Monday, January 31, 2011

PAC to jump at NOC jugular

SANGAM PRASAIN

KATHMANDU, FEB 01 -

The parliamentary Public Accounts Committee (PAC) formed a seven-member subcommittee on Monday to prepare a report on Nepal Oil Corporation’s price adjustment, fuel transportation system, financial audit and capability to maintain adequate fuel stocks at its depots should an emergency occur.

Constituent Assembly member Dhan Raj Gurung is coordinator of the subcommittee which plans to prepare the report within one month. PAC has put the state-owned oil monopoly under its scanner following widespread criticism from consumers, consumer rights activists and political parties over its irregularities and reluctance to conduct organizational reforms.

Lawmakers had been urging NOC to implement a scientific price adjustment policy to match international market prices. They have also asked NOC to put up public signs showing the price of fuel in Kathmandu and other districts for greater transparency.

Another major issue concerning NOC is the low capacity of its depots. NOC has been told to expand the capacity of its depots to stock petroleum for at least four months. “NOC needs to develop strategic depots to stock fuel enough for at least three-four months in case of political turmoil, strikes and other natural calamities,” said lawmaker Prakash Chandra Lohani.

Transportation and NOC’s annual audit report are other issues pointed out by the lawmakers. PAC had directed NOC to submit by January 24 its financial details for the last three years and the quantity of petroleum products imported.

The committee had summoned NOC officials and Finance Ministry officials to grill them about oil imports, NOC’s plan for organizational reforms and irregularities.

The fuel price disparity between Nepal and India is another issue. According to NOC, the recent price hike by Indian Oil Corporation (IOC) has made gasoline cheaper in Nepal.

NOC said that petrol and aviation fuel cost Rs 10 less in Nepal compared to India which could encourage smuggling. “Prices in Nepal and India should not differ by more than 10 percent,” said Lohani.

Saturday, January 29, 2011

India, China both flexible over Himalaya 2 air route

SANGAM PRASAIN
KATHMANDU, JAN 29 -

India and China have shown flexibility in allowing Nepal to use the Himalaya 2 air route that connects Kathmandu with Bagdogra, Guwahati, Silchar, Imphal and Kunming.

As per the letter of agreement (LOA) on air routes signed between China and India in September 2009 and ATS coordination procedures, Nepal has been permitted to use this airspace (excluding military bases) over India. Meanwhile, the Chinese government has been reviewing Nepal’s proposal.

“However, a bilateral memorandum of understanding on a specific airspace is yet to be signed between Nepal and India, and concurrence from Indian defence authorities is in progress,” said Ram Prasad Neupane, director general of the Civil Aviation Authority of Nepal (CAAN).

With regard to permission from the Chinese side, Nepal’s proposal is being reviewed. “Further process will begin after a government-to-government deal,” Neupane said. Apart from the ongoing development on the Himalaya 2 route, CAAN is also in the process of finalizing the Kathmandu-Lhasa B345 route up to Beijing and Shanghai in the context of signing a letter of agreement with China on ATS coordination procedures.

If the route is opened, it will be the shortest route to China and the Far East and to the Middle East and Europe from Nepal and the Indian subcontinent. The air distance from Kathmandu to Hong Kong will also be reduced.

The existing route via Bangladesh is 1,770 nautical miles while the proposed route via Imphal is 1,669 nautical miles. The distance can be further reduced by 35 nautical miles if direct routing from Kathmandu to Kunming can be done, said CAAN. According to CAAN, Nepal has proposed three air routes—Himalaya 1 (Bangkok-Kolkata-Nepalgunj-Indek in Pakistan), Himalaya 2 and Himalaya 3—at different ICAO meetings and other forums. Among them, the most beneficial route is Himalaya 2, but it is one which requires much effort by Nepal to get India and China to agree.

“We admit that there are several issues regarding defence and technical barriers in China. However, China is moving towards a liberal aviation economy, which could be positive for Nepal as well,” Neupane said. The government should deal through diplomatic channels to make it happen, he added.

The L626 route that links Kathmandu-Mahendranagar-Pantanagar-Delhi has been operational since November 2009. It took nearly seven years for the airway to be opened. The International Air Transport Association (IATA) has kept the Himalaya 2 airspace as a future requirement. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal.

CAAN expects that Cathay Pacific, Qatar Airways, Saudi Arabian Airlines, Nepal Airlines, Dragon Air, China Southern and Air Hong Kong among other international carriers will be direct beneficiaries.

“We have raised the implementation of Himalaya 2 at many international forums at different times. IATA and the International Civil Aviation Organization has appreciated the proposal and assured us their fullest cooperation in its implementation,” said Neupane. Moreover, implementation of the route will help environment protection with less carbon emission. Rising fuel costs, increasing air traffic congestion and increased emissions are growing concerns in international air transport presently, said Neupane. These routes will reduce congestion of westbound traffic flows across the Bay of Bengal.

CAAN officials said that access to international airspace would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. According to them, international air accessibility had changed the face of Southeast Asia over the period 1979-97. The proposed route could establish Nepal as an international transit point. The second international airport that the government has planned to construct in Nijgadh would be the greatest beneficiary.

For the past several years, Nepal has been focusing on promulgation of international routes across the Himalaya to establish an air corridor across a considerable part of Nepali airspace.

Tuesday, January 25, 2011

Air passengers again required to show ID at check-iN

SANGAM PRASAIN
KATHMANDU, JAN 25 -
Airlines and travel agencies have revived the provision making it mandatory for passengers flying on domestic flights to produce ID during check-in in a bid to stop travellers with fake identities and enforce air safety regulations.

Air travellers will henceforth need to show official identification (citizenship certificate, passport or driving license) to obtain a boarding pass and while buying an airline ticket. Students can present ID issued by their college or school.

Although the system has been in place for a number of years, carriers and travel agencies have not been implementing it because of recalcitrant travellers, said airline operators. “The ID check-in system will be implemented more strictly from now onwards,” said president of the Nepal Association of Tour and Travel Agents (NATTA) Arjun Prasad Sharma.

Airlines and travel agencies moved to enforce the requirement more strictly following the Tara Air accident on Dec. 16, 2010 that claimed the lives of 19 Bhutanese passengers travelling as Nepalis.

The Airline Operators Association of Nepal (AOAN) has also issued a public notice to inform passengers about the new rules. The AOAN has also announced that the tickets of passengers trying to travel on false ID will be cancelled.

“Domestic airlines have been lax with regard to check-in procedure. However, considering the matter of security and false ID, the AOAN has asked airlines to implement the provision strictly,” said AOAN general secretary Suman Pandey.

The Civil Aviation Authority of Nepal had also written to the AOAN to implement the ID check-in procedure more strictly after the Tara Air crash.

“Requiring travellers to produce ID when buying an air ticket and obtaining a boarding pass will create a double check-in process that will ensure passenger security,” added Sharma.

Earlier, NATTA has appealed to the government to implement legal procedures that comply with applicable check-in requirements for all passengers travelling on domestic flights

Monday, January 24, 2011

5 domestic carriers team up to start int’l airline

All five operators will have equal equity in this new venture that is estimated to be worth US$ 150 million

SANGAM PRASAIN

KATHMANDU, JAN 25 -

The national flag carrier’s inability to acquire new aircraft and the projected rise in arrivals during Nepal Tourism Year has induced five domestic air operators to join forces to start international operations by establishing a new airline.

The country’s leading air operators—Buddha Air, Yeti Airlines, Guna Airlines, Agni Air and Simrik Air—are working to start operations by May 2011.

All five operators will have equal equity in this new venture that is estimated to be worth US$ 150 million. “All the five partners will invest equal equity,” said a source.

Currently, this venture is in the process of being registered and getting an air operator’s certificate (AOC) for international connectivity. “Discussions with the Ministry of Tourism and Civil Aviation (MoTCA) and the Civil Aviation Authority of Nepal (CAAN) are in progress,” the source said.

The new company that is yet to be named will have three aircraft. “We are now looking at Airbus 319, Airbus 320 or Boeing 737-800,” said one of the promoters of the proposed company.

In the past, the now-defunct Necon Air, Cosmic Air, FlyYeti and Air Nepal International had started international service but failed to sustain it. Earlier attempts to start international operations were solo efforts by individual airlines. However, this time five domestic air operators with some having a proven track record have come together.

Birendra Basnet, managing director of Buddha Air, and Vijay Shrestha, general manager of Yeti Airlines, are said to be actively involved in the whole process. Rameshwor Thapa, managing director of Simrik Air, is chairman of this new company. According to sources, multiple options of purchasing aircraft are being discussed currently that include purchase on ACMI basis. “There could be outright purchase also,” said a source. Initially, US$ 5-6 million will be invested in the project.

The new airline will eye major tourist hubs in the region for its business. “As per our plan, we will serve the Gulf countries, Malaysia, India, China and Singapore,” said a source.

With most of the earlier efforts by the Nepali private sector having failed, the promoters have decided to hire an international management team including the chief executive officer to run the airline. “Operation and engineering will be handled by qualified foreign staff,” said the source. With more than 1,700 Nepalis flying out of the country daily, the promoters say getting business won’t be tough.

Sunday, January 23, 2011

Nijgadh airport can get Boot-able by 2015: Study

SANGAM PRASAIN

KATHMANDU, JAN 24 -

Commercial operation of Nepal’s second international airport at Nijgadh, Bara could begin in 2015. Korea’s Landmark Worldwide Company (LMW), which did a detailed feasibility study for the airport, said the single-runway airport could be finished in 2015 if construction is started this year.

LMW plans to submit the feasibility study report to the Ministry of Tourism and Civil Aviation (MoTCA) by January-end. Once the feasibility study is completed, the airport will be developed under the “build own operate and transfer” (BOOT) model.

LMW’s feasibility study stated that the proposed airport could handle five to 15 million passengers annually and even accommodate the super-jumbo Airbus 380 after the first phase of construction. The estimated investment for the first phase, according to the feasibility study, would be US$ 600 million.

The airport would be expanded to accommodate 30 million passengers annually in the second phase. “The second phase will be commissioned in 2022,” said Binay B. Rawal, Nepal representative of LMW.

By the end of the third phase of construction, the airport will have a parallel runway enabling it to handle 60 million passengers annually. “The airport will have a three-storied terminal building with the latest systems and highly intelligent security equipment,” said Rawal.

The study has stated that a Kathmandu-Tarai fast track should be completed at least six months before the start of the airport’s commercial operation. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Rawal.

LMW had submitted a preliminary report of the detailed feasibility study for the second international airport in July 2010 and urged an early completion of the fast track. President and CEO of the South Korean company Lee Sang Ho had met with MoTCA officials and held discussions with the Civil Aviation Authority of Nepal (CAAN). LMW had presented options and a concept for the runway, the terminal and services at the proposed airport. MoTCA will call a global tender for the airport’s construction after receiving LMW’s report.

The second international airport project has a few hurdles to cross. The major issues are how soon the fast track can be completed and the airport’s operational modality. “It is still not clear what types of aircraft the government will allow to be diverted to the new airport,” said Rawal. CAAN officials said the government’s plan to upgrade Janakpur, Pokhara and Bhairahawa airports to regional international airports could make the proposed second international airport redundant.

Saturday, January 22, 2011

CAAN unions criticise rental extension by TIA

SANGAM PRASAIN

KATHMANDU, JAN 21 -
Trade unions at the Civil Aviation Authority of Nepal (CAAN) have charged Tribhuvan International Airport (TIA) of misusing its authority by extending the rental agreement with shops, parking lots, duty-free shops, hotels and other services situated inside the airport premises without calling for bids.

CAAN’s amended airport service charge regulations have authorized TIA to double or triple the rental period without inviting tenders.

The CAAN unions alleged the Ministry of Tourism and Civil Aviation (MoTCA) of unilaterally ending the tender process and allowing the TIA management to extend the rental period after it expires. The TIA management has recently extended the rental period of 13 tea and coffee shops, hotels, gift shops, executive lounge, ATMs and handicraft shops.

The management has extended the rental period of the shops for at least three years. The old regulations had a provision of calling for tenders when the rental period ends.

“Extending the tenure of such services without a tender means ending competition with new ones,” Bishnu Prasad Marasini, general secretary of the National Employees Union of Nepal, CAAN said. He added that such a provision would limit the income of TIA and bar new establishments from entering.

The CAAN unions and high-level officials said the move was against the Public Procurement Act. TIA, the country’s sole international airport, generates about 10 percent of its income from such rentals.

The CAAN unions accused the MoTCA of unilaterally incorporating four clauses—31, 47, 67 and 68—in the airport service charge regulations to allow the TIA management to extend the rental period unilaterally.

“The said clauses in the new regulations have not been recommended by CAAN,” Marasini said.

According to him, the unions plan to launch an agitation against the ministry’s decision.

The new airport service charge regulations came into effect on August 10, 2010 superseding the 2006 regulations. Earlier, the regulations had a provision which required inviting tenders at intervals of one to two years.

“CAAN is not in a financially good position, and such a provision means making the organization bankrupt and fulfilling the vested interest of contractors and corrupt officials,” said a CAAN official on the condition of anonymity.

TIA general manager Dinesh Shrestha said that they had extended the rental period based on the new regulations.

“As per the new regulations, the TIA management is allowed to extend the rental period of old shops and other services by

increasing the rent in line with inflation when their terms end,” Shrestha said.

TIA charges a monthly rent of Rs 16,000 per sq ft from shops in the arrival lounge and Rs 11,000 per sq ft in the departure lounge. Hotels and restaurants pay a higher rental than shops.

Wednesday, January 19, 2011

MoF approves Rs 1.3b loan to NOC

The loan is expected to cover NOC’s losses for two months

SANGAM PRASAIN

KATHMANDU, JAN 20 -

The Ministry of Finance (MoF) has agreed to provide Rs 1.30 billion loan to the Nepal Oil Corporation (NOC) to settle its increasing dues and avert another possible fuel price hike planned by the corporation. The next Cabinet meeting is expected to endorse this decision. After getting nod from the MoF, the Ministry of Commerce and Supplies (MoCS) has forwarded the loan proposal to the Cabinet. The government will provide Rs 800 million from Employees’ Provident Fund and Rs 500 million from Citizen Investment Trust to the corporation. The MoF has put the land of Birgunj Sugar Mill and Sanjha Yatayat up as government collateral for the loan.

Following rise in the international fuel prices, the NOC had asked the government either to provide fund for allow it to hike fuel prices. According to the NOC, it is incurring monthly losses of Rs 750 million due to increase in international price.

The MoF agreed to provide loan to the corporation after it agreed not to hike fuel prices for at least next two months. “We agreed to provide loan to the NOC to ensure smooth supply,” said Rameshwor Khanal, finance secretary, at Parliament’s Public Accounts Committee meeting on Wednesday.

“It has been agreed that international fuel prices will be monitored for the next two months. And, if international prices increase further, NOC will be allowed to hike fuel prices in the country.” The loan is expected to cover NOC’s losses for two months. The NOC had proposed fuel price revision citing that the crude oil price in the international market price climbed to over US$ 100 per barrel. The NOC says it has to settle outstanding dues of about Rs 450 million with Indian Oil Corporation (IOC) in order to ensure regular supply.

After the latest price hike on Dec. 6, 2010, the corporation faced criticism from all quarters. Parliament’s Finance and Labour Committee had asked it to review the price hike. However, the NOC said that it was not possible to rollback the price hike and instead asked the government for financial support.

At the PAC meeting, Khanal asked the NOC to explore possibilities of credit from the IOC.

Lawmakers and the government officials at PAC meeting on Wednesday underscored the immediate need for introducing scientific fuel pricing system. They also asked the NOC to expedite the Raxual-Amlekhgunj cross-border oil pipeline project and initiate the construction of large oil storage to ensure smooth supply.

Tuesday, January 18, 2011

International Carriers allowed to run extra flights during NTY

SANGAM PRASAIN

KATHMANDU, JAN 19 -

The Ministry of Tourism and Civil Aviation has allowed international airlines serving Nepal to operate additional flights during 2011 in view of the projected rise in arrivals during the Nepal Tourism Year campaign which has aimed to bring one million tourists.

According to the Civil Aviation Authority of Nepal (CAAN), the ministry decided on Jan. 13 to permit the carriers to increase their frequency by up to seven flights per week. The extra flights are based on the temporary operating permit (TOP) which is applicable to scheduled online international airlines and will be valid till the end of 2011. The additional flights will be approved only during lean hours.

“As per the TOP, each country will be allowed to add up to seven flights per week,” said Amar Bahadur Shakya, director, airlines affairs department, CAAN.

The ministry has directed CAAN to inform the aviation authorities of all the countries, which have signed an air service agreement (ASA) with Nepal about the new provision. Nepal has signed ASAs with 36 countries.

“The ministry took the decision to allow additional flights as there was insufficient time to amend the ASAs,” said Suresh Acharya, joint secretary of the Tourism Ministry.
Presently, 27 international airlines are serving the country. Nepal is targeting at least 700,000 arrivals by air in 2011, which will require an additional 1.40 million roundtrip seats.

According to Tribhuvan International Airport, Kathmandu, passenger movement grew 21 percent in the first nine months of 2010 to 1.71 million passengers, up from 1.41 million during the same period last year. International flight movement rose 23 percent during the review period to 13,978 flights compared to 11,329 previously.

In the whole of 2009, international passenger movement was recorded at 2,027,147 passengers and flight movement at 15,701 flights, a growth of 11 percent over 2008.
“Nepal has targeted one million tourists during Nepal Tourism Year, and the goal shows that demand for air seats will swell enormously,” said TIA general manager Dinesh Shrestha.
TIA handles up to 50-60 international flights daily while its capacity is 35-40 flights. Around 3,000 passengers now pass through the airport per hour, which was designed to handle 1,350 passengers per hour. Nepal Airlines Corporation, Dragon Air, Gulf Airways and Qatar Airways are the carriers operating night flights.

Eight international airlines added Nepal to their network during the years 2009 and 2010. Kingfisher of India began flying on the Mumbai-Delhi-Kathmandu sector on April 24, 2010. Oman Air started operations in September 2010. India's SpiceJet started its New Delhi-Kathmandu service on Oct. 7, 2010 while Fly Dubai entered Nepal's skies on Dec. 15, 2009. China Eastern Airlines began scheduled flights to Kathmandu from Kunming on Sept. 8, 2009.

Dutch carrier ARKE started flying between Amsterdam and Kathmandu on Oct. 7, 2009 to become the only airline operating a direct service between Nepal and Europe. United Airways began scheduled flights between Dhaka and Kathmandu on Oct. 28, 2009 while Jet Airways started flying on the Mumbai-Kathmandu sector on Dec. 2, 2009. Fly Dubai started its Kathmandu service on Dec 15, 2009.



International airlines existing seat production
Airlines Seat capacity Production
Air Arabia 168 2,352
Air China 128 512
Bahrain Air 138 966
Biman Bangladesh 221/80 1,547
Buddha Air 47/18 141/72
China Eastern 134 402
China Southern 128 384
Dragon Air 300 1,800
Druk Air 114 570
Etihad Airways 262 1,834
GMG Airlines 153 1,071
Gulf Air 250 2,750
Indian Airlines 172/145 3,568
Jet Airways 144 3,024
Jet Lite 186 1,302
Korean Air 261/301 602
Nepal Airlines 190 4,180
Pakistan Int’l Airlines 205 615
Qatar Airways 305/272/260/144 6,405
Silk Air 150 900
Thai Int’l Airways 309 2,163
TUI Airlines (ARKE) 180 180
United Airways 155/37 930
Fly Dubai 189 1,323
Kingfisher Airlines 174 1,218
Oman Air 154 616
Spice Jet 212 1,484

Weekly seat production: 42,911
Annual seat production: 2,231,372
Source: CAAN

Monday, January 17, 2011

Arrivals by land rose by 18 pc in 2010

SANGAM PRASAIN

KATHMANDU, JAN 17 -

Two days after the official launch of Nepal Tourism Year-2011 (NTY-2011), there comes news likely to boost the morale of the NTY-2011 Implementation Committee officials and tourism entrepreneurs. Tourist arrivals by land increased by almost 18 percent in 2010.

The Department of Immigration statistics show that a total of 153,757 tourists entered Nepal via land routes in 2010, against 130,634 in 2009. This figure, however, does not include the number of Indian tourists, as their arrivals by land routes are not included in the country’s tourism data.

Total arrivals—via both air and land routes—in 2010 reached over 600,000. Arrivals by air in 2010 touched an all-time high mark of 448,769. This is the first instance in 12 years that tourist arrivals crossed the 400,000 mark.

According to the department, the highest number of arrivals via land routes in 2010 was from Sri Lanka, followed by Thailand, China, South Korea, the US, and United Kingdom. A total of 44,080 Sri Lankan tourists visited Nepal via land routes last year.

Although the arrivals by land increased significantly in 2010, the figure is still smaller

than that in 2007 when 165,992 visitors

entered Nepal via land routes. Arrivals by land dropped to 125,616 in 2008, but recovered marginally in 2009.

Of the total arrivals by land, 66.37 percent of tourists entered the country through Bhairahawa. According to the department, Bhairahawa saw a whopping 106 percent rise in the arrivals as compared to last year. Arrivals through Bhairahawa, the gateway of Lumbini, amounted to 102,059 in 2010 as compared to 49,356 in 2009.

Travel trade entrepreneurs attributed this rise to the increment in the number of pilgrims. “Buddhist pilgrims in Lumbini are increasing by the day. The country has been receiving a huge number of these pilgrims who come to Lumbini after visiting Bodhgaya, Saarnath and other Buddhist shrines in India,” said Ram Kazi Koney, managing director of Gandaki Travel.

The figure shows that the tourists’ purpose of entering Nepal through Bhairahawa is to visit Lumbini, the birth place of Lord Buddha.

The pilgrim market is gaining momentum since the signing of the Comprehensive Peace Agreement between the Maoists and government. However, travel trade entrepreneurs say that Nepal is yet to tap the pilgrim market’s potential. “Thai Airways operates direct flights to Bodhgaya in India and a huge number of pilgrims are responding to Indian packages. Despite being the birthplace of Buddha, visitors end their tours in Nepal, which yields less benefit,” said Koney.

To exploit the pilgrimage tourism potential, the government has planned to develop Bhairahawa Airport as a regional international airport. The government move comes with visitors’ increasing interest in Lumbini.

Tourist arrivals by land routes in 2010

Top five source countries

Country Numbers of tourists

Sri Lanka 44,080

Thailand 20,351

China 17561

South Korea 5,015

The United States of America 3,916

Major entry points

Entry Point Numbers

Bhairahawa 102,059

Kodari 36,348

Kakarbhitta 6,064

Kanchanpur 1,247

Birgunj 1154

Source: The department of immigration

Saturday, January 15, 2011

A platform to revive tourism

SANGAM PRASAIN

KATHMANDU, JAN 13 -
After an interval of 13 years, the country is once again all set to welcome tourists in a big way. When President Ram Baran Yadav formally launches the Nepal Tourism Year (NTY) 2011 on Friday, the count of one million tourists the country plans to bring in will also kick off.

The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. That is the reason NTY organisers have invited tourism ministers of SAARC countries and the Secretary General of the United Nations World Tourism Organisation at the official launching of the NTY.

The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry. The fact that over Rs 500 million has been invested by the private sector targeting the NTY and five international airlines are waiting to start their services to Nepal and the record tourist arrivals in 2010, all show that 2011 could become a defining year for the tourism industry.

According to estimates, if one million tourists arrive in Nepal in 2011, tourism’s contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.

From hoteliers to tour operators, everyone is excited. “The Tourism Year is very important for the hotel industry,” said Vini K Gupta, general manager of Soaltee Crowne Plaza. “The average room occupancy that remained stagnant for the last two years could go up in 2011.” It is expected that the average room rate would also increase this year.

Many argue that the success of the NTY will depend on the country’s political scenario. One of them is economist Biswombher Pyakurel. “The future of Nepal’s tourism sector hinges on how leaders work to forge political consensus,” Pyakurel said.

More than the number, according to the president of Nepal Association of Tour and Travel Agents, Arjun Prasad Sharma, NTY will disseminate a positive message about Nepal in the global tourism market. “The major aim of the NTY is to send across a positive message in the international level that Nepal is ready to welcome all,” Sharma said.

According to Pyakurel, the focus should be on hosting the international community in a cordial manner in the post-conflict era rather than counting the number of visitors.

What NTY has done even before its official launch is bring back investment in the tourism sector. Not only the hotel industry, but also the aviation sector is on an expansion drive with Budhha Air even starting its international flight.

“Tourism is now becoming a major industry,” said Birendra Bahadur Basnet, managing director of Buddha Air. Other domestic air operators are also expanding their fleet for the NTY.

Investment made by the private sector has also created much-needed employment opportunities in the country. And, commercialisation of homestay in 2011 means earnings from tourism would now go to the grassroots as well. If properly handled, homestay can become one of the major features of Nepali tourism where tourists can get to know Nepal and the Nepali culture closely.

Tourism Year revitalises hotel industry

SANGAM PRASAIN
KATHMANDU, JAN 13 -
One of the notable things that Nepal Tourism Year has done is bring back investment in the tourism sector after a long gap. Hotels are now on an expansion drive with five-star hotels in Kathmandu alone investing around Rs 500 million in 2010. Luxury hotels have also been established elsewhere in the country, mainly in Pokhara, Bhairahawa, Lumbini and Kanchanpur.

These investments make huge business sense as there is optimism in the hospitality industry after the record number of tourist arrivals in 2010. With the country targeting one million tourists in 2011 through NTY, expansion and upgradation of hotels was bound to happen.

Hoteliers say the industry has been looking for an event to boost their occupancy level. “For the last two years, the average hotel occupancy was around 70-75 percent,” said Vini K. Gupta, general manager of the Soaltee Crowne Plaza. “NTY would increase it to 80 percent.”

Kathmandu’s five-star hotels—Soaltee Crowne Plaza, Yak & Yeti, Shangri-La, Radisson, Everest, De ‘l Annapurna—all have redecorated most of their rooms. The Soaltee has refurbished 130 rooms in the Princep Wing. It is replacing the TVs in all its rooms with 42 inch-LCD TVs. According to Gupta, the Soaltee has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.

The Radisson is adding 100 rooms. According to the hotel, the new rooms will be spacious and have contemporary looks, lighting and furniture. The hotel is planning to complete the expansion project by the first half of 2011.

The Yak & Yeti is giving a new look to 150 rooms in the Durbar Wing while the Everest has renovated 40 of its 160 rooms. The Annapurna is now working to refurbish its 150 rooms.

A number of hotels including Himalaya are busy upgrading themselves to five-star status. The Himalaya is adding 25 rooms for a total of 125 rooms.

Two new four-star hotels have come in the Capital alone. The Implementing Expert Group (IEG) has opened the Airport Hotel at Sinamangal while the Red Rose Apartment Hotel is slated to be operational by March. “We are planning to launch Red Rose Apartment by March,” said executive director Binayak Shah.

The investment drive is also visible outside Kathmandu. Nagarkot’s deluxe resort, Club Himalaya, has added ....... to make it a 75-room property.

Nepalgunj, a business hub in western Nepal, saw the opening of a four-star hotel the Siddhartha View in 2010 built with an investment of Rs 290 million. Another hotel in Nepalgunj, the Hotel Sneha, has been upgraded from one star to three stars.

A three-star property the Hotel Kasai has opened in Lumbini, one of the major destinations for Buddhist tourists. The Kasai Group of Japan has invested Rs 500 million in the 46-room hotel.

Two more three-star hotels—Hotel Opera in Kanchanpur and Hotel Ratna in Biratnagar—have upgraded themselves to three-star category.

According to the Ministry of Tourism and Civil Aviation, there has been new momentum in registering resorts in the country. Three new resorts—Sukute Beach Adventure Camp in Sindhupalchok, Balthali Village Resort and Kinnari Resort in Kavrepalanchok—received their operating licenses in 2010.

According to the Tourism Ministry, it is currently reviewing the applications of another four resorts—Narayani Resort in Nawalparasi, Pristine Paradise Tent Resort in Dhulikhel, Tiger Land Safari in Chitwan and Two River Lodge in Melamchi.

The private sector is hopeful that the huge investment will yield results. “The flourishing inbound tourism market has encouraged investors like us, and the response so far is also good,” said Shah.

Apart from expanding infrastructure, hotels are also readying their staff by providing them training.

“We are also training our staff targeting NTY 2011,” said Amir Pradhananga, sales and marketing director of the Everest Hotel. Likewise, the Hotel Soaltee is also currently giving training to its staff.

Homestay hospitality with a difference

SANGAM PRASAIN
KATHMANDU, JAN 13 -
Nepal Tourism Year heralds the start of a new kind of hospitality service in the tourism sector, homestay. Originally conceived as an alternative arrangement for an expected hotel room shortage during Nepal Tourism Year, homestay could become a permanent feature of Nepali tourism.

Though planned a decade ago, last year saw the commercialisation of homestay with the government bringing regulations allowing it to operate in urban areas too. Sirubari and Ghalegaon were the pioneer villages with regard to homestay. Another reason why the government is now promoting homestay is to decentralise tourism and boost rural economies. “The encouraging number of registrations has brought additional impetus in the tourism sector,” said Uday Bhattarai, assistant manager at the Nepal Tourism Board. The government has also allocated Rs 30 million to train homestay operators.

There has been a positive response after the government brought regulations governing homestay in August 2010. The Ministry of Tourism and Civil Aviation says over 50 commercial homestay homes have been registered at the ministry and applications are coming in.

Kathmandu has more than 10 community-based and two private homestay homes. The homestay homes registered in Kathmandu have a combined capacity to accommodate over 300 tourists.

Nirajan Ghimire, section officer at the Tourism Ministry, said that Kavrepalanchok has over 26 registered community-based homestay homes. Similarly, here are 10 homestay homes operating in Chitwan, 11 in Makwanpur and 12 in Nuwakot. The ministry says districts like Gorkha, Ilam, Palpa, Syangja, Kailali and Kalikot are also opening homestay homes targeting NTY 2011.

Living in a Nepali village as a homestay guest is perhaps one of the fastest and best ways to know the real Nepal. Daily cultural activities are a major attraction of the homestay scheme. “All the homestay homes we inspected in different parts of the country have planned special events to launch NTY,” said Ghimire.

Community-based homestay involves seven to 10 homes. As per the homestay guidelines, one home can operate up to four rooms for tourist accommodation.

With a record number of tourists expected to visit Nepal in 2011, homestay operators are hoping that a larger number of them would stay with them. Hoteliers, however, are not complaining about the proliferation of homestay homes. Instead, they are now coordinating with homestay operators to provide their clients a truly Nepali experience. The private sector believes that urban homestay will be the perfect alternative arrangement for those who may not get accommodation in hotels in 2011.

Homestay operators are also hopeful that tour operators will incorporate homestay in their packages as a new product. “Homestay is a potentially good product, but adequate preparation has not been done to incorporate it in tour packages,” said Ram Kazi Koney, managing director of Gandaki Travels and Tour. According to Koney, this model can get a boost if it is incorporated in tour packages.

The Tara Gaon Development Board (TGDB) has been assigned to find unexplored destinations to develop this programme. “The NTY implementation committee and the TGDB are now working together to make homestay a professional and managed business,” said Bhattarai. The TGDB has identified some 10 potential places where homestay can be developed, he added.

Prez opens Nepal Tourism Year amid lavish shindig

SANGAM PRASAIN
JAN 14 -
President Ram Baran Yadav declared Nepal Tourism Year 2011 open amid a gala event before 25,000 spectators at Dashrath Stadium on Friday.

Distinguished guests included tourism ministers from South Asian countries, members of the diplomatic corps and the secretary general of the United Nations World Tourism Organization.

Speaking at the inauguration ceremony, Prime Minister Madhav Kumar Nepal recalled the commitment made by 19 political parties on Feb. 26 not to call any strikes in 2011. "Peace and stability is of utmost importance to increase the visibility of Nepal's tourism in the international arena," he said. "The campaign has focused on doubling tourist arrivals," he added.

The government, in cooperation with the private sector, had announced NTY 2011 in 2008 in a bid to revive the country's image and generate greater employment following the end of the conflict that had marred the country's tourism industry. The government has also accorded priority to the campaign in the budget to expand infrastructure and promotional efforts.

Tourism Minister Sharat Singh Bhandari made an appeal to make the campaign a success. He said that tourism could play a vital role in bringing prosperity and mobilizing investment.

"The government has developed 'Mighty East-Wild West' as a new tourism package. Tarai tourism and the Great Himalaya Trail are other products that have been developed to attract visitors," Bhandari said. Strikes, donation drives and other undesirable activities could spread a negative message in the international community and they should be discouraged, he added.

NTY 2011 national coordinator Yogendra Shakya underscored the need to forge a common interest to promote tourism in the country. Shakya said that garnering political commitment to support tourism from all the political parties was the major achievement of the NTY implementation committee. Similarly, the commitments made by union leaders to support the campaign and by investors to invest in tourism are all positive moves that reflect the slogan "Together for tourism", he added.

The country has targeted one million tourists in 2011, double the 2010 figure. Among the projected arrivals, 700,000 are expected to come by air and the rest overland.

After an interval of 13 years, the country is welcoming tourists in a big way. The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry.

According to estimates, if one million tourists arrive in Nepal in 2011, tourism's contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.

Monday, January 10, 2011

NOC hints at oil price hike


International price increase has compelled NOC to incur massive losses



SANGAM PRASAIN
KATHMANDU, JAN 11 -

Nepal Oil Corporation (NOC) on Monday hinted that the price of petroleum products could increase in line with the Jan. 1 hike in the price in the international market and its continued rise.

NOC general manager Digambar Jha said that the price increment in the international market had compelled it to adjust gasoline prices with global trends.

Speaking at the 41st anniversary of NOC, Jha said that the price of oil was likely to rise to the all-time high of 2008. According to Jha, crude oil in the international market was over US$ 90 per barrel and is likely to cross US$ 100 per barrel soon due to rising fuel demand worldwide.

Crude oil saw an all-time high of US$ 147.27 per barrel on July 11, 2008. The heavy increase in the price in the international market was reflected in domestic prices with petrol costing Rs 100 per litre, diesel Rs 70 litre and kerosene Rs 65 litre in 2008.

The state-owned monopoly said that the price increase since Dec. 1 had compelled it to incur massive losses. “NOC has been incurring losses of Rs 650 million each month since Jan. 1,” Jha added. He said that NOC was not in a position to bear such heavy losses as it was already reeling under outstanding dues worth a hefty Rs 11 billion. “If the government does not consider the issue, there is a chance of rampant smuggling and black marketing that could lead to severe fuel shortages.”

Minister for Commerce and Supply Rajendra Mahato said that the government had adopted a scientific price determining policy and NOC had been entrusted with revising the price based on the international market.

However, social and political pressures had made it difficult to implement the policy. “The government should think about providing subsidies to people who cannot afford to run their household in line with the increased oil price,” he said.

Secretary at the Commerce and Supply Ministry Purushottam Ojha also pointed out that prices could climb back to 2008 levels. “If the price is not adjusted in time, the problem that emerged in 2008 might resurface,” he said.

However, petroleum dealers complained that it was not only rising international prices that has induced NOC to hike gasoline prices. “Unchecked irregularities in the corporation and inadequate reform policy have forced consumers to pay the cost ultimately,” said Saroj Pandey, president of the Nepal Petroleum Dealers Association.

He added that NOC should include the private sector in its discussions to make any deal more transparent. “Bankruptcy or collapse of NOC means it will hurt the entrepreneurs who have

invested millions in the sector. Therefore, NOC should be more professional to become sustainable,” Pandey said.

Petroleum Product increasing demand

Fiscal Year Imports in KL Value in Billions

2005-06 748,935 Rs 31.95

2006-07 754,882 Rs 32.46

2007-08 723,704 Rs 38.93

2008-09 892,562 Rs 39.80

2009-10 1,050,318 Rs 50.26

(Source: NOC)

Sunday, January 9, 2011

No let-up in casino operators’ woes

Govt rejects request to extend royalty repayment deadline

SANGAM PRASAIN

KATHMANDU, JAN 10 -

The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday turned down casino operators’ request to extend the royalty payment deadline. The operators had also demanded that they be allowed to repay in installments.

Casino operators had put up the demand after the Parliament’s Public Accounts Committee (PAC) On Dec. 29, 2010 issued directives to the government to scrap the licences of casinos failing to clear their dues within 35 days.

Pressure further mounted on casinos after Finance Minister Surendra Pandey said at a PAC meeting that the country does not require casinos as they do not pay royalty to the government, rent to the hotels and salary to their workers.

As per the PAC directives, The Department of Revenue Investigation (DRI) on Jan. 8 issued a public notice to Casino Anna, Casino Nepal, Casino Shangri La, Casino Tara, Casino Royale, Casino Venus, Casino Radd, Casino Fulbari and Casino Grand to repay their royalty dues within 35 days.

A meeting between the tourism ministry, DRI, Inland Revenue Department (IRD), Customs Department and casino operators on Sunday decided not to consider the casinos’ request, but follow the PAC directive strictly.

According to a DRI official, representatives of casinos operators, who were present on Sunday’s meeting, requested the ministry to extend the repayment deadline and allow them to repay on installment basis. In response, the ministry said the request could not be considered and they have to repay their outstanding dues within the given timeline or close operations.

“We (the ministry) cannot ignore the PAC decision,” said Laxman Prasad Bhattarai, the tourism ministry spokesperson.

In the meeting, the ministry also endorsed a decision to scrap the licences of the casinos allowing entrance to Nepalis. The PAC had also instructed the government to scrap the licences of those casinos allowing in Nepalis. “Apart from recovering royalties and restricting entrance to Nepalis, the tourism ministry will also regularly monitor casinos,”

said Bhattarai.

The ministry has started preparing directives for casinos, which would be finalised within a couple of months.

The PAC had instructed the government to draft a regulatory framework

and guidelines for the operation of casinos. “After preparing the directives, all stakeholders related to casinos will be invited for a broad consultation. The Cabinet will then endorse the guidelines,” said Bhattarai.

The government has been on a mission to recover royalty dues from the casinos for the last three months. Only a few casinos have made partial payments. Casinos under the Nepal Recreation Centre owned by Rakesh Wadhwa have not made any payment. Wadhwa has been absconding ever since the police issued an arrest warrant against him.

The government has entrusted the DRI with the responsibility of recovering dues from casinos. Casinos so far have paid around Rs 30 million in dues. However, they still owe Rs 193 million.

Of late, the government has been making efforts to recover the casino dues, with police conducting raids and revenue administration authorities summoning casino operators.

Saturday, January 8, 2011

Old planes dumped at TIA to be auctioned

SANGAM PRASAIN
KATHMANDU, JAN 07 -
The Ministry of Tourism and Civil Aviation is preparing to auction old aircraft that have lain abandoned at Tribhuvan International Airport (TIA) for scrap.

The TIA management has passed a proposal to get rid of these unserviceable planes that have been an eyesore at the airport besides posing a safety hazard. “As per the TIA proposal, the ministry will form a valuation committee for these aircraft,” said TIA general manager Dinesh Shrestha. After the valuation is done, the process of auctioning the junk will begin.

A few months ago, the Commission for the Investigation of Abuse of Authority (CIAA) had directed TIA to improve its competitiveness level for better performance.

As part of its regular monitoring, the anti-graft body had directed TIA to proceed immediately to remove junk from the airport grounds for safety reasons.

“Following the CIAA’s instruction, we have issued notices to the concerned companies regarding the sale of their useless aircraft. As there was no response from them, the airport management has forwarded a proposal to auction the aircraft to the ministry,” Shrestha said.

The airlines that have dumped their old planes at TIA have not even paid parking charges. There are 13 such aircraft including three 19-seater Dorniers and a 100-seater Fokker belonging to Cosmic Air.

Cosmic owes TIA Rs 12.8 million in parking, landing and navigation charges. Similarly, Nepal Airways owes Rs 1.17 million for its helicopter and Y-12 aircraft, and Necon Air Rs 46.3 million for its Avro aircraft.

Travel pros to take up NAC issue

SANGAM PRASAIN
KATHMANDU, JAN. 7

Travel trade entrepreneurs are preparing to dispatch an open letter to Prime Minister Madhav Kumar Nepal to press him to take initiative for purchasing aircraft for Nepal Airlines Corporation (NAC) at the earliest.

A meeting of major travel trade organisations—Travel Agencies Association of Nepal, Nepal Association of Tour and Travel Agents, Nepal Association of Tour Operators, Tourist Guide Association of Nepal and Pacific Asia Travel Association, Nepal — took a decision to this effect on Friday.

“We (tourism organisations) will draw the attention of the prime minister towards the current scenario of the national flag carrier and increasing politics in aircraft purchase process,” said Siddhartha Thapa, operation director of President Travel. Thapa said it is not possible to make Nepal Tourism Year-2011 a success until NAC’s capacity is increased. If the government fails to bring in aircraft this year as well, it is sure that NAC aircraft deal will be more complicated in the coming days, added Thapa.

Issuing a press statement, tourism organisations said the prime minister should take a concrete policy level decision for the aircraft purchase. “Bookings of travel agencies and hotels in 2010 indicate that tourist arrivals will grow significantly in 2011 and ahead,” read the press statement. Inadequate connectivity of the national flag carrier in the long-haul routes and other potential markets could be a major setback for the Nepali tourism industry.

On the other hand, Nepali migrant workers will suffer largely, the press release said.

Prez to cut NTY ribbon amid gala event

SANGAM PRASAIN

KATHMANDU, JAN 07 -
President Ram Baran Yadav is scheduled to inaugurate Nepal Tourism Year 2011 next Friday amid a gala ceremony at Dasrath Stadium, Kathmandu.

NTY is expected to project to the world Nepal’s hospitality and admirable culture and rejuvenate the country’s image as a tourist destination marred by a decade-long conflict.

“The time has finally arrived since the campaign was announced two years ago,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board, at a briefing held to announce the major programmes to be held on inauguration day.

The political commitments made during the first part of 2010 had raised the hopes of travel trade professionals that the country could increase the number of visitors.

The record tourist arrivals seen in 2010 have further buoyed the spirits of the tourism industry, said Shrestha.

“Another good news is that the country has also confirmed 9-10 major international events in 2011,” Shrestha said.

According to the NTB, more than 25,000 guests will be attending the inauguration at Dasrath Stadium. “About 6,000 artists (including those from the Nepal Police, Nepal Army and schools) will perform in the event,” said event manager Kul Bahadur Thapa.

There will be 500 security personnel deployed around the venue. In addition, 250 traffic police personnel will handle the traffic besides 150 volunteers. Parking for 2,000 four-wheelers has been arranged at different places around the stadium and in commercial complexes.

There will be a separate event at Tundikhel for the general public, the NTB said. An air show of motor paragliding will be a major attraction in which 21 pilots will perform. In the evening, there will be a firework display and other entertainment at Tundikhel. The NTY implementation committee will be spending Rs 10 million on the opening festivities.

Nepal has set a target to host a million visitors, double the arrivals in 2010. The last such tourism year was organized in 1998 as Visit Nepal Year.

Tuesday, January 4, 2011

Tourism entrepreneurs doubt NTY-2011 targets can be met

SANGAM PRASAIN

KATHMANDU, JAN 04 -

Nepal has targeted 265,000 and 100,000 visitors from India and China,

respectively. However, entrepreneurs say Nepal has been facing a tough task bringing in the targeted number of Chinese tourists with the existing air and surface links.

Despite a sharp rise in arrivals from India and China in 2010, travel traders said bringing 365,000 tourists from the two neighbours during Nepal Tourism Year would be a tall order.

Nepal has targeted 265,000 and 100,000 visitors from India and China, which would mean a two-and-a-half-fold and a four-fold increase respectively. Indian tourist arrivals grew 20.5 percent to 104,470 in 2010 from 86,696 in 2009. Chinese arrivals were up 36.8 percent to 25,559 from 18,677 in 2009.

The NTY implementation committee and the government have focused promotional activities in the two countries. However,

they doubt the goal can be met with

the available tour packages and present connectivity situation.

“We don’t have any schemes to increase arrivals, and the current growth can be considered a natural increase and not a result of marketing and promotional efforts,” said Ashok Pokhrel, president of the Nepal Association of Tour Operators.

The UN World Tourism Organization said China would become the world’s fourth-largest source of outbound tourists by 2020 with 100 million overseas visits.

The Annual Report of China Outbound Tourism Development 2009-10 issued by the China Tourism Academy has estimated that 54 million Chinese travellers would go abroad in 2010, up from 47 million in 2009.

Similarly, India is one of the fastest-growing outbound travel markets in the world. Indian outbound has been witnessing a growth of over 20 percent over the

last few years, with the figure reaching

11.58 million in 2009.

However, travel trade entrepreneurs said Nepal had been facing a tough task bringing in the targeted number of Chinese tourists with the existing air and surface links.

“Airfares from China to Nepal are among the world’s expensive fares, and the distances are also long,” said Rajendra Bajgai, general secretary of the Trekking Agencies’ Association of Nepal (TAAN).

Bajgai added that the preferences of Indian tourists to Nepal had shifted from shopping and honeymooning to adventure. “The government and the private sector need to identify the changing tastes of visitors to meet the target of bringing one million tourists during NTY.”

The government and the Nepal Tourism Board plan to continue their marketing campaign in the Indian and Chinese markets during the tourist season. “Although the two neighbours are our short-haul source markets, air connectivity, particularly with China, will be a major hindrance to achieving the target,” said Kashi Raj Bhandari, director at the research department of the NTB.

He added that the NTB had requested

the government to talk to the China about starting direct air service between Kathmandu and Beijing, but nothing has happened. “In the present scenario, the target seems unattainable.”

Increased arrivals have attracted big players to invest in resorts, hotels and aviation. Growth in air services mean the country can emerge as an attractive leisure and MICE (meetings, incentives, conventions and exhibitions) destination.

The government’s readiness to promote MICE tourism has encouraged tourism entrepreneurs. “The hotel sector has been receiving more Indian corporate clients these

days,” said Madhav Om Shrestha, executive director of the Hotel Association Nepal. However, poor road and air links with China prevent increasing arrivals from the northern neighbour, he added.

Nepal’s security situation is also another concern for tourists, particularly for Indian visitors. “Increasing instances of strikes have discouraged potential tourists from India. However, the good news is that more Indian tourists are visiting Nepal,” Shrestha said.

Sugarcane price fixed

SANGAM PRASAIN
KATHMANDU, JAN 04 -

After two weeks of agitation and Sunday’s violent protest, which forced the local administration to clamp curfew in Sarlahi on Monday, the agitating sugarcane farmers called off their agitation after reaching an agreement with sugar producers on Monday.

Sugar producers agreed to pay last year’s price of Rs 401 per quintal of sugarcane to the farmers after the government agreed to waive 70 percent of the Value Added Tax (VAT) levied on sugar products. However, Prime Minister Madhav Kumar

Nepal’s intervention was required to resolve the dispute between the sugarcane farmers and sugar producers.

A tripartite meeting held in the presence of the Prime Minister in the Capital on Monday fixed both the issues—farmers’ price demand and tax waiver demanded by sugar producers.

As per the Monday’s agreement, the government will waive 70 percent of the VAT imposed on sugar products. In return, sugar producers will provide the waived VAT amount, which stand at around Rs 40 per quintal, to the farmers.

In addition to this, sugar producers have also agreed to provide Rs 33 per quintal directly to the farmers as ‘Sugarcane Development Promotion’’. Earlier, they used to contribute this amount to Sugarcane Promotion Fund. “The amount of VAT that the government waived will go to the farmers now,” said Manish Agrawal, managing director of Lumbini Sugar Mill.

Sugar producers had been asking the government for the VAT waiver for long. And, VAT was one of the major issues why sugar producers were reluctant to pay the price demanded by the farmers. “We are going to resume our operation after signing an agreement to this effect on Tuesday,” said Agrawal.

Sugarcane farmers, for last two weeks, were demanding last year’s price for sugarcane, while sugarcane producers were reluctant to pay the price.

Each year, sugarcane farmers and sugar producers have been at variance over the sugarcane price. Following a five-month agitation last year, sugar mills of Sarlahi, Mahottari and Nawalparsi had agreed to purchase sugarcane at a minimum price of Rs 401 per quintal. Then, the farmers had demanded hike in sugarcane price following surge in sugarcane price in India. However, in the wake of sugar shortage last year, sugar mills had agreed to pay as high as Rs 570 per quintal to the farmers.

However, sugar producers fixed the sugarcane price at Rs 348 per quintal for this season, after the market price of sugar dropped to Rs 58 per kg from last year’s Rs 85 per kg. The sharp drop in sugar price, according to sugar producers, made them unable to pay last year’s price.

However, farmers refused to accept the price set by the sugar mills, saying that their production cost has gone up. “We are not ready to accept low price this year,” said Paramhansa Chaturbedi, president of Sugarcane Producers’ Association, Sarlahi, before the agreement on Monday.

Currently, sugarcane is grown in over 70,000 hectares of land in 17 districts of the country. Sarlahi, Mahottari and Nawalparashi districts are the main producers of sugarcane.

Farmers said sugarcane production had dropped from 30 million quintals per year to 10 million quintals per year in six years due to the low priority of the government to this sector.

Monday, January 3, 2011

Tourist inflow reaches an all-time high

SANGAM PRASAIN
KATHMANDU, JAN 03 -

The country enters Nepal Tourism Year on Saturday and the buzz is that tourism stakeholders will get a much needed boost. The Nepal Tourism Board (NTB) on Sunday announced that arrivals by air in 2010 had reached an all-time high of 448,769 tourists.

This is first time in 12 years that tourist arrivals have crossed the 400,000 mark. The last time that Nepal had received so many tourists was in 1999 when 421,243 tourists came to the country.

After a high of 1999, tourist arrivals in Nepal started to slump, first by the 9/11 attack and then by the escalation of the Maoist conflict in the country. Tourist arrivals continued to slide for three straight years -- from 2000 to 2002. Though there was a slight improvement in 2003 and 2004, arrivals again declined in 2005 then King Gyanendra took over direct rule. It was the peace agreement between the government and the Maoists that arrested this slump in 2006. Post-2006, the tourism sector has bounced back with a gradual upward movement of tourist arrivals.

The NTB data shows that arrivals have increased by 18.5 percent last year. Of the total arrivals, India tops the chart with 104,470 tourists followed by the US, the UK, China and France. There has been positive growth in the Asian segment, the European segment and the Americas, according to the NTB.

Though Indians are traditionally make up the largest number of visitors to the country, what is most promising for the domestic tourism market is a sharp increment in the arrival of Chinese tourists. Chinese tourist arrivals have jumped by an encouraging 36.8 percent in 2010, indicating that it is becoming one of the top markets for Nepal’s tourism. According to NTB data, a total of 25,559 tourists from China visited Nepal last year, up from 18,677 of 2009.

Hence, architects of NTY 2011 have understandably given greater priority to India and China and projected them as major source markets. The NTY Implementation Committee has targeted 265,000 tourists from India and 100,000 tourists from China in 2011. One challange to bring more tourists is expensive air fare. “Airfares from China to Nepal are among the world’s expensive fares and driving distance is also long,” said Rajendra Bajgai, general secretary of the Trekking Agents Association of Nepal.

Saturday, January 1, 2011

Tourism Board gets Rs 120m for NTY-2011 promotion campaigns

SANGAM PRASAIN

KATHMANDU, DEC 30 -

With two weeks remaining for the much-touted Nepal Tourism Year 2011 to begin, the Ministry of Finance has formally released a budget of Rs 120 million to publicize the campaign at the international level.

Nepal Tourism Board officials said that although international promotion through the media and marketing had been delayed, the campaign would not be affected much as it would focus on tourist generating seasons.

Of the total budget released for international promotion, Rs 60 million will be spent in India, Rs 30 million in China and rest in other source markets.

The marketing campaigns of the NTB and the NTY 2011 implementation committee are expected to be highly visible in the two neighbouring markets through traditional promotional channels including electronic and print media, brochures and posters. The NTB has stepped up its publicity campaign with celebrity marketing and by inviting popular figures to the launch of NTY 2011 on Jan. 14.

NTB chief executive officer Prachanda Man Shrestha said that the NTB would now ask India and China to submit the terms of reference of their promotional packages. He added that promotional activities would start around March-April, which is the peak tourist season in Nepal. “The budget provided by the government

for international promotion is quite

small, however, we will utilize it in a broad-based way.”

The NTB has announced its promotional strategy for 2011 with the theme “Together for Tourism”. Nepal has targeted one million arrivals for 2011, which is double the figure of 2009.

Travel trade entrepreneurs said that expansion of tourism throughout the world has increased competition among tourist destinations. Every country is trying to attract more tourists by adopting new marketing techniques and strategies, and if Nepal fails to keep in step with world trends it will slide in the world tourism market.

“As media promotion plays a vital role in marketing any product or service, tourism marketing in Nepal is a long way from the goal. This is mainly due to inadequate and ineffective promotional measures of the tourism sector of Nepal,” said Ram Kazi Koney, managing director of Gandaki Tours & Travels.

Moreover, Nepal faces resource constraints and cannot afford a sufficient budget for promotional purposes. As a result, the country cannot conduct promotional activities by using the international media which is essential for attracting foreign tourists, Koney added.

Tourism entrepreneurs have criticized the NTB for not doing its duty to a better extent to ensure that Nepal emerges as one of the major competitive destinations in the world tourism market.

There are many positive indicators for 2011. Recent arrival figures show that there is still a very positive attitude towards Nepal. Other positive indicators include India and China showing solid signs of outbound growth. This is good for Nepal as it is a short-haul market with large populations of potential visitors.

Nepal tourism year 2011 expect 200,000 ‘other’ tourists

KATHMANDU, JAN 02 -
Nepal plans to attract around 200,000 sexual minorities including Lesbian, Gay, Bisexual, Transgender and Intersexes (LGBTI) during the Nepal Tourism Year 2011 (NTY-2011).

The Blue Diamond Society (BDS), an organization representing sexual minorities in the country, has said that it aims to bring 200,000 i.e. 20 percent such tourists of the total one million tourists in the NTY-2011. Nepal aims to host one million tourists this year.

Already gay tourists are responding favorably to the holiday and travel packages offered by Pink Mountain, a travel and tour agency run by sexual minorities and catering exclusively to LGBTI.

Pink Mountain offers wedding, honeymoon and anniversary packages to domestic as well as international LGBTI tourists, according to lawmaker and Chairman of Pink Mountain Sunil Babu Panta. “The agency has also confirmed two more same-sex marriages, trekking and many more adventures in the first month of its launch,” said Panta.

Most of the LGBTIs coming to Nepal so far have been sexual minorities from two Asian giants, India and China. Nepal’s liberal policies towards sexual minorities following a Supreme Court ruling have attracted LGBTIs from many countries.

In 2007, the Supreme Court (SC) of Nepal had directed the government to grant citizenship to LGBTIs and form a same-sex marriage committee to assure equality of the sexual minorities.

The agency offers grand weddings in national parks and the Everest base-camp, nature trip, adventure and safari, pilgrimage and meditation facilities to LGBTIs visiting the country. Globally, gay tourism is estimated to be over US$ 100 billion a year, and Nepal’s gay entrepreneurs are keen to cash in on it.

“The US alone makes US$ 68 billion every year through gay tourism,” said Panta. “We are one of the fastest growing South Asian countries to accept the natural characteristics of being LGBTI. We can reap this benefit to boost the economy of the country.” A research conducted by the Community Marketing International (CMI) in the United States found that 98 percent of LGBTIs have at least one overnight trip in a year.

Gay tourism entrepreneurs are coordinating with the government as well as other commercial organizations this year to attract a large number of sexual minorities. The BDS organized the same-sex marriage of an Indo-British couple last August in Nepal.

“So far, the government has extended only moral support to the gay tourism sector,” said Panta. However, he said he was pleased that the big hotels and resorts have come forward with LGBTI community-focused events and packages.

“Tiger and Gokarna resorts, Annapurna, Everest, Himalayan and Dwarika hotels are coordinating with us for the event,” Panta said.