Wednesday, February 2, 2011

PAC to govt: Explore possibility of moving casinos out of Kathmandu

SANGAM PRASAIN


KATHMANDU, FEB 03 -

Continued defiance by casinos of government orders to clear their royalty dues and bar Nepalis from entering their premises has prompted the parliamentary Public Accounts Committee (PAC) to issue the sternest directives against them till date.

PAC on Wednesday even asked the government to explore the possibility of relocating the gambling houses outside the Kathmandu Valley. Stating that the haphazard running of casinos in the Capital has made negative impact on the society, the PAC directed the government to relocate them outside the Capital.

PAC has instructed the Ministry of Tourism and Civil Aviation (MoTCA) to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.

With the casinos still running without a Casino Act, the committee has also instructed the government to prepare laws governing casinos at the earliest. “As of now, we do not have any act that says that it is illegal for Nepalis to enter a casino. The terms of reference (TOR) while issuing licenses for casinos only has a condition applied to operators that they will not allow Nepali into their casinos,” said home secretary Govinda Kusum.

PAC has also directed the government to explore the possibility of shifting the casinos out of the Kathmandu Valley. Inspector General of Police Ramesh Chand Thakuri supports the plan to move the casinos out of Kathmandu. “Relocating casinos from the capital could be an option to regulate and manage them well,” said Thakuri.

Finance Secretary Rameshwor Khanal was also in favour of relocating casinos outside the Capital. “Instead of running casinos without guidelines in the Capital, they can be relocated to a location that can be developed into casino hub,” said Khanal. “Las Vegas of the US and Macau are some examples of casino hubs.”

In order to curb illegal entry of Nepali citizens, the Nepal Police had proposed to the Home Ministry to relocate the casinos to the outskirts of the capital from downtown.

Following the proliferation of electronic gaming clubs (mini-casinos) outside Kathmandu, PAC has asked the government to shut them down. Of late, star hotels outside Kathmandu have been running such gaming clubs. And a number of them were even inaugurated by Tourism Minsiter Sharat Singh Bhandari. The onsite inspection of MoTCA had found that mini-casino at Hotel Sneha, Nepalgunj, had flouted the norms. “We’ve found that the casino is being run against the spirit of the license,” said Tourism Secretary Kishore Thapa. “The ministry has taken this issue seriously.”

These “mini-casinos” were given licenses without consulting other ministries. Finance secretary Rameshwor Khanal said that the MoTCA issued licenses for mini-casinos two years ago without consulting them. “We have forwarded a letter to the MoTCA stating that issuing licenses unilaterally was not right,” Khanal said.

A minister-level decision of the MoTCA allowed the operation of electronic gaming clubs, but these clubs have upgraded themselves to mini-casinos. Tourism secretary Kishore Thapa has admitted to this.

Despite the constant pressure of revenue authorities, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues. PAC on Dec. 29, 2010 had issued directives to the government to scrap the licenses of casinos failing to clear their dues within 35 days. This deadline will end on Feb. 11. It is still not clear whether the government will go for cancelling their permits.

As of now, these four casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.

If the casinos do not pay up, the government is mulling seizing their land and property. “The ministry could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre if it fails to clear the dues by the time limit,” said Khanal.

Lawmakers on Wednesday asked the government to be serious about the casino issue. Stating that frequent raids by the police could frighten away tourists, UML lawmaker Rabindra Adhikari said that casino operators should be made more accountable.

Tourism secretary Kishore Thapa said that the frequent raids and arrests in hotels have terrorised tourists. “If casinos are important for Nepali tourism, then they should be properly managed; if not, they should be closed,” Thapa said. If the government decides to shut them down, it should be done gradually as around 10,000 people are currently employed in this business, he added.

PAC has also asked the Home Ministry to amend the Gambling Act.

NTY wagon picks up pace, arrivals up 26 pc

SANGAM PRASAIN

KATHMANDU, FEB 02 -

Nepal welcomed 32,914 tourists in the first month of 2011, a gain of 26.2 percent compared to the same period last year. The first month of the Nepal Tourism Year 2011 campaign saw an increase of 6,843 visitors.

Tourism entrepreneurs have attributed the growth to improved air connectivity. According to the government’s tourist arrival figures, Nepal recorded significant inbound growth from the major targeted markets, India and China. Indian arrivals were up 35.5 percent to 7,905 while arrivals from China saw a robust growth of 79.6 percent. Total Chinese arrivals amounted to 3,203 as against 1,783 in the same period last year. Indian and Chinese arrivals made up 24 percent and 9.7 percent of the total arrivals.

Nepal has targeted the northern and the southern neighbours as major markets during Nepal Tourism Year. Projected arrivals from India and China are 265,000 and 100,000 respectively.

“The significant growth in Chinese and Indian tourists can be attributed to increased air accessibility. Despite the poor performance of the national flag carrier, international airlines serving Nepal have upgraded their aircraft and increased their flight frequencies,” said Ram Kazi Koney, a tourism entrepreneur.

China Eastern and China Southern have also increased their flight frequencies leading to a growth of Chinese tourists in Nepal, Koney said.

Similarly, arrivals from South Korea amounted to 2,720, up 20.3 percent. South Korean tourists made up 8.3 percent of the total arrivals.

Following the signing of a peace accord between the Maoists and the government in 2006, the number of Buddhist pilgrims from East Asia has risen. Arrivals from Malaysia, Singapore, Thailand, Japan and South Korea have also been increasing. “Korean Air has doubled its flight frequency to two weekly which has also contributed to the growth in Korean arrivals,” said a travel trade entrepreneur.

In the South Asian region, arrivals from Bangladesh and Pakistan registered a 10.3 percent and 13.3 percent growth respectively. However, arrivals from Sri Lanka declined by 47.5 percent. On aggregate, the South Asian segment registered a growth of 28.8 percent.

Arrivals from Asia excepting South Asia have also recorded a growth of 36.6 percent with all the markets showing improved performance. Arrivals from Japan, Malaysia, Singapore, Thailand and South Korea increased by 8.2 percent, 51.9 percent, 29.1 percent, 3.2 percent and 20.3 percent respectively. The European market saw an overall growth of 14.6 percent. Arrivals from the UK, Germany, the Netherlands and Russia were up 7.5 percent, 35.3 percent, 48.9 percent and 40.3 percent respectively. However, arrivals from France, Italy and Switzerland declined by 17.4 percent, 5.0 percent and 5.5 percent respectively compared to the same month last year.

Tourist arrivals from Australia, New Zealand and Canada have also registered robust growths of 23.8 percent, 59.7 percent and 9.8 percent respectively. Meanwhile, arrivals from the US increased by 27.6 percent to 2,446, making up 7.4 percent of the total arrivals.

Nepal has been enjoying sustained growth in international visitor arrivals since June 2009. These figures reflect rising confidence among visitors and tour operators to Nepal. The country saw a very strong surge in international visitors in 2010. The year-end growth for Nepal was 18.8 percent.