Sunday, April 17, 2011
NOC row:Walking on Air
NOC says it can maintain supplies for only one week
SANGAM PRASAIN
KATHMANDU, APR 18 -
Unless the government makes hard decisions regarding the supply and pricing of fuel, common Nepalis will continue to suffer crippling shortages. Such is the degree of the crisis that petroleum products have now emerged as one of the major issues in front of the government.
Amid volatile international oil prices, Nepal Oil Corporation (NOC) is struggling to maintain regular supplies in the country. The huge gap between the cost price and the selling price has required NOC to virtually beg the government for money every month to pay its import bills to Indian Oil Corporation (IOC).
With international prices spiralling, NOC has no option but to hike its selling price. But its hands are tied. NOC wants the government to allow it to revise fuel prices in line with the international market or provide additional subsidies. But the government is disinclined to raise prices. Instead, it has been providing loans to the corporation which have been subsequently converted into subsidies.
In the last four years, successive governments have always shied away from hiking the price because of a possible public backlash. Thus, increasing the price of petroleum products has now become a political decision.
On Sunday, the government okayed a loan of Rs 1 billion to NOC. The government has already lent almost Rs 4 billion to NOC in the first nine months of the current fiscal year.
The NOC management said that with this Rs 1 billion, it could maintain regular petroleum supplies for only one week. Hard up for cash to pay its import bills, NOC had slashed the import and supply of petroleum products during the last five days. “The released money will help us to normalise fuel supplies for at least one week,” said NOC general manager Digambar Jha. NOC’s monthly oil import bill comes to Rs 5 billion. NOC said that the government should be prepared to tackle shortage problems after one week if it doesn’t provide more money.
Jha said that at the current selling price, the corporation would be forced to curtail imports by 40 percent after a week. Subsequently, imports will be reduced by 20 percent each month. “Less supply means less losses.” However, the Finance Ministry has said that it couldn’t finance petroleum imports anymore.
NOC managing director Jha on Sunday suggested that NOC should be allowed to hike prices and that the increased burden should be jointly shared by the government, NOC and consumers. According to Jha, NOC and consumers each should bear one-third of the import costs of petroleum products while the government should cut the import duty by one-third. As per the price list issued by NOC’s sole supplier IOC on April 16, NOC is incurring a loss of Rs 23.26 per litre of diesel, Rs 11.25 per litre of kerosene, Rs 6.30 per litre of petrol and Rs 288.86 per cylinder of LPG.
With fuel consumption increasing every year and no adjustment in fuel prices in the domestic market, NOC’s loss is also surging. NOC has revised its estimated loss for April from Rs 1.77 billion to Rs 1.96 billion.
According to NOC, it will incur a loss of Rs 1.58 billion on diesel, Rs 100 million on petrol, Rs 50 million on kerosene and Rs 317 million
on LPG.
With uncertainty over the supply, hoarding of fuel has increased in recent times. NOC said the fuel shortage seen in the market was artificial as it had been supplying more fuel than the average requirement. The Kathmandu Valley consumes 240 KL of petrol and 600 KL of diesel daily. The supply statistics of NOC show that on April 11, 13 and 14, it had supplied 436 KL, 345 KL and 337 KL of petrol respectively and 608 KL, 516 KL and 500 KL of diesel respectively.
Saturday, April 16, 2011
War profiteering of a kind
SANGAM PRASAIN
APR 16 - Though the mention of Rukum may first conjure up images of war, the area is also known as the district of “52 lakes and 53 hills”. This once popular saying may lead people to envision flocks of visitors charting the region—the reality, however, has been different. The remoteness of Rukum--in terms of roads and other facilities—has always deterred the tourism industry from making its way in. And after the Maoists seized the area, its potential as a tourist haven was quelled into a seething pot of war.
Now, with peace restored and insecurity no longer posing the same threat after the Maoists’ entrance into mainstream politics, the Maoist party has shown interest in transforming the entire district into a war museum. Their vision more or less consists of showing visitors how the people’s war began and spread from Rukum.
Ethical questions surround this idea. Is it not too soon? And will it not reopen wounds that are still healing? The mere notion of visiting Rukum to fulfil personal curiosity may seem voyeuristic. But despite this, politicians and members of the Tourism Board sound optimistic.
“The picturesque bays and valleys, once filled with misery, are now awaiting tourists,” says Kashi Raj Bhandari, director of the Research, Planning and Monitoring Department at Nepal Tourism Board (NTB). “Ancient ruins, mountains, rivers lined with lush wheat fields, caves and centuries-old cultures in villages like Mahat, Cwangwang, Chakewang, Khara, Pipal, Syalapakha, Kakri, Hakam, Khola Goan, Burtim Danda and Saank can be attractions for both domestic and international visitors,” he says.
According to him, one lake that stands out is Syarpu Lake—locally popular
as a picnic spot. Locals claim that before the war began, more than 2,000 tourists visited the lake annually. To restore the area’s former vibrancy, locals are working to open up trekking routes that connect directly to the lake. The recently held Syarpu Festival provided momentum to this project, which has initiated the construction of few hotels in the home-stay model to accommodate visitors.
Locals are also focused on promoting the Guerrilla Trek, which would follow the trails along which thousands of Maoist guerrillas dug trenches and ambushed their enemy during the insurgency. As Rukum lies within the range of hills connecting the western and the eastern regions of the country, the trek will follow the major routes that Maoist guerrillas walked through.
The trekking regions mapped as of now are Khara-Khawla-Jhimkhani (45 minutes), Jhimkhani-Jhulnetta (4 hours), Kharakhola-Jibang-Khabang (3 hours), Jibang-Syarpu, Bafikot (3 hours), Syarpu-Kunakhet (3 hours), Kunakhet-Pipal-Rukumkot (3 hours), Rukumkot-Marine (2 hours), Maring-Kakri (2 hours) and Kakri-Riga-Tuksara (5 hours). These villages stand as witnesses to the war and still retain the scars of an entire decade of fighting.
Another proposed attraction is the Kham community, a group from which most guerrillas were recruited during the initial phase of the war. The change that befell the culture and lifestyle of the people of Kham after the insurgency is thought to be of interest to people.
“It is time we try to heal old wounds and cleanse our hatred with the bright prospect of tourism,” says Sarun Batha Magar, the Maoist district in-charge. As voiced by Magar, his party is bracing itself to show the scars of war to tourists. He believes that such a display can increase employment opportunities for the people of this marginalised region. The NTB voices likewise. “The area has the potential to become a war product to attract domestic as well as the international visitors,” says Bhandari of NTB.
According to available statistics, more than 558 people died in the region during the insurgency. This fact begs the question: Is it not politically incorrect to present a region that suffered the devastation of war into a holiday destination? The Chief District Officer of Rukum, Beni Madhav Gyawali, pointed out the necessity of an extensive survey and research before implementing the idea, but this question seems to escape the minds of NTB members, local Maoist representatives and groups of enthusiastic youths by the name of Dynamic Youth Society in the programmes they organise.
APR 16 - Though the mention of Rukum may first conjure up images of war, the area is also known as the district of “52 lakes and 53 hills”. This once popular saying may lead people to envision flocks of visitors charting the region—the reality, however, has been different. The remoteness of Rukum--in terms of roads and other facilities—has always deterred the tourism industry from making its way in. And after the Maoists seized the area, its potential as a tourist haven was quelled into a seething pot of war.
Now, with peace restored and insecurity no longer posing the same threat after the Maoists’ entrance into mainstream politics, the Maoist party has shown interest in transforming the entire district into a war museum. Their vision more or less consists of showing visitors how the people’s war began and spread from Rukum.
Ethical questions surround this idea. Is it not too soon? And will it not reopen wounds that are still healing? The mere notion of visiting Rukum to fulfil personal curiosity may seem voyeuristic. But despite this, politicians and members of the Tourism Board sound optimistic.
“The picturesque bays and valleys, once filled with misery, are now awaiting tourists,” says Kashi Raj Bhandari, director of the Research, Planning and Monitoring Department at Nepal Tourism Board (NTB). “Ancient ruins, mountains, rivers lined with lush wheat fields, caves and centuries-old cultures in villages like Mahat, Cwangwang, Chakewang, Khara, Pipal, Syalapakha, Kakri, Hakam, Khola Goan, Burtim Danda and Saank can be attractions for both domestic and international visitors,” he says.
According to him, one lake that stands out is Syarpu Lake—locally popular
as a picnic spot. Locals claim that before the war began, more than 2,000 tourists visited the lake annually. To restore the area’s former vibrancy, locals are working to open up trekking routes that connect directly to the lake. The recently held Syarpu Festival provided momentum to this project, which has initiated the construction of few hotels in the home-stay model to accommodate visitors.
Locals are also focused on promoting the Guerrilla Trek, which would follow the trails along which thousands of Maoist guerrillas dug trenches and ambushed their enemy during the insurgency. As Rukum lies within the range of hills connecting the western and the eastern regions of the country, the trek will follow the major routes that Maoist guerrillas walked through.
The trekking regions mapped as of now are Khara-Khawla-Jhimkhani (45 minutes), Jhimkhani-Jhulnetta (4 hours), Kharakhola-Jibang-Khabang (3 hours), Jibang-Syarpu, Bafikot (3 hours), Syarpu-Kunakhet (3 hours), Kunakhet-Pipal-Rukumkot (3 hours), Rukumkot-Marine (2 hours), Maring-Kakri (2 hours) and Kakri-Riga-Tuksara (5 hours). These villages stand as witnesses to the war and still retain the scars of an entire decade of fighting.
Another proposed attraction is the Kham community, a group from which most guerrillas were recruited during the initial phase of the war. The change that befell the culture and lifestyle of the people of Kham after the insurgency is thought to be of interest to people.
“It is time we try to heal old wounds and cleanse our hatred with the bright prospect of tourism,” says Sarun Batha Magar, the Maoist district in-charge. As voiced by Magar, his party is bracing itself to show the scars of war to tourists. He believes that such a display can increase employment opportunities for the people of this marginalised region. The NTB voices likewise. “The area has the potential to become a war product to attract domestic as well as the international visitors,” says Bhandari of NTB.
According to available statistics, more than 558 people died in the region during the insurgency. This fact begs the question: Is it not politically incorrect to present a region that suffered the devastation of war into a holiday destination? The Chief District Officer of Rukum, Beni Madhav Gyawali, pointed out the necessity of an extensive survey and research before implementing the idea, but this question seems to escape the minds of NTB members, local Maoist representatives and groups of enthusiastic youths by the name of Dynamic Youth Society in the programmes they organise.
Twin Otter shortage hinders fleet expansion
SANGAM PRASAIN
KATHMANDU, APR 16 -
Nepal’s domestic carriers will likely have a hard time enlarging or replacing their ageing fleet as the good old Twin Otter is difficult to come by in the international market.
Experts said that the Canadian-built Twin Otter, a 19-passenger aircraft with STOL capability and high rate of climb, was the most suitable aircraft for serving Nepal’s remote and mountainous regions; but there were very few reconditioned planes for sale in the world market.
In addition, government restrictions on importing aircraft older than 20 years has hindered fleet expansion by domestic carriers.
Experts said that although Viking Air and Harbin Aircraft Manufacturing Corporation produce the DHC-6 Twin Otter Series 400 and the Harbin Y-12 respectively as an alternative to the Twin Otter, they were costly to operate on remote sectors. The Twin Otter made its first appearance in Nepal in 1970 as a replacement to the DC-3 Dakota, the workhorse of the then Royal Nepal Airlines Corporation.
“There are about 50 Twin Otter aircraft available if the government extends the age limit to 25 years,” said Dorji Tsering Sherpa, a travel trade entrepreneur. He added that out of the 844 Twin Otters produced from 1966-88, 588 were still flying in various countries.
Bhes Raj Subedi, chief of the Air Worthiness Division at the Civil Aviation Authority of Nepal (CAAN), said that although older versions were not easily available in the market, modern versions of the Twin Otter and the Dornier were being manufactured. However, the price of these modern aircraft is very high for Nepali operators, he added. Normally, domestic carriers lease second-hand aircraft for operation on remote sectors. “Technically, it does not matter how old a plane is. The efficiency and safety of any aircraft depends on regular maintenance. “NAC is flying Twin Otters that are more than 35 years old,” Subedi said.
A senior engineer of NAC said that the 20-year age limit was a very rigid criteria for Nepal’s domestic carriers.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, four are in operation, two are out of commission and one can be put back in service after maintenance, said an NAC official.
Among private airlines, Lumbini Airways and Skyline Airways possessed about 10 Twin Otters in their fleet, but the carriers did not last long. Presently, Yeti Airlines has seven Twin Otters out of which four are in operation.
KATHMANDU, APR 16 -
Nepal’s domestic carriers will likely have a hard time enlarging or replacing their ageing fleet as the good old Twin Otter is difficult to come by in the international market.
Experts said that the Canadian-built Twin Otter, a 19-passenger aircraft with STOL capability and high rate of climb, was the most suitable aircraft for serving Nepal’s remote and mountainous regions; but there were very few reconditioned planes for sale in the world market.
In addition, government restrictions on importing aircraft older than 20 years has hindered fleet expansion by domestic carriers.
Experts said that although Viking Air and Harbin Aircraft Manufacturing Corporation produce the DHC-6 Twin Otter Series 400 and the Harbin Y-12 respectively as an alternative to the Twin Otter, they were costly to operate on remote sectors. The Twin Otter made its first appearance in Nepal in 1970 as a replacement to the DC-3 Dakota, the workhorse of the then Royal Nepal Airlines Corporation.
“There are about 50 Twin Otter aircraft available if the government extends the age limit to 25 years,” said Dorji Tsering Sherpa, a travel trade entrepreneur. He added that out of the 844 Twin Otters produced from 1966-88, 588 were still flying in various countries.
Bhes Raj Subedi, chief of the Air Worthiness Division at the Civil Aviation Authority of Nepal (CAAN), said that although older versions were not easily available in the market, modern versions of the Twin Otter and the Dornier were being manufactured. However, the price of these modern aircraft is very high for Nepali operators, he added. Normally, domestic carriers lease second-hand aircraft for operation on remote sectors. “Technically, it does not matter how old a plane is. The efficiency and safety of any aircraft depends on regular maintenance. “NAC is flying Twin Otters that are more than 35 years old,” Subedi said.
A senior engineer of NAC said that the 20-year age limit was a very rigid criteria for Nepal’s domestic carriers.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, four are in operation, two are out of commission and one can be put back in service after maintenance, said an NAC official.
Among private airlines, Lumbini Airways and Skyline Airways possessed about 10 Twin Otters in their fleet, but the carriers did not last long. Presently, Yeti Airlines has seven Twin Otters out of which four are in operation.
Thursday, April 14, 2011
Cash-strapped NOC struggles to ensure supplies
SANGAM PRASAIN
KATHMANDU, APR 14 -
State-owned oil monopoly Nepal Oil Corporation (NOC) is struggling to ensure smooth supplies of petroleum products as promised loans from the Ministry of Finance (MoF) have not materialised.
Long queues are back at gasoline stations across the country after cash-strapped NOC cut deliveries.
The MoF has provided Rs 500 million out of the Rs 1.5 billion pledged citing lack of resources. NOC has said that there would be an acute shortage of fuel if the government doesn’t provide the committed credit. The government has so far given Rs 2.44 billion to NOC to import oil this fiscal year.
MoF officials said the ministry had no money in its contingency budget. With two major P1 projects, Sikta Irrigation Project and Mid-Hills Highway, also seeking additional resources, officials said the ministry can’t provide the committed loans to the NOC.
“There is no money in the contingency budget,” said Bodh Raj Niraula, chief of the ministry’s budget department. “Even for Sikta and the Mid-Hills Highway, we’re struggling to provide additional resources.” Sikta has sought Rs 250 million more while the Mid-Hills Highway had asked for another Rs 1 billion two months ago. “If we had resources, we could have provided the money to these high-priority projects,” said Niraula.
Even after getting Rs 500 million, NOC is seeking another Rs 1 billion to pay its supplier Indian Oil Corporation (IOC). “The supply will return to normal only if NOC gets additional resources,” said Ganesh Dhakal, spokesman at the Ministry of Commerce and Supplies.
NOC’s monthly import bill comes to Rs 5 billion and it makes monthly payments to IOC in four installments. It had paid IOC Rs 2.2 billion till the second week of April. “NOC still owes Rs 1.07 billion,” said Bachhu Kumar Kafle, NOC deputy general manager.
NOC cannot adjust the price of petroleum products until the high-level committee on NOC submits its report. Company officials said the government should finance oil imports till then.
NOC’s loss for April is estimated to amount to Rs 1.76 billion at current prices. Its losses are expected to mount after IOC sends its revised petroleum prices on April 16.
As per the rates of April 1, NOC is incurring losses of Rs 3.75 per litre on petrol, Rs 21 on diesel, Rs 11 on kerosene and Rs 288 per cylinder on liquefied petroleum gas (LPG). Aviation fuel is the only product on which NOC is making a profit.
NOC officials said IOC’s new price would increase its losses, but the supply of LPG and aviation fuel would be normal. “The only problem is with diesel which accounts for more than two-thirds of the imports and losses of over Rs 1.42 billion,” an NOC official said. The loss on diesel has increased from Rs 19 to Rs 20.96 per litre, according to NOC.
NOC officials admitted that imports had been slashed but the supply hadn’t been cut. “The queues at the gasoline pumps in Kathmandu on Wednesday was due to the public holiday on Tuesday,” said Kafle. “We have directed the Thankot depot to supply adequate fuel on Wednesday.”
Thankot depot had supplied 300 kl of petrol and about 30 tankers of diesel on Wednesday which is the usual daily requirement of the Kathmandu Valley.
KATHMANDU, APR 14 -
State-owned oil monopoly Nepal Oil Corporation (NOC) is struggling to ensure smooth supplies of petroleum products as promised loans from the Ministry of Finance (MoF) have not materialised.
Long queues are back at gasoline stations across the country after cash-strapped NOC cut deliveries.
The MoF has provided Rs 500 million out of the Rs 1.5 billion pledged citing lack of resources. NOC has said that there would be an acute shortage of fuel if the government doesn’t provide the committed credit. The government has so far given Rs 2.44 billion to NOC to import oil this fiscal year.
MoF officials said the ministry had no money in its contingency budget. With two major P1 projects, Sikta Irrigation Project and Mid-Hills Highway, also seeking additional resources, officials said the ministry can’t provide the committed loans to the NOC.
“There is no money in the contingency budget,” said Bodh Raj Niraula, chief of the ministry’s budget department. “Even for Sikta and the Mid-Hills Highway, we’re struggling to provide additional resources.” Sikta has sought Rs 250 million more while the Mid-Hills Highway had asked for another Rs 1 billion two months ago. “If we had resources, we could have provided the money to these high-priority projects,” said Niraula.
Even after getting Rs 500 million, NOC is seeking another Rs 1 billion to pay its supplier Indian Oil Corporation (IOC). “The supply will return to normal only if NOC gets additional resources,” said Ganesh Dhakal, spokesman at the Ministry of Commerce and Supplies.
NOC’s monthly import bill comes to Rs 5 billion and it makes monthly payments to IOC in four installments. It had paid IOC Rs 2.2 billion till the second week of April. “NOC still owes Rs 1.07 billion,” said Bachhu Kumar Kafle, NOC deputy general manager.
NOC cannot adjust the price of petroleum products until the high-level committee on NOC submits its report. Company officials said the government should finance oil imports till then.
NOC’s loss for April is estimated to amount to Rs 1.76 billion at current prices. Its losses are expected to mount after IOC sends its revised petroleum prices on April 16.
As per the rates of April 1, NOC is incurring losses of Rs 3.75 per litre on petrol, Rs 21 on diesel, Rs 11 on kerosene and Rs 288 per cylinder on liquefied petroleum gas (LPG). Aviation fuel is the only product on which NOC is making a profit.
NOC officials said IOC’s new price would increase its losses, but the supply of LPG and aviation fuel would be normal. “The only problem is with diesel which accounts for more than two-thirds of the imports and losses of over Rs 1.42 billion,” an NOC official said. The loss on diesel has increased from Rs 19 to Rs 20.96 per litre, according to NOC.
NOC officials admitted that imports had been slashed but the supply hadn’t been cut. “The queues at the gasoline pumps in Kathmandu on Wednesday was due to the public holiday on Tuesday,” said Kafle. “We have directed the Thankot depot to supply adequate fuel on Wednesday.”
Thankot depot had supplied 300 kl of petrol and about 30 tankers of diesel on Wednesday which is the usual daily requirement of the Kathmandu Valley.
Tuesday, April 12, 2011
BBC, CNN agree to cut rates for NTY promo
SANGAM PRASAIN
KATHMANDU, APR 12 -
The BBC and CNN have agreed to cut their advertising tariff in response to Nepal’s plea that it lacked adequate funds to promote Nepal Tourism Year in the international market.
The BBC has slashed the rate to Rs 24 million from Rs 44 million for its four-month package while CNN has also agreed in principle to reduce the tariff. “CNN is also positive about reducing the tariff,” said Ranjit Acharya, a member of the NTY international promotion committee. The promotion committee had allocated Rs 36 million for CNN and it has requested that the price be decreased to Rs 16 million. The committee said that it would receive confirmation from CNN on Monday. Earlier, both networks had proposed Rs 80 million for the purpose.
The government has allocated a budget of Rs 130 million to publicise the NTY campaign at the international level. Of which, Rs 60 million has been set aside for India, Rs 30 million for China and the rest for other source markets. The government has allocated the funds for the Business-to-Consumer (B2C) strategy promotion, which means going through the media and other means of communication.
With the budget being short to carry out the promotion programme in other source markets, particularly in Europe and the US, the committee had requested the BBC and CNN to reduce the tariff. “The BBC has already prepared an advertisement of Nepal,” Acharya said. The BBC had also broadcast the inauguration of NTY without charge for seven days, Acharya added.
The NTY promotion committee plans to use the allocated funds for international promotion in three sections. The promotion in India will be held during the summer (April-June) targeting the Indian holiday season. The package named “Summer spender” will be launched through TV, newspapers, hoarding boards and online media. As of now, the committee has received proposals from India Today, a weekly newsmagazine in English, and Dainik Jagaran, a newspaper published in Hindi.
Similarly, advertising agencies Triton, Series, Om Tourism and Agencies and Digitainment have submitted their proposals. The committee has planned the promotion programme in India from mid-May. To compete with other Asian countries and draw large numbers of Indian tourists during the summer, the NTY promotion committee is coming up with special packages.
Climate-wise, the best time to attract Indians is during the summer. According to the UN World Tourism Organization, India is one of the fastest growing outbound tourist markets and will account for 50 million outbound tourists by 2020.
Currently, 12 million Indians travel to different countries annually. Nepal had received 104,470 Indian visitors among 448,769 visitors from around the world last year who came here by air. The number was up 20 percent against the corresponding period last year. Indian arrivals in the first three months of NTY have reached 26,144, up 34 percent against the same period last year. The promotion in China will be held during June-July. For NTY promotion in China, two Nepali and three Indian advertising agencies have submitted their proposals. Chinese arrivals to Nepal increased 22 percent in the first three months of 2011. The country received 10,293 tourists as of March.
Though international promotion had been slated to start before the launch of NTY, late budget allocation delayed the plan. Similarly, the government’s long bidding process as per the Public Procurement Act to obtain the TOR had delayed the promotional campaign, said an NTY member.
KATHMANDU, APR 12 -
The BBC and CNN have agreed to cut their advertising tariff in response to Nepal’s plea that it lacked adequate funds to promote Nepal Tourism Year in the international market.
The BBC has slashed the rate to Rs 24 million from Rs 44 million for its four-month package while CNN has also agreed in principle to reduce the tariff. “CNN is also positive about reducing the tariff,” said Ranjit Acharya, a member of the NTY international promotion committee. The promotion committee had allocated Rs 36 million for CNN and it has requested that the price be decreased to Rs 16 million. The committee said that it would receive confirmation from CNN on Monday. Earlier, both networks had proposed Rs 80 million for the purpose.
The government has allocated a budget of Rs 130 million to publicise the NTY campaign at the international level. Of which, Rs 60 million has been set aside for India, Rs 30 million for China and the rest for other source markets. The government has allocated the funds for the Business-to-Consumer (B2C) strategy promotion, which means going through the media and other means of communication.
With the budget being short to carry out the promotion programme in other source markets, particularly in Europe and the US, the committee had requested the BBC and CNN to reduce the tariff. “The BBC has already prepared an advertisement of Nepal,” Acharya said. The BBC had also broadcast the inauguration of NTY without charge for seven days, Acharya added.
The NTY promotion committee plans to use the allocated funds for international promotion in three sections. The promotion in India will be held during the summer (April-June) targeting the Indian holiday season. The package named “Summer spender” will be launched through TV, newspapers, hoarding boards and online media. As of now, the committee has received proposals from India Today, a weekly newsmagazine in English, and Dainik Jagaran, a newspaper published in Hindi.
Similarly, advertising agencies Triton, Series, Om Tourism and Agencies and Digitainment have submitted their proposals. The committee has planned the promotion programme in India from mid-May. To compete with other Asian countries and draw large numbers of Indian tourists during the summer, the NTY promotion committee is coming up with special packages.
Climate-wise, the best time to attract Indians is during the summer. According to the UN World Tourism Organization, India is one of the fastest growing outbound tourist markets and will account for 50 million outbound tourists by 2020.
Currently, 12 million Indians travel to different countries annually. Nepal had received 104,470 Indian visitors among 448,769 visitors from around the world last year who came here by air. The number was up 20 percent against the corresponding period last year. Indian arrivals in the first three months of NTY have reached 26,144, up 34 percent against the same period last year. The promotion in China will be held during June-July. For NTY promotion in China, two Nepali and three Indian advertising agencies have submitted their proposals. Chinese arrivals to Nepal increased 22 percent in the first three months of 2011. The country received 10,293 tourists as of March.
Though international promotion had been slated to start before the launch of NTY, late budget allocation delayed the plan. Similarly, the government’s long bidding process as per the Public Procurement Act to obtain the TOR had delayed the promotional campaign, said an NTY member.
Sunday, April 10, 2011
Second International Airport to be on the runway by 2015
SANGAM PRASAIN
KATHMANDU, APR 11 -
If all goes well, construction of the much talked about Second International Airport (SIA) in Nijgadh, Bara, will start by April next year, government officials said on Sunday.
Officials at the Ministry of Tourism and Civil Aviation (MoTCA) made such statement during the submission of the Detailed Feasibility Study Report carried out by Korea’s Landmark Worldwide Company (LMW) on the ministry premises. The airport will be developed under the ‘build own operate and transfer’ (BOOT) model.
Although the LMW study said the single-runway airport’s construction—if started this year—could be completed by 2015 for commercial operation, necessary legal procedures to be followed by the government has delayed the project by a year.
“The comprehensive report submitted today will be briefed to the prime minister, other ministers and high-level government officials,” said MoTCA secretary Kishore Thapa.
According to Thapa, after the briefing, the high-level BOOT committee will start the investors selection process—which will take at least six months—and negotiations with selected investors will take an additional six months.
However, the government has two options for awarding the project to investors. First one is ‘request for proposal (RFP)’—which is based on selection process—and the second, under the BOOT Act section-9—which says that the project can directly be awarded to any interested investors. “The BOOT Act says that the Rs 2-billion project can be awarded directly to any investors without calling for RFP,” according to the officials.
As SIA is a government prioritised project and LMW is showing interest in the project since 2007, the Korean company has high chances of winning the project. “Although, MoTCA has assured prioritising the project to LMW, which of the options to be adopted will be finalised through a political decision,” Thapa added.
In the recommendation of the BOOT committee, the project will be forwarded to the Cabinet to decide on which option to be adopted.
On March 8, 2010, the government had awarded the contract for carrying out a detailed feasibility study to LMW. The company has invested $3.55 million for the detailed and design feasibility study.
LMW Senior Vice President Seung-Hyung Lee is also optimistic that the government would acknowledge their efforts made in the project over the last 4 years. “We hope that the government will recognise our efforts and will assign the project development to us.”
SIA will cover 3,000 hectares of land (2,000 hectares for airport and remaining for airport city). LMW’s feasibility study said the proposed airport could handle 15 million passengers until 2030 and even accommodate the super-jumbo Airbus A380 after the first phase of construction.
The estimated cost for the first phase, according to the feasibility study, would be $ 650 million. The proposed airport Apron has 15 stands for international carriers, four stands for domestic and two for cargo flights.
The first passenger terminal has an area of 75,500 square metre, six boarding gates, 34 check-in counters, six security inspection counters, 35 immigration counters, eight customs inspection counters and six baggage claim counters.
By the end of the third phase of construction, the airport will have a parallel runway, enabling it to handle 60 million passengers annually.
“The study said the Kathmandu-Tarai fast track should be completed at least six months before the commencement of the airport. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Binay Rawal, LMW representative in Nepal.
KATHMANDU, APR 11 -
If all goes well, construction of the much talked about Second International Airport (SIA) in Nijgadh, Bara, will start by April next year, government officials said on Sunday.
Officials at the Ministry of Tourism and Civil Aviation (MoTCA) made such statement during the submission of the Detailed Feasibility Study Report carried out by Korea’s Landmark Worldwide Company (LMW) on the ministry premises. The airport will be developed under the ‘build own operate and transfer’ (BOOT) model.
Although the LMW study said the single-runway airport’s construction—if started this year—could be completed by 2015 for commercial operation, necessary legal procedures to be followed by the government has delayed the project by a year.
“The comprehensive report submitted today will be briefed to the prime minister, other ministers and high-level government officials,” said MoTCA secretary Kishore Thapa.
According to Thapa, after the briefing, the high-level BOOT committee will start the investors selection process—which will take at least six months—and negotiations with selected investors will take an additional six months.
However, the government has two options for awarding the project to investors. First one is ‘request for proposal (RFP)’—which is based on selection process—and the second, under the BOOT Act section-9—which says that the project can directly be awarded to any interested investors. “The BOOT Act says that the Rs 2-billion project can be awarded directly to any investors without calling for RFP,” according to the officials.
As SIA is a government prioritised project and LMW is showing interest in the project since 2007, the Korean company has high chances of winning the project. “Although, MoTCA has assured prioritising the project to LMW, which of the options to be adopted will be finalised through a political decision,” Thapa added.
In the recommendation of the BOOT committee, the project will be forwarded to the Cabinet to decide on which option to be adopted.
On March 8, 2010, the government had awarded the contract for carrying out a detailed feasibility study to LMW. The company has invested $3.55 million for the detailed and design feasibility study.
LMW Senior Vice President Seung-Hyung Lee is also optimistic that the government would acknowledge their efforts made in the project over the last 4 years. “We hope that the government will recognise our efforts and will assign the project development to us.”
SIA will cover 3,000 hectares of land (2,000 hectares for airport and remaining for airport city). LMW’s feasibility study said the proposed airport could handle 15 million passengers until 2030 and even accommodate the super-jumbo Airbus A380 after the first phase of construction.
The estimated cost for the first phase, according to the feasibility study, would be $ 650 million. The proposed airport Apron has 15 stands for international carriers, four stands for domestic and two for cargo flights.
The first passenger terminal has an area of 75,500 square metre, six boarding gates, 34 check-in counters, six security inspection counters, 35 immigration counters, eight customs inspection counters and six baggage claim counters.
By the end of the third phase of construction, the airport will have a parallel runway, enabling it to handle 60 million passengers annually.
“The study said the Kathmandu-Tarai fast track should be completed at least six months before the commencement of the airport. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Binay Rawal, LMW representative in Nepal.
Saturday, April 9, 2011
Tourist arrivals up, but revenue down
SANGAM PRASAIN
KATHMANDU, APR 08 -
Tourist arrivals to Nepal may be increasing, but foreign exchange earnings from tourism has been declining. The statistics of Nepal Rastra Bank (NRB) show that income from the travel trade has dipped in the first seven months of this fiscal year. According to NRB, tourism revenue amounted to Rs 14.80 billion during the review period, down 21.36 percent from Rs 18.82 billion in the same period last year.
Tourism income has fallen despite increased arrivals from the start of Nepal Tourism Year 2011. The first two months of 2011 saw tourist arrivals swelling 18.35 percent while income declined 28.67 percent.
According to the central bank, the country earned foreign exchange amounting to Rs 3.93 billion in January and February against Rs 5.51 billion in the same period in 2010.
Travel trade entrepreneurs attribute the decrease in collection to limited tourism activities and unhealthy competition resulting in low-priced tour packages.
However, NRB officials suspect that companies involved in foreign exchange transactions might have given incorrect data on income from tourism. They are baffled that while all the major hotels have reported a growth in their business, income from tourism is decreasing. “They may have classified tourism income under other categories while reporting their income to the central bank,” said a senior NRB official.
Raju Bikram Shah, general manager of the Shangri-La Hotel, said that his hotel’s tariff had been increasing by 15-20 percent annually and that occupancy was 97 percent. “Even during the off-season, we have increased our room rates,” Shah said.
The continuous decline in tourism income has raised the question whether Nepal is turning into a destination for budget travellers.
Travel traders said that it was too early to conclude that Nepal was turning into a budget destination. “It’s all about demand and supply,” said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Tourist expenditure decreases during the off-season.”
According to tourism entrepreneurs, unhealthy competition to offer packages at very low rates has also led to a fall in income. “Even when tourist arrivals increase, we have to provide cheap packages due to competition,” said Sharma. “This has also contributed to the decline in income.”
According to the Economic Survey 2010, the length of stay of tourists and their daily expenditure both have gone down as of mid-January 2010 compared to mid-January 2009. The length of stay went down to 11.6 days from 11.78 days and daily expenditure fell to US$ 36.88 from US$ 48.68. An analysis of annual income figures shows a meagre growth of 0.63 percent in earnings from foreign tourists in fiscal 2009-10. Tourism income in 2009-10 stood at Rs 28.13 billion compared to Rs 27.95 billion in the previous year.
Entrepreneurs say policy makers need to do some soul searching on why income from tourism is declining. They have stressed the need for programmes to lengthen the stay of tourists, encourage them to spend more and attract high-end tourists.
KATHMANDU, APR 08 -
Tourist arrivals to Nepal may be increasing, but foreign exchange earnings from tourism has been declining. The statistics of Nepal Rastra Bank (NRB) show that income from the travel trade has dipped in the first seven months of this fiscal year. According to NRB, tourism revenue amounted to Rs 14.80 billion during the review period, down 21.36 percent from Rs 18.82 billion in the same period last year.
Tourism income has fallen despite increased arrivals from the start of Nepal Tourism Year 2011. The first two months of 2011 saw tourist arrivals swelling 18.35 percent while income declined 28.67 percent.
According to the central bank, the country earned foreign exchange amounting to Rs 3.93 billion in January and February against Rs 5.51 billion in the same period in 2010.
Travel trade entrepreneurs attribute the decrease in collection to limited tourism activities and unhealthy competition resulting in low-priced tour packages.
However, NRB officials suspect that companies involved in foreign exchange transactions might have given incorrect data on income from tourism. They are baffled that while all the major hotels have reported a growth in their business, income from tourism is decreasing. “They may have classified tourism income under other categories while reporting their income to the central bank,” said a senior NRB official.
Raju Bikram Shah, general manager of the Shangri-La Hotel, said that his hotel’s tariff had been increasing by 15-20 percent annually and that occupancy was 97 percent. “Even during the off-season, we have increased our room rates,” Shah said.
The continuous decline in tourism income has raised the question whether Nepal is turning into a destination for budget travellers.
Travel traders said that it was too early to conclude that Nepal was turning into a budget destination. “It’s all about demand and supply,” said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Tourist expenditure decreases during the off-season.”
According to tourism entrepreneurs, unhealthy competition to offer packages at very low rates has also led to a fall in income. “Even when tourist arrivals increase, we have to provide cheap packages due to competition,” said Sharma. “This has also contributed to the decline in income.”
According to the Economic Survey 2010, the length of stay of tourists and their daily expenditure both have gone down as of mid-January 2010 compared to mid-January 2009. The length of stay went down to 11.6 days from 11.78 days and daily expenditure fell to US$ 36.88 from US$ 48.68. An analysis of annual income figures shows a meagre growth of 0.63 percent in earnings from foreign tourists in fiscal 2009-10. Tourism income in 2009-10 stood at Rs 28.13 billion compared to Rs 27.95 billion in the previous year.
Entrepreneurs say policy makers need to do some soul searching on why income from tourism is declining. They have stressed the need for programmes to lengthen the stay of tourists, encourage them to spend more and attract high-end tourists.
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