The economy may have slowed to a crawl, but Nepal's aviation sector is taking off
SANGAM PRASAIN
The economy may not be growing by leaps and bounds, but it hasn't stopped domestic airlines from expanding. The domestic aviation sector is seeing new companies entering the scene and carriers expanding their fleets and spreading their wings beyond Nepal's borders.
With the country celebrating 2011 as Nepal Tourism Year with the aim of bringing one million tourists, the bustle in the aviation sector is understandable. The latest entrant is Goma Air that has two single-engine Cessna Caravan aircraft in its fleet. There are now nine domestic airlines and five helicopter services operating in the country.
Domestic airlines have been eyeing international operations. Their success in the domestic arena has made them confident of starting international flights. Buddha Air, after establishing itself strongly in the domestic domain, started international operations last year.
With the national flag carrier Nepal Airlines Corporation in a state of perpetual stupor, five domestic airlines have been inspired to join hands to start international operations by establishing a new company. Buddha Air, Yeti Airlines, Guna Airlines, Agni Air and Simrik Air plan to start international operations by May 2011.
Another indication of the country's aviation sector taking off is the 62 percent surge in domestic passenger movement and 36 percent rise in aircraft movement in the last 10 years (2000-09).
Remote areas: Next business prospect
Difficult geographical terrain and lack of roads in many parts of the country have provided the aviation sector huge business prospects. Single-engine aircraft are back in Nepal's skies. Many aviation entrepreneurs say the next big business for domestic aviation would be remote areas. Buddha Air's managing director Birendra Basnet is one of them. "The next big business scope for domestic airlines is remote areas," said Basnet. "As this sector is less competitive and the cost of operation is also less, there is profitability in this sector."
Unlike ‘trunk routes’ – long distance routes -- where there is stiff competition, the remote sector is still a virgin market. With single-engine aircraft relatively cheaper to acquire and operate, domestic airlines are now opting for them. In a country where flying is not only a luxury but also a supply and communication lifeline for remote areas, availability of more air seats and cargo space is in itself a major development.
Domestic carriers that were reluctant to fly in remote areas are now taking the lead in remote area service. As of now, four airlines -- Tara Air, Air Kasthamandap, Makalu Air and Goma Air -- are operating services with single-engine aircraft. Recently, Akash Bhairav Aviation has been issued an AOC for single-engine operation. The airline plans to bring two single-engine planes.
Known for their short take-off and landing (STOL) capabilities, single engine aircraft are perfect for Nepal's mountainous terrain. These planes are best suited to transport essential goods to remote places that do not have access to roads or infrastructure to handle double-engine aircraft.
Except for Tara Air, the other three airlines flying single-engine aircraft have made Surkhet their base, targeting remote areas of the Mid-West and Far West. According to Goma Air's chairman Upendra Bhattarai, the carrier is planning to provide services to Mugu, Bajhang, Bajura and Doti in the first phase before expanding to other remote areas. Air Kasthamandap has been operating flights to Jumla, Dolpa, Mugu and Humla districts from its base in Surkhet.
Infrastructure development: An urgent need
Despite bright prospects, infrastructure bottlenecks could undermine the success achieved so far. Hence, urgent steps are needed to upgrade and develop aviation infrastructure. The country's only international airport, Tribhuvan International, is overstretched with a rise in international and domestic aircraft.
Birendra Bahadur Deuja, an aviation expert and former director general of the Civil Aviation Authority of Nepal (CAAN), said business prospects in the aviation sector are bright. "However, there should be more investment by the government as the current investment in the aviation sector is very nominal," said Deuja.
According to CAAN Deputy Director Tri Ratna Manandhar, there is a dire need to improve airport technology in line with international standards. “The government should increase investment in the air navigation and surveillance system as Nepal has been receiving pressure from ICAO to improve airport standards," said Manandhar.
The government has been working to establish a second international airport and three regional international airports. South Korea’s Landmark Worldwide Company that was assigned to do a detailed feasibility study for the airport has already presented its report to the government. According to the report, a single-runway airport at Nijgadh can be finished in 2015 if construction is started this year. Landmark's feasibility study stated that the proposed international airport could handle five to 15 million passengers annually and even accommodate the super jumbo Airbus 380 after the first phase of construction.
The government has also been working to develop Janakpur, Pokhara and Bhairahawa airports as regional international airports. The expansion of these three airports would open the way for more cross-border flights between Nepal and India. The expansion of Janakpur airport into a regional international airport can attract a large number of Hindu pilgrims while Bhairahawa's expansion could give a boost to Buddhist pilgrimage.
International operations: Still cautious
The new Air Service Agreement (ASA) signed between Nepal and India in September 2009 has opened the way for cross-border flights between the two countries. The ASA has increased the number of weekly flight seats to 30,000 and opened 10 new destinations for Nepali airlines permitting them to fly to 21 destinations in India.
Buddha Air has already planned to connect seven Indian cities by the end of 2011. In the first phase, it plans to link Lucknow, Kolkata and Patna. In the second phase, it plans to extend its service to Varanasi, Guwahati, Derhadun and Gorakhpur.
Despite having started international operations to Bhutan and Lucknow, Birendra Basnet sounds cautious about Nepali airlines going international. Before Buddha, four Nepali private airlines -- the now defunct Necon Air, Cosmic Air, Air Nepal International and Fly Yeti -- started international operations which were subsequently discontinued. "Given our capacity, we should not go forward aggressively," said Basnet. "Instead, we should look at capitalising on markets where there are large numbers of Nepali migrant workers."
The new international airline being promoted by five domestic carriers is eying major tourist hubs in the region for its business. “As per our plan, we will serve the Gulf countries, Malaysia, India, China and Singapore,” said one of the promoters. They are hiring an international management team including the chief executive officer to run the five-airline consortium.
Despite having more than a dozen fixed-wing and helicopter companies, sustainability has been the major issue. The demise of Necon, Cosmic, Shangri-La, Everest, Nepal Airways, Lumbini, Gorkha and other carriers are some of the unsuccessful stories in Nepal's domestic aviation. But entrepreneurs now seem determined to take lesions from the past.
Domestic passenger movement
Year No. of Passengers Change
2007 91,6429 3.8%
2008 1,036,586 13.1%
2009 1,377,868 32.9%
2010 1,073,391 (Jan-Sept) -----
Domestic flight movement
Year No. of Passengers Change
2007 65443 6.8%
2008 69286 5.9%
2009 76191 10%
2010 55,345 (Jan-Sept) ------
Sunday, February 20, 2011
Thursday, February 17, 2011
Great Himalaya Trail opens for business
SANGAM PRASAIN
KATHMANDU, FEB 16 -
Australian-based adventure travel company World Expeditions in association with Highland Excursions Nepal announced the start of commercial trekking on the Great Himalaya Trail (GHT) on Wednesday.
The government had announced the GHT, the longest and highest alpine walking track in the world, as a new product to attract trekkers from around the world during the inauguration of Nepal Tourism Year 2011 on Jan. 14.
The entire GHT is 4,500 km long and passes through Pakistan, the Tibet Autonomous Region of China, India, Nepal, Bhutan and Myanmar. The Nepali section of the GHT extends along the length of the country from Darchula and Humla in the west to Kanchenjunga in the east, and takes some 157 days to trek.
World Expeditions said that it had spilt the GHT in Nepal into seven sections of 18-34 days each. Trekking the whole trail costs around US$ 35,000, said Robin Boustead who documented the trail in Nepal in 2008. “Acknowledging that most people don’t have the luxury of this sort of time for adventure, we have devised seven treks that can be linked to make up the full traverse. The trip will be offered each year so that adventurers may choose to undertake the entire GHT over a number of years,” said World Expeditions.
The GHT is not a new product; it is the same trekking route that has been elegantly connected with the itineraries combining old and new routes. The route not only offers incredible biodiversity but is also associated with the objective of transforming untouched wilderness in the remotest districts into economic assets.
According to Highland Excursions Nepal, the product seller, more then 40 international trekkers have confirmed they would do the trek. “Trekkers all over the world are excited by the new product,” said Uma Khakurel, director of marketing and sales of Highland Excursions.
Khakurel added that the first ever commercial traverse of the GHT in Nepal would help support the people of the Himalaya to improve livelihoods, create employment and bring sustainable development opportunities to remote mountain communities.
The trail operators will raise A$ 100 from each trekker that will be given to the Australian Himalaya Foundation, an organisation helping the people of the Himalaya achieve their goals through improvements in health, education, environmental sustainability and conservation across the Himalaya.
Australian adventurer Robin Boustead documented the trail in Nepal in 2008. He completed the upper route of about 1,700 km which offers unparalleled trekking mixing high passes and alpine valleys.
“People along the trail are very excited,” said Boustead. The GHT will be one of Nepal’s unique products to increase quality and sustainable tourism. The GHT is an “international trekking trail” that emerged in the late 1990s in Nepal. However, it has been possible to walk over it since 2003.
All of the world’s 14 eight-thousander peaks can be seen on the trek. The westernmost point of the GHT is the world’s ninth highest peak, Nanga Parbat in Pakistan. It winds past the sacred headwaters of the Ganges in India, the entire length of Nepal beneath Annapurna, Everest and Kanchenjunga, through Sikkim then Bhutan and eventually to India’s remote Arunachal Pradesh, Myanmar and Namche Barwa in Tibet.
In 2004, the GHT was adopted as a pro-poor tourism initiative in the South Asia Sub-regional Economic Cooperation’s Tourism Development Plan sponsored by the ADB in Nepal, Bhutan and India (Sikkim, Darjeeling and Arunachal Pradesh). With Nepal having the most to gain due to its geography, SNV and ICIMOD took up the concept in 2006. In 2008, SNV conducted the GHT first phase pilot project in Humla and Dolpa.
KATHMANDU, FEB 16 -
Australian-based adventure travel company World Expeditions in association with Highland Excursions Nepal announced the start of commercial trekking on the Great Himalaya Trail (GHT) on Wednesday.
The government had announced the GHT, the longest and highest alpine walking track in the world, as a new product to attract trekkers from around the world during the inauguration of Nepal Tourism Year 2011 on Jan. 14.
The entire GHT is 4,500 km long and passes through Pakistan, the Tibet Autonomous Region of China, India, Nepal, Bhutan and Myanmar. The Nepali section of the GHT extends along the length of the country from Darchula and Humla in the west to Kanchenjunga in the east, and takes some 157 days to trek.
World Expeditions said that it had spilt the GHT in Nepal into seven sections of 18-34 days each. Trekking the whole trail costs around US$ 35,000, said Robin Boustead who documented the trail in Nepal in 2008. “Acknowledging that most people don’t have the luxury of this sort of time for adventure, we have devised seven treks that can be linked to make up the full traverse. The trip will be offered each year so that adventurers may choose to undertake the entire GHT over a number of years,” said World Expeditions.
The GHT is not a new product; it is the same trekking route that has been elegantly connected with the itineraries combining old and new routes. The route not only offers incredible biodiversity but is also associated with the objective of transforming untouched wilderness in the remotest districts into economic assets.
According to Highland Excursions Nepal, the product seller, more then 40 international trekkers have confirmed they would do the trek. “Trekkers all over the world are excited by the new product,” said Uma Khakurel, director of marketing and sales of Highland Excursions.
Khakurel added that the first ever commercial traverse of the GHT in Nepal would help support the people of the Himalaya to improve livelihoods, create employment and bring sustainable development opportunities to remote mountain communities.
The trail operators will raise A$ 100 from each trekker that will be given to the Australian Himalaya Foundation, an organisation helping the people of the Himalaya achieve their goals through improvements in health, education, environmental sustainability and conservation across the Himalaya.
Australian adventurer Robin Boustead documented the trail in Nepal in 2008. He completed the upper route of about 1,700 km which offers unparalleled trekking mixing high passes and alpine valleys.
“People along the trail are very excited,” said Boustead. The GHT will be one of Nepal’s unique products to increase quality and sustainable tourism. The GHT is an “international trekking trail” that emerged in the late 1990s in Nepal. However, it has been possible to walk over it since 2003.
All of the world’s 14 eight-thousander peaks can be seen on the trek. The westernmost point of the GHT is the world’s ninth highest peak, Nanga Parbat in Pakistan. It winds past the sacred headwaters of the Ganges in India, the entire length of Nepal beneath Annapurna, Everest and Kanchenjunga, through Sikkim then Bhutan and eventually to India’s remote Arunachal Pradesh, Myanmar and Namche Barwa in Tibet.
In 2004, the GHT was adopted as a pro-poor tourism initiative in the South Asia Sub-regional Economic Cooperation’s Tourism Development Plan sponsored by the ADB in Nepal, Bhutan and India (Sikkim, Darjeeling and Arunachal Pradesh). With Nepal having the most to gain due to its geography, SNV and ICIMOD took up the concept in 2006. In 2008, SNV conducted the GHT first phase pilot project in Humla and Dolpa.
Tuesday, February 15, 2011
Nepal produces veggies worth Rs 45 billion annually: Report
SANGAM PRASAIN
KATHMANDU, FEB 15 -
Nepal produces vegetables worth Rs 45 billion annually, according to Nepal Vegetable Crops Survey 2009-10. And, Rs 9 billion is invested in vegetable farming every year. The report says that around 70 percent of Nepal’s total household is involved in vegetable farming.
The first of its kind survey reveals interesting facts about vegetable farming in the country—description of vegetable holders, total area for vegetable cultivation, expenditure on vegetable farming, total production and uses of vegetables, and farmers’ access to agricultural services.
The survey carried out by the Central Bureau of Statistics (CBS) with assistance from the Asian Development Bank says that vegetables are cultivated in 232,295 hectares of land in the country.
Terai is the major vegetable growing area with an annual production of 1,437,921 tons, followed by hilly region with 1,261,041 tons. As per the survey, total annual production of vegetables in Nepal is 2.82 million tons. Of the total output, 39 percent (1.10 million tons) is used for household consumption and 61 percent (1.71 million tons) for sale. However, of the total vegetable farmers, only 18 percent are engaged in commercial farming.
In terms of cultivation area, production and value, cauliflower is the number one vegetable crop. A total of 404,580 tons of cauliflower is produced in 33,172 hectares of land in the country. According to the survey, cauliflower worth Rs 6.5 billion is produced annually in Nepal. Other major vegetable crops in terms of production are tomato (317,657 tons), cabbage (302,067 tons), pumpkin (166,424 tons) and radish (164,076 tons).
According to the survey, cauliflower, tomato and cabbage are the major money-spinners among vegetable crops. It says most commonly sold vegetables are cauliflower (339,273 tons), tomato (283,999 tons) and cabbage (269,294 tons). “As cauliflower, tomato and cabbage can be cultivated throughout the year, it is natural that they are the top three vegetables,” said agro-expert Tulasi Gautam.
Although the Terai region produces and sells more vegetables, vegetables grown in hilly region have better value. According to the survey, vegetables produced in hills in a year are valued at Rs 21.79 billion, whereas Terai products are valued at Rs 21 billion. “The reason behind the difference in value is vegetables in hills are produced during rainy reason when prices are relatively higher,” said Gautam. In terms of value, cauliflower tops the chart. It is followed by tomato, cabbage, asparagus bean, cucumber and broad leaf mustard (Rs 2 billion each).
A majority of vegetable farmers in the country are self-financed with only five percent taking loan for vegetable farming. Around 55 percent of the farmers rely on informal sectors for loans.
Among those taking loans, only 24.3 percent take loans from banks. Relatives and friends are the largest sources of loan for the farmers. “Farmers are still relying on traditional loans with high interest rates. This means they are not earning up to their potential,” said Puskhar Bajracharya, a member of the National Planning Commission (NPC). “There is a need for expanding banking services in rural areas to encourage farmers.”
Interestingly, 15.1 percent of farmers have taken loans from co-operatives. It shows that agriculture cooperatives and agriculture and fruits cooperatives are emerging as major sources of financing.
A total of Rs 9 billion is invested in vegetable farming in the country annually. The largest portion of the amount (Rs 2.3 billion; 26 percent) is invested for purchasing organic fertilisers followed by purchase/production of seeds (22 percent) and land preparation (16 percent). The rental cost of land is the highest in Terai, according to the survey.
There are 55 vegetable crop groups identified in the survey. Vegetable farming is slowly emerging as the major source of income for farmers with 12 percent of them saying that income from vegetable farming is sufficient for a year. According to the survey, on an average, five months’ expenditure can be maintained by the income form vegetable farming. The survey revealed that almost half of the vegetable farmers (48 percent) use pesticides (insecticides or fungicides). The use of pesticides was observed most prominently (72 percent) in the Eastern and Central Terai.
According to the survey, organic vegetable farming is still in its nascent stage in the country. Of the total vegetable farmers, only eight percent use organic pesticides, while 92 percent use chemical pesticides. Uttam Narayan Malla, director general, CBS, said the survey will be of a great help for planners, policy makers and researchers for the development of vegetable crops.
Top five vegetable products
Vegetable Production in tonnes
Cauliflower 404,580
Tomato 317,657
Cabbage 302,067
Pumpkin 166,424
Radish 164,076
KATHMANDU, FEB 15 -
Nepal produces vegetables worth Rs 45 billion annually, according to Nepal Vegetable Crops Survey 2009-10. And, Rs 9 billion is invested in vegetable farming every year. The report says that around 70 percent of Nepal’s total household is involved in vegetable farming.
The first of its kind survey reveals interesting facts about vegetable farming in the country—description of vegetable holders, total area for vegetable cultivation, expenditure on vegetable farming, total production and uses of vegetables, and farmers’ access to agricultural services.
The survey carried out by the Central Bureau of Statistics (CBS) with assistance from the Asian Development Bank says that vegetables are cultivated in 232,295 hectares of land in the country.
Terai is the major vegetable growing area with an annual production of 1,437,921 tons, followed by hilly region with 1,261,041 tons. As per the survey, total annual production of vegetables in Nepal is 2.82 million tons. Of the total output, 39 percent (1.10 million tons) is used for household consumption and 61 percent (1.71 million tons) for sale. However, of the total vegetable farmers, only 18 percent are engaged in commercial farming.
In terms of cultivation area, production and value, cauliflower is the number one vegetable crop. A total of 404,580 tons of cauliflower is produced in 33,172 hectares of land in the country. According to the survey, cauliflower worth Rs 6.5 billion is produced annually in Nepal. Other major vegetable crops in terms of production are tomato (317,657 tons), cabbage (302,067 tons), pumpkin (166,424 tons) and radish (164,076 tons).
According to the survey, cauliflower, tomato and cabbage are the major money-spinners among vegetable crops. It says most commonly sold vegetables are cauliflower (339,273 tons), tomato (283,999 tons) and cabbage (269,294 tons). “As cauliflower, tomato and cabbage can be cultivated throughout the year, it is natural that they are the top three vegetables,” said agro-expert Tulasi Gautam.
Although the Terai region produces and sells more vegetables, vegetables grown in hilly region have better value. According to the survey, vegetables produced in hills in a year are valued at Rs 21.79 billion, whereas Terai products are valued at Rs 21 billion. “The reason behind the difference in value is vegetables in hills are produced during rainy reason when prices are relatively higher,” said Gautam. In terms of value, cauliflower tops the chart. It is followed by tomato, cabbage, asparagus bean, cucumber and broad leaf mustard (Rs 2 billion each).
A majority of vegetable farmers in the country are self-financed with only five percent taking loan for vegetable farming. Around 55 percent of the farmers rely on informal sectors for loans.
Among those taking loans, only 24.3 percent take loans from banks. Relatives and friends are the largest sources of loan for the farmers. “Farmers are still relying on traditional loans with high interest rates. This means they are not earning up to their potential,” said Puskhar Bajracharya, a member of the National Planning Commission (NPC). “There is a need for expanding banking services in rural areas to encourage farmers.”
Interestingly, 15.1 percent of farmers have taken loans from co-operatives. It shows that agriculture cooperatives and agriculture and fruits cooperatives are emerging as major sources of financing.
A total of Rs 9 billion is invested in vegetable farming in the country annually. The largest portion of the amount (Rs 2.3 billion; 26 percent) is invested for purchasing organic fertilisers followed by purchase/production of seeds (22 percent) and land preparation (16 percent). The rental cost of land is the highest in Terai, according to the survey.
There are 55 vegetable crop groups identified in the survey. Vegetable farming is slowly emerging as the major source of income for farmers with 12 percent of them saying that income from vegetable farming is sufficient for a year. According to the survey, on an average, five months’ expenditure can be maintained by the income form vegetable farming. The survey revealed that almost half of the vegetable farmers (48 percent) use pesticides (insecticides or fungicides). The use of pesticides was observed most prominently (72 percent) in the Eastern and Central Terai.
According to the survey, organic vegetable farming is still in its nascent stage in the country. Of the total vegetable farmers, only eight percent use organic pesticides, while 92 percent use chemical pesticides. Uttam Narayan Malla, director general, CBS, said the survey will be of a great help for planners, policy makers and researchers for the development of vegetable crops.
Top five vegetable products
Vegetable Production in tonnes
Cauliflower 404,580
Tomato 317,657
Cabbage 302,067
Pumpkin 166,424
Radish 164,076
Monday, February 14, 2011
Trade union leaders urge casino owner to clear dues
According to staff at Casino Nepal, they haven’t received their salaries for the last three months
SANGAM PRASAIN
KATHMANDU, FEB 15 -
With government action against non-paying casinos looking imminent, trade unions of Casino Nepal have begun efforts to persuade owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa to clear the outstanding dues.
The Department of Revenue Investigation (DRI) has recommended to the Tourism Ministry that the licenses of eight casinos defaulting on royalty payments be cancelled.
Sources said the presidents of four trade unions at Casino Nepal held discussions with Wadhwa in New Delhi, India, on Monday. “With the government looking firm to take action against us, we’ve initiated this move,” said a trade union official at Casino Nepal. Along with the four union chiefs, two members of the management of Casino Nepal had travelled to New Delhi on Sunday.
Wadhwa’s NRC currently runs four casinos in Nepal. Of them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, his two other casinos—Casino Nepal and Casino Anna—haven’t paid any royalty or dues for the last few years despite constant government pressure. These two casinos owe the government Rs 244 million.
Wadhwa, who has been on the dodge since the police issued an arrest warrant against him, is planning to settle in New Delhi, according to his close confidant. Wadhwa’s continuous defiance of government orders has pushed his casinos to the verge of closure. He has so far refused to clear the outstanding royalties and instead said that the hotels where his casinos are housed should pay them. With the government tightening the screw on him, Wadhwa recently sold 50 percent of his stake in Casino Anna to two Indian buyers.
After the DRI’s letter recommending action against the eight casinos, leaders of their trade unions have been lobbying with government officials and lawmakers to delay legal proceedings against them. Trade union representatives met with Public Accounts Committee (PAC) member Usha Gurung, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota on Sunday.
“We’ll lead the initiation to pressure Wadhwa to clear the dues, let the government hold the action for a few days,” said one leader.
According to staff at Casino Nepal, they haven’t received their salaries for the last three months. “Neither have we got our salaries nor has our management deposited our provident fund of the last 29 months,” said one employee.
As per the Finance Bill, casinos that fail to clear their royalties by mid-January will lose their operating licenses. A gambling house that loses its license will have to start afresh to obtain a new one. The government has made it mandatory for casinos to get their operating licenses renewed annually.
The Tourism Ministry has said that it would initiate action against the casinos as per the directives of PAC which instructed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days.
The DRI, in line with PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.
Sunday, February 13, 2011
The penny drops
Eight casinos which have not paid their dues are to be shut down
SANGAM PRASAIN
KATHMANDU, FEB 14 -
The axe has finally fallen. Eight casinos which have been delinquent in paying their royalties are on track to lose their operating licenses.
The Department of Revenue Investigation (DRI) on Sunday wrote to the Tourism Ministry to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
After the stipulated time limit ran out on Friday, the department dispatched a formal letter to the ministry recommending action against the eight gambling houses as per the directives of the parliamentary Public Accounts Committee (PAC). With the DRI’s latest move, the eight casinos are virtually set to lose their licenses.
“We sent a letter to the Tourism Ministry on Sunday recommending that it scrap the operating licenses and close down the eight casinos that have failed to clear their outstanding royalties and dues to the government,” said DRI director general Mahesh Dahal.
Of the 10 casinos currently operating in the country, only two—Casino Tara at the Hotel Hyatt Regency and Casino Everest at the Hotel Everest—have cleared their dues.
PAC had directed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.
Following PAC’s directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year. According to Dahal, the operators of these three casinos had pledged to pay the remaining Rs 10.08 million within two months.
Likewise, Casino Shangri-La and Casino Royale paid the royalty and fines for the current fiscal year, but didn’t make payments of the previous year. The management of Casino Shangri-La, according to Dahal, had argued that the royalties and dues of earlier fiscal years were accumulated by Nepal Recreation Centre (NRC), its previous operator.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite the constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
Following the DRI’s letter, tourism secretary Kishore Thapa said that the ministry would take action against the casinos based on the directives of PAC. “As per PAC’s directive, we must initiate action against them,” said Thapa.
As per the Finance Bill, casinos that fails to clear their royalties by mid-January would lose their operating licenses. “Their licenses will be automatically scrapped if they fail to clear their royalties by mid-January as per the Finance Bill,” said a senior official at the Finance Ministry.
“Those whose licenses have been scrapped should go for a new process to acquire licenses.” Finance Ministry officials said the government could recover the dues of from defaulting casinos by confiscating their properties. The government, through the new budget, has made compulsory renewal of casino licenses and annual licenses.
The government from the last six months has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act.
Getting into the swing of things
SANGAM PRASAIN
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
Pay up Deadline ends; six casinos cough up dues
SANGAM PRASAIN
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
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