with over 4,500 hours of flying various types of choppers and his his companion Awale were honoured by the Swiss Embassy in Nepal on June 3 for their humanitarian support and important role in retrieving the body of Swiss citizen Uwe Micha from the Everest South Col at 8000m in May 2010.

According to Sherpa & Swiss Adventure Pvt. Ltd that coordinated with Fishtail Air for the rescue mission of a Japanese and a German mountaineer stranded in the mountain, the chopper met with the accident in its second rescue attempt. It rescued the German mountaineer in the first turn.

Both the mountaineers were the clients of Thamserku Trekking and Expedition who lost their way while returning from the expedition.

“As they got lost they had no supplementary expedition equipment to return back. This led them to getting stranded in the mountain and caused health problems for them,” Lhakpa Gyalzen Sherpa, managing director of Sherpa and Swiss Adventure, told the Post.

Normally, expeditions in autumn run the risk of avalanches and few climbers ascend peaks in Nepal during this season.

“Autumn is a season for trekking but there are clients who are more adventurous and want to take the risk,” said Sherpa, who is also a rescue specialist.

Mt. Ama Dablam is a technically difficult mountain, where mountaineers normally prefer to climb for a warm-up to climb the world’s highest peak Mt. Everest. According to the Ministry of Tourism and Civil Aviation, 180 mountaineers ascended Mt. Ama Dablam in 2009 of which 177 mountaineers climbed in autumn.

Meanwhile, the bodies of Captain Sabin Basnet and engineer Purna Awale were brought to Kathmandu. Issuing a press statement, the CAAN said that the bodies have been sent for the post-mortem to Tribhuvan University Teaching Hospital (TUTH) and would be handed over to their families.

Thursday, November 4, 2010

Veggies, pulses major role players in AGDP


Handsome returns in a short span of time is also another factor that has attracted farmers to vegetables

SANGAM PRASAIN
KATHMANDU, NOV 04 -

Vegetables, pulses, potato and wheat have emerged as major contributors in the Agriculture Gross Domestic Product (AGDP) for the past six years.

The contribution of vegetables and pulses in the AGDP has almost doubled in these years. Vegetables and pulses have experienced a rapid growth from 2003-04 to 2009-10, increasing their share of AGDP from 5.73 percent and 2.27 percent to 9.71 percent and 4.42 percent respectively in 2009-10.

Statistics with the Ministry of Agriculture and Cooperatives (MoAC) show that

the contribution of wheat and potato in

the AGDP has surged from 4.59 percent

and 3.68 percent to 7.14 percent and 4.67 percent respectively.

“The government’s community-based programmes have boosted vegetable production, resulting in the rapid growth in vegetable farming in the country,” said Hari Dahal, Spokesperson at the Agriculture Ministry. Handsome returns in a short span of time is also another factor that has attracted farmers to vegetables.

However, paddy still has the highest share of 20.75 percent in the AGDP, followed by milk with a share of 12.36 percent.

The MoAC statistics show that the paddy share in the AGDP grew by only one percent in the last six years. As per government’s estimates, paddy production in 2009-10 is expected to decline by 11 percent.

The second largest cereal crop, wheat, also contributed to the AGDP with 7.14 percent in 2009-10. Wheat contribution in the AGDP was 4.59 percent in 2003-04. Wheat production is expected to increase by 16 percent to 1,556,000 tons in 2009-10 against 1,344,000 tons in the previous fiscal year. Increase in the export of wheat and change in the food habit has contributed to the rise in wheat production, according to MoAC officials. Among pulses, lentils has a good demand abroad.

Likewise, the share of potato in the AGDP has gone up to 4.67 percent from 3.68 in 2003-04. “The use of potato has increased of late,” Dahal said.

There has been a modest growth in the share of maize and jute in the AGDP. Among the cash crop, the share of sugarcane has also declined.

However, the contribution of milk, which was the second largest contributor to the AGDP, shrunk significantly. Milk contribution to the AGDP shrunk to 12.36 percent in 2009-10 from 15.84 percent in 2003-04. Milk production, according to government estimates, is estimated to record a rise of 3.5 percent totaling 1,496,000 tons in 2009-10.

The MoAC statistics give interesting insights. Despite the Nepalis’ trend of consuming meat, the share of mutton, buff and chicken in the AGDP has declined. According to the MoAC, buff, mutton and chicken contribute 4.42 percent, 3.24 percent and 0.67 percent in the AGDP. However, meat production, according to the MoAC is expected to grow by 3.0 percent to 248,573 tons in 2009-10.

Agro-Product’s share in AGDP

those that went up

Commodity 2003-04 (in %) 09-10 (in %)

Rice 19.75 20.75

Vegetable 5.73 9.71

Wheat 4.59 7.14

Maize 6.87 6.88

Potato 3.68 4.67

Pulses 2.27 4.42

Jute 0.13 0.17

those that went down

Milk 15.84 12.36

Forestry 9.24 8.07

Buff Meat 4.51 4.42

Mutton 3.99 3.24

Millet 2.23 1.37

Sugarcane 1.37 1.24

Poultry Meat 1.01 0.67

Eggs 1.5 0.81

Source: Ministry of Agriculture and Cooperatives

Tuesday, November 2, 2010

Here's to Tihar!

Liquor market booming, Nepali drinkers surges all time high

SANGAM PRASAIN
KATHMANDU, NOV 02 -
Quaffing alcoholic beverages is a major part of any celebration; and with the start of Tihar, shoppers have been thronging the bazaar to stock up their bars with their favourite beer, brandy, whisky and wine. And like other merchants, liquor dealers have been luring customers with special festival offers.

However, traders said that they did not expect sales to surge like during Dashain. "Retail sales of alcohol are lower than during Dashain," said Bal Krishna Thapaliya, marketing manager of Green Line Centre, an authorized dealer of almost all the local and international brands of alcoholic beverages.

Even then sales have increased to over Rs. 150,000 per day from the normal daily sales of Rs. 50,000 to Rs. 60,000, Thapaliya added.

Among domestic whisky brands, Signature is the most popular followed by Royal Stag, Bagpiper and McDowell. Daily sales at Green Line Centre amount to 20-25, 15-20, 10-12 and 10-12 cases respectively, said Thapaliya.

However, sales of the once most preferred whisky of Nepalis, Johnnie Walker Red Label, have shrunk due to the absence of company support in Nepal, Thapaliya said. "We are selling only two-three cases daily compared to 10-12 cases before."

Meanwhile, sales of Chivas Regal are swelling as the company has been providing different schemes such as buy one get one free and other promotional programmes.

With regard to beer, Carlsberg and Tuborg occupy the largest market followed by Henkel. Green Line Centre sells 80-90 cases of Carlsberg and Tuborg beer daily while sales of Henkel beer amount to 50-55 cases.

Gorkha Brewery leads the beer brands with the highest-selling products like Tuborg, San Miguel, Carlsberg and Gorkha.

Gorkha Brewery said business had been good and that Tihar sales were expected to rise. Sales during the festive season increase by 20 percent compared to normal days.

According to local distilleries and breweries, the beer market currently stands at six million cartons per year. That means 6,000,000 bottles are consumed each month.

Of the total sales of Gorkha Brewery, Tuborg accounts for about 55 percent. The company holds a 75 percent share of the beer market.

Meanwhile, local wines like Hinwa, Grapple, Nettlange and Himali Ramble are also becoming popular in Nepal.

"The share of the market of Nepali wines has grown to 10 percent as people have realized that they are organic and more hygienic," said Ram Thapa, proprietor of Sankata Wine Store and authorized dealer of all the local wines.

Thapa added that over 1,300 cases of local wines were sold during the Dashain festival. However, with demand picking up for local products, there is a shortage of local wines in the market.

"Hinwa is preferred by customers," he said. "We are aiming to sell 1,000 cases during Tihar," he added.

Hinwa is manufactured by Makalu Wine Industries at Sankhuwasabha. Manufacturing Hinwa started in 1995 with the production of around 90 cases. At present, its production has increased to 700 cases monthly for Kathmandu only.

Grapple is another popular wine made of black grapes imported from India and apples from Mustang. Nettlange too is a fast-selling brand of wine. It is made of nettles and oranges. Similarly, Himali Ramble wine has been designed for health conscious people. It is manufactured by Shree Ram Laxmi Distillery at Marpha.

Monday, November 1, 2010

It augurs well for NTY-2011


With two months still left for the year to end, the number of tourists is expected to cross 450,000 if the current trend of the last 10 months continues


SANGAM PRASAIN
KATHMANDU, NOV 02 -

With Nepal Tourism Year-2011 approaching, the number of visitors coming to Nepal has started to jump significantly. The country witnessed an 18.4 percent rise in the number of tourists entering Nepal by air during these 10 months of 2010.

The number of visitors reached 364,115 from January to October compared to 307,532 during the same period in 2009. With two months still left for the year to end, the number of tourists is expected to cross 450,000 if the current trend of the last 10 months continues.

There is an encouraging sign in tourist arrivals in November with hotels showing over 95 percent bookings for the month. In 2009, the country received 378,712 tourists by air only.

In October, the country witnessed highest tourist arrivals in 10 months this year with 62,712 visitors entering the country. This is a 12 percent rise in the number of visitors compared to the figure the same month last year, according to figures released by the Immigration Office, Tribhuvan International Airport (TIA). The growth momentum is a welcome development when the country is celebrating the tourism year. Nepal seeks to bring a million tourists by both air and ground in 2011 and 700,000 alone by air.

The improved tourist arrivals, increased number of airlines, expansion of hotels, lodges and resorts and private investors injecting massive money in the sector in recent days show that the tourism sector is witnessing a boost.

However, travel trade entrepreneurs and economists say that it cannot be measured as tourism development on the basis of just month-by-month arrival numbers. “The sustainability of tourism sector in any country is determined by the parameters of tourism competitive index,” said economist Bishwambar Pyakurel. “Unfortunately, the government and its planners do not have any institution and infrastructure to develop Nepal’s future in tourism.”

Nepal’s tourism sector has come a long way since Sir Edmund Hillary and Tenzing Sherpa first climbed Mount Everest in 1953. The Himalayas have been one of the main attractions for tourists visiting this country since the duo’s ascent to the highest peak of the world.

In the 1950s, there was a shortage of hotels. Beginning in the 1960s, the government encouraged the building of hotels and other tourist facilities through loans. According to government statistics, between 1985 and 1988 the number of hotel rooms increased from under 22,000 to more than 27,000. Until 1983, tourism in Nepal was well established. It was a major source of foreign exchange earning. Mountaineering and hiking especially were of considerable interest as were rafting, canoeing. Tourism was facilitated with the opening of airways to Kathmandu and other parts of the country and easing of travel restrictions.

However, in 1989 the trade and transit impasse with India negatively affected tourism because the transport and service sectors of the economy lacked supplies. Beginning in the FY 1990, Kathmandu initiated a policy to allocate fuel on a priority basis to tour operators and hotels.

Prior to the trade impasse with India beginning in March 1989, tourism had grown by more than 10 percent per year for most of the 1980s. Between 1985 and 1988, the number of tourists increased from approximately 181,000 to about 266,000. More than 80 percent of the tourists arrived in the country by air.

However, from 1996 onwards, the country’s tourism sector faced the greatest setback. The beginning of the Maoist insurgency deterred potential tourists for a decade. However, there was no significant impact of the insurgency until 2000 because country celebrated Visit Nepal Year in 1998.

“If we analyze the tourist arrival trend before the insurgency period, the current arrival figures should be taken as just a market correction,” said Ashok Pokhrel, president of Nepal Association of Tour Operators. The current growth could be achieved due to ending of the decade-long civil war.

“The arrival figures show growth in the number of Indian, Chinese and Bangladeshi tourists. We are very concentrated on the neighboring countries although these are our pocket markets,” he said adding that the focus should be on those markets that yield high-end tourists. During the tourism year, Nepal aims to bring 265,000 Indian tourists and 100,000 Chinese tourists while the European market is expected to grow by 20 percent. Yet, the worrying factor is the length of stay in the country that has been declining for the last few years although arrivals are going up.

Arjun Sharma, president of Nepal Association of Tour and Travel Agents (NATTA) said the country’s tourism industry can reap benefits only if the tourists’ length of stay increases. He said that the government should consider the Nepali tourism sector a prioritized sector and increase the confidence of investors. Likewise, concerns regarding the country’s national flag carrier should be a priority. The Nepal Airlines Corporation does not have enough aircraft for international flights and its attempt to bring two airbuses has been mired in scandal.

As more than 80 percent of arrivals to Nepal are by air, without improvement in air accessibility Nepal’s tourism cannot achieve its full growth. Entrepreneurs have also been lobbying hard with the government to enable Nepal Airlines Corporation to purchase more aircraft for sustainable tourism development of the country.


Month Arrivals (2009) Arrivals (2010) Change (%)

Jan 21,944 26,071 18.80

Feb 25,181 33,492 33.00

Mar 33,005 44,431 34.61

Apr 37,819 38, 694 2.31

May 25,129 26,634 5.98

June 23,222 26,997 16.30

July 23,266 29,338 26.09

Aug 27,676 34,415 24.30

Sept 34,281 41,331 20.60

Oct 56,009 62,712 11.96

Total 307,532 364,115 18.39

(Source: NTB)