SANGAM PRASAIN
KATHMANDU, APR 28 -
The banda organized on Wednesday could have dire consequences for the country’s tourism, said travel trade entrepreneurs complaining that political parties had gone back on their word not to hold strikes during Nepal Tourism Year 2011.
More than 22 political parties had signed a commitment letter not to organize strikes or any form of protest that would directly impact Nepal Tourism Year. The Newa Tamsaling Joint Struggle Committee called a general shutdown in the capital and adjoining districts on Wednesday hurting tourism activities.
“The commitment has not been translated into action,” said Aditya Baral, spokesperson of the Nepal Tourism Board. The government and the private sector have made large investments in tourism encouraged by the pledge made by political parties not to disrupt Nepal Tourism Year.
“Visitors come here for vacation and to observe the natural beauty of the country believing that it is a safe holiday destination,” Baral said.
Nepal’s tourism industry has been recovering from a massive beating it took during the decade-long armed conflict (1996-2006) and has been working to revive its image. The Nepal Tourism Year campaign is a bid to rejuvenate the tourism sector by sending a message to the international community that Nepal is safe to visit.
“Unfortunately, all the activities that tourists had planned for Wednesday had to be cancelled,” said Ashok Pokhrel, president of the Nepal Association of Tour Operators. Travel traders said that tourism had become a major part of the economy around the world, and that the sector had become more competitive. “In such a situation, strikes are likely to hurt Nepal’s tourism as their impact is seen only later,” Pokhrel added.
Meanwhile, hotels have been reporting cancellations of reservations for the days before and after the deadline for writing the constitution on May 28 fearing political trouble.
Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents, said that the culture of organizing strikes had been diminishing, but Wednesday’s strike could revive such tendencies. The Kathmandu Valley saw a strike announced by the political parties after a year’s gap. The last banda, called by Maoist trade unions, lasted from May 1-7, 2010.
Tourist arrivals in Nepal by air reached an all-time high of 448,769 in 2010. Entrepreneurs are optimistic that the target of one million arrivals can be achieved in 2011.
A similar campaign called Visit Nepal Year held in 1998 helped tourist arrivals to cross the 400,000 mark in 1999. However, it took another 11 years for arrivals to return to that level.
The possibility of a political crisis has always remained a major concern for tourism entrepreneurs. Though the parties have pledged that there would not be any bandas and strikes from their part during Nepal Tourism Year, the industry was doubtful they would keep their promise.
“Whatever little tourism activity is taking place will be stifled with bandas making a reappearance,” Sharma added.
Wednesday, April 27, 2011
Tuesday, April 26, 2011
NAC making losses due to services to remote sectors
SANGAM PRASAIN
KATHMANDU, APR 27 -
Nepal Airlines Corporation (NAC) has been racking up losses of Rs 170 million annually from its domestic operation as it has been serving remote sectors at reduced airfares, said airline officials.
The national flag carrier said that the hefty losses were due to flying to remote sectors where operating costs are comparatively higher. A hike in the price of aviation fuel has added to its woes.
Although domestic air passenger movement grew 12.83 percent in 2010 compared to the previous year, NAC’s performance in the domestic sector has been weakening.
According to Tribhuvan International Airport (TIA), the number of passengers carried by NAC in 2010 dipped 11.84 percent to 47,081 from 53,406 in the previous year. In 2010, domestic airlines carried 1,554,701 travellers, or 176,833 more than in 2009.
A source said that internal management problems and customer dissatisfaction with NAC’s service were the major factors behind the carrier losing its image in the aviation market. However, NAC claimed that its losses were due to the low fare structure and increasing operating costs in the remote sectors. “Strikes and other forms of protests are launched if the government revises the airfare in the remote sectors,” said NAC spokesperson Om Gurung. “How can we make a profit by operating at cheap rates?”
NAC said that low seat occupancy was another reason for its losses. According to Gurung, airplanes operating in remote areas need to carry stock fuel that limits the number of passengers.
Moreover, passengers do not pay a fuel surcharge on NAC as on private airlines. “Private air operators do not fly to remote destinations where the operating cost is higher than the airfare,” said Binod Giri, chief of the safety department, Civil Aviation Authority of Nepal (CAAN).
Meanwhile, on the international front, NAC has not been able to expand its services for lack of aircraft. According to TIA, the carrier recorded a negative growth in passenger movement in 2010. It flew 232,577 passengers in 2010 compared to 237,751 in 2009, a drop of 2.17 percent.
With losses on both sectors, NAC is surviving on revenues from ground handling at TIA. NAC said that if it were to increase the airfare and expand its fleet, it could make profits. Currently, the carrier has three Twin Otters serving domestic destinations which are being used to the maximum on remote sectors.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, three are in operation, two are out of commission and two can be put back in service after maintenance, said an NAC official. “Within one month, the 9N-ABX Twin Otter aircraft will be back in the air,” said Achyut Pahadi, chief of the engineering department at NAC. It had been grounded for more than two years. Pahadi added that the fourth Twin Otter would be operated on the lucrative tourist sector of Lukla. Private airlines are making profits as they prefer to fly on tourist routes and shun remote destinations.
KATHMANDU, APR 27 -
Nepal Airlines Corporation (NAC) has been racking up losses of Rs 170 million annually from its domestic operation as it has been serving remote sectors at reduced airfares, said airline officials.
The national flag carrier said that the hefty losses were due to flying to remote sectors where operating costs are comparatively higher. A hike in the price of aviation fuel has added to its woes.
Although domestic air passenger movement grew 12.83 percent in 2010 compared to the previous year, NAC’s performance in the domestic sector has been weakening.
According to Tribhuvan International Airport (TIA), the number of passengers carried by NAC in 2010 dipped 11.84 percent to 47,081 from 53,406 in the previous year. In 2010, domestic airlines carried 1,554,701 travellers, or 176,833 more than in 2009.
A source said that internal management problems and customer dissatisfaction with NAC’s service were the major factors behind the carrier losing its image in the aviation market. However, NAC claimed that its losses were due to the low fare structure and increasing operating costs in the remote sectors. “Strikes and other forms of protests are launched if the government revises the airfare in the remote sectors,” said NAC spokesperson Om Gurung. “How can we make a profit by operating at cheap rates?”
NAC said that low seat occupancy was another reason for its losses. According to Gurung, airplanes operating in remote areas need to carry stock fuel that limits the number of passengers.
Moreover, passengers do not pay a fuel surcharge on NAC as on private airlines. “Private air operators do not fly to remote destinations where the operating cost is higher than the airfare,” said Binod Giri, chief of the safety department, Civil Aviation Authority of Nepal (CAAN).
Meanwhile, on the international front, NAC has not been able to expand its services for lack of aircraft. According to TIA, the carrier recorded a negative growth in passenger movement in 2010. It flew 232,577 passengers in 2010 compared to 237,751 in 2009, a drop of 2.17 percent.
With losses on both sectors, NAC is surviving on revenues from ground handling at TIA. NAC said that if it were to increase the airfare and expand its fleet, it could make profits. Currently, the carrier has three Twin Otters serving domestic destinations which are being used to the maximum on remote sectors.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, three are in operation, two are out of commission and two can be put back in service after maintenance, said an NAC official. “Within one month, the 9N-ABX Twin Otter aircraft will be back in the air,” said Achyut Pahadi, chief of the engineering department at NAC. It had been grounded for more than two years. Pahadi added that the fourth Twin Otter would be operated on the lucrative tourist sector of Lukla. Private airlines are making profits as they prefer to fly on tourist routes and shun remote destinations.
Monday, April 25, 2011
Fuel crisis hits normal life across country
SANGAM PRASAIN
KATHMANDU, APR 26 -
Even as the fuel shortage is beginning to take a toll on normal life across the country, the government and Nepal Oil Corporation (NOC) have failed to agree on a plan to address the root cause of the recurring problem. The Ministry of Finance (MoF) on Monday refused to release additional money to NOC to finance its import of petroleum products.
NOC has been asking the government to either allow it to revise the price in line with the international market or provide a temporary subsidy until the international market price sees a recovery. The NOC has even asked the government to waive taxes imposed on petroleum products for a limited period. But, MoF has ruled out further subsidies or tax waivers. The government is unwilling to allow readjustment of fuel prices to reflect the international market price fearing a political backlash.
“Prime Minister Jhala Nath Khanal is not in favour of a hike until the constitution drafting deadline ends,” Prakash Jwala, Chief Political Advisor to the PM said. “To address the ongoing fuel crisis, we will discuss and find a way out.” No discussion has been scheduled yet to address the issue. Though the situation demands quick decisive action on the part of the government, it appears to be dithering and aggravating a manageable crisis.
Meanwhile, the fuel shortage has adversely affected normal life in Tarai districts. With the NOC’s regional dealers curtailing supply by half, the crisis has crippled different Tarai districts.
Rupandehi, Nawalparasi, Chitwan, Makwanpur, Bara and Parsa are facing acute fuel shortage. The shortage has affected public transportation system and industrial areas. “Low supply of fuel has dramatically affected the market in Chitwan,” said Kashi Pathak, president of Chitwan Petroleum Dealers’ Association.
Black marketeering and hoarding of petroleum products is rampant in Birgunj. “NOC has been supplying five to seven tankers full of fuel to Birgunj,” said Nagendra Kurmi, NOC chief in Birgunj. According to a source traders are selling fuel charging an additional Rs seven per litre. Traders are supplying fuel to big industries, crusher and brick factories at big profits, the source claimed.
Tourist hotspot Pokhara and adjacent districts are also facing acute fuel shortage for the last few days. The supply in Pokhara has been slashed to 36,000 litres per day from the usual 50,000 litres. Reduced petroleum supply in the Far Western region has affected normal life aside from development projects. Construction and irrigation both are hit. The entire region has a monthly 4 million litres diesel consumption. However, for the last two weeks, the region has received only 800,000 litres.
Normal life in Nepalgunj, Gulariya, Surkhet and Dang in the Mid Western region has been affected by the fuel crunch ever since petroleum import from Gonda in India stopped last week.
The eastern region has been receiving only 150,000 litres of diesel a day against the usual 400,000 litres per day. Mechi, Koshi and Sagarmatha zones in the Eastern Development Region have 450 petroleum dealers. All refuelling stations under the dealers’ distribution have hung up ‘no fuel’ placards. Last week, Digambar Jha, Managing Director of NOC, warned that the supply could be further curtailed if the government does not address the issue immediately. At the current rate, the supply will be slashed by 40 percent in April and 20 percent each month thereafter.
KATHMANDU, APR 26 -
Even as the fuel shortage is beginning to take a toll on normal life across the country, the government and Nepal Oil Corporation (NOC) have failed to agree on a plan to address the root cause of the recurring problem. The Ministry of Finance (MoF) on Monday refused to release additional money to NOC to finance its import of petroleum products.
NOC has been asking the government to either allow it to revise the price in line with the international market or provide a temporary subsidy until the international market price sees a recovery. The NOC has even asked the government to waive taxes imposed on petroleum products for a limited period. But, MoF has ruled out further subsidies or tax waivers. The government is unwilling to allow readjustment of fuel prices to reflect the international market price fearing a political backlash.
“Prime Minister Jhala Nath Khanal is not in favour of a hike until the constitution drafting deadline ends,” Prakash Jwala, Chief Political Advisor to the PM said. “To address the ongoing fuel crisis, we will discuss and find a way out.” No discussion has been scheduled yet to address the issue. Though the situation demands quick decisive action on the part of the government, it appears to be dithering and aggravating a manageable crisis.
Meanwhile, the fuel shortage has adversely affected normal life in Tarai districts. With the NOC’s regional dealers curtailing supply by half, the crisis has crippled different Tarai districts.
Rupandehi, Nawalparasi, Chitwan, Makwanpur, Bara and Parsa are facing acute fuel shortage. The shortage has affected public transportation system and industrial areas. “Low supply of fuel has dramatically affected the market in Chitwan,” said Kashi Pathak, president of Chitwan Petroleum Dealers’ Association.
Black marketeering and hoarding of petroleum products is rampant in Birgunj. “NOC has been supplying five to seven tankers full of fuel to Birgunj,” said Nagendra Kurmi, NOC chief in Birgunj. According to a source traders are selling fuel charging an additional Rs seven per litre. Traders are supplying fuel to big industries, crusher and brick factories at big profits, the source claimed.
Tourist hotspot Pokhara and adjacent districts are also facing acute fuel shortage for the last few days. The supply in Pokhara has been slashed to 36,000 litres per day from the usual 50,000 litres. Reduced petroleum supply in the Far Western region has affected normal life aside from development projects. Construction and irrigation both are hit. The entire region has a monthly 4 million litres diesel consumption. However, for the last two weeks, the region has received only 800,000 litres.
Normal life in Nepalgunj, Gulariya, Surkhet and Dang in the Mid Western region has been affected by the fuel crunch ever since petroleum import from Gonda in India stopped last week.
The eastern region has been receiving only 150,000 litres of diesel a day against the usual 400,000 litres per day. Mechi, Koshi and Sagarmatha zones in the Eastern Development Region have 450 petroleum dealers. All refuelling stations under the dealers’ distribution have hung up ‘no fuel’ placards. Last week, Digambar Jha, Managing Director of NOC, warned that the supply could be further curtailed if the government does not address the issue immediately. At the current rate, the supply will be slashed by 40 percent in April and 20 percent each month thereafter.
Sunday, April 24, 2011
Ensuring smooth oil supply: It’s a hard nut to crack
SANGAM PRASAIN
KATHMANDU, APR 25 -
Unless the government takes a hard decision, managing resources for oil import is going to become a great headache for it. This is what the oil import in the first nine months of the current fiscal year suggests.
Nepal’s oil import bill during the period has surpassed the the entire last fiscal’s figure. With soaring oil price, the import bill surged by 62.29 percent in the first nine months.
The Nepal Oil Corporation (NOC)’s statistics show that the country imported fuel worth Rs 55.57 billion over the period, against Rs 34.24 billion in the same period last year. Nepal had imported petroleum products worth Rs 51.55 billion in 2009-10. The annual data released by the Nepal Rastra Bank (NRB) showed that petroleum products topped the import chart last year.
With 14-hour daily load shedding and a surge in the number of four wheelers, fuel consumption in the country is increasing every year. Import of petroleum products increased by almost 25 percent in 2009-10, whereas the previous year’s figure was at 17 percent.
According to NOC statistics, petroleum import increased by 11.22 percent in the first nine months of 2010-11. NOC imported 847,884 KL of petroleum products over the period, against 762,334 KL last year. The state oil monopoly says that fuel import is likely to go up significantly with increasing consumption. And, because of the increase in international market price, the country has to doll out more money for oil import.
“With the price in the international market
soaring, monthly import of NOC is likely to touch Rs 8 billion,” said Mukunda Dhungel, spokes-person for NOC.
Govt must shore up oil import: NOC
With the country reeling under fuel crisis and NOC struggling to manage smooth supply citing resource crunch, the Ministry of Commerce
and Supplies (MoCS) said the government has no options, but to continue the import subsidy.
Even though the Ministry of Finance is clearly against releasing more resources to NOC, MoCS officials are once again eyeing subsidy from the finance ministry. “We are discussing the issue with finance ministry on Monday,” said MoCS Secretary Purushottam Ojha.
According to Ojha, neither the ministry nor the NOC can hike petroleum products’ price until the high level petroleum reform task force submits its report. “Therefore, the government should bailout the debt-ridden NOC,” said Ojha.
Finance ministry has already provided an additional Rs 4 billion to NOC to finance oil import in the first nine months of the current fiscal. NOC recently sought an additional Rs 1.75 billion to improve supply.
KATHMANDU, APR 25 -
Unless the government takes a hard decision, managing resources for oil import is going to become a great headache for it. This is what the oil import in the first nine months of the current fiscal year suggests.
Nepal’s oil import bill during the period has surpassed the the entire last fiscal’s figure. With soaring oil price, the import bill surged by 62.29 percent in the first nine months.
The Nepal Oil Corporation (NOC)’s statistics show that the country imported fuel worth Rs 55.57 billion over the period, against Rs 34.24 billion in the same period last year. Nepal had imported petroleum products worth Rs 51.55 billion in 2009-10. The annual data released by the Nepal Rastra Bank (NRB) showed that petroleum products topped the import chart last year.
With 14-hour daily load shedding and a surge in the number of four wheelers, fuel consumption in the country is increasing every year. Import of petroleum products increased by almost 25 percent in 2009-10, whereas the previous year’s figure was at 17 percent.
According to NOC statistics, petroleum import increased by 11.22 percent in the first nine months of 2010-11. NOC imported 847,884 KL of petroleum products over the period, against 762,334 KL last year. The state oil monopoly says that fuel import is likely to go up significantly with increasing consumption. And, because of the increase in international market price, the country has to doll out more money for oil import.
“With the price in the international market
soaring, monthly import of NOC is likely to touch Rs 8 billion,” said Mukunda Dhungel, spokes-person for NOC.
Govt must shore up oil import: NOC
With the country reeling under fuel crisis and NOC struggling to manage smooth supply citing resource crunch, the Ministry of Commerce
and Supplies (MoCS) said the government has no options, but to continue the import subsidy.
Even though the Ministry of Finance is clearly against releasing more resources to NOC, MoCS officials are once again eyeing subsidy from the finance ministry. “We are discussing the issue with finance ministry on Monday,” said MoCS Secretary Purushottam Ojha.
According to Ojha, neither the ministry nor the NOC can hike petroleum products’ price until the high level petroleum reform task force submits its report. “Therefore, the government should bailout the debt-ridden NOC,” said Ojha.
Finance ministry has already provided an additional Rs 4 billion to NOC to finance oil import in the first nine months of the current fiscal. NOC recently sought an additional Rs 1.75 billion to improve supply.
Saturday, April 23, 2011
Buddha’s birthplace brings ‘em in by 17pc more
SANGAM PRASAIN
KATHMANDU, APR 22 -
Tourist arrivals to the Buddha’s birthplace Lumbini through Bhairahawa increased 17 percent in the first three months of 2011.
According to the Department of Immigration, a total of 42,422 visitors entered Nepal through Bhairahawa compared to 36,523 in the same period last year.
The southern border point of Bhairahawa is the gateway to Lumbini. The figure excludes overland Indian visitors as they are not counted in the country’s tourism data. Last year, Lumbini received 102,059 visitors compared to 82,443 in 2009.
Tourism entrepreneurs attribute this growth to development of tourism infrastructure in Lumbini and the return of peace in Nepal. There has been a resurgence in pilgrim arrivals from predominantly Buddhist countries like Japan, Thailand, Sri Lanka and South Korea after suffering a setback during the Maoist conflict and political instability.
“Visitor stay in Lumbini has also slightly increased with more infrastructure being developed in the area,” said Bikrum Pandey, managing director of Himalaya Expeditions which also runs Buddhist Circuits.com. According to him, the Buddhist circuit is a package that begins from Lumbini and passes through Kapilvastu, Shravasti, Kushinagar, Sarnath, Bodhgaya, Vaishali, Rajgir, Nalanda and Patna before returning to Lumbini.
“It is estimated that business for Buddhist Circuits was about 300,000 tourists.” Pandey added that the length of stay was nine to 10 days and daily spending amounted to US$ 150-250.
“Pilgrims are high-spending customers,” said Pandey. He added that as India held a 90 percent share of the pilgrim market, it was hard to compete with the established market.
“To attract more visitors, we are launching the ‘Following footsteps of Lord Buddha’ package which seeks to draw tourists to the birthplace first.” The travel trade and the government too need to work hard for the purpose, Pandey added.
The trend of building hotels with modern facilities has intensified in Lumbini encouraged by an increase in arrivals. The Lumbini Hotel Kasai was constructed by a Japanese investor while Sri Lankan Pilgrim Rest was built with the Sri Lankan government’s investment. Likewise, the Hokke Hotel, established by the Hokke Club of Japan, is managed by an Indian private company. Domestic investors have built the Lumbini Bamboo Resort Pali, Buddha Maya and the Crystal.
The government has planned to develop Bhairahawa airport as a regional international airport in a bid to exploit the pilgrimage tourism potential. “Buddha Air will also be launching flights on the Bhairahawa-Kolkata sector which will help to bring visitors directly to Lumbini,” Pandey said.
Nepal has been trying to develop Lumbini as an international centre for pilgrimage and tourism. Recently, an international conservation team has begun work on restoring three endangered monuments at the Buddha’s birthplace. The restoration campaign is funded by the government of Japan and coordinated by the UNESCO office in Kathmandu.
Basudev Kafle, an official at the Department of Immigration, said that improved facilities in the area have also boosted arrivals during the last two years. “Lumbini can become one of the major tourist destinations if the government gives it greater priority.”
According to the Lumbini Development Trust, Lumbini hosted 82,443 tourists in 2009, 82,075 in 2008 and 71,053 in 2007.
Arrival in Lumbini
(Jan-March)
Country 2010 2011
Sri Lanka 13,945 16,283
Thailand 9,143 14,133
South Korea 2,111 2,744
Others 11,324 9,262
KATHMANDU, APR 22 -
Tourist arrivals to the Buddha’s birthplace Lumbini through Bhairahawa increased 17 percent in the first three months of 2011.
According to the Department of Immigration, a total of 42,422 visitors entered Nepal through Bhairahawa compared to 36,523 in the same period last year.
The southern border point of Bhairahawa is the gateway to Lumbini. The figure excludes overland Indian visitors as they are not counted in the country’s tourism data. Last year, Lumbini received 102,059 visitors compared to 82,443 in 2009.
Tourism entrepreneurs attribute this growth to development of tourism infrastructure in Lumbini and the return of peace in Nepal. There has been a resurgence in pilgrim arrivals from predominantly Buddhist countries like Japan, Thailand, Sri Lanka and South Korea after suffering a setback during the Maoist conflict and political instability.
“Visitor stay in Lumbini has also slightly increased with more infrastructure being developed in the area,” said Bikrum Pandey, managing director of Himalaya Expeditions which also runs Buddhist Circuits.com. According to him, the Buddhist circuit is a package that begins from Lumbini and passes through Kapilvastu, Shravasti, Kushinagar, Sarnath, Bodhgaya, Vaishali, Rajgir, Nalanda and Patna before returning to Lumbini.
“It is estimated that business for Buddhist Circuits was about 300,000 tourists.” Pandey added that the length of stay was nine to 10 days and daily spending amounted to US$ 150-250.
“Pilgrims are high-spending customers,” said Pandey. He added that as India held a 90 percent share of the pilgrim market, it was hard to compete with the established market.
“To attract more visitors, we are launching the ‘Following footsteps of Lord Buddha’ package which seeks to draw tourists to the birthplace first.” The travel trade and the government too need to work hard for the purpose, Pandey added.
The trend of building hotels with modern facilities has intensified in Lumbini encouraged by an increase in arrivals. The Lumbini Hotel Kasai was constructed by a Japanese investor while Sri Lankan Pilgrim Rest was built with the Sri Lankan government’s investment. Likewise, the Hokke Hotel, established by the Hokke Club of Japan, is managed by an Indian private company. Domestic investors have built the Lumbini Bamboo Resort Pali, Buddha Maya and the Crystal.
The government has planned to develop Bhairahawa airport as a regional international airport in a bid to exploit the pilgrimage tourism potential. “Buddha Air will also be launching flights on the Bhairahawa-Kolkata sector which will help to bring visitors directly to Lumbini,” Pandey said.
Nepal has been trying to develop Lumbini as an international centre for pilgrimage and tourism. Recently, an international conservation team has begun work on restoring three endangered monuments at the Buddha’s birthplace. The restoration campaign is funded by the government of Japan and coordinated by the UNESCO office in Kathmandu.
Basudev Kafle, an official at the Department of Immigration, said that improved facilities in the area have also boosted arrivals during the last two years. “Lumbini can become one of the major tourist destinations if the government gives it greater priority.”
According to the Lumbini Development Trust, Lumbini hosted 82,443 tourists in 2009, 82,075 in 2008 and 71,053 in 2007.
Arrival in Lumbini
(Jan-March)
Country 2010 2011
Sri Lanka 13,945 16,283
Thailand 9,143 14,133
South Korea 2,111 2,744
Others 11,324 9,262
Thursday, April 21, 2011
Oil dealers urge formation of petroleum board to ease crisis
SANGAM PRASAIN
KATHMANDU, APR 22 -
With the fuel crisis intensifying and the government showing unwillingness to adjust prices, the Nepal Petroleum Dealers National Association (NPDNA) has demanded forming a high-level powerful petroleum board.
The NPDNA on Thursday said that the issue of petroleum pricing and supply would be resolved by setting up such an independent body. “Spiralling oil prices in the international market are unlikely to stabilize immediately,” said NPDNA president Saroj Pandey. “Revising petroleum prices in Nepal once will not help settle the issue. Hence, there should be a permanent mechanism.”
According to the NPDNA, the proposed board would be given the right to recommend appropriate policies on the import, quality, pricing and sales mechanism of petroleum products to the government.
The NPDNA’s suggestion for a petroleum board is in line with what the high-level Petroleum Sector Reform Taskforce is mulling. The taskforce is also currently discussing setting up an independent body to fix prices. The NPDNA said the idea of forming an independent body was appropriate. It has also suggested to the taskforce to include a representative of the dealers in the independent body. The NPDNA has called for reducing the tax imposed on petroleum products. It has suggested imposition of multiple VAT on petroleum products. “There should be 6 percent VAT imposed on petroleum products,” said the NPDNA. In the last fiscal year, the government collected Rs 12.26 billion in taxes on petroleum. This year, the revenue is expected to touch Rs 16 billion.
The NPDNA has also suggested to the taskforce to scrap the VAT refund on petroleum products provided to various industries. Currently, big hotels, restaurants and industries are benefiting from this subsidy regime. The NPDNA criticized the government’s providing subsidies to Nepal Oil Corporation (NOC) instead of allowing it to adjust fuel prices in line with the international market. “The use of the development budget for the import of petroleum products is not right,” said Pandey.
In the last few months, the government has been bailing out cash-strapped NOC with loans to maintain regular fuel supplies in the country. The government has provided it Rs 4 billion to import fuel in the first nine months of the current fiscal year.
The Rs 1.5 billion that the government provided to NOC recently was diverted from the development budget allocated for the Rural Area Professional Development Programme.
KATHMANDU, APR 22 -
With the fuel crisis intensifying and the government showing unwillingness to adjust prices, the Nepal Petroleum Dealers National Association (NPDNA) has demanded forming a high-level powerful petroleum board.
The NPDNA on Thursday said that the issue of petroleum pricing and supply would be resolved by setting up such an independent body. “Spiralling oil prices in the international market are unlikely to stabilize immediately,” said NPDNA president Saroj Pandey. “Revising petroleum prices in Nepal once will not help settle the issue. Hence, there should be a permanent mechanism.”
According to the NPDNA, the proposed board would be given the right to recommend appropriate policies on the import, quality, pricing and sales mechanism of petroleum products to the government.
The NPDNA’s suggestion for a petroleum board is in line with what the high-level Petroleum Sector Reform Taskforce is mulling. The taskforce is also currently discussing setting up an independent body to fix prices. The NPDNA said the idea of forming an independent body was appropriate. It has also suggested to the taskforce to include a representative of the dealers in the independent body. The NPDNA has called for reducing the tax imposed on petroleum products. It has suggested imposition of multiple VAT on petroleum products. “There should be 6 percent VAT imposed on petroleum products,” said the NPDNA. In the last fiscal year, the government collected Rs 12.26 billion in taxes on petroleum. This year, the revenue is expected to touch Rs 16 billion.
The NPDNA has also suggested to the taskforce to scrap the VAT refund on petroleum products provided to various industries. Currently, big hotels, restaurants and industries are benefiting from this subsidy regime. The NPDNA criticized the government’s providing subsidies to Nepal Oil Corporation (NOC) instead of allowing it to adjust fuel prices in line with the international market. “The use of the development budget for the import of petroleum products is not right,” said Pandey.
In the last few months, the government has been bailing out cash-strapped NOC with loans to maintain regular fuel supplies in the country. The government has provided it Rs 4 billion to import fuel in the first nine months of the current fiscal year.
The Rs 1.5 billion that the government provided to NOC recently was diverted from the development budget allocated for the Rural Area Professional Development Programme.
Wednesday, April 20, 2011
Kansakar vows to buy aircraft for NAC
SANGAM PRASAIN
KATHMANDU, APR 21 -
A day after being acquitted by the Special Court of corruption charges in the
Airbus purchase deal, Nepal Airlines Corporation (NAC) executive chairman Sugat Ratna Kansakar said that he would purchase aircraft for the national flag carrier at any cost.
Kansakar made this remark after resuming office on Wednesday at NAC. Addressing the staff, Kansakar expressed his confidence of overcoming any challenge to acquire aircraft for NAC. “I have suffered extremely over the aircraft purchase deal, and I don’t want to let my efforts go in vain,” said Kansakar to appreciative employees during the one-and-a-half-hour long welcome programme.
Although supporters of Kansakar were seen to be enthusiastic, unions and staffers supporting NAC managing director Kul Bahadur Limbu remained absent at the welcome programme. Kansakar and Limbu were at opposite ends regarding NAC’s plan to purchase aircraft from Airbus. After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption charge against Kansakar, Limbu was running the show at NAC.
The Special Court on Tuesday acquitted Kansakar and five other NAC officials - deputy managing directors Raju
Bahadur KC and Ganesh Thakur, acting director Gyanendra Purush Dhakal, director Mayur Shumsher Rana and acting deputy director Keshav Raj Sharma — who had been accused of corruption in the Airbus purchase deal. “All the officials will carry on their respective duties from Thursday,” said KC.
On the same occasion, Thakur said that signing of the deal to send the lock-up money to Airbus was one of the happiest moments of his life. “Unfortunately, the purchase process was stopped.”
The acquitted officials pointed out that the aircraft purchase deal was the right move. “Our efforts have proved that we were in favour in NAC,” the team said.
KATHMANDU, APR 21 -
A day after being acquitted by the Special Court of corruption charges in the
Airbus purchase deal, Nepal Airlines Corporation (NAC) executive chairman Sugat Ratna Kansakar said that he would purchase aircraft for the national flag carrier at any cost.
Kansakar made this remark after resuming office on Wednesday at NAC. Addressing the staff, Kansakar expressed his confidence of overcoming any challenge to acquire aircraft for NAC. “I have suffered extremely over the aircraft purchase deal, and I don’t want to let my efforts go in vain,” said Kansakar to appreciative employees during the one-and-a-half-hour long welcome programme.
Although supporters of Kansakar were seen to be enthusiastic, unions and staffers supporting NAC managing director Kul Bahadur Limbu remained absent at the welcome programme. Kansakar and Limbu were at opposite ends regarding NAC’s plan to purchase aircraft from Airbus. After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption charge against Kansakar, Limbu was running the show at NAC.
The Special Court on Tuesday acquitted Kansakar and five other NAC officials - deputy managing directors Raju
Bahadur KC and Ganesh Thakur, acting director Gyanendra Purush Dhakal, director Mayur Shumsher Rana and acting deputy director Keshav Raj Sharma — who had been accused of corruption in the Airbus purchase deal. “All the officials will carry on their respective duties from Thursday,” said KC.
On the same occasion, Thakur said that signing of the deal to send the lock-up money to Airbus was one of the happiest moments of his life. “Unfortunately, the purchase process was stopped.”
The acquitted officials pointed out that the aircraft purchase deal was the right move. “Our efforts have proved that we were in favour in NAC,” the team said.
TIA gives the nod to constant descent approach system
SANGAM PRASAIN
KATHMANDU, APR 21 -
Tribhuvan International Airport (TIA) has implemented the constant descent approach (CDA) system for aircraft, scrapping the 13-year-old non-precision approach (NOPEN) as per the recommendation of the International Civil Aviation Organization (ICAO).
Marking a major reform at the country’s only international airport, CDA allows big aircraft to make a smooth, constant-angle descent during the landing approach. Instead of approaching an airport in a stair-step fashion, CDA starts ideally from the top of the descent. Aviation experts said that the revised system would also benefit areas close to the airport as it reduces noise pollution. “The system has been revised in line with the regular upgrade of the country’s international airport as per the standards set by ICAO,” said Kishore Thapa, secretary at the Ministry of Tourism and Civil Aviation. He added that the new approach system would be more efficient and safer.
NOPEN known as the “dive and drive” approach has been revised after the ICAO group of experts’ findings recommended that the non-precision approach was riskier. ICAO had asked all the airports to implement CDA. “The new procedure is safer,” said Nepal Airlines Corporation Captain Sharwan Rijal.
The Civil Aviation Authority of Nepal (CAAN) had revised the aircraft approach procedure on March 4. “After the implementation of CDA, we have seen that one steep descent is safer than the traditional ‘dive and drive’ approach,” said Rijal.
Implementation of CDA has drawn reservations from some international airlines. Pilots are required to take training to familiarize themselves with the new system. Qatar Airways had objected to CDA and written to CAAN saying that the high rate of descent was not practicable. “However, the airline has now been following the revised approach system,” an airline source said. According to the Economic Times, Air India pilots had decided not to operate flights to Kathmandu citing that the airline had
not given them system familiarization training after the revision of the approach system at TIA.
“Alleging that there had been no familiarisation training for approach and go around procedures which have been revised for Kathmandu airport, the pilot’s union, Indian Commercial Pilots Association, has asked its members not undertake flights to Nepal’s capital,” writes the Economic Times. As per the company training manual, pilots have to undergo familiarisation training in an Airbus 320 or Airbus 330 simulator. Rijal said it was difficult to adapt to the new rules immediately. “Training is necessary before executing the new approach. Now, a majority of the airlines are comfortable with it,” added Rijal.
KATHMANDU, APR 21 -
Tribhuvan International Airport (TIA) has implemented the constant descent approach (CDA) system for aircraft, scrapping the 13-year-old non-precision approach (NOPEN) as per the recommendation of the International Civil Aviation Organization (ICAO).
Marking a major reform at the country’s only international airport, CDA allows big aircraft to make a smooth, constant-angle descent during the landing approach. Instead of approaching an airport in a stair-step fashion, CDA starts ideally from the top of the descent. Aviation experts said that the revised system would also benefit areas close to the airport as it reduces noise pollution. “The system has been revised in line with the regular upgrade of the country’s international airport as per the standards set by ICAO,” said Kishore Thapa, secretary at the Ministry of Tourism and Civil Aviation. He added that the new approach system would be more efficient and safer.
NOPEN known as the “dive and drive” approach has been revised after the ICAO group of experts’ findings recommended that the non-precision approach was riskier. ICAO had asked all the airports to implement CDA. “The new procedure is safer,” said Nepal Airlines Corporation Captain Sharwan Rijal.
The Civil Aviation Authority of Nepal (CAAN) had revised the aircraft approach procedure on March 4. “After the implementation of CDA, we have seen that one steep descent is safer than the traditional ‘dive and drive’ approach,” said Rijal.
Implementation of CDA has drawn reservations from some international airlines. Pilots are required to take training to familiarize themselves with the new system. Qatar Airways had objected to CDA and written to CAAN saying that the high rate of descent was not practicable. “However, the airline has now been following the revised approach system,” an airline source said. According to the Economic Times, Air India pilots had decided not to operate flights to Kathmandu citing that the airline had
not given them system familiarization training after the revision of the approach system at TIA.
“Alleging that there had been no familiarisation training for approach and go around procedures which have been revised for Kathmandu airport, the pilot’s union, Indian Commercial Pilots Association, has asked its members not undertake flights to Nepal’s capital,” writes the Economic Times. As per the company training manual, pilots have to undergo familiarisation training in an Airbus 320 or Airbus 330 simulator. Rijal said it was difficult to adapt to the new rules immediately. “Training is necessary before executing the new approach. Now, a majority of the airlines are comfortable with it,” added Rijal.
Tuesday, April 19, 2011
Govt racks brains on Setting oil price
SANGAM PRASAIN
KATHMANDU, APR 18 -
With the government reluctant to adjust oil prices in line with the international market and cash-strapped Nepal Oil Corporation (NOC) struggling to ensure regular supplies, the high-level Petroleum Sector Reform Taskforce is currently discussing setting up an independent body to fix prices.
It will play an advisory role rather than a regulatory one, according to a member of the taskforce. This body will be independent in nature and will recommend the appropriate price adjustment to NOC in line with world market prices. According to task force member Hari Roka, the idea of an independent body is being mulled to insulate fuel pricing from political interference. “Despite being an autonomous body, the NOC board has not been able to carry out fuel price adjustment effectively due to political interference,” said Roka.
The body will consist of independent experts who will sit down twice a month to review fuel prices. “We are currently discussing this mechanism that would make the pricing policy scientific,” said Roka. “We’ve also asked for suggestions from NOC.”
Past studies on NOC had also strongly suggested automatic adjustment of fuel prices in line with international trends. However, successive governments have refused to adopt such a mechanism.
Till now, it is the NOC board that takes the decision on fuel price adjustment. However, it hasn’t been effective as fuel price adjustment has become a political decision of late with the highest political actors calling the shots. Fearing a backlash, the government hasn’t allowed NOC to hike fuel prices when Indian Oil Corporation increases the price.
The taskforce, which was formed on Jan. 23, is likely to finalise its preliminary report by next week and urge the government to adopt an administered price mechanism. “The government still fixes fuel prices, and the board appears are either powerless or disinterested in doing anything about it,” said Hari Roka.
Instead, the government has been bailing out perennially hard-up NOC by providing loans. In the first nine months of the current fiscal year, the government has already provided about Rs 4 billion to NOC as petroleum import finance.
Although the government has allowed NOC to hike the price of petrol and aviation fuel recently, NOC officials said it doesn’t help to reduce its losses. “Diesel accounts for around 60 percent of the total consumption of petroleum products in the country,” said a senior NOC official. “And the government hasn’t allowed us to hike the price of diesel.”
NOC said it was incurring a loss of Rs 23.26 per litre of diesel. Out of the total estimated loss of Rs 1.96 billion in April, the loss on diesel amounted to Rs 1.58 billion, according to NOC.
KATHMANDU, APR 18 -
With the government reluctant to adjust oil prices in line with the international market and cash-strapped Nepal Oil Corporation (NOC) struggling to ensure regular supplies, the high-level Petroleum Sector Reform Taskforce is currently discussing setting up an independent body to fix prices.
It will play an advisory role rather than a regulatory one, according to a member of the taskforce. This body will be independent in nature and will recommend the appropriate price adjustment to NOC in line with world market prices. According to task force member Hari Roka, the idea of an independent body is being mulled to insulate fuel pricing from political interference. “Despite being an autonomous body, the NOC board has not been able to carry out fuel price adjustment effectively due to political interference,” said Roka.
The body will consist of independent experts who will sit down twice a month to review fuel prices. “We are currently discussing this mechanism that would make the pricing policy scientific,” said Roka. “We’ve also asked for suggestions from NOC.”
Past studies on NOC had also strongly suggested automatic adjustment of fuel prices in line with international trends. However, successive governments have refused to adopt such a mechanism.
Till now, it is the NOC board that takes the decision on fuel price adjustment. However, it hasn’t been effective as fuel price adjustment has become a political decision of late with the highest political actors calling the shots. Fearing a backlash, the government hasn’t allowed NOC to hike fuel prices when Indian Oil Corporation increases the price.
The taskforce, which was formed on Jan. 23, is likely to finalise its preliminary report by next week and urge the government to adopt an administered price mechanism. “The government still fixes fuel prices, and the board appears are either powerless or disinterested in doing anything about it,” said Hari Roka.
Instead, the government has been bailing out perennially hard-up NOC by providing loans. In the first nine months of the current fiscal year, the government has already provided about Rs 4 billion to NOC as petroleum import finance.
Although the government has allowed NOC to hike the price of petrol and aviation fuel recently, NOC officials said it doesn’t help to reduce its losses. “Diesel accounts for around 60 percent of the total consumption of petroleum products in the country,” said a senior NOC official. “And the government hasn’t allowed us to hike the price of diesel.”
NOC said it was incurring a loss of Rs 23.26 per litre of diesel. Out of the total estimated loss of Rs 1.96 billion in April, the loss on diesel amounted to Rs 1.58 billion, according to NOC.
Sunday, April 17, 2011
NOC row:Walking on Air
NOC says it can maintain supplies for only one week
SANGAM PRASAIN
KATHMANDU, APR 18 -
Unless the government makes hard decisions regarding the supply and pricing of fuel, common Nepalis will continue to suffer crippling shortages. Such is the degree of the crisis that petroleum products have now emerged as one of the major issues in front of the government.
Amid volatile international oil prices, Nepal Oil Corporation (NOC) is struggling to maintain regular supplies in the country. The huge gap between the cost price and the selling price has required NOC to virtually beg the government for money every month to pay its import bills to Indian Oil Corporation (IOC).
With international prices spiralling, NOC has no option but to hike its selling price. But its hands are tied. NOC wants the government to allow it to revise fuel prices in line with the international market or provide additional subsidies. But the government is disinclined to raise prices. Instead, it has been providing loans to the corporation which have been subsequently converted into subsidies.
In the last four years, successive governments have always shied away from hiking the price because of a possible public backlash. Thus, increasing the price of petroleum products has now become a political decision.
On Sunday, the government okayed a loan of Rs 1 billion to NOC. The government has already lent almost Rs 4 billion to NOC in the first nine months of the current fiscal year.
The NOC management said that with this Rs 1 billion, it could maintain regular petroleum supplies for only one week. Hard up for cash to pay its import bills, NOC had slashed the import and supply of petroleum products during the last five days. “The released money will help us to normalise fuel supplies for at least one week,” said NOC general manager Digambar Jha. NOC’s monthly oil import bill comes to Rs 5 billion. NOC said that the government should be prepared to tackle shortage problems after one week if it doesn’t provide more money.
Jha said that at the current selling price, the corporation would be forced to curtail imports by 40 percent after a week. Subsequently, imports will be reduced by 20 percent each month. “Less supply means less losses.” However, the Finance Ministry has said that it couldn’t finance petroleum imports anymore.
NOC managing director Jha on Sunday suggested that NOC should be allowed to hike prices and that the increased burden should be jointly shared by the government, NOC and consumers. According to Jha, NOC and consumers each should bear one-third of the import costs of petroleum products while the government should cut the import duty by one-third. As per the price list issued by NOC’s sole supplier IOC on April 16, NOC is incurring a loss of Rs 23.26 per litre of diesel, Rs 11.25 per litre of kerosene, Rs 6.30 per litre of petrol and Rs 288.86 per cylinder of LPG.
With fuel consumption increasing every year and no adjustment in fuel prices in the domestic market, NOC’s loss is also surging. NOC has revised its estimated loss for April from Rs 1.77 billion to Rs 1.96 billion.
According to NOC, it will incur a loss of Rs 1.58 billion on diesel, Rs 100 million on petrol, Rs 50 million on kerosene and Rs 317 million
on LPG.
With uncertainty over the supply, hoarding of fuel has increased in recent times. NOC said the fuel shortage seen in the market was artificial as it had been supplying more fuel than the average requirement. The Kathmandu Valley consumes 240 KL of petrol and 600 KL of diesel daily. The supply statistics of NOC show that on April 11, 13 and 14, it had supplied 436 KL, 345 KL and 337 KL of petrol respectively and 608 KL, 516 KL and 500 KL of diesel respectively.
Saturday, April 16, 2011
War profiteering of a kind
SANGAM PRASAIN
APR 16 - Though the mention of Rukum may first conjure up images of war, the area is also known as the district of “52 lakes and 53 hills”. This once popular saying may lead people to envision flocks of visitors charting the region—the reality, however, has been different. The remoteness of Rukum--in terms of roads and other facilities—has always deterred the tourism industry from making its way in. And after the Maoists seized the area, its potential as a tourist haven was quelled into a seething pot of war.
Now, with peace restored and insecurity no longer posing the same threat after the Maoists’ entrance into mainstream politics, the Maoist party has shown interest in transforming the entire district into a war museum. Their vision more or less consists of showing visitors how the people’s war began and spread from Rukum.
Ethical questions surround this idea. Is it not too soon? And will it not reopen wounds that are still healing? The mere notion of visiting Rukum to fulfil personal curiosity may seem voyeuristic. But despite this, politicians and members of the Tourism Board sound optimistic.
“The picturesque bays and valleys, once filled with misery, are now awaiting tourists,” says Kashi Raj Bhandari, director of the Research, Planning and Monitoring Department at Nepal Tourism Board (NTB). “Ancient ruins, mountains, rivers lined with lush wheat fields, caves and centuries-old cultures in villages like Mahat, Cwangwang, Chakewang, Khara, Pipal, Syalapakha, Kakri, Hakam, Khola Goan, Burtim Danda and Saank can be attractions for both domestic and international visitors,” he says.
According to him, one lake that stands out is Syarpu Lake—locally popular
as a picnic spot. Locals claim that before the war began, more than 2,000 tourists visited the lake annually. To restore the area’s former vibrancy, locals are working to open up trekking routes that connect directly to the lake. The recently held Syarpu Festival provided momentum to this project, which has initiated the construction of few hotels in the home-stay model to accommodate visitors.
Locals are also focused on promoting the Guerrilla Trek, which would follow the trails along which thousands of Maoist guerrillas dug trenches and ambushed their enemy during the insurgency. As Rukum lies within the range of hills connecting the western and the eastern regions of the country, the trek will follow the major routes that Maoist guerrillas walked through.
The trekking regions mapped as of now are Khara-Khawla-Jhimkhani (45 minutes), Jhimkhani-Jhulnetta (4 hours), Kharakhola-Jibang-Khabang (3 hours), Jibang-Syarpu, Bafikot (3 hours), Syarpu-Kunakhet (3 hours), Kunakhet-Pipal-Rukumkot (3 hours), Rukumkot-Marine (2 hours), Maring-Kakri (2 hours) and Kakri-Riga-Tuksara (5 hours). These villages stand as witnesses to the war and still retain the scars of an entire decade of fighting.
Another proposed attraction is the Kham community, a group from which most guerrillas were recruited during the initial phase of the war. The change that befell the culture and lifestyle of the people of Kham after the insurgency is thought to be of interest to people.
“It is time we try to heal old wounds and cleanse our hatred with the bright prospect of tourism,” says Sarun Batha Magar, the Maoist district in-charge. As voiced by Magar, his party is bracing itself to show the scars of war to tourists. He believes that such a display can increase employment opportunities for the people of this marginalised region. The NTB voices likewise. “The area has the potential to become a war product to attract domestic as well as the international visitors,” says Bhandari of NTB.
According to available statistics, more than 558 people died in the region during the insurgency. This fact begs the question: Is it not politically incorrect to present a region that suffered the devastation of war into a holiday destination? The Chief District Officer of Rukum, Beni Madhav Gyawali, pointed out the necessity of an extensive survey and research before implementing the idea, but this question seems to escape the minds of NTB members, local Maoist representatives and groups of enthusiastic youths by the name of Dynamic Youth Society in the programmes they organise.
APR 16 - Though the mention of Rukum may first conjure up images of war, the area is also known as the district of “52 lakes and 53 hills”. This once popular saying may lead people to envision flocks of visitors charting the region—the reality, however, has been different. The remoteness of Rukum--in terms of roads and other facilities—has always deterred the tourism industry from making its way in. And after the Maoists seized the area, its potential as a tourist haven was quelled into a seething pot of war.
Now, with peace restored and insecurity no longer posing the same threat after the Maoists’ entrance into mainstream politics, the Maoist party has shown interest in transforming the entire district into a war museum. Their vision more or less consists of showing visitors how the people’s war began and spread from Rukum.
Ethical questions surround this idea. Is it not too soon? And will it not reopen wounds that are still healing? The mere notion of visiting Rukum to fulfil personal curiosity may seem voyeuristic. But despite this, politicians and members of the Tourism Board sound optimistic.
“The picturesque bays and valleys, once filled with misery, are now awaiting tourists,” says Kashi Raj Bhandari, director of the Research, Planning and Monitoring Department at Nepal Tourism Board (NTB). “Ancient ruins, mountains, rivers lined with lush wheat fields, caves and centuries-old cultures in villages like Mahat, Cwangwang, Chakewang, Khara, Pipal, Syalapakha, Kakri, Hakam, Khola Goan, Burtim Danda and Saank can be attractions for both domestic and international visitors,” he says.
According to him, one lake that stands out is Syarpu Lake—locally popular
as a picnic spot. Locals claim that before the war began, more than 2,000 tourists visited the lake annually. To restore the area’s former vibrancy, locals are working to open up trekking routes that connect directly to the lake. The recently held Syarpu Festival provided momentum to this project, which has initiated the construction of few hotels in the home-stay model to accommodate visitors.
Locals are also focused on promoting the Guerrilla Trek, which would follow the trails along which thousands of Maoist guerrillas dug trenches and ambushed their enemy during the insurgency. As Rukum lies within the range of hills connecting the western and the eastern regions of the country, the trek will follow the major routes that Maoist guerrillas walked through.
The trekking regions mapped as of now are Khara-Khawla-Jhimkhani (45 minutes), Jhimkhani-Jhulnetta (4 hours), Kharakhola-Jibang-Khabang (3 hours), Jibang-Syarpu, Bafikot (3 hours), Syarpu-Kunakhet (3 hours), Kunakhet-Pipal-Rukumkot (3 hours), Rukumkot-Marine (2 hours), Maring-Kakri (2 hours) and Kakri-Riga-Tuksara (5 hours). These villages stand as witnesses to the war and still retain the scars of an entire decade of fighting.
Another proposed attraction is the Kham community, a group from which most guerrillas were recruited during the initial phase of the war. The change that befell the culture and lifestyle of the people of Kham after the insurgency is thought to be of interest to people.
“It is time we try to heal old wounds and cleanse our hatred with the bright prospect of tourism,” says Sarun Batha Magar, the Maoist district in-charge. As voiced by Magar, his party is bracing itself to show the scars of war to tourists. He believes that such a display can increase employment opportunities for the people of this marginalised region. The NTB voices likewise. “The area has the potential to become a war product to attract domestic as well as the international visitors,” says Bhandari of NTB.
According to available statistics, more than 558 people died in the region during the insurgency. This fact begs the question: Is it not politically incorrect to present a region that suffered the devastation of war into a holiday destination? The Chief District Officer of Rukum, Beni Madhav Gyawali, pointed out the necessity of an extensive survey and research before implementing the idea, but this question seems to escape the minds of NTB members, local Maoist representatives and groups of enthusiastic youths by the name of Dynamic Youth Society in the programmes they organise.
Twin Otter shortage hinders fleet expansion
SANGAM PRASAIN
KATHMANDU, APR 16 -
Nepal’s domestic carriers will likely have a hard time enlarging or replacing their ageing fleet as the good old Twin Otter is difficult to come by in the international market.
Experts said that the Canadian-built Twin Otter, a 19-passenger aircraft with STOL capability and high rate of climb, was the most suitable aircraft for serving Nepal’s remote and mountainous regions; but there were very few reconditioned planes for sale in the world market.
In addition, government restrictions on importing aircraft older than 20 years has hindered fleet expansion by domestic carriers.
Experts said that although Viking Air and Harbin Aircraft Manufacturing Corporation produce the DHC-6 Twin Otter Series 400 and the Harbin Y-12 respectively as an alternative to the Twin Otter, they were costly to operate on remote sectors. The Twin Otter made its first appearance in Nepal in 1970 as a replacement to the DC-3 Dakota, the workhorse of the then Royal Nepal Airlines Corporation.
“There are about 50 Twin Otter aircraft available if the government extends the age limit to 25 years,” said Dorji Tsering Sherpa, a travel trade entrepreneur. He added that out of the 844 Twin Otters produced from 1966-88, 588 were still flying in various countries.
Bhes Raj Subedi, chief of the Air Worthiness Division at the Civil Aviation Authority of Nepal (CAAN), said that although older versions were not easily available in the market, modern versions of the Twin Otter and the Dornier were being manufactured. However, the price of these modern aircraft is very high for Nepali operators, he added. Normally, domestic carriers lease second-hand aircraft for operation on remote sectors. “Technically, it does not matter how old a plane is. The efficiency and safety of any aircraft depends on regular maintenance. “NAC is flying Twin Otters that are more than 35 years old,” Subedi said.
A senior engineer of NAC said that the 20-year age limit was a very rigid criteria for Nepal’s domestic carriers.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, four are in operation, two are out of commission and one can be put back in service after maintenance, said an NAC official.
Among private airlines, Lumbini Airways and Skyline Airways possessed about 10 Twin Otters in their fleet, but the carriers did not last long. Presently, Yeti Airlines has seven Twin Otters out of which four are in operation.
KATHMANDU, APR 16 -
Nepal’s domestic carriers will likely have a hard time enlarging or replacing their ageing fleet as the good old Twin Otter is difficult to come by in the international market.
Experts said that the Canadian-built Twin Otter, a 19-passenger aircraft with STOL capability and high rate of climb, was the most suitable aircraft for serving Nepal’s remote and mountainous regions; but there were very few reconditioned planes for sale in the world market.
In addition, government restrictions on importing aircraft older than 20 years has hindered fleet expansion by domestic carriers.
Experts said that although Viking Air and Harbin Aircraft Manufacturing Corporation produce the DHC-6 Twin Otter Series 400 and the Harbin Y-12 respectively as an alternative to the Twin Otter, they were costly to operate on remote sectors. The Twin Otter made its first appearance in Nepal in 1970 as a replacement to the DC-3 Dakota, the workhorse of the then Royal Nepal Airlines Corporation.
“There are about 50 Twin Otter aircraft available if the government extends the age limit to 25 years,” said Dorji Tsering Sherpa, a travel trade entrepreneur. He added that out of the 844 Twin Otters produced from 1966-88, 588 were still flying in various countries.
Bhes Raj Subedi, chief of the Air Worthiness Division at the Civil Aviation Authority of Nepal (CAAN), said that although older versions were not easily available in the market, modern versions of the Twin Otter and the Dornier were being manufactured. However, the price of these modern aircraft is very high for Nepali operators, he added. Normally, domestic carriers lease second-hand aircraft for operation on remote sectors. “Technically, it does not matter how old a plane is. The efficiency and safety of any aircraft depends on regular maintenance. “NAC is flying Twin Otters that are more than 35 years old,” Subedi said.
A senior engineer of NAC said that the 20-year age limit was a very rigid criteria for Nepal’s domestic carriers.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, four are in operation, two are out of commission and one can be put back in service after maintenance, said an NAC official.
Among private airlines, Lumbini Airways and Skyline Airways possessed about 10 Twin Otters in their fleet, but the carriers did not last long. Presently, Yeti Airlines has seven Twin Otters out of which four are in operation.
Thursday, April 14, 2011
Cash-strapped NOC struggles to ensure supplies
SANGAM PRASAIN
KATHMANDU, APR 14 -
State-owned oil monopoly Nepal Oil Corporation (NOC) is struggling to ensure smooth supplies of petroleum products as promised loans from the Ministry of Finance (MoF) have not materialised.
Long queues are back at gasoline stations across the country after cash-strapped NOC cut deliveries.
The MoF has provided Rs 500 million out of the Rs 1.5 billion pledged citing lack of resources. NOC has said that there would be an acute shortage of fuel if the government doesn’t provide the committed credit. The government has so far given Rs 2.44 billion to NOC to import oil this fiscal year.
MoF officials said the ministry had no money in its contingency budget. With two major P1 projects, Sikta Irrigation Project and Mid-Hills Highway, also seeking additional resources, officials said the ministry can’t provide the committed loans to the NOC.
“There is no money in the contingency budget,” said Bodh Raj Niraula, chief of the ministry’s budget department. “Even for Sikta and the Mid-Hills Highway, we’re struggling to provide additional resources.” Sikta has sought Rs 250 million more while the Mid-Hills Highway had asked for another Rs 1 billion two months ago. “If we had resources, we could have provided the money to these high-priority projects,” said Niraula.
Even after getting Rs 500 million, NOC is seeking another Rs 1 billion to pay its supplier Indian Oil Corporation (IOC). “The supply will return to normal only if NOC gets additional resources,” said Ganesh Dhakal, spokesman at the Ministry of Commerce and Supplies.
NOC’s monthly import bill comes to Rs 5 billion and it makes monthly payments to IOC in four installments. It had paid IOC Rs 2.2 billion till the second week of April. “NOC still owes Rs 1.07 billion,” said Bachhu Kumar Kafle, NOC deputy general manager.
NOC cannot adjust the price of petroleum products until the high-level committee on NOC submits its report. Company officials said the government should finance oil imports till then.
NOC’s loss for April is estimated to amount to Rs 1.76 billion at current prices. Its losses are expected to mount after IOC sends its revised petroleum prices on April 16.
As per the rates of April 1, NOC is incurring losses of Rs 3.75 per litre on petrol, Rs 21 on diesel, Rs 11 on kerosene and Rs 288 per cylinder on liquefied petroleum gas (LPG). Aviation fuel is the only product on which NOC is making a profit.
NOC officials said IOC’s new price would increase its losses, but the supply of LPG and aviation fuel would be normal. “The only problem is with diesel which accounts for more than two-thirds of the imports and losses of over Rs 1.42 billion,” an NOC official said. The loss on diesel has increased from Rs 19 to Rs 20.96 per litre, according to NOC.
NOC officials admitted that imports had been slashed but the supply hadn’t been cut. “The queues at the gasoline pumps in Kathmandu on Wednesday was due to the public holiday on Tuesday,” said Kafle. “We have directed the Thankot depot to supply adequate fuel on Wednesday.”
Thankot depot had supplied 300 kl of petrol and about 30 tankers of diesel on Wednesday which is the usual daily requirement of the Kathmandu Valley.
KATHMANDU, APR 14 -
State-owned oil monopoly Nepal Oil Corporation (NOC) is struggling to ensure smooth supplies of petroleum products as promised loans from the Ministry of Finance (MoF) have not materialised.
Long queues are back at gasoline stations across the country after cash-strapped NOC cut deliveries.
The MoF has provided Rs 500 million out of the Rs 1.5 billion pledged citing lack of resources. NOC has said that there would be an acute shortage of fuel if the government doesn’t provide the committed credit. The government has so far given Rs 2.44 billion to NOC to import oil this fiscal year.
MoF officials said the ministry had no money in its contingency budget. With two major P1 projects, Sikta Irrigation Project and Mid-Hills Highway, also seeking additional resources, officials said the ministry can’t provide the committed loans to the NOC.
“There is no money in the contingency budget,” said Bodh Raj Niraula, chief of the ministry’s budget department. “Even for Sikta and the Mid-Hills Highway, we’re struggling to provide additional resources.” Sikta has sought Rs 250 million more while the Mid-Hills Highway had asked for another Rs 1 billion two months ago. “If we had resources, we could have provided the money to these high-priority projects,” said Niraula.
Even after getting Rs 500 million, NOC is seeking another Rs 1 billion to pay its supplier Indian Oil Corporation (IOC). “The supply will return to normal only if NOC gets additional resources,” said Ganesh Dhakal, spokesman at the Ministry of Commerce and Supplies.
NOC’s monthly import bill comes to Rs 5 billion and it makes monthly payments to IOC in four installments. It had paid IOC Rs 2.2 billion till the second week of April. “NOC still owes Rs 1.07 billion,” said Bachhu Kumar Kafle, NOC deputy general manager.
NOC cannot adjust the price of petroleum products until the high-level committee on NOC submits its report. Company officials said the government should finance oil imports till then.
NOC’s loss for April is estimated to amount to Rs 1.76 billion at current prices. Its losses are expected to mount after IOC sends its revised petroleum prices on April 16.
As per the rates of April 1, NOC is incurring losses of Rs 3.75 per litre on petrol, Rs 21 on diesel, Rs 11 on kerosene and Rs 288 per cylinder on liquefied petroleum gas (LPG). Aviation fuel is the only product on which NOC is making a profit.
NOC officials said IOC’s new price would increase its losses, but the supply of LPG and aviation fuel would be normal. “The only problem is with diesel which accounts for more than two-thirds of the imports and losses of over Rs 1.42 billion,” an NOC official said. The loss on diesel has increased from Rs 19 to Rs 20.96 per litre, according to NOC.
NOC officials admitted that imports had been slashed but the supply hadn’t been cut. “The queues at the gasoline pumps in Kathmandu on Wednesday was due to the public holiday on Tuesday,” said Kafle. “We have directed the Thankot depot to supply adequate fuel on Wednesday.”
Thankot depot had supplied 300 kl of petrol and about 30 tankers of diesel on Wednesday which is the usual daily requirement of the Kathmandu Valley.
Tuesday, April 12, 2011
BBC, CNN agree to cut rates for NTY promo
SANGAM PRASAIN
KATHMANDU, APR 12 -
The BBC and CNN have agreed to cut their advertising tariff in response to Nepal’s plea that it lacked adequate funds to promote Nepal Tourism Year in the international market.
The BBC has slashed the rate to Rs 24 million from Rs 44 million for its four-month package while CNN has also agreed in principle to reduce the tariff. “CNN is also positive about reducing the tariff,” said Ranjit Acharya, a member of the NTY international promotion committee. The promotion committee had allocated Rs 36 million for CNN and it has requested that the price be decreased to Rs 16 million. The committee said that it would receive confirmation from CNN on Monday. Earlier, both networks had proposed Rs 80 million for the purpose.
The government has allocated a budget of Rs 130 million to publicise the NTY campaign at the international level. Of which, Rs 60 million has been set aside for India, Rs 30 million for China and the rest for other source markets. The government has allocated the funds for the Business-to-Consumer (B2C) strategy promotion, which means going through the media and other means of communication.
With the budget being short to carry out the promotion programme in other source markets, particularly in Europe and the US, the committee had requested the BBC and CNN to reduce the tariff. “The BBC has already prepared an advertisement of Nepal,” Acharya said. The BBC had also broadcast the inauguration of NTY without charge for seven days, Acharya added.
The NTY promotion committee plans to use the allocated funds for international promotion in three sections. The promotion in India will be held during the summer (April-June) targeting the Indian holiday season. The package named “Summer spender” will be launched through TV, newspapers, hoarding boards and online media. As of now, the committee has received proposals from India Today, a weekly newsmagazine in English, and Dainik Jagaran, a newspaper published in Hindi.
Similarly, advertising agencies Triton, Series, Om Tourism and Agencies and Digitainment have submitted their proposals. The committee has planned the promotion programme in India from mid-May. To compete with other Asian countries and draw large numbers of Indian tourists during the summer, the NTY promotion committee is coming up with special packages.
Climate-wise, the best time to attract Indians is during the summer. According to the UN World Tourism Organization, India is one of the fastest growing outbound tourist markets and will account for 50 million outbound tourists by 2020.
Currently, 12 million Indians travel to different countries annually. Nepal had received 104,470 Indian visitors among 448,769 visitors from around the world last year who came here by air. The number was up 20 percent against the corresponding period last year. Indian arrivals in the first three months of NTY have reached 26,144, up 34 percent against the same period last year. The promotion in China will be held during June-July. For NTY promotion in China, two Nepali and three Indian advertising agencies have submitted their proposals. Chinese arrivals to Nepal increased 22 percent in the first three months of 2011. The country received 10,293 tourists as of March.
Though international promotion had been slated to start before the launch of NTY, late budget allocation delayed the plan. Similarly, the government’s long bidding process as per the Public Procurement Act to obtain the TOR had delayed the promotional campaign, said an NTY member.
KATHMANDU, APR 12 -
The BBC and CNN have agreed to cut their advertising tariff in response to Nepal’s plea that it lacked adequate funds to promote Nepal Tourism Year in the international market.
The BBC has slashed the rate to Rs 24 million from Rs 44 million for its four-month package while CNN has also agreed in principle to reduce the tariff. “CNN is also positive about reducing the tariff,” said Ranjit Acharya, a member of the NTY international promotion committee. The promotion committee had allocated Rs 36 million for CNN and it has requested that the price be decreased to Rs 16 million. The committee said that it would receive confirmation from CNN on Monday. Earlier, both networks had proposed Rs 80 million for the purpose.
The government has allocated a budget of Rs 130 million to publicise the NTY campaign at the international level. Of which, Rs 60 million has been set aside for India, Rs 30 million for China and the rest for other source markets. The government has allocated the funds for the Business-to-Consumer (B2C) strategy promotion, which means going through the media and other means of communication.
With the budget being short to carry out the promotion programme in other source markets, particularly in Europe and the US, the committee had requested the BBC and CNN to reduce the tariff. “The BBC has already prepared an advertisement of Nepal,” Acharya said. The BBC had also broadcast the inauguration of NTY without charge for seven days, Acharya added.
The NTY promotion committee plans to use the allocated funds for international promotion in three sections. The promotion in India will be held during the summer (April-June) targeting the Indian holiday season. The package named “Summer spender” will be launched through TV, newspapers, hoarding boards and online media. As of now, the committee has received proposals from India Today, a weekly newsmagazine in English, and Dainik Jagaran, a newspaper published in Hindi.
Similarly, advertising agencies Triton, Series, Om Tourism and Agencies and Digitainment have submitted their proposals. The committee has planned the promotion programme in India from mid-May. To compete with other Asian countries and draw large numbers of Indian tourists during the summer, the NTY promotion committee is coming up with special packages.
Climate-wise, the best time to attract Indians is during the summer. According to the UN World Tourism Organization, India is one of the fastest growing outbound tourist markets and will account for 50 million outbound tourists by 2020.
Currently, 12 million Indians travel to different countries annually. Nepal had received 104,470 Indian visitors among 448,769 visitors from around the world last year who came here by air. The number was up 20 percent against the corresponding period last year. Indian arrivals in the first three months of NTY have reached 26,144, up 34 percent against the same period last year. The promotion in China will be held during June-July. For NTY promotion in China, two Nepali and three Indian advertising agencies have submitted their proposals. Chinese arrivals to Nepal increased 22 percent in the first three months of 2011. The country received 10,293 tourists as of March.
Though international promotion had been slated to start before the launch of NTY, late budget allocation delayed the plan. Similarly, the government’s long bidding process as per the Public Procurement Act to obtain the TOR had delayed the promotional campaign, said an NTY member.
Sunday, April 10, 2011
Second International Airport to be on the runway by 2015
SANGAM PRASAIN
KATHMANDU, APR 11 -
If all goes well, construction of the much talked about Second International Airport (SIA) in Nijgadh, Bara, will start by April next year, government officials said on Sunday.
Officials at the Ministry of Tourism and Civil Aviation (MoTCA) made such statement during the submission of the Detailed Feasibility Study Report carried out by Korea’s Landmark Worldwide Company (LMW) on the ministry premises. The airport will be developed under the ‘build own operate and transfer’ (BOOT) model.
Although the LMW study said the single-runway airport’s construction—if started this year—could be completed by 2015 for commercial operation, necessary legal procedures to be followed by the government has delayed the project by a year.
“The comprehensive report submitted today will be briefed to the prime minister, other ministers and high-level government officials,” said MoTCA secretary Kishore Thapa.
According to Thapa, after the briefing, the high-level BOOT committee will start the investors selection process—which will take at least six months—and negotiations with selected investors will take an additional six months.
However, the government has two options for awarding the project to investors. First one is ‘request for proposal (RFP)’—which is based on selection process—and the second, under the BOOT Act section-9—which says that the project can directly be awarded to any interested investors. “The BOOT Act says that the Rs 2-billion project can be awarded directly to any investors without calling for RFP,” according to the officials.
As SIA is a government prioritised project and LMW is showing interest in the project since 2007, the Korean company has high chances of winning the project. “Although, MoTCA has assured prioritising the project to LMW, which of the options to be adopted will be finalised through a political decision,” Thapa added.
In the recommendation of the BOOT committee, the project will be forwarded to the Cabinet to decide on which option to be adopted.
On March 8, 2010, the government had awarded the contract for carrying out a detailed feasibility study to LMW. The company has invested $3.55 million for the detailed and design feasibility study.
LMW Senior Vice President Seung-Hyung Lee is also optimistic that the government would acknowledge their efforts made in the project over the last 4 years. “We hope that the government will recognise our efforts and will assign the project development to us.”
SIA will cover 3,000 hectares of land (2,000 hectares for airport and remaining for airport city). LMW’s feasibility study said the proposed airport could handle 15 million passengers until 2030 and even accommodate the super-jumbo Airbus A380 after the first phase of construction.
The estimated cost for the first phase, according to the feasibility study, would be $ 650 million. The proposed airport Apron has 15 stands for international carriers, four stands for domestic and two for cargo flights.
The first passenger terminal has an area of 75,500 square metre, six boarding gates, 34 check-in counters, six security inspection counters, 35 immigration counters, eight customs inspection counters and six baggage claim counters.
By the end of the third phase of construction, the airport will have a parallel runway, enabling it to handle 60 million passengers annually.
“The study said the Kathmandu-Tarai fast track should be completed at least six months before the commencement of the airport. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Binay Rawal, LMW representative in Nepal.
KATHMANDU, APR 11 -
If all goes well, construction of the much talked about Second International Airport (SIA) in Nijgadh, Bara, will start by April next year, government officials said on Sunday.
Officials at the Ministry of Tourism and Civil Aviation (MoTCA) made such statement during the submission of the Detailed Feasibility Study Report carried out by Korea’s Landmark Worldwide Company (LMW) on the ministry premises. The airport will be developed under the ‘build own operate and transfer’ (BOOT) model.
Although the LMW study said the single-runway airport’s construction—if started this year—could be completed by 2015 for commercial operation, necessary legal procedures to be followed by the government has delayed the project by a year.
“The comprehensive report submitted today will be briefed to the prime minister, other ministers and high-level government officials,” said MoTCA secretary Kishore Thapa.
According to Thapa, after the briefing, the high-level BOOT committee will start the investors selection process—which will take at least six months—and negotiations with selected investors will take an additional six months.
However, the government has two options for awarding the project to investors. First one is ‘request for proposal (RFP)’—which is based on selection process—and the second, under the BOOT Act section-9—which says that the project can directly be awarded to any interested investors. “The BOOT Act says that the Rs 2-billion project can be awarded directly to any investors without calling for RFP,” according to the officials.
As SIA is a government prioritised project and LMW is showing interest in the project since 2007, the Korean company has high chances of winning the project. “Although, MoTCA has assured prioritising the project to LMW, which of the options to be adopted will be finalised through a political decision,” Thapa added.
In the recommendation of the BOOT committee, the project will be forwarded to the Cabinet to decide on which option to be adopted.
On March 8, 2010, the government had awarded the contract for carrying out a detailed feasibility study to LMW. The company has invested $3.55 million for the detailed and design feasibility study.
LMW Senior Vice President Seung-Hyung Lee is also optimistic that the government would acknowledge their efforts made in the project over the last 4 years. “We hope that the government will recognise our efforts and will assign the project development to us.”
SIA will cover 3,000 hectares of land (2,000 hectares for airport and remaining for airport city). LMW’s feasibility study said the proposed airport could handle 15 million passengers until 2030 and even accommodate the super-jumbo Airbus A380 after the first phase of construction.
The estimated cost for the first phase, according to the feasibility study, would be $ 650 million. The proposed airport Apron has 15 stands for international carriers, four stands for domestic and two for cargo flights.
The first passenger terminal has an area of 75,500 square metre, six boarding gates, 34 check-in counters, six security inspection counters, 35 immigration counters, eight customs inspection counters and six baggage claim counters.
By the end of the third phase of construction, the airport will have a parallel runway, enabling it to handle 60 million passengers annually.
“The study said the Kathmandu-Tarai fast track should be completed at least six months before the commencement of the airport. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Binay Rawal, LMW representative in Nepal.
Saturday, April 9, 2011
Tourist arrivals up, but revenue down
SANGAM PRASAIN
KATHMANDU, APR 08 -
Tourist arrivals to Nepal may be increasing, but foreign exchange earnings from tourism has been declining. The statistics of Nepal Rastra Bank (NRB) show that income from the travel trade has dipped in the first seven months of this fiscal year. According to NRB, tourism revenue amounted to Rs 14.80 billion during the review period, down 21.36 percent from Rs 18.82 billion in the same period last year.
Tourism income has fallen despite increased arrivals from the start of Nepal Tourism Year 2011. The first two months of 2011 saw tourist arrivals swelling 18.35 percent while income declined 28.67 percent.
According to the central bank, the country earned foreign exchange amounting to Rs 3.93 billion in January and February against Rs 5.51 billion in the same period in 2010.
Travel trade entrepreneurs attribute the decrease in collection to limited tourism activities and unhealthy competition resulting in low-priced tour packages.
However, NRB officials suspect that companies involved in foreign exchange transactions might have given incorrect data on income from tourism. They are baffled that while all the major hotels have reported a growth in their business, income from tourism is decreasing. “They may have classified tourism income under other categories while reporting their income to the central bank,” said a senior NRB official.
Raju Bikram Shah, general manager of the Shangri-La Hotel, said that his hotel’s tariff had been increasing by 15-20 percent annually and that occupancy was 97 percent. “Even during the off-season, we have increased our room rates,” Shah said.
The continuous decline in tourism income has raised the question whether Nepal is turning into a destination for budget travellers.
Travel traders said that it was too early to conclude that Nepal was turning into a budget destination. “It’s all about demand and supply,” said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Tourist expenditure decreases during the off-season.”
According to tourism entrepreneurs, unhealthy competition to offer packages at very low rates has also led to a fall in income. “Even when tourist arrivals increase, we have to provide cheap packages due to competition,” said Sharma. “This has also contributed to the decline in income.”
According to the Economic Survey 2010, the length of stay of tourists and their daily expenditure both have gone down as of mid-January 2010 compared to mid-January 2009. The length of stay went down to 11.6 days from 11.78 days and daily expenditure fell to US$ 36.88 from US$ 48.68. An analysis of annual income figures shows a meagre growth of 0.63 percent in earnings from foreign tourists in fiscal 2009-10. Tourism income in 2009-10 stood at Rs 28.13 billion compared to Rs 27.95 billion in the previous year.
Entrepreneurs say policy makers need to do some soul searching on why income from tourism is declining. They have stressed the need for programmes to lengthen the stay of tourists, encourage them to spend more and attract high-end tourists.
KATHMANDU, APR 08 -
Tourist arrivals to Nepal may be increasing, but foreign exchange earnings from tourism has been declining. The statistics of Nepal Rastra Bank (NRB) show that income from the travel trade has dipped in the first seven months of this fiscal year. According to NRB, tourism revenue amounted to Rs 14.80 billion during the review period, down 21.36 percent from Rs 18.82 billion in the same period last year.
Tourism income has fallen despite increased arrivals from the start of Nepal Tourism Year 2011. The first two months of 2011 saw tourist arrivals swelling 18.35 percent while income declined 28.67 percent.
According to the central bank, the country earned foreign exchange amounting to Rs 3.93 billion in January and February against Rs 5.51 billion in the same period in 2010.
Travel trade entrepreneurs attribute the decrease in collection to limited tourism activities and unhealthy competition resulting in low-priced tour packages.
However, NRB officials suspect that companies involved in foreign exchange transactions might have given incorrect data on income from tourism. They are baffled that while all the major hotels have reported a growth in their business, income from tourism is decreasing. “They may have classified tourism income under other categories while reporting their income to the central bank,” said a senior NRB official.
Raju Bikram Shah, general manager of the Shangri-La Hotel, said that his hotel’s tariff had been increasing by 15-20 percent annually and that occupancy was 97 percent. “Even during the off-season, we have increased our room rates,” Shah said.
The continuous decline in tourism income has raised the question whether Nepal is turning into a destination for budget travellers.
Travel traders said that it was too early to conclude that Nepal was turning into a budget destination. “It’s all about demand and supply,” said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Tourist expenditure decreases during the off-season.”
According to tourism entrepreneurs, unhealthy competition to offer packages at very low rates has also led to a fall in income. “Even when tourist arrivals increase, we have to provide cheap packages due to competition,” said Sharma. “This has also contributed to the decline in income.”
According to the Economic Survey 2010, the length of stay of tourists and their daily expenditure both have gone down as of mid-January 2010 compared to mid-January 2009. The length of stay went down to 11.6 days from 11.78 days and daily expenditure fell to US$ 36.88 from US$ 48.68. An analysis of annual income figures shows a meagre growth of 0.63 percent in earnings from foreign tourists in fiscal 2009-10. Tourism income in 2009-10 stood at Rs 28.13 billion compared to Rs 27.95 billion in the previous year.
Entrepreneurs say policy makers need to do some soul searching on why income from tourism is declining. They have stressed the need for programmes to lengthen the stay of tourists, encourage them to spend more and attract high-end tourists.
Thursday, April 7, 2011
Yeti, Tara merger plan on hold pending probe
SANGAM PRASAIN
KATHMANDU, APR 08 -
The planned merger between Yeti Airlines and its subsidiary Tara Air has been put on hold pending completion of an investigation by the Ministry of Tourism and Civil Aviation.
“There are three different cases related to Tara Air which are being investigated by separate committees in the ministry,” said Joint Secretary Suresh Acharya. “As they are all serious cases, the authorization to merge cannot be granted until they have been finalized.”
Yeti Airlines had applied to the ministry to merge with Tara Air about one and a half months ago in a bid to restore its subsidiary’s image which had been damaged after a Twin Otter crash on Dec. 16, 2010. Tara Air’s Canadian-built aircraft (9N AFX) met with an accident at Shripur in Okhaldhunga district killing all 22 passengers and crew aboard. All the passengers were Bhutanese nationals.
The aircraft investigation committee has been given another 30 days to submit its report on the crash as it failed to do so within the 90-day deadline it was originally given.
A second committee has been formed to probe the issue of the deceased passengers who were all revealed to be Bhutanese citizens but travelling as Nepalis under false ID. Similarly, the third case is related to Tara Air’s taking extra payment from the passengers in the name of service charge.
“All these issues should be cleared before the merger can happen,” Acharya said. If Yeti applies to acquire additional aircraft, it wouldn’t be any problem to authorize the carrier to do so. But merging Tara Air or its property with Yeti Airlines cannot be permitted at present, he added.
“The merger process of any company takes time; and in the case of Tara Air, the process will take longer as there are several legal issues to be investigated before they can be permitted to merge,” said Kishore Thapa, secretary at the ministry.
Ministry officials also alleged that Yeti Airlines was trying to reduce its financial burden after its insurance premiums were hiked following repeated crashes. “We have been informed that insurance companies have increased the premiums after repeated crashes,” a ministry source said.
KATHMANDU, APR 08 -
The planned merger between Yeti Airlines and its subsidiary Tara Air has been put on hold pending completion of an investigation by the Ministry of Tourism and Civil Aviation.
“There are three different cases related to Tara Air which are being investigated by separate committees in the ministry,” said Joint Secretary Suresh Acharya. “As they are all serious cases, the authorization to merge cannot be granted until they have been finalized.”
Yeti Airlines had applied to the ministry to merge with Tara Air about one and a half months ago in a bid to restore its subsidiary’s image which had been damaged after a Twin Otter crash on Dec. 16, 2010. Tara Air’s Canadian-built aircraft (9N AFX) met with an accident at Shripur in Okhaldhunga district killing all 22 passengers and crew aboard. All the passengers were Bhutanese nationals.
The aircraft investigation committee has been given another 30 days to submit its report on the crash as it failed to do so within the 90-day deadline it was originally given.
A second committee has been formed to probe the issue of the deceased passengers who were all revealed to be Bhutanese citizens but travelling as Nepalis under false ID. Similarly, the third case is related to Tara Air’s taking extra payment from the passengers in the name of service charge.
“All these issues should be cleared before the merger can happen,” Acharya said. If Yeti applies to acquire additional aircraft, it wouldn’t be any problem to authorize the carrier to do so. But merging Tara Air or its property with Yeti Airlines cannot be permitted at present, he added.
“The merger process of any company takes time; and in the case of Tara Air, the process will take longer as there are several legal issues to be investigated before they can be permitted to merge,” said Kishore Thapa, secretary at the ministry.
Ministry officials also alleged that Yeti Airlines was trying to reduce its financial burden after its insurance premiums were hiked following repeated crashes. “We have been informed that insurance companies have increased the premiums after repeated crashes,” a ministry source said.
LPG shortage temporary : NOC
SANGAM PRASAIN
KATHMANDU, APR 08 -
Nepal Oil Corporation (NOC) has said that the supply of liquefied petroleum gas (LPG) throughout the country was in a comfortable position.
Explaining the reason behind the queues for cooking gas in Dharan and other cities, NOC spokesman Mukunda Dhungel said that there had been a temporary shortage due to a strike by trade unions excluded from the recent salary hike deal. “Now there is no need to worry about a shortage,” added Dhungel.
However, it will take one more month for normal supply of LPG. Gas bottlers said the shortage was likely to remain till May. LPG is still in short supply in the country’s major cities. The state-owned petroleum monopoly that imported 15,600 tons of LPG from India in March, had requested Indian Oil Corporation (IOC) for 19,000 tons of LPG for April. “If NOC imports 19,000 tons of LPG in April, the supply will become normal by May,” said Suresh Prajapati, general secretary of the Nepal LP Gas Industry Association.
Gas bottling companies admitted that NOC had increased the supply of LPG in March.
The long queues in the market, according to gas bottlers, were due to a decline in imports
by NOC in January and February. “Imports were slashed to about 12,000 tons in January and February which had affected supply in March,” said Prajapati.
Consumption of LPG increased by 16.29 percent in the first eight months of the current fiscal year compared to the corresponding period in the last fiscal.
According to NOC statistics, the country imported 100,557 tons of LPG in the first eight months of the current fiscal year against 86,455 tons during the same period in the last fiscal year.
LPG consumption started rising after 2007-08 when imports surged by almost 20 percent. In 2009-10, LPG imports increased by 21 percent to reach 141,171 tons.
Gas bottling companies said the reason behind the sharp rise in LPG imports was the increased number of households using LPG for cooking. The energy crisis has also prompted people to turn to LPG.
KATHMANDU, APR 08 -
Nepal Oil Corporation (NOC) has said that the supply of liquefied petroleum gas (LPG) throughout the country was in a comfortable position.
Explaining the reason behind the queues for cooking gas in Dharan and other cities, NOC spokesman Mukunda Dhungel said that there had been a temporary shortage due to a strike by trade unions excluded from the recent salary hike deal. “Now there is no need to worry about a shortage,” added Dhungel.
However, it will take one more month for normal supply of LPG. Gas bottlers said the shortage was likely to remain till May. LPG is still in short supply in the country’s major cities. The state-owned petroleum monopoly that imported 15,600 tons of LPG from India in March, had requested Indian Oil Corporation (IOC) for 19,000 tons of LPG for April. “If NOC imports 19,000 tons of LPG in April, the supply will become normal by May,” said Suresh Prajapati, general secretary of the Nepal LP Gas Industry Association.
Gas bottling companies admitted that NOC had increased the supply of LPG in March.
The long queues in the market, according to gas bottlers, were due to a decline in imports
by NOC in January and February. “Imports were slashed to about 12,000 tons in January and February which had affected supply in March,” said Prajapati.
Consumption of LPG increased by 16.29 percent in the first eight months of the current fiscal year compared to the corresponding period in the last fiscal.
According to NOC statistics, the country imported 100,557 tons of LPG in the first eight months of the current fiscal year against 86,455 tons during the same period in the last fiscal year.
LPG consumption started rising after 2007-08 when imports surged by almost 20 percent. In 2009-10, LPG imports increased by 21 percent to reach 141,171 tons.
Gas bottling companies said the reason behind the sharp rise in LPG imports was the increased number of households using LPG for cooking. The energy crisis has also prompted people to turn to LPG.
Sunday, April 3, 2011
Int’l air passenger movement up 20pc
SANGAM PRASAIN
KATHMANDU, APR 03 -
International airlines operating in Nepal saw a 20.19 percent rise in passenger movement in 2010 compared to 2009.
Tribhuvan International Airport (TIA), the sole international airport in Nepal, reported that passenger volume in 2010 reached 2,436,558 against 2,027,147 in 2009. All the major airlines, particularly those connecting labour destinations, witnessed greater business compared to 2009.
According to the TIA report, Qatar Airways, Air Arabia, Etihad Airways, Fly Dubai, Bahrain Air and Oman Air reported the strongest full-year passenger growth.
TIA statistics paint a bleak picture of the national flag carrier Nepal Airlines Corporation (NAC). Marred by series of controversy and inability to purchase new aircraft, the NAC recorded a negative growth in passenger movement in 2010. It lost 2.17 percent to take the third place in terms of passenger movement. Thanks to the healthy growth in migrant workers’ departure, most of the airlines from Middle East registered handsome growth in 2010.
Qatar Airways, Air Arabia, Etihad Airways and Bahrain Air recorded passenger growth of 19.49 percent, 18.84 percent, 49.39 percent and 42 percent, respectively.
New entrants Oman Air and Fly Dubai also saw a healthy passenger growth in 2010. However, Gulf Air posted a negative growth in passenger movement with the number of passengers dipping by 25 percent. Except Indian Airlines, airlines based in India reported a healthy growth in passenger movement last year.
The entry of more India-based airlines in Nepal saw the Indian Airlines losing passengers. While the Jet Airways and Jet Lite International posted 52 percent and 4.46 percent growth, respectively, Indian Airlines recorded degrowth of 12.38 percent. Same was the story with airlines from China, with all three Chinese airlines - China Southern, China Eastern and Air China- enjoying growth in 2010.
Int’l Airlines passenger movement
Airlines 2009 2010
Qatar Airways 251,214 300,184
Jet Airways 167,849 255,161
Nepal Airlines 237,751 232,577
Gulf Air 238,527 178,887
Thai Airways 186,466 175,422
Indian Airlines 199,770 175,022
Air Arabia 131,386 156,147
Etihad Airways 77,981 116,496
Jet Lite 107,271 112,060
Biman Bangladesh 70,727 105,971
Fly Dubai —— 81,446
Dragon Air 47,658 68,977
GMG Airlines 37,077 60,425
Kingfisher —— 55,470
Silk Air 52,372 52,906
Pakistan Int’l 58,161 47,610
Bahrain Air 32,877 46,726
Air China 29,620 36,536
Korean Air 33,099 31,528
(Source: TIA)
KATHMANDU, APR 03 -
International airlines operating in Nepal saw a 20.19 percent rise in passenger movement in 2010 compared to 2009.
Tribhuvan International Airport (TIA), the sole international airport in Nepal, reported that passenger volume in 2010 reached 2,436,558 against 2,027,147 in 2009. All the major airlines, particularly those connecting labour destinations, witnessed greater business compared to 2009.
According to the TIA report, Qatar Airways, Air Arabia, Etihad Airways, Fly Dubai, Bahrain Air and Oman Air reported the strongest full-year passenger growth.
TIA statistics paint a bleak picture of the national flag carrier Nepal Airlines Corporation (NAC). Marred by series of controversy and inability to purchase new aircraft, the NAC recorded a negative growth in passenger movement in 2010. It lost 2.17 percent to take the third place in terms of passenger movement. Thanks to the healthy growth in migrant workers’ departure, most of the airlines from Middle East registered handsome growth in 2010.
Qatar Airways, Air Arabia, Etihad Airways and Bahrain Air recorded passenger growth of 19.49 percent, 18.84 percent, 49.39 percent and 42 percent, respectively.
New entrants Oman Air and Fly Dubai also saw a healthy passenger growth in 2010. However, Gulf Air posted a negative growth in passenger movement with the number of passengers dipping by 25 percent. Except Indian Airlines, airlines based in India reported a healthy growth in passenger movement last year.
The entry of more India-based airlines in Nepal saw the Indian Airlines losing passengers. While the Jet Airways and Jet Lite International posted 52 percent and 4.46 percent growth, respectively, Indian Airlines recorded degrowth of 12.38 percent. Same was the story with airlines from China, with all three Chinese airlines - China Southern, China Eastern and Air China- enjoying growth in 2010.
Int’l Airlines passenger movement
Airlines 2009 2010
Qatar Airways 251,214 300,184
Jet Airways 167,849 255,161
Nepal Airlines 237,751 232,577
Gulf Air 238,527 178,887
Thai Airways 186,466 175,422
Indian Airlines 199,770 175,022
Air Arabia 131,386 156,147
Etihad Airways 77,981 116,496
Jet Lite 107,271 112,060
Biman Bangladesh 70,727 105,971
Fly Dubai —— 81,446
Dragon Air 47,658 68,977
GMG Airlines 37,077 60,425
Kingfisher —— 55,470
Silk Air 52,372 52,906
Pakistan Int’l 58,161 47,610
Bahrain Air 32,877 46,726
Air China 29,620 36,536
Korean Air 33,099 31,528
(Source: TIA)
Saturday, April 2, 2011
March tourist arrival fall short of 2011 target
SANGAM PRASAIN
KATHMANDU, APR 01 -
After posting hopeful growth of 26 and 12 percent in January and February, respectively, tourist arrivals via air in March fell into single digit growth. Arrivals in March grew by just 4.6 percent due to decline in arrivals from Europe.
Nepal Tourism Board (NTB)’s statistics show growth in tourist arrivals slowed down in the first three months (January-March) of 2011 compared to the same period in 2010. According to NTB, arrivals grew by 12.5 percent in the first three months of 2011, while the growth during the same period last year was at 29.78 percent.
The Nepal Tourism Year has targeted 700,000 tourists and March is considered one of the prime tourist season. European arrivals posted a negative growth of 12.6 percent in March. Arrivals from the major European markets such as the UK, Germany, the Netherlands, Spain and Switzerland registered negative growth of 27 percent, 16.1 percent, 20.3 percent, 43 percent and 7.7 percent, respectively.
Travel trade entrepreneurs are surprised by the decline in European arrivals. “We are also surprised why the European market is declining,” said Ashok Pokharel, president of the Nepal Association of Tour Operators (NATO). He added that there was a need to think seriously about the downturn in the European market which is a source of high-end travellers. Some entrepreneurs attribute this decline to increase in international airfares catalysed by rising aviation fuel price. “The major reason behind the decline in the number of European tourists is a hike in airfares with the price of aviation fuel rising continuously in the global market,” said Rajendra Bajgai, general secretary of the Trekking Agencies Association of Nepal (TAAN). “Coming to Nepal from Europe without direct connectivity is very expensive.”
Gandaki Tours and Travels Managing Director Ram Kazi Koney agrees with Bajgai. Koney said lack of direct flights between Nepal and Europe is one of the reasons behind the slump. “Moreover, promotion and marketing of Nepal Tourism Year-2011 has not been carried out in Europe, and this has also affected growth in the Europe segment,” Koney added.
The International Air Transport Association (IATA) has warned that fuel prices could increase and the global aviation industry will face a setback. In addition, Japan produces 3-4 percent of the global jet fuel supply, some of which is exported to Asia. Some of this refinery has been lost due to damages caused by the earthquake. This supply restriction could lead to higher jet fuel prices. “Airfares are rising already with numbers of international airlines increasing fuel surcharges because costs for fuel increased drastically,” said IATA.
India, which is the major market for Nepal, recorded a growth of 28 percent while Sri Lanka and Pakistan posted a growth of 38.3 percent and 6.8 percent respectively. However, arrivals from Bangladesh declined by 2.5 percent. The South Asian segment registered a growth of 22.5 percent. Arrivals from Asia other than South Asia also recorded a growth of 15.1 percent. Arrivals from China and Japan increased 15.2 percent and 9.6 percent respectively. Similarly, arrivals from South Korea, Thailand, Malaysia and Singapore increased by 12.1 percent, 51.9 percent, 16.2 percent and 10.8 percent respectively. Tourist arrivals from the US increased 22.7 percent while arrivals from Australia, New Zealand and Canada saw a negative growth of 3.7 percent, 13.5 percent and 5.3 percent respectively.
KATHMANDU, APR 01 -
After posting hopeful growth of 26 and 12 percent in January and February, respectively, tourist arrivals via air in March fell into single digit growth. Arrivals in March grew by just 4.6 percent due to decline in arrivals from Europe.
Nepal Tourism Board (NTB)’s statistics show growth in tourist arrivals slowed down in the first three months (January-March) of 2011 compared to the same period in 2010. According to NTB, arrivals grew by 12.5 percent in the first three months of 2011, while the growth during the same period last year was at 29.78 percent.
The Nepal Tourism Year has targeted 700,000 tourists and March is considered one of the prime tourist season. European arrivals posted a negative growth of 12.6 percent in March. Arrivals from the major European markets such as the UK, Germany, the Netherlands, Spain and Switzerland registered negative growth of 27 percent, 16.1 percent, 20.3 percent, 43 percent and 7.7 percent, respectively.
Travel trade entrepreneurs are surprised by the decline in European arrivals. “We are also surprised why the European market is declining,” said Ashok Pokharel, president of the Nepal Association of Tour Operators (NATO). He added that there was a need to think seriously about the downturn in the European market which is a source of high-end travellers. Some entrepreneurs attribute this decline to increase in international airfares catalysed by rising aviation fuel price. “The major reason behind the decline in the number of European tourists is a hike in airfares with the price of aviation fuel rising continuously in the global market,” said Rajendra Bajgai, general secretary of the Trekking Agencies Association of Nepal (TAAN). “Coming to Nepal from Europe without direct connectivity is very expensive.”
Gandaki Tours and Travels Managing Director Ram Kazi Koney agrees with Bajgai. Koney said lack of direct flights between Nepal and Europe is one of the reasons behind the slump. “Moreover, promotion and marketing of Nepal Tourism Year-2011 has not been carried out in Europe, and this has also affected growth in the Europe segment,” Koney added.
The International Air Transport Association (IATA) has warned that fuel prices could increase and the global aviation industry will face a setback. In addition, Japan produces 3-4 percent of the global jet fuel supply, some of which is exported to Asia. Some of this refinery has been lost due to damages caused by the earthquake. This supply restriction could lead to higher jet fuel prices. “Airfares are rising already with numbers of international airlines increasing fuel surcharges because costs for fuel increased drastically,” said IATA.
India, which is the major market for Nepal, recorded a growth of 28 percent while Sri Lanka and Pakistan posted a growth of 38.3 percent and 6.8 percent respectively. However, arrivals from Bangladesh declined by 2.5 percent. The South Asian segment registered a growth of 22.5 percent. Arrivals from Asia other than South Asia also recorded a growth of 15.1 percent. Arrivals from China and Japan increased 15.2 percent and 9.6 percent respectively. Similarly, arrivals from South Korea, Thailand, Malaysia and Singapore increased by 12.1 percent, 51.9 percent, 16.2 percent and 10.8 percent respectively. Tourist arrivals from the US increased 22.7 percent while arrivals from Australia, New Zealand and Canada saw a negative growth of 3.7 percent, 13.5 percent and 5.3 percent respectively.
TIA to install CUTE system in June
SANGAM PRASAIN
KATHMANDU, APR 01 -
Tribhuvan International Airport (TIA) has planned to install common user terminal equipment (CUTE) that enables passenger check-in and e-ticketing in an integrated way in a bid to modernise the country’s only international airport using IT. A TIA official said that the system is scheduled to be installed in June.
CUTE provides faster and more efficient passenger processing allowing the airport to handle the increasing number of travellers passing through it. The TIA official added that the system would enhance customer service and eliminate queues as passengers would be able to check in at the desk of any airline.
The departure control system (DCS) currently in use is being operated and managed by the airlines themselves. Nepal Airlines Corporation (NAC) is the ground handling agent at TIA.
CUTE is compulsory in international practice providing single software facility to airlines, a network of shared information technology equipment for passenger check-in and boarding, baggage check-in, departure control and airline ticketing.
TIA general manager Ratish Chandra Lal Suman said that SITA of France, a company specialising in air transport communications and information technology solutions, had been entrusted to install CUTE.
“After CUTE goes into operation, passengers will not face any hassles as the existing manual working procedure will be replaced by the computerized system.”
Airports require confirmed approval of 80 percent of the airlines to implement CUTE. TIA has not received NAC’s approval.
After the system is in place, passengers will be charged US$ 1 each out of which TIA will receive 40 percent. TIA will earn an additional Rs 40 million annually from the CUTE facility. Currently, 27 international airlines pass through TIA. The airport handled 2.43 million passengers and 14 million tons of cargo in 2010.
KATHMANDU, APR 01 -
Tribhuvan International Airport (TIA) has planned to install common user terminal equipment (CUTE) that enables passenger check-in and e-ticketing in an integrated way in a bid to modernise the country’s only international airport using IT. A TIA official said that the system is scheduled to be installed in June.
CUTE provides faster and more efficient passenger processing allowing the airport to handle the increasing number of travellers passing through it. The TIA official added that the system would enhance customer service and eliminate queues as passengers would be able to check in at the desk of any airline.
The departure control system (DCS) currently in use is being operated and managed by the airlines themselves. Nepal Airlines Corporation (NAC) is the ground handling agent at TIA.
CUTE is compulsory in international practice providing single software facility to airlines, a network of shared information technology equipment for passenger check-in and boarding, baggage check-in, departure control and airline ticketing.
TIA general manager Ratish Chandra Lal Suman said that SITA of France, a company specialising in air transport communications and information technology solutions, had been entrusted to install CUTE.
“After CUTE goes into operation, passengers will not face any hassles as the existing manual working procedure will be replaced by the computerized system.”
Airports require confirmed approval of 80 percent of the airlines to implement CUTE. TIA has not received NAC’s approval.
After the system is in place, passengers will be charged US$ 1 each out of which TIA will receive 40 percent. TIA will earn an additional Rs 40 million annually from the CUTE facility. Currently, 27 international airlines pass through TIA. The airport handled 2.43 million passengers and 14 million tons of cargo in 2010.
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