Monday, June 14, 2010


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.