Sunday, February 13, 2011
The penny drops
Eight casinos which have not paid their dues are to be shut down
SANGAM PRASAIN
KATHMANDU, FEB 14 -
The axe has finally fallen. Eight casinos which have been delinquent in paying their royalties are on track to lose their operating licenses.
The Department of Revenue Investigation (DRI) on Sunday wrote to the Tourism Ministry to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
After the stipulated time limit ran out on Friday, the department dispatched a formal letter to the ministry recommending action against the eight gambling houses as per the directives of the parliamentary Public Accounts Committee (PAC). With the DRI’s latest move, the eight casinos are virtually set to lose their licenses.
“We sent a letter to the Tourism Ministry on Sunday recommending that it scrap the operating licenses and close down the eight casinos that have failed to clear their outstanding royalties and dues to the government,” said DRI director general Mahesh Dahal.
Of the 10 casinos currently operating in the country, only two—Casino Tara at the Hotel Hyatt Regency and Casino Everest at the Hotel Everest—have cleared their dues.
PAC had directed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.
Following PAC’s directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year. According to Dahal, the operators of these three casinos had pledged to pay the remaining Rs 10.08 million within two months.
Likewise, Casino Shangri-La and Casino Royale paid the royalty and fines for the current fiscal year, but didn’t make payments of the previous year. The management of Casino Shangri-La, according to Dahal, had argued that the royalties and dues of earlier fiscal years were accumulated by Nepal Recreation Centre (NRC), its previous operator.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite the constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
Following the DRI’s letter, tourism secretary Kishore Thapa said that the ministry would take action against the casinos based on the directives of PAC. “As per PAC’s directive, we must initiate action against them,” said Thapa.
As per the Finance Bill, casinos that fails to clear their royalties by mid-January would lose their operating licenses. “Their licenses will be automatically scrapped if they fail to clear their royalties by mid-January as per the Finance Bill,” said a senior official at the Finance Ministry.
“Those whose licenses have been scrapped should go for a new process to acquire licenses.” Finance Ministry officials said the government could recover the dues of from defaulting casinos by confiscating their properties. The government, through the new budget, has made compulsory renewal of casino licenses and annual licenses.
The government from the last six months has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act.
Getting into the swing of things
SANGAM PRASAIN
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
Pay up Deadline ends; six casinos cough up dues
SANGAM PRASAIN
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
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