SANGAM PRASAIN
KATHMANDU, FEB 11 -
With Parliament’s Public Accounts Committee (PAC)’s 35-day deadline to the government to recover outstanding royalties from casinos ending on Friday, tough action is on the cards against casinos who have defied the government.
The Department of Revenue Investigation (DRI), which is handling casino royalty row, is expected to recommend the tourism ministry to scrap operating licenses of casinos who fail to clear their dues by Friday. “We will wait till 3 pm on Friday.
If casinos failed to clear their dues, we will recommend the ministry to scrap their licenses and shut them,” said Mahesh Dahal, director general of the DRI.
As of now, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues of the last fiscal year. These 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.
As per the new finance bill, casinos have to pay their royalty in advance by mid-September. However, they can pay it by Mid-November with 15 percent additional charges. Those who have failed to pay royalty for the current fiscal year will also feel the heat henceforth.
According to the DRI, Casino Everest at the Everest Hotel has paid all its dues and royalties for the current fiscal year. Casino Tara at the Hyatt has paid its royalties for the current fiscal year, but has been behind in paying interest. Three casinos—Casino Rad, Casino Venus and Casino Grand—each have paid Rs 15 million as royalty for the current fiscal year. “These casinos together still owe Rs 15 million as royalty,” said Dahal.
The new budget has made it mandatory to get casino operating license renewed every year. However, casinos have to clear their royalty—Rs 20 million—for license renewal.
Fearing that the government would issue another notice making hotels, where the casinos are housed, liable for the outstanding dues, Hotel Association Nepal (HAN) had forwarded a request to tourism ministry on Feb. 7 to consider hotels until the end of the Nepal Tourism Year.
“We have also requested the ministry to entrust the responsibility to HAN if the government fails to recover dues from Nepal Recreation Centre owned by Rakesh Wadhwa,” said Madhav Om Shrestha, executive director of HAN. Wadhwa has been in hiding since the police issued an arrest warrant against him.
Wadhwa is still operating Casino Everest, Casino Anna and Casino Tara. “We have requested PAC to take action against Wadhwa who operates casinos in Goa also by contacting the India authorities,” Shrestha said. Apart from the dues issues, other issues could be settled after the implementation of the casino guidelines or act, HAN said.
The government could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre. The government has been taking a tough stance against casino operators since the last four months, pressuring them to clear their royalty dues.
With the haphazard running of casinos and their increasing negative impact on society, PAC has even asked the government to explore the possibility of relocating them outside the Kathmandu Valley recently.
Last week, PAC instructed the Tourism Ministry to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
Thursday, February 10, 2011
Wednesday, February 9, 2011
Soaltee, Tara Gaon report increased Q2 profits
SANGAM PRASAIN
KATHMANDU, FEB 09 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 74.59 million and Rs 97.1 million respectively for the second quarter (July 17-Dec. 31) of the current fiscal year.
The first quarter profit of the Soaltee amounted to Rs 28.68 million profits while the Tara Gaon earned Rs 18.81 million. The two five-star properties saw their incomes rise with improved tourist arrivals during the period.
According to an analysis report released by the management of the Soaltee, tourist arrivals by air during the period July-December 2010 increased by 19 percent against 16 percent in the same period previously.
“Considering the increased tourist arrivals since the beginning of 2011 and the projected rise for the whole year, the hotel plans to strengthen its various business segments and market promotion,” the report said.
Hoteliers said the industry was looking for an event to boost their occupancy level. For the last two years, the average hotel occupancy stood at around 70-75 percent, and the Nepal Tourism Year campaign is expected to push up occupancy to more than 80 percent.
The Soaltee has refurbished 130 rooms in the Princep Wing. It is replacing the TVs in all its rooms with 42 inch-LCD TVs. According to the hotel, it has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
Similarly, the hotel is planning to strengthen and attract meetings, incentives, conventions and exhibitions (MICE) tourism.
The Tara Gaon’s analysis report said its occupancy has increased to 62 percent in the second quarter of the current fiscal year against 51 percent in the same period last year. The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year. With the Q2 profit, the hotel’s cumulative loss has dropped from Rs 961.46 million to Rs 864.32 million.
Tara Gaon aims to push up its occupancy to 65 percent in the current fiscal year. The hotel has targeted earning a profit of Rs 360 million.
It plans to offer a “special rate” to attract customers during the off season. Non-occurrence of strikes and bandas, which had badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase business in the days ahead.
According to the government’s statistics, arrivals by air in July, August and September amounted to 29,338, 34,415 and 41,331 travellers respectively. Arrivals in October, November and December amounted 62,712, 48,331 and 36,323 respectively.
KATHMANDU, FEB 09 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 74.59 million and Rs 97.1 million respectively for the second quarter (July 17-Dec. 31) of the current fiscal year.
The first quarter profit of the Soaltee amounted to Rs 28.68 million profits while the Tara Gaon earned Rs 18.81 million. The two five-star properties saw their incomes rise with improved tourist arrivals during the period.
According to an analysis report released by the management of the Soaltee, tourist arrivals by air during the period July-December 2010 increased by 19 percent against 16 percent in the same period previously.
“Considering the increased tourist arrivals since the beginning of 2011 and the projected rise for the whole year, the hotel plans to strengthen its various business segments and market promotion,” the report said.
Hoteliers said the industry was looking for an event to boost their occupancy level. For the last two years, the average hotel occupancy stood at around 70-75 percent, and the Nepal Tourism Year campaign is expected to push up occupancy to more than 80 percent.
The Soaltee has refurbished 130 rooms in the Princep Wing. It is replacing the TVs in all its rooms with 42 inch-LCD TVs. According to the hotel, it has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
Similarly, the hotel is planning to strengthen and attract meetings, incentives, conventions and exhibitions (MICE) tourism.
The Tara Gaon’s analysis report said its occupancy has increased to 62 percent in the second quarter of the current fiscal year against 51 percent in the same period last year. The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year. With the Q2 profit, the hotel’s cumulative loss has dropped from Rs 961.46 million to Rs 864.32 million.
Tara Gaon aims to push up its occupancy to 65 percent in the current fiscal year. The hotel has targeted earning a profit of Rs 360 million.
It plans to offer a “special rate” to attract customers during the off season. Non-occurrence of strikes and bandas, which had badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase business in the days ahead.
According to the government’s statistics, arrivals by air in July, August and September amounted to 29,338, 34,415 and 41,331 travellers respectively. Arrivals in October, November and December amounted 62,712, 48,331 and 36,323 respectively.
Saturday, February 5, 2011
Janakpur airport to go international by 2012
SANGAM PRASAIN
KATHMANDU, FEB 05 -
The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.
The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.
Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.
Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.
The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.
Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.
KATHMANDU, FEB 05 -
The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.
The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.
Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.
Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.
The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.
Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.
Domestic airfares to go up 13-49 pc
SANGAM PRASAIN
KATHMANDU, FEB 05 -
The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).
Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.
MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.
“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.
Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.
On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.
Proposed Airfare by CAAN (excluding fuel surcharge)
Tourism Sector existing (in Rs) proposed (in Rs) up (in %)
Kathmandu-Mountain 4,616 7,172 28
Kathmandu-Lukla 2,355 3,227 17
Kathmandu-Bharatpur 1,635 2,241 13
Kathmandu-Pokhara 2,420 3,317 16
Kathmandu-Jomsom 3,402 4,662 16
Long-Haul
Kathmandu-Biratnagar 4,273 5,020 17
Kathmandu-Janakpur 2,352 2,689 14
Kathmandu-Bhairahawa 3,680 4,303 17
Kathmandu-Dhangadhi 7,758 9,234 19
Kathmandu-Nepalgunj 5,742 6,813 19
Kathmandu-Bhadrapur 5,309 6,275 18
Kathmandu-Surkhet 6,465 7,530 16
Remote Sector
Biratnagar-Bhojpur 1,329 1,972 48
Biratnagar-Tumlingtar 1,507 2,241 49
Biratnagar-Lamidanda 1,635 2,421 48
Biratnagar-Rumjatar 1,812 2,689 48
Biratnagar-Phaplu 2,117 3,138 48
Nepalgunj-Dolpa 2,304 3,407 48
Nepalgunj-Bajhang 2,541 3,765 48
Nepalgunj-Bajura 2,363 3,496 48
Nepalgunj-Simikot 3,151 4,662 48
Nepalgunj-Jumla 2,363 3,496 48
KATHMANDU, FEB 05 -
The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).
Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.
MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.
“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.
Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.
On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.
Proposed Airfare by CAAN (excluding fuel surcharge)
Tourism Sector existing (in Rs) proposed (in Rs) up (in %)
Kathmandu-Mountain 4,616 7,172 28
Kathmandu-Lukla 2,355 3,227 17
Kathmandu-Bharatpur 1,635 2,241 13
Kathmandu-Pokhara 2,420 3,317 16
Kathmandu-Jomsom 3,402 4,662 16
Long-Haul
Kathmandu-Biratnagar 4,273 5,020 17
Kathmandu-Janakpur 2,352 2,689 14
Kathmandu-Bhairahawa 3,680 4,303 17
Kathmandu-Dhangadhi 7,758 9,234 19
Kathmandu-Nepalgunj 5,742 6,813 19
Kathmandu-Bhadrapur 5,309 6,275 18
Kathmandu-Surkhet 6,465 7,530 16
Remote Sector
Biratnagar-Bhojpur 1,329 1,972 48
Biratnagar-Tumlingtar 1,507 2,241 49
Biratnagar-Lamidanda 1,635 2,421 48
Biratnagar-Rumjatar 1,812 2,689 48
Biratnagar-Phaplu 2,117 3,138 48
Nepalgunj-Dolpa 2,304 3,407 48
Nepalgunj-Bajhang 2,541 3,765 48
Nepalgunj-Bajura 2,363 3,496 48
Nepalgunj-Simikot 3,151 4,662 48
Nepalgunj-Jumla 2,363 3,496 48
Thursday, February 3, 2011
Fuel shortage may ‘prolong’
SANGAM PRASAIN
KATHMANDU, FEB 04 -
Demand for petrol and diesel in the Kathmandu Valley, of late, has jumped up considerably. Increased load-shedding hours, fuel hoarding and the Nepal Oil Corporation (NOC)’s inability to supply even half of the Capital’s demand are some of the reasons behind the latest rise in gasoline demand.
According to NOC and petroleum dealers, demand for petrol in Kathmandu surged to above 400 kiloliters (KL) per day from earlier 250 KL and diesel to over 500 KL per day from 350 KL.
Nepal Petroleum Dealers’ Association (NPDA) on Thursday recorded a sale of 350 KL of petrol and 500 KL of diesel. “Sales record shows that demand has increased dramatically,” said Saroj Pandey, president of NPDA, adding that gasoline shortage might prolong if NOC fails to import adequate amount.
The ongoing shortage has compelled NOC to resume its Thankot depot services during public holiday too. “We are opening Thankot depot on Friday to ensure smooth supply,” said Mukunda Dhungel, spokesperson for NOC. Dhungel said supply is improving, but not easing.
However, NPDA said NOC does not have enough stock in its depot. Thankot depot fulfils Kathmandu Valley’s demand for four days. Normally, diesel demand increases with increase in load-shedding hours, as a huge number of businesses and industrial firms rely on diesel-run generators during outage hours. However, rise in petrol demand is artificial, said Dhungel. “It is due to hoarding,” he said.
Another factor responsible for the latest gasoline shortage is rise in fuel prices in international market. This has compelled NOC to incur Rs 970 million losses every month, said an NOC official.
The finance ministry has approved a loan worth Rs 1.30 billion to NOC to ensure that NOC does not hike fuel prices for at least two months. The amount is yet to be released, though.
The Indian Oil Corporation (IOC) is providing petroleum products to Nepal on credit. Earlier, IOC had stopped credit facilities in the wake of huge outstanding dues and NOC’s inability to make timely payment, the official said.
“The reason behind all these problems is the government’s reluctance to adopt a scientific price revision system in line with international market,” added Pandey.
On Dec. 6, the oil monopoly had hiked major petroleum products’ prices. The NOC had again planned to hike fuel prices; however, wide criticism from consumer rights activists and political parties, among others, prompted the government to stop NOC’s fuel price hike plan.
According to a source, IOC is planning to curtail petroleum export to Nepal significantly, as India itself has been coping with fuel shortage.
KATHMANDU, FEB 04 -
Demand for petrol and diesel in the Kathmandu Valley, of late, has jumped up considerably. Increased load-shedding hours, fuel hoarding and the Nepal Oil Corporation (NOC)’s inability to supply even half of the Capital’s demand are some of the reasons behind the latest rise in gasoline demand.
According to NOC and petroleum dealers, demand for petrol in Kathmandu surged to above 400 kiloliters (KL) per day from earlier 250 KL and diesel to over 500 KL per day from 350 KL.
Nepal Petroleum Dealers’ Association (NPDA) on Thursday recorded a sale of 350 KL of petrol and 500 KL of diesel. “Sales record shows that demand has increased dramatically,” said Saroj Pandey, president of NPDA, adding that gasoline shortage might prolong if NOC fails to import adequate amount.
The ongoing shortage has compelled NOC to resume its Thankot depot services during public holiday too. “We are opening Thankot depot on Friday to ensure smooth supply,” said Mukunda Dhungel, spokesperson for NOC. Dhungel said supply is improving, but not easing.
However, NPDA said NOC does not have enough stock in its depot. Thankot depot fulfils Kathmandu Valley’s demand for four days. Normally, diesel demand increases with increase in load-shedding hours, as a huge number of businesses and industrial firms rely on diesel-run generators during outage hours. However, rise in petrol demand is artificial, said Dhungel. “It is due to hoarding,” he said.
Another factor responsible for the latest gasoline shortage is rise in fuel prices in international market. This has compelled NOC to incur Rs 970 million losses every month, said an NOC official.
The finance ministry has approved a loan worth Rs 1.30 billion to NOC to ensure that NOC does not hike fuel prices for at least two months. The amount is yet to be released, though.
The Indian Oil Corporation (IOC) is providing petroleum products to Nepal on credit. Earlier, IOC had stopped credit facilities in the wake of huge outstanding dues and NOC’s inability to make timely payment, the official said.
“The reason behind all these problems is the government’s reluctance to adopt a scientific price revision system in line with international market,” added Pandey.
On Dec. 6, the oil monopoly had hiked major petroleum products’ prices. The NOC had again planned to hike fuel prices; however, wide criticism from consumer rights activists and political parties, among others, prompted the government to stop NOC’s fuel price hike plan.
According to a source, IOC is planning to curtail petroleum export to Nepal significantly, as India itself has been coping with fuel shortage.
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.
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.
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.
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