Tuesday, January 4, 2011

Tourism entrepreneurs doubt NTY-2011 targets can be met

SANGAM PRASAIN

KATHMANDU, JAN 04 -

Nepal has targeted 265,000 and 100,000 visitors from India and China,

respectively. However, entrepreneurs say Nepal has been facing a tough task bringing in the targeted number of Chinese tourists with the existing air and surface links.

Despite a sharp rise in arrivals from India and China in 2010, travel traders said bringing 365,000 tourists from the two neighbours during Nepal Tourism Year would be a tall order.

Nepal has targeted 265,000 and 100,000 visitors from India and China, which would mean a two-and-a-half-fold and a four-fold increase respectively. Indian tourist arrivals grew 20.5 percent to 104,470 in 2010 from 86,696 in 2009. Chinese arrivals were up 36.8 percent to 25,559 from 18,677 in 2009.

The NTY implementation committee and the government have focused promotional activities in the two countries. However,

they doubt the goal can be met with

the available tour packages and present connectivity situation.

“We don’t have any schemes to increase arrivals, and the current growth can be considered a natural increase and not a result of marketing and promotional efforts,” said Ashok Pokhrel, president of the Nepal Association of Tour Operators.

The UN World Tourism Organization said China would become the world’s fourth-largest source of outbound tourists by 2020 with 100 million overseas visits.

The Annual Report of China Outbound Tourism Development 2009-10 issued by the China Tourism Academy has estimated that 54 million Chinese travellers would go abroad in 2010, up from 47 million in 2009.

Similarly, India is one of the fastest-growing outbound travel markets in the world. Indian outbound has been witnessing a growth of over 20 percent over the

last few years, with the figure reaching

11.58 million in 2009.

However, travel trade entrepreneurs said Nepal had been facing a tough task bringing in the targeted number of Chinese tourists with the existing air and surface links.

“Airfares from China to Nepal are among the world’s expensive fares, and the distances are also long,” said Rajendra Bajgai, general secretary of the Trekking Agencies’ Association of Nepal (TAAN).

Bajgai added that the preferences of Indian tourists to Nepal had shifted from shopping and honeymooning to adventure. “The government and the private sector need to identify the changing tastes of visitors to meet the target of bringing one million tourists during NTY.”

The government and the Nepal Tourism Board plan to continue their marketing campaign in the Indian and Chinese markets during the tourist season. “Although the two neighbours are our short-haul source markets, air connectivity, particularly with China, will be a major hindrance to achieving the target,” said Kashi Raj Bhandari, director at the research department of the NTB.

He added that the NTB had requested

the government to talk to the China about starting direct air service between Kathmandu and Beijing, but nothing has happened. “In the present scenario, the target seems unattainable.”

Increased arrivals have attracted big players to invest in resorts, hotels and aviation. Growth in air services mean the country can emerge as an attractive leisure and MICE (meetings, incentives, conventions and exhibitions) destination.

The government’s readiness to promote MICE tourism has encouraged tourism entrepreneurs. “The hotel sector has been receiving more Indian corporate clients these

days,” said Madhav Om Shrestha, executive director of the Hotel Association Nepal. However, poor road and air links with China prevent increasing arrivals from the northern neighbour, he added.

Nepal’s security situation is also another concern for tourists, particularly for Indian visitors. “Increasing instances of strikes have discouraged potential tourists from India. However, the good news is that more Indian tourists are visiting Nepal,” Shrestha said.

Sugarcane price fixed

SANGAM PRASAIN
KATHMANDU, JAN 04 -

After two weeks of agitation and Sunday’s violent protest, which forced the local administration to clamp curfew in Sarlahi on Monday, the agitating sugarcane farmers called off their agitation after reaching an agreement with sugar producers on Monday.

Sugar producers agreed to pay last year’s price of Rs 401 per quintal of sugarcane to the farmers after the government agreed to waive 70 percent of the Value Added Tax (VAT) levied on sugar products. However, Prime Minister Madhav Kumar

Nepal’s intervention was required to resolve the dispute between the sugarcane farmers and sugar producers.

A tripartite meeting held in the presence of the Prime Minister in the Capital on Monday fixed both the issues—farmers’ price demand and tax waiver demanded by sugar producers.

As per the Monday’s agreement, the government will waive 70 percent of the VAT imposed on sugar products. In return, sugar producers will provide the waived VAT amount, which stand at around Rs 40 per quintal, to the farmers.

In addition to this, sugar producers have also agreed to provide Rs 33 per quintal directly to the farmers as ‘Sugarcane Development Promotion’’. Earlier, they used to contribute this amount to Sugarcane Promotion Fund. “The amount of VAT that the government waived will go to the farmers now,” said Manish Agrawal, managing director of Lumbini Sugar Mill.

Sugar producers had been asking the government for the VAT waiver for long. And, VAT was one of the major issues why sugar producers were reluctant to pay the price demanded by the farmers. “We are going to resume our operation after signing an agreement to this effect on Tuesday,” said Agrawal.

Sugarcane farmers, for last two weeks, were demanding last year’s price for sugarcane, while sugarcane producers were reluctant to pay the price.

Each year, sugarcane farmers and sugar producers have been at variance over the sugarcane price. Following a five-month agitation last year, sugar mills of Sarlahi, Mahottari and Nawalparsi had agreed to purchase sugarcane at a minimum price of Rs 401 per quintal. Then, the farmers had demanded hike in sugarcane price following surge in sugarcane price in India. However, in the wake of sugar shortage last year, sugar mills had agreed to pay as high as Rs 570 per quintal to the farmers.

However, sugar producers fixed the sugarcane price at Rs 348 per quintal for this season, after the market price of sugar dropped to Rs 58 per kg from last year’s Rs 85 per kg. The sharp drop in sugar price, according to sugar producers, made them unable to pay last year’s price.

However, farmers refused to accept the price set by the sugar mills, saying that their production cost has gone up. “We are not ready to accept low price this year,” said Paramhansa Chaturbedi, president of Sugarcane Producers’ Association, Sarlahi, before the agreement on Monday.

Currently, sugarcane is grown in over 70,000 hectares of land in 17 districts of the country. Sarlahi, Mahottari and Nawalparashi districts are the main producers of sugarcane.

Farmers said sugarcane production had dropped from 30 million quintals per year to 10 million quintals per year in six years due to the low priority of the government to this sector.

Monday, January 3, 2011

Tourist inflow reaches an all-time high

SANGAM PRASAIN
KATHMANDU, JAN 03 -

The country enters Nepal Tourism Year on Saturday and the buzz is that tourism stakeholders will get a much needed boost. The Nepal Tourism Board (NTB) on Sunday announced that arrivals by air in 2010 had reached an all-time high of 448,769 tourists.

This is first time in 12 years that tourist arrivals have crossed the 400,000 mark. The last time that Nepal had received so many tourists was in 1999 when 421,243 tourists came to the country.

After a high of 1999, tourist arrivals in Nepal started to slump, first by the 9/11 attack and then by the escalation of the Maoist conflict in the country. Tourist arrivals continued to slide for three straight years -- from 2000 to 2002. Though there was a slight improvement in 2003 and 2004, arrivals again declined in 2005 then King Gyanendra took over direct rule. It was the peace agreement between the government and the Maoists that arrested this slump in 2006. Post-2006, the tourism sector has bounced back with a gradual upward movement of tourist arrivals.

The NTB data shows that arrivals have increased by 18.5 percent last year. Of the total arrivals, India tops the chart with 104,470 tourists followed by the US, the UK, China and France. There has been positive growth in the Asian segment, the European segment and the Americas, according to the NTB.

Though Indians are traditionally make up the largest number of visitors to the country, what is most promising for the domestic tourism market is a sharp increment in the arrival of Chinese tourists. Chinese tourist arrivals have jumped by an encouraging 36.8 percent in 2010, indicating that it is becoming one of the top markets for Nepal’s tourism. According to NTB data, a total of 25,559 tourists from China visited Nepal last year, up from 18,677 of 2009.

Hence, architects of NTY 2011 have understandably given greater priority to India and China and projected them as major source markets. The NTY Implementation Committee has targeted 265,000 tourists from India and 100,000 tourists from China in 2011. One challange to bring more tourists is expensive air fare. “Airfares from China to Nepal are among the world’s expensive fares and driving distance is also long,” said Rajendra Bajgai, general secretary of the Trekking Agents Association of Nepal.

Saturday, January 1, 2011

Tourism Board gets Rs 120m for NTY-2011 promotion campaigns

SANGAM PRASAIN

KATHMANDU, DEC 30 -

With two weeks remaining for the much-touted Nepal Tourism Year 2011 to begin, the Ministry of Finance has formally released a budget of Rs 120 million to publicize the campaign at the international level.

Nepal Tourism Board officials said that although international promotion through the media and marketing had been delayed, the campaign would not be affected much as it would focus on tourist generating seasons.

Of the total budget released for international promotion, Rs 60 million will be spent in India, Rs 30 million in China and rest in other source markets.

The marketing campaigns of the NTB and the NTY 2011 implementation committee are expected to be highly visible in the two neighbouring markets through traditional promotional channels including electronic and print media, brochures and posters. The NTB has stepped up its publicity campaign with celebrity marketing and by inviting popular figures to the launch of NTY 2011 on Jan. 14.

NTB chief executive officer Prachanda Man Shrestha said that the NTB would now ask India and China to submit the terms of reference of their promotional packages. He added that promotional activities would start around March-April, which is the peak tourist season in Nepal. “The budget provided by the government

for international promotion is quite

small, however, we will utilize it in a broad-based way.”

The NTB has announced its promotional strategy for 2011 with the theme “Together for Tourism”. Nepal has targeted one million arrivals for 2011, which is double the figure of 2009.

Travel trade entrepreneurs said that expansion of tourism throughout the world has increased competition among tourist destinations. Every country is trying to attract more tourists by adopting new marketing techniques and strategies, and if Nepal fails to keep in step with world trends it will slide in the world tourism market.

“As media promotion plays a vital role in marketing any product or service, tourism marketing in Nepal is a long way from the goal. This is mainly due to inadequate and ineffective promotional measures of the tourism sector of Nepal,” said Ram Kazi Koney, managing director of Gandaki Tours & Travels.

Moreover, Nepal faces resource constraints and cannot afford a sufficient budget for promotional purposes. As a result, the country cannot conduct promotional activities by using the international media which is essential for attracting foreign tourists, Koney added.

Tourism entrepreneurs have criticized the NTB for not doing its duty to a better extent to ensure that Nepal emerges as one of the major competitive destinations in the world tourism market.

There are many positive indicators for 2011. Recent arrival figures show that there is still a very positive attitude towards Nepal. Other positive indicators include India and China showing solid signs of outbound growth. This is good for Nepal as it is a short-haul market with large populations of potential visitors.

Nepal tourism year 2011 expect 200,000 ‘other’ tourists

KATHMANDU, JAN 02 -
Nepal plans to attract around 200,000 sexual minorities including Lesbian, Gay, Bisexual, Transgender and Intersexes (LGBTI) during the Nepal Tourism Year 2011 (NTY-2011).

The Blue Diamond Society (BDS), an organization representing sexual minorities in the country, has said that it aims to bring 200,000 i.e. 20 percent such tourists of the total one million tourists in the NTY-2011. Nepal aims to host one million tourists this year.

Already gay tourists are responding favorably to the holiday and travel packages offered by Pink Mountain, a travel and tour agency run by sexual minorities and catering exclusively to LGBTI.

Pink Mountain offers wedding, honeymoon and anniversary packages to domestic as well as international LGBTI tourists, according to lawmaker and Chairman of Pink Mountain Sunil Babu Panta. “The agency has also confirmed two more same-sex marriages, trekking and many more adventures in the first month of its launch,” said Panta.

Most of the LGBTIs coming to Nepal so far have been sexual minorities from two Asian giants, India and China. Nepal’s liberal policies towards sexual minorities following a Supreme Court ruling have attracted LGBTIs from many countries.

In 2007, the Supreme Court (SC) of Nepal had directed the government to grant citizenship to LGBTIs and form a same-sex marriage committee to assure equality of the sexual minorities.

The agency offers grand weddings in national parks and the Everest base-camp, nature trip, adventure and safari, pilgrimage and meditation facilities to LGBTIs visiting the country. Globally, gay tourism is estimated to be over US$ 100 billion a year, and Nepal’s gay entrepreneurs are keen to cash in on it.

“The US alone makes US$ 68 billion every year through gay tourism,” said Panta. “We are one of the fastest growing South Asian countries to accept the natural characteristics of being LGBTI. We can reap this benefit to boost the economy of the country.” A research conducted by the Community Marketing International (CMI) in the United States found that 98 percent of LGBTIs have at least one overnight trip in a year.

Gay tourism entrepreneurs are coordinating with the government as well as other commercial organizations this year to attract a large number of sexual minorities. The BDS organized the same-sex marriage of an Indo-British couple last August in Nepal.

“So far, the government has extended only moral support to the gay tourism sector,” said Panta. However, he said he was pleased that the big hotels and resorts have come forward with LGBTI community-focused events and packages.

“Tiger and Gokarna resorts, Annapurna, Everest, Himalayan and Dwarika hotels are coordinating with us for the event,” Panta said.

Monday, December 27, 2010

WTO secretary general to attend NTY launch

SANGAM PRASAIN
KATHMANDU, DEC 27 -
The secretary general of the UN World Tourism Organization, seven SAARC tourism ministers and the secretary of the Cambodian Tourism Ministry have confirmed that they will be attending the inauguration of Nepal Tourism Year. NTY 2011 is scheduled to be launched on Jan. 14 at Dasrath Stadium in Kathmandu at 11 a.m.

Tourism ministers from China and Japan have expressed interest to participate in the function, but they have not confirmed, said Nepal Tourism Board spokesperson Aditya Baral. The government has invited the tourism ministers of 24 Asian countries to the inaugural to strengthen bilateral ties and promote tourism in the region.

SAARC tourism secretaries are scheduled to arrive on Jan. 11. There will be an extensive joint secretary level meeting of the SAARC Tourism Working Committee from Jan. 12-13 where discussions will focus on the problems and barriers confronting tourism promotion.

On Jan. 13, the SAARC ministers will endorse the meeting’s declaration. On Jan. 14, NTY 2011 will be inaugurated amid a gala function.

“We are inviting President Ram Baran Yadav to inaugurate the ceremony at Dasrath Stadium,” Baral said. According to the NTB, over 28,000 people are expected to participate in the three-hour-long event. The SAARC inter-government body will discuss the possibility of joint marketing, softening the visa regime, giving access to cross-border driving licenses, making Indian currency more flexible and increasing inter-SAARC movement by air by the national flag carrier of each country, a government official said.

The NTB has proposed giving a public holiday to government staff on the day. The NTB said that all the districts would organize the NTY 2011 launching programme under the coordination of their respective chief district officers. Similarly, tourist destinations like Pokhara and Chitwan, among other places, are aggressively preparing for their own special functions.

According to the Tourism Ministry, Nepal received more than 500,000 tourists in 2009.

NAC trade unions at loggerheads

SANGAM PRASAIN
KATHMANDU, DEC 27 -
Unions at the Nepal Airlines Corporation (NAC) that had united against the Fifth Freedom Right awarded to Air Arabia are now divided on whether NAC Managing Director Kul Bahadur Limbu be allowed to enter the office.

After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case against NAC Executive Chairman Sugat Ratna Kansakar and suspended him, the executive authority of the corporation has fallen into Limbu’s hands.

The unions’ meeting held on Monday discussed the matter extensively. However, no agreement was reached.

“If we were to stop Limbu from entering the office, there will be more delay in bringing back the aircraft that was sent for maintenance,” said Rajendra Regmi, president of Nepal National Employees’ Union, after the meeting.

Regmi added that disrupting the administrative and management work would further increase the cost of the aircraft maintenance. “So, we decided to let Limbu to resume work on Monday.”

On the other hand, Tarani Raj Dahal, president of NAC Employee’ Association, said the meeting did not withdraw the agitation and Limbu would not be allowed to resume duty.

Dahal said that until the post of Chairman that has remained vacant after the suspension of Kansakar is filled, there are fears that the board may take a unilateral decision. “We can make the payment for aircraft maintenance until Jan. 10,” added Dahal. According to Dahal, the unions’ are scheduled to meet Minister for Tourism and Civil Aviation Sharat Singh Bhandari and Secretary Kishore

Thapa on Tuesday to press them to fill the Chairman’s post at the earliest.

The NAC trade unions had called an indefinite strike in NAC’s domestic operation two weeks ago, demanding that the government revoke its decision to allow Air Arabia to operate Kathmandu-Kuala Lumpur flights.

The unified trade union committee had also barred NAC’s top-level officials from carrying out their duties and demanded they lobby with the government to immediately begin the purchase process of new aircraft and end the ongoing dispute regarding the executive power of NAC.