Saturday, January 15, 2011

Homestay hospitality with a difference

SANGAM PRASAIN
KATHMANDU, JAN 13 -
Nepal Tourism Year heralds the start of a new kind of hospitality service in the tourism sector, homestay. Originally conceived as an alternative arrangement for an expected hotel room shortage during Nepal Tourism Year, homestay could become a permanent feature of Nepali tourism.

Though planned a decade ago, last year saw the commercialisation of homestay with the government bringing regulations allowing it to operate in urban areas too. Sirubari and Ghalegaon were the pioneer villages with regard to homestay. Another reason why the government is now promoting homestay is to decentralise tourism and boost rural economies. “The encouraging number of registrations has brought additional impetus in the tourism sector,” said Uday Bhattarai, assistant manager at the Nepal Tourism Board. The government has also allocated Rs 30 million to train homestay operators.

There has been a positive response after the government brought regulations governing homestay in August 2010. The Ministry of Tourism and Civil Aviation says over 50 commercial homestay homes have been registered at the ministry and applications are coming in.

Kathmandu has more than 10 community-based and two private homestay homes. The homestay homes registered in Kathmandu have a combined capacity to accommodate over 300 tourists.

Nirajan Ghimire, section officer at the Tourism Ministry, said that Kavrepalanchok has over 26 registered community-based homestay homes. Similarly, here are 10 homestay homes operating in Chitwan, 11 in Makwanpur and 12 in Nuwakot. The ministry says districts like Gorkha, Ilam, Palpa, Syangja, Kailali and Kalikot are also opening homestay homes targeting NTY 2011.

Living in a Nepali village as a homestay guest is perhaps one of the fastest and best ways to know the real Nepal. Daily cultural activities are a major attraction of the homestay scheme. “All the homestay homes we inspected in different parts of the country have planned special events to launch NTY,” said Ghimire.

Community-based homestay involves seven to 10 homes. As per the homestay guidelines, one home can operate up to four rooms for tourist accommodation.

With a record number of tourists expected to visit Nepal in 2011, homestay operators are hoping that a larger number of them would stay with them. Hoteliers, however, are not complaining about the proliferation of homestay homes. Instead, they are now coordinating with homestay operators to provide their clients a truly Nepali experience. The private sector believes that urban homestay will be the perfect alternative arrangement for those who may not get accommodation in hotels in 2011.

Homestay operators are also hopeful that tour operators will incorporate homestay in their packages as a new product. “Homestay is a potentially good product, but adequate preparation has not been done to incorporate it in tour packages,” said Ram Kazi Koney, managing director of Gandaki Travels and Tour. According to Koney, this model can get a boost if it is incorporated in tour packages.

The Tara Gaon Development Board (TGDB) has been assigned to find unexplored destinations to develop this programme. “The NTY implementation committee and the TGDB are now working together to make homestay a professional and managed business,” said Bhattarai. The TGDB has identified some 10 potential places where homestay can be developed, he added.

Prez opens Nepal Tourism Year amid lavish shindig

SANGAM PRASAIN
JAN 14 -
President Ram Baran Yadav declared Nepal Tourism Year 2011 open amid a gala event before 25,000 spectators at Dashrath Stadium on Friday.

Distinguished guests included tourism ministers from South Asian countries, members of the diplomatic corps and the secretary general of the United Nations World Tourism Organization.

Speaking at the inauguration ceremony, Prime Minister Madhav Kumar Nepal recalled the commitment made by 19 political parties on Feb. 26 not to call any strikes in 2011. "Peace and stability is of utmost importance to increase the visibility of Nepal's tourism in the international arena," he said. "The campaign has focused on doubling tourist arrivals," he added.

The government, in cooperation with the private sector, had announced NTY 2011 in 2008 in a bid to revive the country's image and generate greater employment following the end of the conflict that had marred the country's tourism industry. The government has also accorded priority to the campaign in the budget to expand infrastructure and promotional efforts.

Tourism Minister Sharat Singh Bhandari made an appeal to make the campaign a success. He said that tourism could play a vital role in bringing prosperity and mobilizing investment.

"The government has developed 'Mighty East-Wild West' as a new tourism package. Tarai tourism and the Great Himalaya Trail are other products that have been developed to attract visitors," Bhandari said. Strikes, donation drives and other undesirable activities could spread a negative message in the international community and they should be discouraged, he added.

NTY 2011 national coordinator Yogendra Shakya underscored the need to forge a common interest to promote tourism in the country. Shakya said that garnering political commitment to support tourism from all the political parties was the major achievement of the NTY implementation committee. Similarly, the commitments made by union leaders to support the campaign and by investors to invest in tourism are all positive moves that reflect the slogan "Together for tourism", he added.

The country has targeted one million tourists in 2011, double the 2010 figure. Among the projected arrivals, 700,000 are expected to come by air and the rest overland.

After an interval of 13 years, the country is welcoming tourists in a big way. The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry.

According to estimates, if one million tourists arrive in Nepal in 2011, tourism's contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.

Monday, January 10, 2011

NOC hints at oil price hike


International price increase has compelled NOC to incur massive losses



SANGAM PRASAIN
KATHMANDU, JAN 11 -

Nepal Oil Corporation (NOC) on Monday hinted that the price of petroleum products could increase in line with the Jan. 1 hike in the price in the international market and its continued rise.

NOC general manager Digambar Jha said that the price increment in the international market had compelled it to adjust gasoline prices with global trends.

Speaking at the 41st anniversary of NOC, Jha said that the price of oil was likely to rise to the all-time high of 2008. According to Jha, crude oil in the international market was over US$ 90 per barrel and is likely to cross US$ 100 per barrel soon due to rising fuel demand worldwide.

Crude oil saw an all-time high of US$ 147.27 per barrel on July 11, 2008. The heavy increase in the price in the international market was reflected in domestic prices with petrol costing Rs 100 per litre, diesel Rs 70 litre and kerosene Rs 65 litre in 2008.

The state-owned monopoly said that the price increase since Dec. 1 had compelled it to incur massive losses. “NOC has been incurring losses of Rs 650 million each month since Jan. 1,” Jha added. He said that NOC was not in a position to bear such heavy losses as it was already reeling under outstanding dues worth a hefty Rs 11 billion. “If the government does not consider the issue, there is a chance of rampant smuggling and black marketing that could lead to severe fuel shortages.”

Minister for Commerce and Supply Rajendra Mahato said that the government had adopted a scientific price determining policy and NOC had been entrusted with revising the price based on the international market.

However, social and political pressures had made it difficult to implement the policy. “The government should think about providing subsidies to people who cannot afford to run their household in line with the increased oil price,” he said.

Secretary at the Commerce and Supply Ministry Purushottam Ojha also pointed out that prices could climb back to 2008 levels. “If the price is not adjusted in time, the problem that emerged in 2008 might resurface,” he said.

However, petroleum dealers complained that it was not only rising international prices that has induced NOC to hike gasoline prices. “Unchecked irregularities in the corporation and inadequate reform policy have forced consumers to pay the cost ultimately,” said Saroj Pandey, president of the Nepal Petroleum Dealers Association.

He added that NOC should include the private sector in its discussions to make any deal more transparent. “Bankruptcy or collapse of NOC means it will hurt the entrepreneurs who have

invested millions in the sector. Therefore, NOC should be more professional to become sustainable,” Pandey said.

Petroleum Product increasing demand

Fiscal Year Imports in KL Value in Billions

2005-06 748,935 Rs 31.95

2006-07 754,882 Rs 32.46

2007-08 723,704 Rs 38.93

2008-09 892,562 Rs 39.80

2009-10 1,050,318 Rs 50.26

(Source: NOC)

Sunday, January 9, 2011

No let-up in casino operators’ woes

Govt rejects request to extend royalty repayment deadline

SANGAM PRASAIN

KATHMANDU, JAN 10 -

The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday turned down casino operators’ request to extend the royalty payment deadline. The operators had also demanded that they be allowed to repay in installments.

Casino operators had put up the demand after the Parliament’s Public Accounts Committee (PAC) On Dec. 29, 2010 issued directives to the government to scrap the licences of casinos failing to clear their dues within 35 days.

Pressure further mounted on casinos after Finance Minister Surendra Pandey said at a PAC meeting that the country does not require casinos as they do not pay royalty to the government, rent to the hotels and salary to their workers.

As per the PAC directives, The Department of Revenue Investigation (DRI) on Jan. 8 issued a public notice to Casino Anna, Casino Nepal, Casino Shangri La, Casino Tara, Casino Royale, Casino Venus, Casino Radd, Casino Fulbari and Casino Grand to repay their royalty dues within 35 days.

A meeting between the tourism ministry, DRI, Inland Revenue Department (IRD), Customs Department and casino operators on Sunday decided not to consider the casinos’ request, but follow the PAC directive strictly.

According to a DRI official, representatives of casinos operators, who were present on Sunday’s meeting, requested the ministry to extend the repayment deadline and allow them to repay on installment basis. In response, the ministry said the request could not be considered and they have to repay their outstanding dues within the given timeline or close operations.

“We (the ministry) cannot ignore the PAC decision,” said Laxman Prasad Bhattarai, the tourism ministry spokesperson.

In the meeting, the ministry also endorsed a decision to scrap the licences of the casinos allowing entrance to Nepalis. The PAC had also instructed the government to scrap the licences of those casinos allowing in Nepalis. “Apart from recovering royalties and restricting entrance to Nepalis, the tourism ministry will also regularly monitor casinos,”

said Bhattarai.

The ministry has started preparing directives for casinos, which would be finalised within a couple of months.

The PAC had instructed the government to draft a regulatory framework

and guidelines for the operation of casinos. “After preparing the directives, all stakeholders related to casinos will be invited for a broad consultation. The Cabinet will then endorse the guidelines,” said Bhattarai.

The government has been on a mission to recover royalty dues from the casinos for the last three months. Only a few casinos have made partial payments. Casinos under the Nepal Recreation Centre owned by Rakesh Wadhwa have not made any payment. Wadhwa has been absconding ever since the police issued an arrest warrant against him.

The government has entrusted the DRI with the responsibility of recovering dues from casinos. Casinos so far have paid around Rs 30 million in dues. However, they still owe Rs 193 million.

Of late, the government has been making efforts to recover the casino dues, with police conducting raids and revenue administration authorities summoning casino operators.

Saturday, January 8, 2011

Old planes dumped at TIA to be auctioned

SANGAM PRASAIN
KATHMANDU, JAN 07 -
The Ministry of Tourism and Civil Aviation is preparing to auction old aircraft that have lain abandoned at Tribhuvan International Airport (TIA) for scrap.

The TIA management has passed a proposal to get rid of these unserviceable planes that have been an eyesore at the airport besides posing a safety hazard. “As per the TIA proposal, the ministry will form a valuation committee for these aircraft,” said TIA general manager Dinesh Shrestha. After the valuation is done, the process of auctioning the junk will begin.

A few months ago, the Commission for the Investigation of Abuse of Authority (CIAA) had directed TIA to improve its competitiveness level for better performance.

As part of its regular monitoring, the anti-graft body had directed TIA to proceed immediately to remove junk from the airport grounds for safety reasons.

“Following the CIAA’s instruction, we have issued notices to the concerned companies regarding the sale of their useless aircraft. As there was no response from them, the airport management has forwarded a proposal to auction the aircraft to the ministry,” Shrestha said.

The airlines that have dumped their old planes at TIA have not even paid parking charges. There are 13 such aircraft including three 19-seater Dorniers and a 100-seater Fokker belonging to Cosmic Air.

Cosmic owes TIA Rs 12.8 million in parking, landing and navigation charges. Similarly, Nepal Airways owes Rs 1.17 million for its helicopter and Y-12 aircraft, and Necon Air Rs 46.3 million for its Avro aircraft.

Travel pros to take up NAC issue

SANGAM PRASAIN
KATHMANDU, JAN. 7

Travel trade entrepreneurs are preparing to dispatch an open letter to Prime Minister Madhav Kumar Nepal to press him to take initiative for purchasing aircraft for Nepal Airlines Corporation (NAC) at the earliest.

A meeting of major travel trade organisations—Travel Agencies Association of Nepal, Nepal Association of Tour and Travel Agents, Nepal Association of Tour Operators, Tourist Guide Association of Nepal and Pacific Asia Travel Association, Nepal — took a decision to this effect on Friday.

“We (tourism organisations) will draw the attention of the prime minister towards the current scenario of the national flag carrier and increasing politics in aircraft purchase process,” said Siddhartha Thapa, operation director of President Travel. Thapa said it is not possible to make Nepal Tourism Year-2011 a success until NAC’s capacity is increased. If the government fails to bring in aircraft this year as well, it is sure that NAC aircraft deal will be more complicated in the coming days, added Thapa.

Issuing a press statement, tourism organisations said the prime minister should take a concrete policy level decision for the aircraft purchase. “Bookings of travel agencies and hotels in 2010 indicate that tourist arrivals will grow significantly in 2011 and ahead,” read the press statement. Inadequate connectivity of the national flag carrier in the long-haul routes and other potential markets could be a major setback for the Nepali tourism industry.

On the other hand, Nepali migrant workers will suffer largely, the press release said.

Prez to cut NTY ribbon amid gala event

SANGAM PRASAIN

KATHMANDU, JAN 07 -
President Ram Baran Yadav is scheduled to inaugurate Nepal Tourism Year 2011 next Friday amid a gala ceremony at Dasrath Stadium, Kathmandu.

NTY is expected to project to the world Nepal’s hospitality and admirable culture and rejuvenate the country’s image as a tourist destination marred by a decade-long conflict.

“The time has finally arrived since the campaign was announced two years ago,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board, at a briefing held to announce the major programmes to be held on inauguration day.

The political commitments made during the first part of 2010 had raised the hopes of travel trade professionals that the country could increase the number of visitors.

The record tourist arrivals seen in 2010 have further buoyed the spirits of the tourism industry, said Shrestha.

“Another good news is that the country has also confirmed 9-10 major international events in 2011,” Shrestha said.

According to the NTB, more than 25,000 guests will be attending the inauguration at Dasrath Stadium. “About 6,000 artists (including those from the Nepal Police, Nepal Army and schools) will perform in the event,” said event manager Kul Bahadur Thapa.

There will be 500 security personnel deployed around the venue. In addition, 250 traffic police personnel will handle the traffic besides 150 volunteers. Parking for 2,000 four-wheelers has been arranged at different places around the stadium and in commercial complexes.

There will be a separate event at Tundikhel for the general public, the NTB said. An air show of motor paragliding will be a major attraction in which 21 pilots will perform. In the evening, there will be a firework display and other entertainment at Tundikhel. The NTY implementation committee will be spending Rs 10 million on the opening festivities.

Nepal has set a target to host a million visitors, double the arrivals in 2010. The last such tourism year was organized in 1998 as Visit Nepal Year.