Target: Chinese outbound

National Tourism Council okays proposal to provide free visas to tourists from China

SANGAM PRASAIN
KATHMANDU, NOV 11 -

The seventh meeting of the National Tourism Council held recently under the chairmanship of Prime Minister Madhav Kumar Nepal has endorsed a proposal to provide free visas to Chinese tourists in a bid to attract more visitors from the northern neighbour during Nepal Tourism Year 2011.

If the Ministry of Finance and the Ministry of Home Affairs agrees to the plan, it will be sent to the cabinet for final approval, a government official said.

The Ministry of Tourism and Civil Aviation moved to provide free visas to Chinese tourists in response to the proposal

made by the Chinese side during the fourth meeting of the Nepal-Tibet Joint Tourism Coordination Committee held in Lhasa on Sept. 14. Visas will be provided gratis for the duration of the NTY campaign period.

“Chinese travellers are interested in visiting Nepal, and the free visa scheme proposed by the Tourism Ministry can be a major factor in attracting Chinese outbound,” said ministry spokesperson Laxman Prasad Bhattarai.

China has become one of the world’s most watched outbound markets. According to the China Tourism Academy, the number of Chinese tourists in 2010 is estimated to reach 54 million. China is also projected to become the fourth largest source of outbound tourism in the world by 2020.

Nepal has been providing free visas to visitors from the South Asian Association for Regional Cooperation (SAARC). Other

foreign travellers are charged

US$ 25 for 15 days and US$ 40 for one month.

Nepal has targeted bringing 100,000 Chinese visitors during NTY 2011. Since 2009, there has been a modest growth in Chinese arrivals to Nepal. According to the Nepal Tourism Board, Nepal received 18,677 Chinese visitors in 2009 against 14,076 in 2008, a growth of 32 percent. Arrivals in 2009 accounted for 5 percent of the total inbound.

Chinese arrivals by air as of October 2010 amounted to 20,933 to take the fourth place after India (85,655), the US (27,217) and the UK (26,033). According to the World Tourism Organization, rising middle class incomes and a pent-up demand to see the rest of the world have made China one of the most significant outbound tourism markets. Similarly, easing of controls on foreign travel has also contributed to a surge in Chinese outbound.

In terms of outbound travel spending, China is currently ranked fifth and is expected to be the fastest growing in the world from 2006 to 2015, jumping into the number two slot for total travel spending by 2015, said the WTO. Chinese nationals spent US$ 19.1 billion on tourism abroad in 2004. Chinese tourists are among the biggest spenders when they travel overseas, making them a highly desired market.

China has been the leading source of outbound tourists in Asia since 2003, though most Chinese tourists (71 percent in 2005) only go to Hong Kong and Macau. The WTO said that the impact of Chinese outbound tourism started to be felt in Asia (17 percent in 2005) with far fewer going to Europe (5 percent in 2005) and elsewhere. By 2020, China is projected to produce 100 million outbound trips. “Looking at the huge prospects of the Chinese market and being a close neighbour, issuing free visas will help boost Nepal’s tourism market,” Bhattarai said. If the plan works in 2011, the government could extend it, he added.

Meanwhile, the Tourism Ministry is mulling improving road access to Nepal for Chinese tourists as it has been a major hindrance to increasing arrivals.

Flying high

SANGAM PRASAIN
NOV 05 -
With the number of tourist arrivals increasing, domestic airline companies are doing brisk business this autumn. Almost all the domestic airlines have increased their flight movement in the major tourist destinations. Since October, there has been a surge in flight movement on the Lukla, Pokhara, Jomsom and Bharatpur sectors. Foreign tourists make up the major portion of the passengers during this season. According to recent statistics, Nepal recorded more than 62,000 arrivals in October, or more than 2,000 arrivals daily.

According to domestic air operators, flight movement on the Kathmandu-Lukla sector has swelled by 20 percent compared to the autumn season last year. Domestic airlines report making over 80 roundtrips daily between Kathmandu and Lukla, the gateway to Everest.

On Friday, Tara Air made 22 flights, Agni Air 15 flights and Sita Air four flights. According to the carriers, foreign tourists make up 90 percent of the passengers on the Lukla sector. “Our business has grown by 20 percent on the Lukla sector compared to autumn last year,” said Sailesh Shrestha, marketing chief of Agni Air. Autumn is one of the main seasons for business for airlines operating services on the Kathmandu-Lukla sector. Tara Air, Agni Air and Sita Air fly Twin Otter aircraft on their Lukla operations.

In terms of passenger movement, more than 600 tourists returning from Lukla to Kathmandu daily as the autumn season is coming to a close. Autumn is a popular trekking season. More than 30 percent of the tourists visiting Nepal go trekking in the Everest and Annapurna regions. Some of the most trodden trekking routes in the Everest region are Kalapatthar, Gokyo Lake, Everest Base Camp and Syangboche. Trekking in Nepal is an all season activity. However, the most popular seasons are spring (February-May) and autumn (September-November).

Other major tourist destinations like Pokhara, Jomsom and Bharatpur are also seeing greater flight movement these days. These three destinations attract a sizeable number of tourists during autumn.

The air operators say that flights between Kathmandu and Pokhara, Jomsom and Bharatpur have increased by 10-15 percent compared to the last autumn season, airline operators said.

Buddha Air has increased its frequency on the Pokhara sector to 10-12 flights daily from the usual five-six flights with the peak tourist season in full swing. “Flight movement on the Pokhara route has increased by 10-12 percent this autumn,” said Rupesh Joshi, marketing manager of Buddha Air. Agni Air and Guna Airlines operate three-four flights daily.

Pokhara attracts around 40 percent of the total number of tourists visiting Nepal. More than 70 percent of the tourists visiting Pokhara go trekking to Annapurna Base Camp and other trekking destinations. Last year, 203,527 tourists had visited Pokhara.

Travel traders said that they were encouraged that the country did not see any kinds of disturbances during the last seven months. Strikes, bandas and transport shutdowns have taken a heavy toll on tourism in previous years.

Hotels are reporting full bookings with the growth in tourist arrivals this year.

Tourism entrepreneurs said that business during the current tourist season was the highest in the year.

Fishtail chopper accident claims two

SANGAM PRASAIN
KATHMANDU, NOV 08 -
Three months after an Agni aircraft crashed, the Nepali sky witnessed yet another disaster on Sunday with a Fishtail Air chopper crashing in Mt. Ama Dablam range (6,812 m) in Solukhumbu district.

The accident took place at 9: 30 am when the chopper flown by Captain Sabin Basnet accompanied by engineer Purna Awale on a rescue mission in the range went out of control due to a sudden avalanche.

“The details are yet to be known,” said Civil Aviation Authority of Nepal’s Aviation Safety Department director Binod Giri. However, preliminary assessment says that the chopper was struck by an avalanche, he said.

Basnet, an experienced helicopter pilot with over 4,500 hours of flying various types of choppers and his his companion Awale were honoured by the Swiss Embassy in Nepal on June 3 for their humanitarian support and important role in retrieving the body of Swiss citizen Uwe Micha from the Everest South Col at 8000m in May 2010.

According to Sherpa & Swiss Adventure Pvt. Ltd that coordinated with Fishtail Air for the rescue mission of a Japanese and a German mountaineer stranded in the mountain, the chopper met with the accident in its second rescue attempt. It rescued the German mountaineer in the first turn.

Both the mountaineers were the clients of Thamserku Trekking and Expedition who lost their way while returning from the expedition.

“As they got lost they had no supplementary expedition equipment to return back. This led them to getting stranded in the mountain and caused health problems for them,” Lhakpa Gyalzen Sherpa, managing director of Sherpa and Swiss Adventure, told the Post.

Normally, expeditions in autumn run the risk of avalanches and few climbers ascend peaks in Nepal during this season.

“Autumn is a season for trekking but there are clients who are more adventurous and want to take the risk,” said Sherpa, who is also a rescue specialist.

Mt. Ama Dablam is a technically difficult mountain, where mountaineers normally prefer to climb for a warm-up to climb the world’s highest peak Mt. Everest. According to the Ministry of Tourism and Civil Aviation, 180 mountaineers ascended Mt. Ama Dablam in 2009 of which 177 mountaineers climbed in autumn.

Meanwhile, the bodies of Captain Sabin Basnet and engineer Purna Awale were brought to Kathmandu. Issuing a press statement, the CAAN said that the bodies have been sent for the post-mortem to Tribhuvan University Teaching Hospital (TUTH) and would be handed over to their families.

Veggies, pulses major role players in AGDP

Handsome returns in a short span of time is also another factor that has attracted farmers to vegetables
SANGAM PRASAIN
KATHMANDU, NOV 04 -

Vegetables, pulses, potato and wheat have emerged as major contributors in the Agriculture Gross Domestic Product (AGDP) for the past six years.

The contribution of vegetables and pulses in the AGDP has almost doubled in these years. Vegetables and pulses have experienced a rapid growth from 2003-04 to 2009-10, increasing their share of AGDP from 5.73 percent and 2.27 percent to 9.71 percent and 4.42 percent respectively in 2009-10.

Statistics with the Ministry of Agriculture and Cooperatives (MoAC) show that

the contribution of wheat and potato in

the AGDP has surged from 4.59 percent

and 3.68 percent to 7.14 percent and 4.67 percent respectively.

“The government’s community-based programmes have boosted vegetable production, resulting in the rapid growth in vegetable farming in the country,” said Hari Dahal, Spokesperson at the Agriculture Ministry. Handsome returns in a short span of time is also another factor that has attracted farmers to vegetables.

However, paddy still has the highest share of 20.75 percent in the AGDP, followed by milk with a share of 12.36 percent.

The MoAC statistics show that the paddy share in the AGDP grew by only one percent in the last six years. As per government’s estimates, paddy production in 2009-10 is expected to decline by 11 percent.

The second largest cereal crop, wheat, also contributed to the AGDP with 7.14 percent in 2009-10. Wheat contribution in the AGDP was 4.59 percent in 2003-04. Wheat production is expected to increase by 16 percent to 1,556,000 tons in 2009-10 against 1,344,000 tons in the previous fiscal year. Increase in the export of wheat and change in the food habit has contributed to the rise in wheat production, according to MoAC officials. Among pulses, lentils has a good demand abroad.

Likewise, the share of potato in the AGDP has gone up to 4.67 percent from 3.68 in 2003-04. “The use of potato has increased of late,” Dahal said.

There has been a modest growth in the share of maize and jute in the AGDP. Among the cash crop, the share of sugarcane has also declined.

However, the contribution of milk, which was the second largest contributor to the AGDP, shrunk significantly. Milk contribution to the AGDP shrunk to 12.36 percent in 2009-10 from 15.84 percent in 2003-04. Milk production, according to government estimates, is estimated to record a rise of 3.5 percent totaling 1,496,000 tons in 2009-10.

The MoAC statistics give interesting insights. Despite the Nepalis’ trend of consuming meat, the share of mutton, buff and chicken in the AGDP has declined. According to the MoAC, buff, mutton and chicken contribute 4.42 percent, 3.24 percent and 0.67 percent in the AGDP. However, meat production, according to the MoAC is expected to grow by 3.0 percent to 248,573 tons in 2009-10.

Agro-Product’s share in AGDP

those that went up

Commodity 2003-04 (in %) 09-10 (in %)

Rice 19.75 20.75

Vegetable 5.73 9.71

Wheat 4.59 7.14

Maize 6.87 6.88

Potato 3.68 4.67

Pulses 2.27 4.42

Jute 0.13 0.17

those that went down

Milk 15.84 12.36

Forestry 9.24 8.07

Buff Meat 4.51 4.42

Mutton 3.99 3.24

Millet 2.23 1.37

Sugarcane 1.37 1.24

Poultry Meat 1.01 0.67

Eggs 1.5 0.81

Source: Ministry of Agriculture and Cooperatives

Here's to Tihar!

Liquor market booming, Nepali drinkers surges all time high

SANGAM PRASAIN
KATHMANDU, NOV 02 -
Quaffing alcoholic beverages is a major part of any celebration; and with the start of Tihar, shoppers have been thronging the bazaar to stock up their bars with their favourite beer, brandy, whisky and wine. And like other merchants, liquor dealers have been luring customers with special festival offers.

However, traders said that they did not expect sales to surge like during Dashain. "Retail sales of alcohol are lower than during Dashain," said Bal Krishna Thapaliya, marketing manager of Green Line Centre, an authorized dealer of almost all the local and international brands of alcoholic beverages.

Even then sales have increased to over Rs. 150,000 per day from the normal daily sales of Rs. 50,000 to Rs. 60,000, Thapaliya added.

Among domestic whisky brands, Signature is the most popular followed by Royal Stag, Bagpiper and McDowell. Daily sales at Green Line Centre amount to 20-25, 15-20, 10-12 and 10-12 cases respectively, said Thapaliya.

However, sales of the once most preferred whisky of Nepalis, Johnnie Walker Red Label, have shrunk due to the absence of company support in Nepal, Thapaliya said. "We are selling only two-three cases daily compared to 10-12 cases before."

Meanwhile, sales of Chivas Regal are swelling as the company has been providing different schemes such as buy one get one free and other promotional programmes.

With regard to beer, Carlsberg and Tuborg occupy the largest market followed by Henkel. Green Line Centre sells 80-90 cases of Carlsberg and Tuborg beer daily while sales of Henkel beer amount to 50-55 cases.

Gorkha Brewery leads the beer brands with the highest-selling products like Tuborg, San Miguel, Carlsberg and Gorkha.

Gorkha Brewery said business had been good and that Tihar sales were expected to rise. Sales during the festive season increase by 20 percent compared to normal days.

According to local distilleries and breweries, the beer market currently stands at six million cartons per year. That means 6,000,000 bottles are consumed each month.

Of the total sales of Gorkha Brewery, Tuborg accounts for about 55 percent. The company holds a 75 percent share of the beer market.

Meanwhile, local wines like Hinwa, Grapple, Nettlange and Himali Ramble are also becoming popular in Nepal.

"The share of the market of Nepali wines has grown to 10 percent as people have realized that they are organic and more hygienic," said Ram Thapa, proprietor of Sankata Wine Store and authorized dealer of all the local wines.

Thapa added that over 1,300 cases of local wines were sold during the Dashain festival. However, with demand picking up for local products, there is a shortage of local wines in the market.

"Hinwa is preferred by customers," he said. "We are aiming to sell 1,000 cases during Tihar," he added.

Hinwa is manufactured by Makalu Wine Industries at Sankhuwasabha. Manufacturing Hinwa started in 1995 with the production of around 90 cases. At present, its production has increased to 700 cases monthly for Kathmandu only.

Grapple is another popular wine made of black grapes imported from India and apples from Mustang. Nettlange too is a fast-selling brand of wine. It is made of nettles and oranges. Similarly, Himali Ramble wine has been designed for health conscious people. It is manufactured by Shree Ram Laxmi Distillery at Marpha.

It augurs well for NTY-2011

With two months still left for the year to end, the number of tourists is expected to cross 450,000 if the current trend of the last 10 months continues

SANGAM PRASAIN
KATHMANDU, NOV 02 -

With Nepal Tourism Year-2011 approaching, the number of visitors coming to Nepal has started to jump significantly. The country witnessed an 18.4 percent rise in the number of tourists entering Nepal by air during these 10 months of 2010.

The number of visitors reached 364,115 from January to October compared to 307,532 during the same period in 2009. With two months still left for the year to end, the number of tourists is expected to cross 450,000 if the current trend of the last 10 months continues.

There is an encouraging sign in tourist arrivals in November with hotels showing over 95 percent bookings for the month. In 2009, the country received 378,712 tourists by air only.

In October, the country witnessed highest tourist arrivals in 10 months this year with 62,712 visitors entering the country. This is a 12 percent rise in the number of visitors compared to the figure the same month last year, according to figures released by the Immigration Office, Tribhuvan International Airport (TIA). The growth momentum is a welcome development when the country is celebrating the tourism year. Nepal seeks to bring a million tourists by both air and ground in 2011 and 700,000 alone by air.

The improved tourist arrivals, increased number of airlines, expansion of hotels, lodges and resorts and private investors injecting massive money in the sector in recent days show that the tourism sector is witnessing a boost.

However, travel trade entrepreneurs and economists say that it cannot be measured as tourism development on the basis of just month-by-month arrival numbers. “The sustainability of tourism sector in any country is determined by the parameters of tourism competitive index,” said economist Bishwambar Pyakurel. “Unfortunately, the government and its planners do not have any institution and infrastructure to develop Nepal’s future in tourism.”

Nepal’s tourism sector has come a long way since Sir Edmund Hillary and Tenzing Sherpa first climbed Mount Everest in 1953. The Himalayas have been one of the main attractions for tourists visiting this country since the duo’s ascent to the highest peak of the world.

In the 1950s, there was a shortage of hotels. Beginning in the 1960s, the government encouraged the building of hotels and other tourist facilities through loans. According to government statistics, between 1985 and 1988 the number of hotel rooms increased from under 22,000 to more than 27,000. Until 1983, tourism in Nepal was well established. It was a major source of foreign exchange earning. Mountaineering and hiking especially were of considerable interest as were rafting, canoeing. Tourism was facilitated with the opening of airways to Kathmandu and other parts of the country and easing of travel restrictions.

However, in 1989 the trade and transit impasse with India negatively affected tourism because the transport and service sectors of the economy lacked supplies. Beginning in the FY 1990, Kathmandu initiated a policy to allocate fuel on a priority basis to tour operators and hotels.

Prior to the trade impasse with India beginning in March 1989, tourism had grown by more than 10 percent per year for most of the 1980s. Between 1985 and 1988, the number of tourists increased from approximately 181,000 to about 266,000. More than 80 percent of the tourists arrived in the country by air.

However, from 1996 onwards, the country’s tourism sector faced the greatest setback. The beginning of the Maoist insurgency deterred potential tourists for a decade. However, there was no significant impact of the insurgency until 2000 because country celebrated Visit Nepal Year in 1998.

“If we analyze the tourist arrival trend before the insurgency period, the current arrival figures should be taken as just a market correction,” said Ashok Pokhrel, president of Nepal Association of Tour Operators. The current growth could be achieved due to ending of the decade-long civil war.

“The arrival figures show growth in the number of Indian, Chinese and Bangladeshi tourists. We are very concentrated on the neighboring countries although these are our pocket markets,” he said adding that the focus should be on those markets that yield high-end tourists. During the tourism year, Nepal aims to bring 265,000 Indian tourists and 100,000 Chinese tourists while the European market is expected to grow by 20 percent. Yet, the worrying factor is the length of stay in the country that has been declining for the last few years although arrivals are going up.

Arjun Sharma, president of Nepal Association of Tour and Travel Agents (NATTA) said the country’s tourism industry can reap benefits only if the tourists’ length of stay increases. He said that the government should consider the Nepali tourism sector a prioritized sector and increase the confidence of investors. Likewise, concerns regarding the country’s national flag carrier should be a priority. The Nepal Airlines Corporation does not have enough aircraft for international flights and its attempt to bring two airbuses has been mired in scandal.

As more than 80 percent of arrivals to Nepal are by air, without improvement in air accessibility Nepal’s tourism cannot achieve its full growth. Entrepreneurs have also been lobbying hard with the government to enable Nepal Airlines Corporation to purchase more aircraft for sustainable tourism development of the country.


Month Arrivals (2009) Arrivals (2010) Change (%)

Jan 21,944 26,071 18.80

Feb 25,181 33,492 33.00

Mar 33,005 44,431 34.61

Apr 37,819 38, 694 2.31

May 25,129 26,634 5.98

June 23,222 26,997 16.30

July 23,266 29,338 26.09

Aug 27,676 34,415 24.30

Sept 34,281 41,331 20.60

Oct 56,009 62,712 11.96

Total 307,532 364,115 18.39

(Source: NTB)

It’s got potential

Nepal could boost its lentil export with proper government initiatives


SANGAM PRASAIN
KATHMANDU, NOV 01 -

Nepal could boost its lentil exports to Rs. 25 billion annually if the government does proper research, provides improved seeds and improves links with the international market, a government official said.

The country’s three-year interim plan, which is in the final stage of endorsement, has targeted increasing production of pulses to 377,000 tons from 262,000 tons presently.

The plan aims to increase output by 115,000 tons in three years. If this quantity is exported, the country can earn another Rs. 12 billion. Lentils are one of the country’s high-value crops. According to the Agriculture Ministry, lentils account for 90 percent of the total export of pulses. Bangladesh and the Middle East are the largest importers of Nepal’s lentils.

In 2008-09, exports jumped to 56,767 tons worth Rs. 5.66 billion from Rs. 1.62 billion in 2007-08 to become the country’s largest export. However, exports shrank to 37,779 tons worth Rs. 3.74 billion in 2009-10, according to the Trade and Export Promotion Centre. “The rise in exports recorded in 2008-09 shows that lentils are a potential commodity to narrow the increasing trade deficit the country has been facing for a long time,” said Hari Dahal, spokesperson at the Ministry of Agriculture. According to Nepal Rastra Bank’s annual macroeconomic statistics, the plunge in the export of lentils was reflected in a drop in the overall export volume. Total exports dipped 9.7 percent in 2009-10 to Rs. 61.13 billion.

Traders said that exports of lentils dropped as a result of a government ban imposed last year in response to pressure that the country might face a food deficit after India stopped exports. However, after entrepreneurs assured the government that exports would not affect the country’s food supply, the government lifted the restriction.

Lentils are well received in the international market. Considering the fact that

the international market for lentils

has increased by 6.8 percent in terms of value and 6.2 percent in terms of volume in the last 10 years, traders say lentils have massive prospects.

“An appropriate trade facilitation policy and introduction of accredited food

quality certification to link with the global market would boost production and exports,” said Dahal. In 2007, Nepal was the sixth largest producer of lentils in the world. In 2008, Nepal rose to the number three slot with an output of 161,147 tons after Canada (1 million tons) and India (810,000 tons).

Production slipped to 161,147 tons in 2007-08 and further to 147,725 tons in 2008-09, according to the Agriculture Ministry. Similarly, the area under cultivation declined to 189,497 hectares in 2007-08 and to 183,798 hectares in 2008-09. The ministry said that improved seeds introduced by the Nepal Agricultural Research Council had boosted production to some extent.

“Unfortunately, the government does not have any special programme to boost lentil production that has such a tremendous export potential,” Dahal added.

More than 90 percent (139,700 tons) of the lentils grown in Nepal come from the Tarai. Output in the mountains and hills amounts to 1,171 tons and 6,437 tons respectively. Dang district is the largest producer of lentils in the country. In 2008-09, Dang produced 27,568 tons followed by Sarlahi (19,230 tons), Rautahat (15,920 tons), Bara (14,146 tons), Kailali (12,836 tons) and Bardia (10,246 tons).