SANGAM PRASAIN
KATHMANDU, FEB 28 -
With the deadline to furnish clarification ending on Sunday, the fate of eight casinos facing possible closure for non-payment of royalties, is now in the hands of the Prime Minister’s Office (PMO). The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday said it would forward the file to chief secretary Madhav Prasad Ghimire on Monday.
With MoTCA still without a minister, the responsibility of moving against the casinos will now be taken over by the PMO. “As the prime minister is holding the responsibility of the Tourism Ministry, the fate of the eight casinos will be decided by the PMO,” said tourism secretary Kishore Thapa at a meeting of the parliamentary Public Accounts Committee (PAC) on Sunday.
The Department of Revenue Investigation (DRI) on Feb. 14 had formally requested the Tourism Ministry to take against the eight casinos as per PAC’s directives. On Dec. 28, 2010, PAC had instructed the government to revoke the licenses of those casinos that fail to pay their royalties and dues within 35 days.
Lawmakers on Sunday rapped the Tourism Ministry for not taking prompt action against the eight casinos as per DRI’s recommendation. They also sought the ministry’s clarification why it issued a show-cause notice.
They were also critical of the proposed casino guidelines that allows entry of Nepalis to casinos. “We won’t accept such a proposal of legalising the entry of Nepalis,” said lawmaker Hridayesh Tripathi. According to the draft guidelines, big taxpayers would be allowed to play in the gambling houses. “The government had issued operating licenses to the casinos to promote tourism by bringing foreigners, not Nepalis,” said another lawmaker Prem Bahadur Singh.
The Finance Ministry also stood against allowing Nepalis in casinos. “We (Finance Ministry) have clearly suggested that the Tourism Ministry should not legalise entry of Nepali citizens,” said revenue secretary Krishna Hari Banskota at the PAC meeting.
Tourism secretary Thapa said that the ministry would follow PAC directives while drafting the casino guidelines. MoTCA’s reluctance to stop mini casinos also attracted the wrath of lawmakers. PAC had earlier directed the ministry to shut down the mini casinos. “We will issue instructions to stop these mini casinos tomorrow,” said Thapa, responding to lawmakers’ queries.
There was a new twist in the casino episode on Sunday with four casinos, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La, clearing all their dues. These four casinos are in the list forward by the DRI to the Tourism Ministry for action. Casino Rad, Casino Venus, Casino Grand hadn’t cleared their interest fees for the current fiscal year when the DRI wrote to the ministry while Casino Shangri-La had paid the royalty for the current fiscal year only.
It is not clear whether action would be taken against these four casinos that have paid their dues. Tourism Ministry officials said they would abide by PAC’s directives. “As per the directives, the names of eight casinos would be forwarded to the PMO,” said Tourism Ministry spokesperson Laxman Bhattarai.
However, two casinos owned by Rakesh Wadhwa’s Nepal Recreation Centre haven’t cleared their dues till date. Wadhwa had indicated that he would pay the dues if the government provided a “conducive environment” for his return to Nepal. Wadhwa has been absconding ever since the police issued an arrest warrant against him. His two casinos, Casino Nepal and Casino Anna, owe the government Rs 244 million
in dues.
As per the Finance Bill, casinos that fail to clear their royalty payments by mid-January will lose their operating licenses. And those whose licenses have been scrapped should go for a new process to acquire licenses.
The government started tightening the screw against casinos six months ago after their repeated failure to clear royalties and dues. Their continued defiance of government orders to clear their dues and bar Nepalis from entering their premises even forced the government and PAC to explore the possibility of moving them out of Kathmandu. In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedures for casinos to amending the existing Gambling Act.
Sunday, February 27, 2011
Saturday, February 26, 2011
World canyoning event in Marsyangdi
SANGAM PRASAIN
KATHMANDU, FEB 25 -
The Nepal Canyoning Association (NCA) is scheduled to organize the International Canyoning Rendezvous (ICR) from April 7-13 at Syange, Germau in the Marsyangdi Valley which lies on the Annapurna trekking trail in Lamjung. Canyoning is travelling in canyons by walking, climbing, swimming and using other methods.
The NCA said that the event had been planned to lure adventure lovers as tourist tastes were changing and Nepal needed to be competitive in the international market. The association added that it aimed to bring 200 professional canyoneers from 12 countries.
“So far, 135 canyoneers from Europe and the US have registered for the event,” said NCA president Tilak Lama.
The week-long event will be conducted at Ghopte Khola, Kabindra Khola, Rundu Khola, Syange Khola and Sanche Phu.
“The ICR will be one of the highlighted products for Nepal Tourism Year 2011,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board (NTB).
Shrestha added that the country would be organizing two-three international events each month to mark NTY, and that the ICR would be the April highlight. “Canyoning is one of the niche products of Nepal; and if properly managed, our country could be established as a canyoning destination.” The NCA seeks to establish Nepal as a Himalayan canyoning destination and package it with other adventure activities like trekking, rafting, rock climbing and mountaineering.
The NTB has enlisted canyoning as a potential product for NTY. The NCA has conducted canyoning exploration at what is probably the highest altitude in the world. A Nepali team explored the Lhayju River (480m) at Nar Phu, Manang in the Annapurna Himal where the base camp was situated at an altitude of 4,660 m and the canyon head was 5,200 m high.
The Bhote Koshi, Sun Koshi, Kakani and Manaslu are the major commercial canyoning destinations. Canyoning is an extreme adventure sport that involves abseiling, sliding, jumping into deep pools, swimming and climbing down waterfalls on steep canyon cliffs.
KATHMANDU, FEB 25 -
The Nepal Canyoning Association (NCA) is scheduled to organize the International Canyoning Rendezvous (ICR) from April 7-13 at Syange, Germau in the Marsyangdi Valley which lies on the Annapurna trekking trail in Lamjung. Canyoning is travelling in canyons by walking, climbing, swimming and using other methods.
The NCA said that the event had been planned to lure adventure lovers as tourist tastes were changing and Nepal needed to be competitive in the international market. The association added that it aimed to bring 200 professional canyoneers from 12 countries.
“So far, 135 canyoneers from Europe and the US have registered for the event,” said NCA president Tilak Lama.
The week-long event will be conducted at Ghopte Khola, Kabindra Khola, Rundu Khola, Syange Khola and Sanche Phu.
“The ICR will be one of the highlighted products for Nepal Tourism Year 2011,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board (NTB).
Shrestha added that the country would be organizing two-three international events each month to mark NTY, and that the ICR would be the April highlight. “Canyoning is one of the niche products of Nepal; and if properly managed, our country could be established as a canyoning destination.” The NCA seeks to establish Nepal as a Himalayan canyoning destination and package it with other adventure activities like trekking, rafting, rock climbing and mountaineering.
The NTB has enlisted canyoning as a potential product for NTY. The NCA has conducted canyoning exploration at what is probably the highest altitude in the world. A Nepali team explored the Lhayju River (480m) at Nar Phu, Manang in the Annapurna Himal where the base camp was situated at an altitude of 4,660 m and the canyon head was 5,200 m high.
The Bhote Koshi, Sun Koshi, Kakani and Manaslu are the major commercial canyoning destinations. Canyoning is an extreme adventure sport that involves abseiling, sliding, jumping into deep pools, swimming and climbing down waterfalls on steep canyon cliffs.
Wadhwa to pay up if govt creates ‘conducive environment’
SANGAM PRASAIN
KATHMANDU, FEB 26 -
Beleaguered owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa has expressed willingness to clear all the government dues provided that it creates a “conducive environment” for him to come to Nepal.
Wadhwa, who has been absconding for the last four months following an arrest warrant for non-payment of royalties by his casinos, said this to leaders of the trade unions at Casino Nepal who had gone to New Delhi to persuade him to clear the outstanding payments.
“If the government creates a conducive environment for me to return to Nepal, I will pay the money owed,” one trade union leader quoted Wadhwa as saying. With trade unions affiliated to the UCPN (Maoist) controlling some of Wadhwa’s casinos, he also sought non-interference from them in management.
The presidents of the four trade unions at Casino Nepal had travelled to New Delhi to talk with Wadhwa in the second week of February. “We held five rounds of meetings with Wadhwa in New Delhi,” said another union leader. With closure of the casinos looking imminent, union leaders had taken the initiative to persuade Wadhwa to honour the government directives.
It is still not clear whether Wadhwa’s “willingness” to clear the dues is genuine or a time-buying ploy. Earlier, he had disowned responsibility to clear the royalty dues and had instead said that the hotels should pay them as they had been issued the casino licenses.
Currently, the future of eight casinos including four of Wadhwa’s hangs in the balance. The Department of Revenue Investigation (DRI) has already recommended action against them to the Ministry of Tourism and Civil Aviation (MoTCA) for defaulting on their royalty payments. However, MoTCA has been without a minister due to delays in the expansion of Prime Minister Jhala Nath Khanal’s cabinet, preventing it from making any move. After Wadhwa spoke of his “willingness” to pay his dues, union leaders of the casinos started lobbying with the government and lawmakers to offer him an olive branch. They have met with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota.
“With the casinos providing employment to more than 8,000 people, their closure would hit all of us,” said a trade union leader. However, it is not clear whether the government would withdraw action against Wadhwa if he pays up.
Wadhwa’s NRC runs four casinos. Among them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, the other two, Casino Nepal and Casino Anna, have not paid any royalties or dues for the last few years and owe the government Rs 244 million. Recently, Wadhwa sold 50 percent of his stake in Casino Anna to two Indian buyers.
After the DRI’s recommendation for action, MoTCA had asked the eight casinos to furnish clarification within Feb. 27. The DRI said Casino Venus and Casino Rad paid around Rs 5 million of their outstanding dues by the deadline.
With the parliamentary Public Accounts Committee(PAC) taking a tough stance against the casinos for defaulting on their dues to the government and allowing Nepalis to enter their premises, MoTCA is currently giving the final shape to the casino guidelines. However, there are differences among the stakeholders over whether Nepalis should be allowed to enter the casinos or not. The draft of the guidelines has a provision to allow entrance to Nepalis falling under the big taxpayer category.
“The guidelines are almost ready, but different opinions over allowing Nepalis to play in casinos have stalled progress,” said a senior MoTCA official. “Except for the entry of Nepalis, other parts of the guidelines have been completed.”
The ministry will submit the draft of the guidelines to the Home Ministry and the Finance Ministry on Sunday for their suggestions and recommendation.
As per the proposal, the DRI will make available a list of big taxpayers eligible to play in casinos. The gambling houses are required to issue membership to them who will have to pay an entry fee of Rs 5,000 for a 24-hour pass.
KATHMANDU, FEB 26 -
Beleaguered owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa has expressed willingness to clear all the government dues provided that it creates a “conducive environment” for him to come to Nepal.
Wadhwa, who has been absconding for the last four months following an arrest warrant for non-payment of royalties by his casinos, said this to leaders of the trade unions at Casino Nepal who had gone to New Delhi to persuade him to clear the outstanding payments.
“If the government creates a conducive environment for me to return to Nepal, I will pay the money owed,” one trade union leader quoted Wadhwa as saying. With trade unions affiliated to the UCPN (Maoist) controlling some of Wadhwa’s casinos, he also sought non-interference from them in management.
The presidents of the four trade unions at Casino Nepal had travelled to New Delhi to talk with Wadhwa in the second week of February. “We held five rounds of meetings with Wadhwa in New Delhi,” said another union leader. With closure of the casinos looking imminent, union leaders had taken the initiative to persuade Wadhwa to honour the government directives.
It is still not clear whether Wadhwa’s “willingness” to clear the dues is genuine or a time-buying ploy. Earlier, he had disowned responsibility to clear the royalty dues and had instead said that the hotels should pay them as they had been issued the casino licenses.
Currently, the future of eight casinos including four of Wadhwa’s hangs in the balance. The Department of Revenue Investigation (DRI) has already recommended action against them to the Ministry of Tourism and Civil Aviation (MoTCA) for defaulting on their royalty payments. However, MoTCA has been without a minister due to delays in the expansion of Prime Minister Jhala Nath Khanal’s cabinet, preventing it from making any move. After Wadhwa spoke of his “willingness” to pay his dues, union leaders of the casinos started lobbying with the government and lawmakers to offer him an olive branch. They have met with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota.
“With the casinos providing employment to more than 8,000 people, their closure would hit all of us,” said a trade union leader. However, it is not clear whether the government would withdraw action against Wadhwa if he pays up.
Wadhwa’s NRC runs four casinos. Among them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, the other two, Casino Nepal and Casino Anna, have not paid any royalties or dues for the last few years and owe the government Rs 244 million. Recently, Wadhwa sold 50 percent of his stake in Casino Anna to two Indian buyers.
After the DRI’s recommendation for action, MoTCA had asked the eight casinos to furnish clarification within Feb. 27. The DRI said Casino Venus and Casino Rad paid around Rs 5 million of their outstanding dues by the deadline.
With the parliamentary Public Accounts Committee(PAC) taking a tough stance against the casinos for defaulting on their dues to the government and allowing Nepalis to enter their premises, MoTCA is currently giving the final shape to the casino guidelines. However, there are differences among the stakeholders over whether Nepalis should be allowed to enter the casinos or not. The draft of the guidelines has a provision to allow entrance to Nepalis falling under the big taxpayer category.
“The guidelines are almost ready, but different opinions over allowing Nepalis to play in casinos have stalled progress,” said a senior MoTCA official. “Except for the entry of Nepalis, other parts of the guidelines have been completed.”
The ministry will submit the draft of the guidelines to the Home Ministry and the Finance Ministry on Sunday for their suggestions and recommendation.
As per the proposal, the DRI will make available a list of big taxpayers eligible to play in casinos. The gambling houses are required to issue membership to them who will have to pay an entry fee of Rs 5,000 for a 24-hour pass.
Thursday, February 24, 2011
NOC demands Rs 1.3b monthly loan from govt
SANGAM PRASAIN
KATHMANDU, FEB 25 -
With international oil price surging continuously and Indian Oil Corporation (IOC) also curtailing supply, Nepal Oil Corporation (NOC) on Thursday sought Rs 1.3 billion monthly loan from the government to maintain smooth supply of petroleum products.
Earlier, NOC had demanded that the government allow it to adjust fuel prices in line with the international market price. After the government did not allow it to adjust fuel price, it put forth the second option of loan before the government.
The NOC top brass on Thursday held meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari and appraised him about the current problem and possible shortage if the government does not intervene at the earliest.
“Though discussions were held on Thursday, decision on either allowing NOC to adjust price or providing it loan is a political decision,” said a senior official at Finance Ministry.
Now, the NOC is waiting for a political decision. “We informed the Finance Ministry about the current problem,” said Jha.
On Monday, the state-owned oil monopoly had proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) price.
It had also asked the government to waive taxes in LP gas until the price drops in the international market.
The cash-strapped NOC has started curtailing supplies over the last few days citing losses. With Cabinet expansion still in limbo, NOC’s General Manager Digambar Jha is knocking the door of ministers and high-ranking officials to ease the current crisis.
The NOC says its losses jumped to Rs 1.13 billion a month in February. The government’s reluctance in adjusting fuel prices in line with international price, according to the NOC, has inflated its losses. The corporation had last hiked fuel prices on Dec. 6.
According to the NOC, it is incurring a loss of Rs 11.30 per litre in diesel, Rs 5.59 per litre in petrol and Rs 357 per cylinder in LPG.
KATHMANDU, FEB 25 -
With international oil price surging continuously and Indian Oil Corporation (IOC) also curtailing supply, Nepal Oil Corporation (NOC) on Thursday sought Rs 1.3 billion monthly loan from the government to maintain smooth supply of petroleum products.
Earlier, NOC had demanded that the government allow it to adjust fuel prices in line with the international market price. After the government did not allow it to adjust fuel price, it put forth the second option of loan before the government.
The NOC top brass on Thursday held meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari and appraised him about the current problem and possible shortage if the government does not intervene at the earliest.
“Though discussions were held on Thursday, decision on either allowing NOC to adjust price or providing it loan is a political decision,” said a senior official at Finance Ministry.
Now, the NOC is waiting for a political decision. “We informed the Finance Ministry about the current problem,” said Jha.
On Monday, the state-owned oil monopoly had proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) price.
It had also asked the government to waive taxes in LP gas until the price drops in the international market.
The cash-strapped NOC has started curtailing supplies over the last few days citing losses. With Cabinet expansion still in limbo, NOC’s General Manager Digambar Jha is knocking the door of ministers and high-ranking officials to ease the current crisis.
The NOC says its losses jumped to Rs 1.13 billion a month in February. The government’s reluctance in adjusting fuel prices in line with international price, according to the NOC, has inflated its losses. The corporation had last hiked fuel prices on Dec. 6.
According to the NOC, it is incurring a loss of Rs 11.30 per litre in diesel, Rs 5.59 per litre in petrol and Rs 357 per cylinder in LPG.
Tuesday, February 22, 2011
NOC proposes govt revise fuel prices
SANGAM PRASAIN
KATHMANDU, FEB 23 -
The Nepal Oil Corporation (NOC) has proposed the Ministry of Supplies revise the existing price of petroleum products in line with the international market price International fuel price soared to a whooping $106 a barrel on Tuesday following the Libyan uprising.
The corporation has proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) rate, saying that the existing price would inflate its losses and induce short supply.
The corporation said only an immediate price hike could ensure smooth supply, as the existing price would compel it to cut down gasoline import. According to NOC sources, the corporation had curtailed gasoline import by 25 percent on Monday. With the current international price, increased import means increased losses for NOC.
The state-owned oil monopoly has also proposed the government to waive taxes on diesel and LP gas until the international price drops. It has also proposed the government to adjust the petrol price in line with Raxaul price and ATF price in line with Kolkata price. Petrol price in Raxaul is Rs 97.23 per litre, while ATF costs Rs 97.24 per litre in Kolkata, according to the corporation.
The NOC has estimated its February losses at Rs 1.13 billion. The corporation said it is incurring a loss of Rs 5.59 per litre in petrol and enjoying a profit of Rs 11.43 per litre in ATF.
Currently, consumers are paying Rs 88 per litre for petrol and Rs 68.50 per litre for diesel and kerosene. Normally, the country consumes 15,000 kilo litre (kl) of petrol and 70,000 kl of diesel every month. However, according to NOC, in the first half of February, it imported 9,000 kl of petrol and 39,000 kl of diesel, much higher than the normal consumption. NOC General Manager Digambar Jha fears that the significant rise in gasoline consumption could result in severe fuel shortage. As per the current rate, petrol and diesel import could reach 18,000 kl and 80,000 kl per month, respectively.
“We have proposed the price revision to ensure smooth supply,” said Jha, adding that increased load-shedding hours have also increased gasoline demand. If the government will not be serious in this issue, there may be a severe fuel shortage soon.
The NOC on Dec 6, 2010 had hiked the prices of major petroleum products, making petrol, diesel and kerosene each dearer by Rs 3 per litre and LP gas by 75 per cylinder.
KATHMANDU, FEB 23 -
The Nepal Oil Corporation (NOC) has proposed the Ministry of Supplies revise the existing price of petroleum products in line with the international market price International fuel price soared to a whooping $106 a barrel on Tuesday following the Libyan uprising.
The corporation has proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) rate, saying that the existing price would inflate its losses and induce short supply.
The corporation said only an immediate price hike could ensure smooth supply, as the existing price would compel it to cut down gasoline import. According to NOC sources, the corporation had curtailed gasoline import by 25 percent on Monday. With the current international price, increased import means increased losses for NOC.
The state-owned oil monopoly has also proposed the government to waive taxes on diesel and LP gas until the international price drops. It has also proposed the government to adjust the petrol price in line with Raxaul price and ATF price in line with Kolkata price. Petrol price in Raxaul is Rs 97.23 per litre, while ATF costs Rs 97.24 per litre in Kolkata, according to the corporation.
The NOC has estimated its February losses at Rs 1.13 billion. The corporation said it is incurring a loss of Rs 5.59 per litre in petrol and enjoying a profit of Rs 11.43 per litre in ATF.
Currently, consumers are paying Rs 88 per litre for petrol and Rs 68.50 per litre for diesel and kerosene. Normally, the country consumes 15,000 kilo litre (kl) of petrol and 70,000 kl of diesel every month. However, according to NOC, in the first half of February, it imported 9,000 kl of petrol and 39,000 kl of diesel, much higher than the normal consumption. NOC General Manager Digambar Jha fears that the significant rise in gasoline consumption could result in severe fuel shortage. As per the current rate, petrol and diesel import could reach 18,000 kl and 80,000 kl per month, respectively.
“We have proposed the price revision to ensure smooth supply,” said Jha, adding that increased load-shedding hours have also increased gasoline demand. If the government will not be serious in this issue, there may be a severe fuel shortage soon.
The NOC on Dec 6, 2010 had hiked the prices of major petroleum products, making petrol, diesel and kerosene each dearer by Rs 3 per litre and LP gas by 75 per cylinder.
Monday, February 21, 2011
Healthy bookings for coming tourist season
SANGAM PRASAIN
KATHMANDU, FEB 21 -
International airlines and hotels have reported healthy bookings for the coming peak tourist season. March, April and May attract adventure and leisure tourists to Nepal.
Hoteliers are expecting a 10 percent higher occupancy rate this season compared to the same period in 2010. "We are hopeful that our occupancy will cross 80 percent," said Raju Bikram Shah, general manager of the Hotel Shangri-La. Hotel bookings by Indian travellers have been high for March compared to last year, Shah added.
"Airline booking statistics from the major gateways connecting Nepal— Delhi, Bangkok, Abu Dhabi, Doha and Bahrain— show strong inbound bookings beginning from the first week of March,” said Shyam Raj Thapaliya, managing director of Osho World Travel Nepal.
A recent study done by Nielsen Company in association with the Pacific Asia Travel Association (PATA) shows that Indian arrivals to Nepal have remained constant since 2008. Nepal occupied the fifth place for Indian leisure travellers after Singapore, Malaysia, Dubai, Thailand and Switzerland. The Nepal Tourism Year campaign has targeted 265,000 Indian travellers this year. “Following Indians, bookings by Korean, Italian, French and Chinese travellers have also shown a positive indication this season,” Shah said.
“Considering the current booking trend, we are hopeful that occupancy will cross 80 percent in March and be higher in April,” said Bharat Joshi, sales and marketing director of the Hotel Yak & Yeti. “The UN, embassies, INGOs and other international agencies have been taking the initiative to promote Nepal in recent times.” These international agencies have been recommending Nepal as the perfect place for MICE activities which has resulted in hotels seeing a rise in the MICE segment.
The government has also announced Rs 500,000 incentive to any organiser holding MICE programme involving more than 100 foreign passport holders entering Nepal through air route. The incentive will be provided within seven days of the completion of such programme upon submission of evidence and relevant documents.
The Soaltee Hotel has targeted to increase room occupancy by 8-10 percent this season, said the hotel.
However, mountaineering agencies said that bookings for expeditions had not picked up as expected this season. “Travellers now have lots of options. The mountains in India, Pakistan and China are attracting aspirant mountaineers,” said Ang Tshering Sherpa, former president of the Nepal Mountaineering Association.
Although the government has announced different schemes to attract mountaineers particularly to Western Nepal, lack of transportation and infrastructure has kept the sector isolated. “The reason behind the slow bookings can also be attributed to the cost of climbing peaks in Nepal which is lower in neighbouring countries,” Sherpa said.
Tourist arrivals have bounced back in 2010 breaking all past records. Arrivals by air in 2010 reached 448,769 surpassing the highest ever of 421,243 in 1999.
KATHMANDU, FEB 21 -
International airlines and hotels have reported healthy bookings for the coming peak tourist season. March, April and May attract adventure and leisure tourists to Nepal.
Hoteliers are expecting a 10 percent higher occupancy rate this season compared to the same period in 2010. "We are hopeful that our occupancy will cross 80 percent," said Raju Bikram Shah, general manager of the Hotel Shangri-La. Hotel bookings by Indian travellers have been high for March compared to last year, Shah added.
"Airline booking statistics from the major gateways connecting Nepal— Delhi, Bangkok, Abu Dhabi, Doha and Bahrain— show strong inbound bookings beginning from the first week of March,” said Shyam Raj Thapaliya, managing director of Osho World Travel Nepal.
A recent study done by Nielsen Company in association with the Pacific Asia Travel Association (PATA) shows that Indian arrivals to Nepal have remained constant since 2008. Nepal occupied the fifth place for Indian leisure travellers after Singapore, Malaysia, Dubai, Thailand and Switzerland. The Nepal Tourism Year campaign has targeted 265,000 Indian travellers this year. “Following Indians, bookings by Korean, Italian, French and Chinese travellers have also shown a positive indication this season,” Shah said.
“Considering the current booking trend, we are hopeful that occupancy will cross 80 percent in March and be higher in April,” said Bharat Joshi, sales and marketing director of the Hotel Yak & Yeti. “The UN, embassies, INGOs and other international agencies have been taking the initiative to promote Nepal in recent times.” These international agencies have been recommending Nepal as the perfect place for MICE activities which has resulted in hotels seeing a rise in the MICE segment.
The government has also announced Rs 500,000 incentive to any organiser holding MICE programme involving more than 100 foreign passport holders entering Nepal through air route. The incentive will be provided within seven days of the completion of such programme upon submission of evidence and relevant documents.
The Soaltee Hotel has targeted to increase room occupancy by 8-10 percent this season, said the hotel.
However, mountaineering agencies said that bookings for expeditions had not picked up as expected this season. “Travellers now have lots of options. The mountains in India, Pakistan and China are attracting aspirant mountaineers,” said Ang Tshering Sherpa, former president of the Nepal Mountaineering Association.
Although the government has announced different schemes to attract mountaineers particularly to Western Nepal, lack of transportation and infrastructure has kept the sector isolated. “The reason behind the slow bookings can also be attributed to the cost of climbing peaks in Nepal which is lower in neighbouring countries,” Sherpa said.
Tourist arrivals have bounced back in 2010 breaking all past records. Arrivals by air in 2010 reached 448,769 surpassing the highest ever of 421,243 in 1999.
Sunday, February 20, 2011
New casino guideline in offing
The gambling houses may have to put up collateral to obtain licence
SANGAM PRASAIN
KATHMANDU, FEB 21 -
Delay in paying royalty to the government could prove costly for casinos henceforth.
With Parliament’s Public Account Committee (PAC) instructing the government to come up with regulatory framework to regulate casinos, the Ministry of Tourism and Civil Aviation (MoTCA) has prepared a draft guidelines on casinos which says that casinos have to put up a collateral worth equivalent to the two years’ royalty while acquiring operating licence.As casinos were found to be reluctant in paying royalty and other dues to the government, the proposal of collateral was floated, said a ministry official. “The rationale behind the new provision is to ensure royalty compliance,” said a ministry official. “If a casino defaults on royalty payment, the government will seize its collateral.” Currently, casinos have to pay an annual royalty of Rs 20 million.
The guidelines, which are currently under discussion, say that the operating license can be renewed every two years. The government, through the budget, has made it mandatory for casinos to get their licences renewed every year. As per the Finance Bill, casinos failing to clear their royalties by mid-January will lose their licences. A gambling house that loses its licence will have to start afresh to obtain a new one.
The new guidelines also talk about allowing Nepali citizens in casinos. However, only big taxpayers (those having an annual turnover of Rs 250 million) will be allowed in casinos. The Department of Revenue Investigation will provide data of those big taxpayers. Casinos should issue memberships to these people, says the proposed guideline. However, they have to pay an entry fee of Rs 5,000 for 24 hours.
According to the draft guidelines, casino operators have to submit their detailed business and investment plan to the government to obtain licence. With most of the casinos relying on Nepali citizens, the guidelines say that casinos should come up with tourism packages to attract foreign clients. Casinos should register their infrastructure —from furniture to gaming machines at the ministry and should have ministry’s stickers pasted on them.
The ministry will supervise casinos every three months and will be entrusted with the whole job of monitoring them, according to the guideline. In order to regulate and enforce the guidelines, plain-cloth police personnel will also be mobilised in casinos. Hotels had been complaining that surprise police raids had terrified their clients.
The DRI had recommended the ministry to shut eight casinos failing to pay their royalty dues on time. The ministry has not been able to take a decision in this regard because of the delay in the Cabinet formation.
The DRI on Feb. 13 had dispatched a letter to the ministry asking it to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
Of the 10 casinos currently operating in the country, only two—Casino Tara at Hotel Hyatt Regency and Casino Everest at Hotel Everest—have cleared their dues.
In a bid to regulate the casino business, PAC issued a series of directives to the government—from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act. PAC had directed the government on Dec. 28 to scrap operating licences of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos asking them to either clear their dues or face cancellation of their operating licenses.
Following the PAC directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The government, for the last six months, has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
SANGAM PRASAIN
KATHMANDU, FEB 21 -
Delay in paying royalty to the government could prove costly for casinos henceforth.
With Parliament’s Public Account Committee (PAC) instructing the government to come up with regulatory framework to regulate casinos, the Ministry of Tourism and Civil Aviation (MoTCA) has prepared a draft guidelines on casinos which says that casinos have to put up a collateral worth equivalent to the two years’ royalty while acquiring operating licence.As casinos were found to be reluctant in paying royalty and other dues to the government, the proposal of collateral was floated, said a ministry official. “The rationale behind the new provision is to ensure royalty compliance,” said a ministry official. “If a casino defaults on royalty payment, the government will seize its collateral.” Currently, casinos have to pay an annual royalty of Rs 20 million.
The guidelines, which are currently under discussion, say that the operating license can be renewed every two years. The government, through the budget, has made it mandatory for casinos to get their licences renewed every year. As per the Finance Bill, casinos failing to clear their royalties by mid-January will lose their licences. A gambling house that loses its licence will have to start afresh to obtain a new one.
The new guidelines also talk about allowing Nepali citizens in casinos. However, only big taxpayers (those having an annual turnover of Rs 250 million) will be allowed in casinos. The Department of Revenue Investigation will provide data of those big taxpayers. Casinos should issue memberships to these people, says the proposed guideline. However, they have to pay an entry fee of Rs 5,000 for 24 hours.
According to the draft guidelines, casino operators have to submit their detailed business and investment plan to the government to obtain licence. With most of the casinos relying on Nepali citizens, the guidelines say that casinos should come up with tourism packages to attract foreign clients. Casinos should register their infrastructure —from furniture to gaming machines at the ministry and should have ministry’s stickers pasted on them.
The ministry will supervise casinos every three months and will be entrusted with the whole job of monitoring them, according to the guideline. In order to regulate and enforce the guidelines, plain-cloth police personnel will also be mobilised in casinos. Hotels had been complaining that surprise police raids had terrified their clients.
The DRI had recommended the ministry to shut eight casinos failing to pay their royalty dues on time. The ministry has not been able to take a decision in this regard because of the delay in the Cabinet formation.
The DRI on Feb. 13 had dispatched a letter to the ministry asking it to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
Of the 10 casinos currently operating in the country, only two—Casino Tara at Hotel Hyatt Regency and Casino Everest at Hotel Everest—have cleared their dues.
In a bid to regulate the casino business, PAC issued a series of directives to the government—from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act. PAC had directed the government on Dec. 28 to scrap operating licences of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos asking them to either clear their dues or face cancellation of their operating licenses.
Following the PAC directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The government, for the last six months, has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
Health is wealth
Hospitals and medical colleges are big investment opportunities for the private sector
SANGAM PRASAIN
KATHMANDU, FEB. 18
Nepali business houses have stayed away from investing in the health sector for many years. Presently, some of the leading names in Nepal's private sector, the Khetan Group, NE Group and Upendra Mahato, have announced plans to enter the health sector in a big way.
The private sector has a strong presence in the domestic health sector through medical institutions like Om Hospital, B&B Hospital, Medicare Hospital, Kathmandu Medical College and Manipal Medical College. However, the latest wave of investments from the private sector shows that health is now turning into an investment area for them.
The Chaudhary Group was perhaps the first business house in Nepal to make a foray into the health sector in an institutional way. The group established Norvic International Hospital (then known as Norvic Health Care and Research Centre) in 1994. It is now operating with 100 beds. Two leading private hospitals, Om Hospital and Medicare Hospital, were upgraded from nursing homes to hospitals.
The expansion and success of private hospitals in India, ever growing need of quality health service and poor performance of public sector health outlets has provided immense opportunities for the private sector. Khetan Group chairman Rajendra Khetan said, "There is a huge gap between demand and supply in domestic health service." Khetan thinks the domestic market is large enough for private players to survive and make profits.
Cash-rich Khetan Group is currently looking for land for its foray into the health sector. According to Rajendra Khetan, the group will invest Rs 3 billion in its health project that includes hospital, medical college and nursing college.
After investing in Medicare Hospital, Upendra Mahato, former president of the Non-Resident Nepali Association (NRNA), is now gearing up for yet another venture into health. Mahato is working to start a medical college and hospital in Kathmandu. The proposed Ashwini Medical College and Hospital is a Rs 7 billion project. The college will have 100 seats and has already received permission from the Ministry of Education. According to sources, the medical college will be affiliated to Tribhuvan University or Kathmandu University.
CE Construction in a tie-up with another company has invested in Grande International Hospital at Dhapasi, Kathmandu with 200 beds. The Rs 1.2 billion project will be completed by February 2012, according to Vijay Rajbhandary, chairman of CE Construction. "The hospital will be a multi-disciplinary one to cater to the growing needs of patients," said Rajbhandary. "The hospital will be expanded to 500 beds within a decade along with a medical college and nursing college."
Of late, foreign joint ventures are slowly making inroads into the Nepali health sector. Norvic Hospital has recently entered into an agreement with India’s Medanta Medicity, one of the leading hospitals in India, for technology transfer and expertise in the medical field. Super Religare Laboratories (SRL), one of India’s leading diagnostic networks, opened a Super Religare Reference Laboratories (Nepal) in a joint venture with the NE Group.
The laboratory is a partnership between SRL and Life Care Services, a subsidiary of the NE Group. Each has a 50 percent stake in Super Religare Reference Laboratories which has a total investment of Rs 50 million. SRL is the largest and most trusted pathology laboratory network in India, servicing nearly 4,000 hospitals/path labs and over 50,000 doctors.
This JV, according to Ravi Bhakta Shrestha, vice chairman of the NE Group, is now mulling opening a boutique hospital in Nepal. "We're currently under negotiation with Fortis Healthcare Limited, one of SRL's promoters," said Shrestha. Though it is still not decided about the equity structure, Shrestha says the NE Group is keen to invest up to 50 percent in this venture. The boutique hospital will have 100 beds with world class health services.
Norvic is also going for a big expansion drive with an investment of Rs 1 billion. Apart from expanding its existing hospital at Thapathali by adding 100 beds, it is establishing a medical college at Lubhu, Lalitpur. There will be a 100-bed community hospital at Lubhu that will provide health service at relatively cheaper prices.
With the public health service still not being effective despite the government pumping in billions of rupees, the private sector's entry into it is believed to make health services better, professional and reliable. However, there is also the question of affordability. Will the common people have access to these high-end medical facilities? Will they be able to get services? These are some pertinent questions.
Khetan believes that with an increase in supply, the cost of health services will drop. "There is a huge gap between demand and supply. If we can manage to increase supply, we'll have a higher turnover, which will eventually allow us to provide health services at affordable prices," says Khetan.
Health entrepreneurs say that if properly developed, Nepal can attract patients from India due to cheaper medical costs and agreeable climate.
Reaching for the sky
The economy may have slowed to a crawl, but Nepal's aviation sector is taking off
SANGAM PRASAIN
The economy may not be growing by leaps and bounds, but it hasn't stopped domestic airlines from expanding. The domestic aviation sector is seeing new companies entering the scene and carriers expanding their fleets and spreading their wings beyond Nepal's borders.
With the country celebrating 2011 as Nepal Tourism Year with the aim of bringing one million tourists, the bustle in the aviation sector is understandable. The latest entrant is Goma Air that has two single-engine Cessna Caravan aircraft in its fleet. There are now nine domestic airlines and five helicopter services operating in the country.
Domestic airlines have been eyeing international operations. Their success in the domestic arena has made them confident of starting international flights. Buddha Air, after establishing itself strongly in the domestic domain, started international operations last year.
With the national flag carrier Nepal Airlines Corporation in a state of perpetual stupor, five domestic airlines have been inspired to join hands to start international operations by establishing a new company. Buddha Air, Yeti Airlines, Guna Airlines, Agni Air and Simrik Air plan to start international operations by May 2011.
Another indication of the country's aviation sector taking off is the 62 percent surge in domestic passenger movement and 36 percent rise in aircraft movement in the last 10 years (2000-09).
Remote areas: Next business prospect
Difficult geographical terrain and lack of roads in many parts of the country have provided the aviation sector huge business prospects. Single-engine aircraft are back in Nepal's skies. Many aviation entrepreneurs say the next big business for domestic aviation would be remote areas. Buddha Air's managing director Birendra Basnet is one of them. "The next big business scope for domestic airlines is remote areas," said Basnet. "As this sector is less competitive and the cost of operation is also less, there is profitability in this sector."
Unlike ‘trunk routes’ – long distance routes -- where there is stiff competition, the remote sector is still a virgin market. With single-engine aircraft relatively cheaper to acquire and operate, domestic airlines are now opting for them. In a country where flying is not only a luxury but also a supply and communication lifeline for remote areas, availability of more air seats and cargo space is in itself a major development.
Domestic carriers that were reluctant to fly in remote areas are now taking the lead in remote area service. As of now, four airlines -- Tara Air, Air Kasthamandap, Makalu Air and Goma Air -- are operating services with single-engine aircraft. Recently, Akash Bhairav Aviation has been issued an AOC for single-engine operation. The airline plans to bring two single-engine planes.
Known for their short take-off and landing (STOL) capabilities, single engine aircraft are perfect for Nepal's mountainous terrain. These planes are best suited to transport essential goods to remote places that do not have access to roads or infrastructure to handle double-engine aircraft.
Except for Tara Air, the other three airlines flying single-engine aircraft have made Surkhet their base, targeting remote areas of the Mid-West and Far West. According to Goma Air's chairman Upendra Bhattarai, the carrier is planning to provide services to Mugu, Bajhang, Bajura and Doti in the first phase before expanding to other remote areas. Air Kasthamandap has been operating flights to Jumla, Dolpa, Mugu and Humla districts from its base in Surkhet.
Infrastructure development: An urgent need
Despite bright prospects, infrastructure bottlenecks could undermine the success achieved so far. Hence, urgent steps are needed to upgrade and develop aviation infrastructure. The country's only international airport, Tribhuvan International, is overstretched with a rise in international and domestic aircraft.
Birendra Bahadur Deuja, an aviation expert and former director general of the Civil Aviation Authority of Nepal (CAAN), said business prospects in the aviation sector are bright. "However, there should be more investment by the government as the current investment in the aviation sector is very nominal," said Deuja.
According to CAAN Deputy Director Tri Ratna Manandhar, there is a dire need to improve airport technology in line with international standards. “The government should increase investment in the air navigation and surveillance system as Nepal has been receiving pressure from ICAO to improve airport standards," said Manandhar.
The government has been working to establish a second international airport and three regional international airports. South Korea’s Landmark Worldwide Company that was assigned to do a detailed feasibility study for the airport has already presented its report to the government. According to the report, a single-runway airport at Nijgadh can be finished in 2015 if construction is started this year. Landmark's feasibility study stated that the proposed international airport could handle five to 15 million passengers annually and even accommodate the super jumbo Airbus 380 after the first phase of construction.
The government has also been working to develop Janakpur, Pokhara and Bhairahawa airports as regional international airports. The expansion of these three airports would open the way for more cross-border flights between Nepal and India. The expansion of Janakpur airport into a regional international airport can attract a large number of Hindu pilgrims while Bhairahawa's expansion could give a boost to Buddhist pilgrimage.
International operations: Still cautious
The new Air Service Agreement (ASA) signed between Nepal and India in September 2009 has opened the way for cross-border flights between the two countries. The ASA has increased the number of weekly flight seats to 30,000 and opened 10 new destinations for Nepali airlines permitting them to fly to 21 destinations in India.
Buddha Air has already planned to connect seven Indian cities by the end of 2011. In the first phase, it plans to link Lucknow, Kolkata and Patna. In the second phase, it plans to extend its service to Varanasi, Guwahati, Derhadun and Gorakhpur.
Despite having started international operations to Bhutan and Lucknow, Birendra Basnet sounds cautious about Nepali airlines going international. Before Buddha, four Nepali private airlines -- the now defunct Necon Air, Cosmic Air, Air Nepal International and Fly Yeti -- started international operations which were subsequently discontinued. "Given our capacity, we should not go forward aggressively," said Basnet. "Instead, we should look at capitalising on markets where there are large numbers of Nepali migrant workers."
The new international airline being promoted by five domestic carriers is eying 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 one of the promoters. They are hiring an international management team including the chief executive officer to run the five-airline consortium.
Despite having more than a dozen fixed-wing and helicopter companies, sustainability has been the major issue. The demise of Necon, Cosmic, Shangri-La, Everest, Nepal Airways, Lumbini, Gorkha and other carriers are some of the unsuccessful stories in Nepal's domestic aviation. But entrepreneurs now seem determined to take lesions from the past.
Domestic passenger movement
Year No. of Passengers Change
2007 91,6429 3.8%
2008 1,036,586 13.1%
2009 1,377,868 32.9%
2010 1,073,391 (Jan-Sept) -----
Domestic flight movement
Year No. of Passengers Change
2007 65443 6.8%
2008 69286 5.9%
2009 76191 10%
2010 55,345 (Jan-Sept) ------
SANGAM PRASAIN
The economy may not be growing by leaps and bounds, but it hasn't stopped domestic airlines from expanding. The domestic aviation sector is seeing new companies entering the scene and carriers expanding their fleets and spreading their wings beyond Nepal's borders.
With the country celebrating 2011 as Nepal Tourism Year with the aim of bringing one million tourists, the bustle in the aviation sector is understandable. The latest entrant is Goma Air that has two single-engine Cessna Caravan aircraft in its fleet. There are now nine domestic airlines and five helicopter services operating in the country.
Domestic airlines have been eyeing international operations. Their success in the domestic arena has made them confident of starting international flights. Buddha Air, after establishing itself strongly in the domestic domain, started international operations last year.
With the national flag carrier Nepal Airlines Corporation in a state of perpetual stupor, five domestic airlines have been inspired to join hands to start international operations by establishing a new company. Buddha Air, Yeti Airlines, Guna Airlines, Agni Air and Simrik Air plan to start international operations by May 2011.
Another indication of the country's aviation sector taking off is the 62 percent surge in domestic passenger movement and 36 percent rise in aircraft movement in the last 10 years (2000-09).
Remote areas: Next business prospect
Difficult geographical terrain and lack of roads in many parts of the country have provided the aviation sector huge business prospects. Single-engine aircraft are back in Nepal's skies. Many aviation entrepreneurs say the next big business for domestic aviation would be remote areas. Buddha Air's managing director Birendra Basnet is one of them. "The next big business scope for domestic airlines is remote areas," said Basnet. "As this sector is less competitive and the cost of operation is also less, there is profitability in this sector."
Unlike ‘trunk routes’ – long distance routes -- where there is stiff competition, the remote sector is still a virgin market. With single-engine aircraft relatively cheaper to acquire and operate, domestic airlines are now opting for them. In a country where flying is not only a luxury but also a supply and communication lifeline for remote areas, availability of more air seats and cargo space is in itself a major development.
Domestic carriers that were reluctant to fly in remote areas are now taking the lead in remote area service. As of now, four airlines -- Tara Air, Air Kasthamandap, Makalu Air and Goma Air -- are operating services with single-engine aircraft. Recently, Akash Bhairav Aviation has been issued an AOC for single-engine operation. The airline plans to bring two single-engine planes.
Known for their short take-off and landing (STOL) capabilities, single engine aircraft are perfect for Nepal's mountainous terrain. These planes are best suited to transport essential goods to remote places that do not have access to roads or infrastructure to handle double-engine aircraft.
Except for Tara Air, the other three airlines flying single-engine aircraft have made Surkhet their base, targeting remote areas of the Mid-West and Far West. According to Goma Air's chairman Upendra Bhattarai, the carrier is planning to provide services to Mugu, Bajhang, Bajura and Doti in the first phase before expanding to other remote areas. Air Kasthamandap has been operating flights to Jumla, Dolpa, Mugu and Humla districts from its base in Surkhet.
Infrastructure development: An urgent need
Despite bright prospects, infrastructure bottlenecks could undermine the success achieved so far. Hence, urgent steps are needed to upgrade and develop aviation infrastructure. The country's only international airport, Tribhuvan International, is overstretched with a rise in international and domestic aircraft.
Birendra Bahadur Deuja, an aviation expert and former director general of the Civil Aviation Authority of Nepal (CAAN), said business prospects in the aviation sector are bright. "However, there should be more investment by the government as the current investment in the aviation sector is very nominal," said Deuja.
According to CAAN Deputy Director Tri Ratna Manandhar, there is a dire need to improve airport technology in line with international standards. “The government should increase investment in the air navigation and surveillance system as Nepal has been receiving pressure from ICAO to improve airport standards," said Manandhar.
The government has been working to establish a second international airport and three regional international airports. South Korea’s Landmark Worldwide Company that was assigned to do a detailed feasibility study for the airport has already presented its report to the government. According to the report, a single-runway airport at Nijgadh can be finished in 2015 if construction is started this year. Landmark's feasibility study stated that the proposed international airport could handle five to 15 million passengers annually and even accommodate the super jumbo Airbus 380 after the first phase of construction.
The government has also been working to develop Janakpur, Pokhara and Bhairahawa airports as regional international airports. The expansion of these three airports would open the way for more cross-border flights between Nepal and India. The expansion of Janakpur airport into a regional international airport can attract a large number of Hindu pilgrims while Bhairahawa's expansion could give a boost to Buddhist pilgrimage.
International operations: Still cautious
The new Air Service Agreement (ASA) signed between Nepal and India in September 2009 has opened the way for cross-border flights between the two countries. The ASA has increased the number of weekly flight seats to 30,000 and opened 10 new destinations for Nepali airlines permitting them to fly to 21 destinations in India.
Buddha Air has already planned to connect seven Indian cities by the end of 2011. In the first phase, it plans to link Lucknow, Kolkata and Patna. In the second phase, it plans to extend its service to Varanasi, Guwahati, Derhadun and Gorakhpur.
Despite having started international operations to Bhutan and Lucknow, Birendra Basnet sounds cautious about Nepali airlines going international. Before Buddha, four Nepali private airlines -- the now defunct Necon Air, Cosmic Air, Air Nepal International and Fly Yeti -- started international operations which were subsequently discontinued. "Given our capacity, we should not go forward aggressively," said Basnet. "Instead, we should look at capitalising on markets where there are large numbers of Nepali migrant workers."
The new international airline being promoted by five domestic carriers is eying 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 one of the promoters. They are hiring an international management team including the chief executive officer to run the five-airline consortium.
Despite having more than a dozen fixed-wing and helicopter companies, sustainability has been the major issue. The demise of Necon, Cosmic, Shangri-La, Everest, Nepal Airways, Lumbini, Gorkha and other carriers are some of the unsuccessful stories in Nepal's domestic aviation. But entrepreneurs now seem determined to take lesions from the past.
Domestic passenger movement
Year No. of Passengers Change
2007 91,6429 3.8%
2008 1,036,586 13.1%
2009 1,377,868 32.9%
2010 1,073,391 (Jan-Sept) -----
Domestic flight movement
Year No. of Passengers Change
2007 65443 6.8%
2008 69286 5.9%
2009 76191 10%
2010 55,345 (Jan-Sept) ------
Thursday, February 17, 2011
Great Himalaya Trail opens for business
SANGAM PRASAIN
KATHMANDU, FEB 16 -
Australian-based adventure travel company World Expeditions in association with Highland Excursions Nepal announced the start of commercial trekking on the Great Himalaya Trail (GHT) on Wednesday.
The government had announced the GHT, the longest and highest alpine walking track in the world, as a new product to attract trekkers from around the world during the inauguration of Nepal Tourism Year 2011 on Jan. 14.
The entire GHT is 4,500 km long and passes through Pakistan, the Tibet Autonomous Region of China, India, Nepal, Bhutan and Myanmar. The Nepali section of the GHT extends along the length of the country from Darchula and Humla in the west to Kanchenjunga in the east, and takes some 157 days to trek.
World Expeditions said that it had spilt the GHT in Nepal into seven sections of 18-34 days each. Trekking the whole trail costs around US$ 35,000, said Robin Boustead who documented the trail in Nepal in 2008. “Acknowledging that most people don’t have the luxury of this sort of time for adventure, we have devised seven treks that can be linked to make up the full traverse. The trip will be offered each year so that adventurers may choose to undertake the entire GHT over a number of years,” said World Expeditions.
The GHT is not a new product; it is the same trekking route that has been elegantly connected with the itineraries combining old and new routes. The route not only offers incredible biodiversity but is also associated with the objective of transforming untouched wilderness in the remotest districts into economic assets.
According to Highland Excursions Nepal, the product seller, more then 40 international trekkers have confirmed they would do the trek. “Trekkers all over the world are excited by the new product,” said Uma Khakurel, director of marketing and sales of Highland Excursions.
Khakurel added that the first ever commercial traverse of the GHT in Nepal would help support the people of the Himalaya to improve livelihoods, create employment and bring sustainable development opportunities to remote mountain communities.
The trail operators will raise A$ 100 from each trekker that will be given to the Australian Himalaya Foundation, an organisation helping the people of the Himalaya achieve their goals through improvements in health, education, environmental sustainability and conservation across the Himalaya.
Australian adventurer Robin Boustead documented the trail in Nepal in 2008. He completed the upper route of about 1,700 km which offers unparalleled trekking mixing high passes and alpine valleys.
“People along the trail are very excited,” said Boustead. The GHT will be one of Nepal’s unique products to increase quality and sustainable tourism. The GHT is an “international trekking trail” that emerged in the late 1990s in Nepal. However, it has been possible to walk over it since 2003.
All of the world’s 14 eight-thousander peaks can be seen on the trek. The westernmost point of the GHT is the world’s ninth highest peak, Nanga Parbat in Pakistan. It winds past the sacred headwaters of the Ganges in India, the entire length of Nepal beneath Annapurna, Everest and Kanchenjunga, through Sikkim then Bhutan and eventually to India’s remote Arunachal Pradesh, Myanmar and Namche Barwa in Tibet.
In 2004, the GHT was adopted as a pro-poor tourism initiative in the South Asia Sub-regional Economic Cooperation’s Tourism Development Plan sponsored by the ADB in Nepal, Bhutan and India (Sikkim, Darjeeling and Arunachal Pradesh). With Nepal having the most to gain due to its geography, SNV and ICIMOD took up the concept in 2006. In 2008, SNV conducted the GHT first phase pilot project in Humla and Dolpa.
KATHMANDU, FEB 16 -
Australian-based adventure travel company World Expeditions in association with Highland Excursions Nepal announced the start of commercial trekking on the Great Himalaya Trail (GHT) on Wednesday.
The government had announced the GHT, the longest and highest alpine walking track in the world, as a new product to attract trekkers from around the world during the inauguration of Nepal Tourism Year 2011 on Jan. 14.
The entire GHT is 4,500 km long and passes through Pakistan, the Tibet Autonomous Region of China, India, Nepal, Bhutan and Myanmar. The Nepali section of the GHT extends along the length of the country from Darchula and Humla in the west to Kanchenjunga in the east, and takes some 157 days to trek.
World Expeditions said that it had spilt the GHT in Nepal into seven sections of 18-34 days each. Trekking the whole trail costs around US$ 35,000, said Robin Boustead who documented the trail in Nepal in 2008. “Acknowledging that most people don’t have the luxury of this sort of time for adventure, we have devised seven treks that can be linked to make up the full traverse. The trip will be offered each year so that adventurers may choose to undertake the entire GHT over a number of years,” said World Expeditions.
The GHT is not a new product; it is the same trekking route that has been elegantly connected with the itineraries combining old and new routes. The route not only offers incredible biodiversity but is also associated with the objective of transforming untouched wilderness in the remotest districts into economic assets.
According to Highland Excursions Nepal, the product seller, more then 40 international trekkers have confirmed they would do the trek. “Trekkers all over the world are excited by the new product,” said Uma Khakurel, director of marketing and sales of Highland Excursions.
Khakurel added that the first ever commercial traverse of the GHT in Nepal would help support the people of the Himalaya to improve livelihoods, create employment and bring sustainable development opportunities to remote mountain communities.
The trail operators will raise A$ 100 from each trekker that will be given to the Australian Himalaya Foundation, an organisation helping the people of the Himalaya achieve their goals through improvements in health, education, environmental sustainability and conservation across the Himalaya.
Australian adventurer Robin Boustead documented the trail in Nepal in 2008. He completed the upper route of about 1,700 km which offers unparalleled trekking mixing high passes and alpine valleys.
“People along the trail are very excited,” said Boustead. The GHT will be one of Nepal’s unique products to increase quality and sustainable tourism. The GHT is an “international trekking trail” that emerged in the late 1990s in Nepal. However, it has been possible to walk over it since 2003.
All of the world’s 14 eight-thousander peaks can be seen on the trek. The westernmost point of the GHT is the world’s ninth highest peak, Nanga Parbat in Pakistan. It winds past the sacred headwaters of the Ganges in India, the entire length of Nepal beneath Annapurna, Everest and Kanchenjunga, through Sikkim then Bhutan and eventually to India’s remote Arunachal Pradesh, Myanmar and Namche Barwa in Tibet.
In 2004, the GHT was adopted as a pro-poor tourism initiative in the South Asia Sub-regional Economic Cooperation’s Tourism Development Plan sponsored by the ADB in Nepal, Bhutan and India (Sikkim, Darjeeling and Arunachal Pradesh). With Nepal having the most to gain due to its geography, SNV and ICIMOD took up the concept in 2006. In 2008, SNV conducted the GHT first phase pilot project in Humla and Dolpa.
Tuesday, February 15, 2011
Nepal produces veggies worth Rs 45 billion annually: Report
SANGAM PRASAIN
KATHMANDU, FEB 15 -
Nepal produces vegetables worth Rs 45 billion annually, according to Nepal Vegetable Crops Survey 2009-10. And, Rs 9 billion is invested in vegetable farming every year. The report says that around 70 percent of Nepal’s total household is involved in vegetable farming.
The first of its kind survey reveals interesting facts about vegetable farming in the country—description of vegetable holders, total area for vegetable cultivation, expenditure on vegetable farming, total production and uses of vegetables, and farmers’ access to agricultural services.
The survey carried out by the Central Bureau of Statistics (CBS) with assistance from the Asian Development Bank says that vegetables are cultivated in 232,295 hectares of land in the country.
Terai is the major vegetable growing area with an annual production of 1,437,921 tons, followed by hilly region with 1,261,041 tons. As per the survey, total annual production of vegetables in Nepal is 2.82 million tons. Of the total output, 39 percent (1.10 million tons) is used for household consumption and 61 percent (1.71 million tons) for sale. However, of the total vegetable farmers, only 18 percent are engaged in commercial farming.
In terms of cultivation area, production and value, cauliflower is the number one vegetable crop. A total of 404,580 tons of cauliflower is produced in 33,172 hectares of land in the country. According to the survey, cauliflower worth Rs 6.5 billion is produced annually in Nepal. Other major vegetable crops in terms of production are tomato (317,657 tons), cabbage (302,067 tons), pumpkin (166,424 tons) and radish (164,076 tons).
According to the survey, cauliflower, tomato and cabbage are the major money-spinners among vegetable crops. It says most commonly sold vegetables are cauliflower (339,273 tons), tomato (283,999 tons) and cabbage (269,294 tons). “As cauliflower, tomato and cabbage can be cultivated throughout the year, it is natural that they are the top three vegetables,” said agro-expert Tulasi Gautam.
Although the Terai region produces and sells more vegetables, vegetables grown in hilly region have better value. According to the survey, vegetables produced in hills in a year are valued at Rs 21.79 billion, whereas Terai products are valued at Rs 21 billion. “The reason behind the difference in value is vegetables in hills are produced during rainy reason when prices are relatively higher,” said Gautam. In terms of value, cauliflower tops the chart. It is followed by tomato, cabbage, asparagus bean, cucumber and broad leaf mustard (Rs 2 billion each).
A majority of vegetable farmers in the country are self-financed with only five percent taking loan for vegetable farming. Around 55 percent of the farmers rely on informal sectors for loans.
Among those taking loans, only 24.3 percent take loans from banks. Relatives and friends are the largest sources of loan for the farmers. “Farmers are still relying on traditional loans with high interest rates. This means they are not earning up to their potential,” said Puskhar Bajracharya, a member of the National Planning Commission (NPC). “There is a need for expanding banking services in rural areas to encourage farmers.”
Interestingly, 15.1 percent of farmers have taken loans from co-operatives. It shows that agriculture cooperatives and agriculture and fruits cooperatives are emerging as major sources of financing.
A total of Rs 9 billion is invested in vegetable farming in the country annually. The largest portion of the amount (Rs 2.3 billion; 26 percent) is invested for purchasing organic fertilisers followed by purchase/production of seeds (22 percent) and land preparation (16 percent). The rental cost of land is the highest in Terai, according to the survey.
There are 55 vegetable crop groups identified in the survey. Vegetable farming is slowly emerging as the major source of income for farmers with 12 percent of them saying that income from vegetable farming is sufficient for a year. According to the survey, on an average, five months’ expenditure can be maintained by the income form vegetable farming. The survey revealed that almost half of the vegetable farmers (48 percent) use pesticides (insecticides or fungicides). The use of pesticides was observed most prominently (72 percent) in the Eastern and Central Terai.
According to the survey, organic vegetable farming is still in its nascent stage in the country. Of the total vegetable farmers, only eight percent use organic pesticides, while 92 percent use chemical pesticides. Uttam Narayan Malla, director general, CBS, said the survey will be of a great help for planners, policy makers and researchers for the development of vegetable crops.
Top five vegetable products
Vegetable Production in tonnes
Cauliflower 404,580
Tomato 317,657
Cabbage 302,067
Pumpkin 166,424
Radish 164,076
KATHMANDU, FEB 15 -
Nepal produces vegetables worth Rs 45 billion annually, according to Nepal Vegetable Crops Survey 2009-10. And, Rs 9 billion is invested in vegetable farming every year. The report says that around 70 percent of Nepal’s total household is involved in vegetable farming.
The first of its kind survey reveals interesting facts about vegetable farming in the country—description of vegetable holders, total area for vegetable cultivation, expenditure on vegetable farming, total production and uses of vegetables, and farmers’ access to agricultural services.
The survey carried out by the Central Bureau of Statistics (CBS) with assistance from the Asian Development Bank says that vegetables are cultivated in 232,295 hectares of land in the country.
Terai is the major vegetable growing area with an annual production of 1,437,921 tons, followed by hilly region with 1,261,041 tons. As per the survey, total annual production of vegetables in Nepal is 2.82 million tons. Of the total output, 39 percent (1.10 million tons) is used for household consumption and 61 percent (1.71 million tons) for sale. However, of the total vegetable farmers, only 18 percent are engaged in commercial farming.
In terms of cultivation area, production and value, cauliflower is the number one vegetable crop. A total of 404,580 tons of cauliflower is produced in 33,172 hectares of land in the country. According to the survey, cauliflower worth Rs 6.5 billion is produced annually in Nepal. Other major vegetable crops in terms of production are tomato (317,657 tons), cabbage (302,067 tons), pumpkin (166,424 tons) and radish (164,076 tons).
According to the survey, cauliflower, tomato and cabbage are the major money-spinners among vegetable crops. It says most commonly sold vegetables are cauliflower (339,273 tons), tomato (283,999 tons) and cabbage (269,294 tons). “As cauliflower, tomato and cabbage can be cultivated throughout the year, it is natural that they are the top three vegetables,” said agro-expert Tulasi Gautam.
Although the Terai region produces and sells more vegetables, vegetables grown in hilly region have better value. According to the survey, vegetables produced in hills in a year are valued at Rs 21.79 billion, whereas Terai products are valued at Rs 21 billion. “The reason behind the difference in value is vegetables in hills are produced during rainy reason when prices are relatively higher,” said Gautam. In terms of value, cauliflower tops the chart. It is followed by tomato, cabbage, asparagus bean, cucumber and broad leaf mustard (Rs 2 billion each).
A majority of vegetable farmers in the country are self-financed with only five percent taking loan for vegetable farming. Around 55 percent of the farmers rely on informal sectors for loans.
Among those taking loans, only 24.3 percent take loans from banks. Relatives and friends are the largest sources of loan for the farmers. “Farmers are still relying on traditional loans with high interest rates. This means they are not earning up to their potential,” said Puskhar Bajracharya, a member of the National Planning Commission (NPC). “There is a need for expanding banking services in rural areas to encourage farmers.”
Interestingly, 15.1 percent of farmers have taken loans from co-operatives. It shows that agriculture cooperatives and agriculture and fruits cooperatives are emerging as major sources of financing.
A total of Rs 9 billion is invested in vegetable farming in the country annually. The largest portion of the amount (Rs 2.3 billion; 26 percent) is invested for purchasing organic fertilisers followed by purchase/production of seeds (22 percent) and land preparation (16 percent). The rental cost of land is the highest in Terai, according to the survey.
There are 55 vegetable crop groups identified in the survey. Vegetable farming is slowly emerging as the major source of income for farmers with 12 percent of them saying that income from vegetable farming is sufficient for a year. According to the survey, on an average, five months’ expenditure can be maintained by the income form vegetable farming. The survey revealed that almost half of the vegetable farmers (48 percent) use pesticides (insecticides or fungicides). The use of pesticides was observed most prominently (72 percent) in the Eastern and Central Terai.
According to the survey, organic vegetable farming is still in its nascent stage in the country. Of the total vegetable farmers, only eight percent use organic pesticides, while 92 percent use chemical pesticides. Uttam Narayan Malla, director general, CBS, said the survey will be of a great help for planners, policy makers and researchers for the development of vegetable crops.
Top five vegetable products
Vegetable Production in tonnes
Cauliflower 404,580
Tomato 317,657
Cabbage 302,067
Pumpkin 166,424
Radish 164,076
Monday, February 14, 2011
Trade union leaders urge casino owner to clear dues
According to staff at Casino Nepal, they haven’t received their salaries for the last three months
SANGAM PRASAIN
KATHMANDU, FEB 15 -
With government action against non-paying casinos looking imminent, trade unions of Casino Nepal have begun efforts to persuade owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa to clear the outstanding dues.
The Department of Revenue Investigation (DRI) has recommended to the Tourism Ministry that the licenses of eight casinos defaulting on royalty payments be cancelled.
Sources said the presidents of four trade unions at Casino Nepal held discussions with Wadhwa in New Delhi, India, on Monday. “With the government looking firm to take action against us, we’ve initiated this move,” said a trade union official at Casino Nepal. Along with the four union chiefs, two members of the management of Casino Nepal had travelled to New Delhi on Sunday.
Wadhwa’s NRC currently runs four casinos in Nepal. Of them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, his two other casinos—Casino Nepal and Casino Anna—haven’t paid any royalty or dues for the last few years despite constant government pressure. These two casinos owe the government Rs 244 million.
Wadhwa, who has been on the dodge since the police issued an arrest warrant against him, is planning to settle in New Delhi, according to his close confidant. Wadhwa’s continuous defiance of government orders has pushed his casinos to the verge of closure. He has so far refused to clear the outstanding royalties and instead said that the hotels where his casinos are housed should pay them. With the government tightening the screw on him, Wadhwa recently sold 50 percent of his stake in Casino Anna to two Indian buyers.
After the DRI’s letter recommending action against the eight casinos, leaders of their trade unions have been lobbying with government officials and lawmakers to delay legal proceedings against them. Trade union representatives met with Public Accounts Committee (PAC) member Usha Gurung, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota on Sunday.
“We’ll lead the initiation to pressure Wadhwa to clear the dues, let the government hold the action for a few days,” said one leader.
According to staff at Casino Nepal, they haven’t received their salaries for the last three months. “Neither have we got our salaries nor has our management deposited our provident fund of the last 29 months,” said one employee.
As per the Finance Bill, casinos that fail to clear their royalties by mid-January will lose their operating licenses. A gambling house that loses its license will have to start afresh to obtain a new one. The government has made it mandatory for casinos to get their operating licenses renewed annually.
The Tourism Ministry has said that it would initiate action against the casinos as per the directives of PAC which instructed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days.
The DRI, in line with PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.
Sunday, February 13, 2011
The penny drops
Eight casinos which have not paid their dues are to be shut down
SANGAM PRASAIN
KATHMANDU, FEB 14 -
The axe has finally fallen. Eight casinos which have been delinquent in paying their royalties are on track to lose their operating licenses.
The Department of Revenue Investigation (DRI) on Sunday wrote to the Tourism Ministry to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
After the stipulated time limit ran out on Friday, the department dispatched a formal letter to the ministry recommending action against the eight gambling houses as per the directives of the parliamentary Public Accounts Committee (PAC). With the DRI’s latest move, the eight casinos are virtually set to lose their licenses.
“We sent a letter to the Tourism Ministry on Sunday recommending that it scrap the operating licenses and close down the eight casinos that have failed to clear their outstanding royalties and dues to the government,” said DRI director general Mahesh Dahal.
Of the 10 casinos currently operating in the country, only two—Casino Tara at the Hotel Hyatt Regency and Casino Everest at the Hotel Everest—have cleared their dues.
PAC had directed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.
Following PAC’s directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year. According to Dahal, the operators of these three casinos had pledged to pay the remaining Rs 10.08 million within two months.
Likewise, Casino Shangri-La and Casino Royale paid the royalty and fines for the current fiscal year, but didn’t make payments of the previous year. The management of Casino Shangri-La, according to Dahal, had argued that the royalties and dues of earlier fiscal years were accumulated by Nepal Recreation Centre (NRC), its previous operator.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite the constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
Following the DRI’s letter, tourism secretary Kishore Thapa said that the ministry would take action against the casinos based on the directives of PAC. “As per PAC’s directive, we must initiate action against them,” said Thapa.
As per the Finance Bill, casinos that fails to clear their royalties by mid-January would lose their operating licenses. “Their licenses will be automatically scrapped if they fail to clear their royalties by mid-January as per the Finance Bill,” said a senior official at the Finance Ministry.
“Those whose licenses have been scrapped should go for a new process to acquire licenses.” Finance Ministry officials said the government could recover the dues of from defaulting casinos by confiscating their properties. The government, through the new budget, has made compulsory renewal of casino licenses and annual licenses.
The government from the last six months has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act.
Getting into the swing of things
SANGAM PRASAIN
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
Pay up Deadline ends; six casinos cough up dues
SANGAM PRASAIN
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
Thursday, February 10, 2011
Casinos not paying their dues likely to be shut down
SANGAM PRASAIN
KATHMANDU, FEB 11 -
With Parliament’s Public Accounts Committee (PAC)’s 35-day deadline to the government to recover outstanding royalties from casinos ending on Friday, tough action is on the cards against casinos who have defied the government.
The Department of Revenue Investigation (DRI), which is handling casino royalty row, is expected to recommend the tourism ministry to scrap operating licenses of casinos who fail to clear their dues by Friday. “We will wait till 3 pm on Friday.
If casinos failed to clear their dues, we will recommend the ministry to scrap their licenses and shut them,” said Mahesh Dahal, director general of the DRI.
As of now, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues of the last fiscal year. These casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.
As per the new finance bill, casinos have to pay their royalty in advance by mid-September. However, they can pay it by Mid-November with 15 percent additional charges. Those who have failed to pay royalty for the current fiscal year will also feel the heat henceforth.
According to the DRI, Casino Everest at the Everest Hotel has paid all its dues and royalties for the current fiscal year. Casino Tara at the Hyatt has paid its royalties for the current fiscal year, but has been behind in paying interest. Three casinos—Casino Rad, Casino Venus and Casino Grand—each have paid Rs 15 million as royalty for the current fiscal year. “These casinos together still owe Rs 15 million as royalty,” said Dahal.
The new budget has made it mandatory to get casino operating license renewed every year. However, casinos have to clear their royalty—Rs 20 million—for license renewal.
Fearing that the government would issue another notice making hotels, where the casinos are housed, liable for the outstanding dues, Hotel Association Nepal (HAN) had forwarded a request to tourism ministry on Feb. 7 to consider hotels until the end of the Nepal Tourism Year.
“We have also requested the ministry to entrust the responsibility to HAN if the government fails to recover dues from Nepal Recreation Centre owned by Rakesh Wadhwa,” said Madhav Om Shrestha, executive director of HAN. Wadhwa has been in hiding since the police issued an arrest warrant against him.
Wadhwa is still operating Casino Everest, Casino Anna and Casino Tara. “We have requested PAC to take action against Wadhwa who operates casinos in Goa also by contacting the India authorities,” Shrestha said. Apart from the dues issues, other issues could be settled after the implementation of the casino guidelines or act, HAN said.
The government could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre. The government has been taking a tough stance against casino operators since the last four months, pressuring them to clear their royalty dues.
With the haphazard running of casinos and their increasing negative impact on society, PAC has even asked the government to explore the possibility of relocating them outside the Kathmandu Valley recently.
Last week, PAC instructed the Tourism Ministry to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
KATHMANDU, FEB 11 -
With Parliament’s Public Accounts Committee (PAC)’s 35-day deadline to the government to recover outstanding royalties from casinos ending on Friday, tough action is on the cards against casinos who have defied the government.
The Department of Revenue Investigation (DRI), which is handling casino royalty row, is expected to recommend the tourism ministry to scrap operating licenses of casinos who fail to clear their dues by Friday. “We will wait till 3 pm on Friday.
If casinos failed to clear their dues, we will recommend the ministry to scrap their licenses and shut them,” said Mahesh Dahal, director general of the DRI.
As of now, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues of the last fiscal year. These casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.
As per the new finance bill, casinos have to pay their royalty in advance by mid-September. However, they can pay it by Mid-November with 15 percent additional charges. Those who have failed to pay royalty for the current fiscal year will also feel the heat henceforth.
According to the DRI, Casino Everest at the Everest Hotel has paid all its dues and royalties for the current fiscal year. Casino Tara at the Hyatt has paid its royalties for the current fiscal year, but has been behind in paying interest. Three casinos—Casino Rad, Casino Venus and Casino Grand—each have paid Rs 15 million as royalty for the current fiscal year. “These casinos together still owe Rs 15 million as royalty,” said Dahal.
The new budget has made it mandatory to get casino operating license renewed every year. However, casinos have to clear their royalty—Rs 20 million—for license renewal.
Fearing that the government would issue another notice making hotels, where the casinos are housed, liable for the outstanding dues, Hotel Association Nepal (HAN) had forwarded a request to tourism ministry on Feb. 7 to consider hotels until the end of the Nepal Tourism Year.
“We have also requested the ministry to entrust the responsibility to HAN if the government fails to recover dues from Nepal Recreation Centre owned by Rakesh Wadhwa,” said Madhav Om Shrestha, executive director of HAN. Wadhwa has been in hiding since the police issued an arrest warrant against him.
Wadhwa is still operating Casino Everest, Casino Anna and Casino Tara. “We have requested PAC to take action against Wadhwa who operates casinos in Goa also by contacting the India authorities,” Shrestha said. Apart from the dues issues, other issues could be settled after the implementation of the casino guidelines or act, HAN said.
The government could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre. The government has been taking a tough stance against casino operators since the last four months, pressuring them to clear their royalty dues.
With the haphazard running of casinos and their increasing negative impact on society, PAC has even asked the government to explore the possibility of relocating them outside the Kathmandu Valley recently.
Last week, PAC instructed the Tourism Ministry to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
Wednesday, February 9, 2011
Soaltee, Tara Gaon report increased Q2 profits
SANGAM PRASAIN
KATHMANDU, FEB 09 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 74.59 million and Rs 97.1 million respectively for the second quarter (July 17-Dec. 31) of the current fiscal year.
The first quarter profit of the Soaltee amounted to Rs 28.68 million profits while the Tara Gaon earned Rs 18.81 million. The two five-star properties saw their incomes rise with improved tourist arrivals during the period.
According to an analysis report released by the management of the Soaltee, tourist arrivals by air during the period July-December 2010 increased by 19 percent against 16 percent in the same period previously.
“Considering the increased tourist arrivals since the beginning of 2011 and the projected rise for the whole year, the hotel plans to strengthen its various business segments and market promotion,” the report said.
Hoteliers said the industry was looking for an event to boost their occupancy level. For the last two years, the average hotel occupancy stood at around 70-75 percent, and the Nepal Tourism Year campaign is expected to push up occupancy to more than 80 percent.
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 the hotel, it has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
Similarly, the hotel is planning to strengthen and attract meetings, incentives, conventions and exhibitions (MICE) tourism.
The Tara Gaon’s analysis report said its occupancy has increased to 62 percent in the second quarter of the current fiscal year against 51 percent in the same period last year. The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year. With the Q2 profit, the hotel’s cumulative loss has dropped from Rs 961.46 million to Rs 864.32 million.
Tara Gaon aims to push up its occupancy to 65 percent in the current fiscal year. The hotel has targeted earning a profit of Rs 360 million.
It plans to offer a “special rate” to attract customers during the off season. Non-occurrence of strikes and bandas, which had badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase business in the days ahead.
According to the government’s statistics, arrivals by air in July, August and September amounted to 29,338, 34,415 and 41,331 travellers respectively. Arrivals in October, November and December amounted 62,712, 48,331 and 36,323 respectively.
KATHMANDU, FEB 09 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 74.59 million and Rs 97.1 million respectively for the second quarter (July 17-Dec. 31) of the current fiscal year.
The first quarter profit of the Soaltee amounted to Rs 28.68 million profits while the Tara Gaon earned Rs 18.81 million. The two five-star properties saw their incomes rise with improved tourist arrivals during the period.
According to an analysis report released by the management of the Soaltee, tourist arrivals by air during the period July-December 2010 increased by 19 percent against 16 percent in the same period previously.
“Considering the increased tourist arrivals since the beginning of 2011 and the projected rise for the whole year, the hotel plans to strengthen its various business segments and market promotion,” the report said.
Hoteliers said the industry was looking for an event to boost their occupancy level. For the last two years, the average hotel occupancy stood at around 70-75 percent, and the Nepal Tourism Year campaign is expected to push up occupancy to more than 80 percent.
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 the hotel, it has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
Similarly, the hotel is planning to strengthen and attract meetings, incentives, conventions and exhibitions (MICE) tourism.
The Tara Gaon’s analysis report said its occupancy has increased to 62 percent in the second quarter of the current fiscal year against 51 percent in the same period last year. The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year. With the Q2 profit, the hotel’s cumulative loss has dropped from Rs 961.46 million to Rs 864.32 million.
Tara Gaon aims to push up its occupancy to 65 percent in the current fiscal year. The hotel has targeted earning a profit of Rs 360 million.
It plans to offer a “special rate” to attract customers during the off season. Non-occurrence of strikes and bandas, which had badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase business in the days ahead.
According to the government’s statistics, arrivals by air in July, August and September amounted to 29,338, 34,415 and 41,331 travellers respectively. Arrivals in October, November and December amounted 62,712, 48,331 and 36,323 respectively.
Saturday, February 5, 2011
Janakpur airport to go international by 2012
SANGAM PRASAIN
KATHMANDU, FEB 05 -
The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.
The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.
Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.
Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.
The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.
Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.
KATHMANDU, FEB 05 -
The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.
The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.
Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.
Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.
The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.
Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.
Domestic airfares to go up 13-49 pc
SANGAM PRASAIN
KATHMANDU, FEB 05 -
The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).
Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.
MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.
“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.
Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.
On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.
Proposed Airfare by CAAN (excluding fuel surcharge)
Tourism Sector existing (in Rs) proposed (in Rs) up (in %)
Kathmandu-Mountain 4,616 7,172 28
Kathmandu-Lukla 2,355 3,227 17
Kathmandu-Bharatpur 1,635 2,241 13
Kathmandu-Pokhara 2,420 3,317 16
Kathmandu-Jomsom 3,402 4,662 16
Long-Haul
Kathmandu-Biratnagar 4,273 5,020 17
Kathmandu-Janakpur 2,352 2,689 14
Kathmandu-Bhairahawa 3,680 4,303 17
Kathmandu-Dhangadhi 7,758 9,234 19
Kathmandu-Nepalgunj 5,742 6,813 19
Kathmandu-Bhadrapur 5,309 6,275 18
Kathmandu-Surkhet 6,465 7,530 16
Remote Sector
Biratnagar-Bhojpur 1,329 1,972 48
Biratnagar-Tumlingtar 1,507 2,241 49
Biratnagar-Lamidanda 1,635 2,421 48
Biratnagar-Rumjatar 1,812 2,689 48
Biratnagar-Phaplu 2,117 3,138 48
Nepalgunj-Dolpa 2,304 3,407 48
Nepalgunj-Bajhang 2,541 3,765 48
Nepalgunj-Bajura 2,363 3,496 48
Nepalgunj-Simikot 3,151 4,662 48
Nepalgunj-Jumla 2,363 3,496 48
KATHMANDU, FEB 05 -
The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).
Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.
MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.
“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.
Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.
On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.
Proposed Airfare by CAAN (excluding fuel surcharge)
Tourism Sector existing (in Rs) proposed (in Rs) up (in %)
Kathmandu-Mountain 4,616 7,172 28
Kathmandu-Lukla 2,355 3,227 17
Kathmandu-Bharatpur 1,635 2,241 13
Kathmandu-Pokhara 2,420 3,317 16
Kathmandu-Jomsom 3,402 4,662 16
Long-Haul
Kathmandu-Biratnagar 4,273 5,020 17
Kathmandu-Janakpur 2,352 2,689 14
Kathmandu-Bhairahawa 3,680 4,303 17
Kathmandu-Dhangadhi 7,758 9,234 19
Kathmandu-Nepalgunj 5,742 6,813 19
Kathmandu-Bhadrapur 5,309 6,275 18
Kathmandu-Surkhet 6,465 7,530 16
Remote Sector
Biratnagar-Bhojpur 1,329 1,972 48
Biratnagar-Tumlingtar 1,507 2,241 49
Biratnagar-Lamidanda 1,635 2,421 48
Biratnagar-Rumjatar 1,812 2,689 48
Biratnagar-Phaplu 2,117 3,138 48
Nepalgunj-Dolpa 2,304 3,407 48
Nepalgunj-Bajhang 2,541 3,765 48
Nepalgunj-Bajura 2,363 3,496 48
Nepalgunj-Simikot 3,151 4,662 48
Nepalgunj-Jumla 2,363 3,496 48
Thursday, February 3, 2011
Fuel shortage may ‘prolong’
SANGAM PRASAIN
KATHMANDU, FEB 04 -
Demand for petrol and diesel in the Kathmandu Valley, of late, has jumped up considerably. Increased load-shedding hours, fuel hoarding and the Nepal Oil Corporation (NOC)’s inability to supply even half of the Capital’s demand are some of the reasons behind the latest rise in gasoline demand.
According to NOC and petroleum dealers, demand for petrol in Kathmandu surged to above 400 kiloliters (KL) per day from earlier 250 KL and diesel to over 500 KL per day from 350 KL.
Nepal Petroleum Dealers’ Association (NPDA) on Thursday recorded a sale of 350 KL of petrol and 500 KL of diesel. “Sales record shows that demand has increased dramatically,” said Saroj Pandey, president of NPDA, adding that gasoline shortage might prolong if NOC fails to import adequate amount.
The ongoing shortage has compelled NOC to resume its Thankot depot services during public holiday too. “We are opening Thankot depot on Friday to ensure smooth supply,” said Mukunda Dhungel, spokesperson for NOC. Dhungel said supply is improving, but not easing.
However, NPDA said NOC does not have enough stock in its depot. Thankot depot fulfils Kathmandu Valley’s demand for four days. Normally, diesel demand increases with increase in load-shedding hours, as a huge number of businesses and industrial firms rely on diesel-run generators during outage hours. However, rise in petrol demand is artificial, said Dhungel. “It is due to hoarding,” he said.
Another factor responsible for the latest gasoline shortage is rise in fuel prices in international market. This has compelled NOC to incur Rs 970 million losses every month, said an NOC official.
The finance ministry has approved a loan worth Rs 1.30 billion to NOC to ensure that NOC does not hike fuel prices for at least two months. The amount is yet to be released, though.
The Indian Oil Corporation (IOC) is providing petroleum products to Nepal on credit. Earlier, IOC had stopped credit facilities in the wake of huge outstanding dues and NOC’s inability to make timely payment, the official said.
“The reason behind all these problems is the government’s reluctance to adopt a scientific price revision system in line with international market,” added Pandey.
On Dec. 6, the oil monopoly had hiked major petroleum products’ prices. The NOC had again planned to hike fuel prices; however, wide criticism from consumer rights activists and political parties, among others, prompted the government to stop NOC’s fuel price hike plan.
According to a source, IOC is planning to curtail petroleum export to Nepal significantly, as India itself has been coping with fuel shortage.
KATHMANDU, FEB 04 -
Demand for petrol and diesel in the Kathmandu Valley, of late, has jumped up considerably. Increased load-shedding hours, fuel hoarding and the Nepal Oil Corporation (NOC)’s inability to supply even half of the Capital’s demand are some of the reasons behind the latest rise in gasoline demand.
According to NOC and petroleum dealers, demand for petrol in Kathmandu surged to above 400 kiloliters (KL) per day from earlier 250 KL and diesel to over 500 KL per day from 350 KL.
Nepal Petroleum Dealers’ Association (NPDA) on Thursday recorded a sale of 350 KL of petrol and 500 KL of diesel. “Sales record shows that demand has increased dramatically,” said Saroj Pandey, president of NPDA, adding that gasoline shortage might prolong if NOC fails to import adequate amount.
The ongoing shortage has compelled NOC to resume its Thankot depot services during public holiday too. “We are opening Thankot depot on Friday to ensure smooth supply,” said Mukunda Dhungel, spokesperson for NOC. Dhungel said supply is improving, but not easing.
However, NPDA said NOC does not have enough stock in its depot. Thankot depot fulfils Kathmandu Valley’s demand for four days. Normally, diesel demand increases with increase in load-shedding hours, as a huge number of businesses and industrial firms rely on diesel-run generators during outage hours. However, rise in petrol demand is artificial, said Dhungel. “It is due to hoarding,” he said.
Another factor responsible for the latest gasoline shortage is rise in fuel prices in international market. This has compelled NOC to incur Rs 970 million losses every month, said an NOC official.
The finance ministry has approved a loan worth Rs 1.30 billion to NOC to ensure that NOC does not hike fuel prices for at least two months. The amount is yet to be released, though.
The Indian Oil Corporation (IOC) is providing petroleum products to Nepal on credit. Earlier, IOC had stopped credit facilities in the wake of huge outstanding dues and NOC’s inability to make timely payment, the official said.
“The reason behind all these problems is the government’s reluctance to adopt a scientific price revision system in line with international market,” added Pandey.
On Dec. 6, the oil monopoly had hiked major petroleum products’ prices. The NOC had again planned to hike fuel prices; however, wide criticism from consumer rights activists and political parties, among others, prompted the government to stop NOC’s fuel price hike plan.
According to a source, IOC is planning to curtail petroleum export to Nepal significantly, as India itself has been coping with fuel shortage.
Wednesday, February 2, 2011
PAC to govt: Explore possibility of moving casinos out of Kathmandu
SANGAM PRASAIN
KATHMANDU, FEB 03 -
Continued defiance by casinos of government orders to clear their royalty dues and bar Nepalis from entering their premises has prompted the parliamentary Public Accounts Committee (PAC) to issue the sternest directives against them till date.
PAC on Wednesday even asked the government to explore the possibility of relocating the gambling houses outside the Kathmandu Valley. Stating that the haphazard running of casinos in the Capital has made negative impact on the society, the PAC directed the government to relocate them outside the Capital.
PAC has instructed the Ministry of Tourism and Civil Aviation (MoTCA) to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
With the casinos still running without a Casino Act, the committee has also instructed the government to prepare laws governing casinos at the earliest. “As of now, we do not have any act that says that it is illegal for Nepalis to enter a casino. The terms of reference (TOR) while issuing licenses for casinos only has a condition applied to operators that they will not allow Nepali into their casinos,” said home secretary Govinda Kusum.
PAC has also directed the government to explore the possibility of shifting the casinos out of the Kathmandu Valley. Inspector General of Police Ramesh Chand Thakuri supports the plan to move the casinos out of Kathmandu. “Relocating casinos from the capital could be an option to regulate and manage them well,” said Thakuri.
Finance Secretary Rameshwor Khanal was also in favour of relocating casinos outside the Capital. “Instead of running casinos without guidelines in the Capital, they can be relocated to a location that can be developed into casino hub,” said Khanal. “Las Vegas of the US and Macau are some examples of casino hubs.”
In order to curb illegal entry of Nepali citizens, the Nepal Police had proposed to the Home Ministry to relocate the casinos to the outskirts of the capital from downtown.
Following the proliferation of electronic gaming clubs (mini-casinos) outside Kathmandu, PAC has asked the government to shut them down. Of late, star hotels outside Kathmandu have been running such gaming clubs. And a number of them were even inaugurated by Tourism Minsiter Sharat Singh Bhandari. The onsite inspection of MoTCA had found that mini-casino at Hotel Sneha, Nepalgunj, had flouted the norms. “We’ve found that the casino is being run against the spirit of the license,” said Tourism Secretary Kishore Thapa. “The ministry has taken this issue seriously.”
These “mini-casinos” were given licenses without consulting other ministries. Finance secretary Rameshwor Khanal said that the MoTCA issued licenses for mini-casinos two years ago without consulting them. “We have forwarded a letter to the MoTCA stating that issuing licenses unilaterally was not right,” Khanal said.
A minister-level decision of the MoTCA allowed the operation of electronic gaming clubs, but these clubs have upgraded themselves to mini-casinos. Tourism secretary Kishore Thapa has admitted to this.
Despite the constant pressure of revenue authorities, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues. PAC on Dec. 29, 2010 had issued directives to the government to scrap the licenses of casinos failing to clear their dues within 35 days. This deadline will end on Feb. 11. It is still not clear whether the government will go for cancelling their permits.
As of now, these four casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.
If the casinos do not pay up, the government is mulling seizing their land and property. “The ministry could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre if it fails to clear the dues by the time limit,” said Khanal.
Lawmakers on Wednesday asked the government to be serious about the casino issue. Stating that frequent raids by the police could frighten away tourists, UML lawmaker Rabindra Adhikari said that casino operators should be made more accountable.
Tourism secretary Kishore Thapa said that the frequent raids and arrests in hotels have terrorised tourists. “If casinos are important for Nepali tourism, then they should be properly managed; if not, they should be closed,” Thapa said. If the government decides to shut them down, it should be done gradually as around 10,000 people are currently employed in this business, he added.
PAC has also asked the Home Ministry to amend the Gambling Act.
KATHMANDU, FEB 03 -
Continued defiance by casinos of government orders to clear their royalty dues and bar Nepalis from entering their premises has prompted the parliamentary Public Accounts Committee (PAC) to issue the sternest directives against them till date.
PAC on Wednesday even asked the government to explore the possibility of relocating the gambling houses outside the Kathmandu Valley. Stating that the haphazard running of casinos in the Capital has made negative impact on the society, the PAC directed the government to relocate them outside the Capital.
PAC has instructed the Ministry of Tourism and Civil Aviation (MoTCA) to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
With the casinos still running without a Casino Act, the committee has also instructed the government to prepare laws governing casinos at the earliest. “As of now, we do not have any act that says that it is illegal for Nepalis to enter a casino. The terms of reference (TOR) while issuing licenses for casinos only has a condition applied to operators that they will not allow Nepali into their casinos,” said home secretary Govinda Kusum.
PAC has also directed the government to explore the possibility of shifting the casinos out of the Kathmandu Valley. Inspector General of Police Ramesh Chand Thakuri supports the plan to move the casinos out of Kathmandu. “Relocating casinos from the capital could be an option to regulate and manage them well,” said Thakuri.
Finance Secretary Rameshwor Khanal was also in favour of relocating casinos outside the Capital. “Instead of running casinos without guidelines in the Capital, they can be relocated to a location that can be developed into casino hub,” said Khanal. “Las Vegas of the US and Macau are some examples of casino hubs.”
In order to curb illegal entry of Nepali citizens, the Nepal Police had proposed to the Home Ministry to relocate the casinos to the outskirts of the capital from downtown.
Following the proliferation of electronic gaming clubs (mini-casinos) outside Kathmandu, PAC has asked the government to shut them down. Of late, star hotels outside Kathmandu have been running such gaming clubs. And a number of them were even inaugurated by Tourism Minsiter Sharat Singh Bhandari. The onsite inspection of MoTCA had found that mini-casino at Hotel Sneha, Nepalgunj, had flouted the norms. “We’ve found that the casino is being run against the spirit of the license,” said Tourism Secretary Kishore Thapa. “The ministry has taken this issue seriously.”
These “mini-casinos” were given licenses without consulting other ministries. Finance secretary Rameshwor Khanal said that the MoTCA issued licenses for mini-casinos two years ago without consulting them. “We have forwarded a letter to the MoTCA stating that issuing licenses unilaterally was not right,” Khanal said.
A minister-level decision of the MoTCA allowed the operation of electronic gaming clubs, but these clubs have upgraded themselves to mini-casinos. Tourism secretary Kishore Thapa has admitted to this.
Despite the constant pressure of revenue authorities, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues. PAC on Dec. 29, 2010 had issued directives to the government to scrap the licenses of casinos failing to clear their dues within 35 days. This deadline will end on Feb. 11. It is still not clear whether the government will go for cancelling their permits.
As of now, these four casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.
If the casinos do not pay up, the government is mulling seizing their land and property. “The ministry could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre if it fails to clear the dues by the time limit,” said Khanal.
Lawmakers on Wednesday asked the government to be serious about the casino issue. Stating that frequent raids by the police could frighten away tourists, UML lawmaker Rabindra Adhikari said that casino operators should be made more accountable.
Tourism secretary Kishore Thapa said that the frequent raids and arrests in hotels have terrorised tourists. “If casinos are important for Nepali tourism, then they should be properly managed; if not, they should be closed,” Thapa said. If the government decides to shut them down, it should be done gradually as around 10,000 people are currently employed in this business, he added.
PAC has also asked the Home Ministry to amend the Gambling Act.
NTY wagon picks up pace, arrivals up 26 pc
SANGAM PRASAIN
KATHMANDU, FEB 02 -
Nepal welcomed 32,914 tourists in the first month of 2011, a gain of 26.2 percent compared to the same period last year. The first month of the Nepal Tourism Year 2011 campaign saw an increase of 6,843 visitors.
Tourism entrepreneurs have attributed the growth to improved air connectivity. According to the government’s tourist arrival figures, Nepal recorded significant inbound growth from the major targeted markets, India and China. Indian arrivals were up 35.5 percent to 7,905 while arrivals from China saw a robust growth of 79.6 percent. Total Chinese arrivals amounted to 3,203 as against 1,783 in the same period last year. Indian and Chinese arrivals made up 24 percent and 9.7 percent of the total arrivals.
Nepal has targeted the northern and the southern neighbours as major markets during Nepal Tourism Year. Projected arrivals from India and China are 265,000 and 100,000 respectively.
“The significant growth in Chinese and Indian tourists can be attributed to increased air accessibility. Despite the poor performance of the national flag carrier, international airlines serving Nepal have upgraded their aircraft and increased their flight frequencies,” said Ram Kazi Koney, a tourism entrepreneur.
China Eastern and China Southern have also increased their flight frequencies leading to a growth of Chinese tourists in Nepal, Koney said.
Similarly, arrivals from South Korea amounted to 2,720, up 20.3 percent. South Korean tourists made up 8.3 percent of the total arrivals.
Following the signing of a peace accord between the Maoists and the government in 2006, the number of Buddhist pilgrims from East Asia has risen. Arrivals from Malaysia, Singapore, Thailand, Japan and South Korea have also been increasing. “Korean Air has doubled its flight frequency to two weekly which has also contributed to the growth in Korean arrivals,” said a travel trade entrepreneur.
In the South Asian region, arrivals from Bangladesh and Pakistan registered a 10.3 percent and 13.3 percent growth respectively. However, arrivals from Sri Lanka declined by 47.5 percent. On aggregate, the South Asian segment registered a growth of 28.8 percent.
Arrivals from Asia excepting South Asia have also recorded a growth of 36.6 percent with all the markets showing improved performance. Arrivals from Japan, Malaysia, Singapore, Thailand and South Korea increased by 8.2 percent, 51.9 percent, 29.1 percent, 3.2 percent and 20.3 percent respectively. The European market saw an overall growth of 14.6 percent. Arrivals from the UK, Germany, the Netherlands and Russia were up 7.5 percent, 35.3 percent, 48.9 percent and 40.3 percent respectively. However, arrivals from France, Italy and Switzerland declined by 17.4 percent, 5.0 percent and 5.5 percent respectively compared to the same month last year.
Tourist arrivals from Australia, New Zealand and Canada have also registered robust growths of 23.8 percent, 59.7 percent and 9.8 percent respectively. Meanwhile, arrivals from the US increased by 27.6 percent to 2,446, making up 7.4 percent of the total arrivals.
Nepal has been enjoying sustained growth in international visitor arrivals since June 2009. These figures reflect rising confidence among visitors and tour operators to Nepal. The country saw a very strong surge in international visitors in 2010. The year-end growth for Nepal was 18.8 percent.
KATHMANDU, FEB 02 -
Nepal welcomed 32,914 tourists in the first month of 2011, a gain of 26.2 percent compared to the same period last year. The first month of the Nepal Tourism Year 2011 campaign saw an increase of 6,843 visitors.
Tourism entrepreneurs have attributed the growth to improved air connectivity. According to the government’s tourist arrival figures, Nepal recorded significant inbound growth from the major targeted markets, India and China. Indian arrivals were up 35.5 percent to 7,905 while arrivals from China saw a robust growth of 79.6 percent. Total Chinese arrivals amounted to 3,203 as against 1,783 in the same period last year. Indian and Chinese arrivals made up 24 percent and 9.7 percent of the total arrivals.
Nepal has targeted the northern and the southern neighbours as major markets during Nepal Tourism Year. Projected arrivals from India and China are 265,000 and 100,000 respectively.
“The significant growth in Chinese and Indian tourists can be attributed to increased air accessibility. Despite the poor performance of the national flag carrier, international airlines serving Nepal have upgraded their aircraft and increased their flight frequencies,” said Ram Kazi Koney, a tourism entrepreneur.
China Eastern and China Southern have also increased their flight frequencies leading to a growth of Chinese tourists in Nepal, Koney said.
Similarly, arrivals from South Korea amounted to 2,720, up 20.3 percent. South Korean tourists made up 8.3 percent of the total arrivals.
Following the signing of a peace accord between the Maoists and the government in 2006, the number of Buddhist pilgrims from East Asia has risen. Arrivals from Malaysia, Singapore, Thailand, Japan and South Korea have also been increasing. “Korean Air has doubled its flight frequency to two weekly which has also contributed to the growth in Korean arrivals,” said a travel trade entrepreneur.
In the South Asian region, arrivals from Bangladesh and Pakistan registered a 10.3 percent and 13.3 percent growth respectively. However, arrivals from Sri Lanka declined by 47.5 percent. On aggregate, the South Asian segment registered a growth of 28.8 percent.
Arrivals from Asia excepting South Asia have also recorded a growth of 36.6 percent with all the markets showing improved performance. Arrivals from Japan, Malaysia, Singapore, Thailand and South Korea increased by 8.2 percent, 51.9 percent, 29.1 percent, 3.2 percent and 20.3 percent respectively. The European market saw an overall growth of 14.6 percent. Arrivals from the UK, Germany, the Netherlands and Russia were up 7.5 percent, 35.3 percent, 48.9 percent and 40.3 percent respectively. However, arrivals from France, Italy and Switzerland declined by 17.4 percent, 5.0 percent and 5.5 percent respectively compared to the same month last year.
Tourist arrivals from Australia, New Zealand and Canada have also registered robust growths of 23.8 percent, 59.7 percent and 9.8 percent respectively. Meanwhile, arrivals from the US increased by 27.6 percent to 2,446, making up 7.4 percent of the total arrivals.
Nepal has been enjoying sustained growth in international visitor arrivals since June 2009. These figures reflect rising confidence among visitors and tour operators to Nepal. The country saw a very strong surge in international visitors in 2010. The year-end growth for Nepal was 18.8 percent.
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