SANGAM PRASAIN
KATHMANDU, JAN 17 -
Two days after the official launch of Nepal Tourism Year-2011 (NTY-2011), there comes news likely to boost the morale of the NTY-2011 Implementation Committee officials and tourism entrepreneurs. Tourist arrivals by land increased by almost 18 percent in 2010.
The Department of Immigration statistics show that a total of 153,757 tourists entered Nepal via land routes in 2010, against 130,634 in 2009. This figure, however, does not include the number of Indian tourists, as their arrivals by land routes are not included in the country’s tourism data.
Total arrivals—via both air and land routes—in 2010 reached over 600,000. Arrivals by air in 2010 touched an all-time high mark of 448,769. This is the first instance in 12 years that tourist arrivals crossed the 400,000 mark.
According to the department, the highest number of arrivals via land routes in 2010 was from Sri Lanka, followed by Thailand, China, South Korea, the US, and United Kingdom. A total of 44,080 Sri Lankan tourists visited Nepal via land routes last year.
Although the arrivals by land increased significantly in 2010, the figure is still smaller
than that in 2007 when 165,992 visitors
entered Nepal via land routes. Arrivals by land dropped to 125,616 in 2008, but recovered marginally in 2009.
Of the total arrivals by land, 66.37 percent of tourists entered the country through Bhairahawa. According to the department, Bhairahawa saw a whopping 106 percent rise in the arrivals as compared to last year. Arrivals through Bhairahawa, the gateway of Lumbini, amounted to 102,059 in 2010 as compared to 49,356 in 2009.
Travel trade entrepreneurs attributed this rise to the increment in the number of pilgrims. “Buddhist pilgrims in Lumbini are increasing by the day. The country has been receiving a huge number of these pilgrims who come to Lumbini after visiting Bodhgaya, Saarnath and other Buddhist shrines in India,” said Ram Kazi Koney, managing director of Gandaki Travel.
The figure shows that the tourists’ purpose of entering Nepal through Bhairahawa is to visit Lumbini, the birth place of Lord Buddha.
The pilgrim market is gaining momentum since the signing of the Comprehensive Peace Agreement between the Maoists and government. However, travel trade entrepreneurs say that Nepal is yet to tap the pilgrim market’s potential. “Thai Airways operates direct flights to Bodhgaya in India and a huge number of pilgrims are responding to Indian packages. Despite being the birthplace of Buddha, visitors end their tours in Nepal, which yields less benefit,” said Koney.
To exploit the pilgrimage tourism potential, the government has planned to develop Bhairahawa Airport as a regional international airport. The government move comes with visitors’ increasing interest in Lumbini.
Tourist arrivals by land routes in 2010
Top five source countries
Country Numbers of tourists
Sri Lanka 44,080
Thailand 20,351
China 17561
South Korea 5,015
The United States of America 3,916
Major entry points
Entry Point Numbers
Bhairahawa 102,059
Kodari 36,348
Kakarbhitta 6,064
Kanchanpur 1,247
Birgunj 1154
Source: The department of immigration
Monday, January 17, 2011
Saturday, January 15, 2011
A platform to revive tourism
SANGAM PRASAIN
KATHMANDU, JAN 13 -
After an interval of 13 years, the country is once again all set to welcome tourists in a big way. When President Ram Baran Yadav formally launches the Nepal Tourism Year (NTY) 2011 on Friday, the count of one million tourists the country plans to bring in will also kick off.
The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. That is the reason NTY organisers have invited tourism ministers of SAARC countries and the Secretary General of the United Nations World Tourism Organisation at the official launching of the NTY.
The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry. The fact that over Rs 500 million has been invested by the private sector targeting the NTY and five international airlines are waiting to start their services to Nepal and the record tourist arrivals in 2010, all show that 2011 could become a defining year for the tourism industry.
According to estimates, if one million tourists arrive in Nepal in 2011, tourism’s contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.
From hoteliers to tour operators, everyone is excited. “The Tourism Year is very important for the hotel industry,” said Vini K Gupta, general manager of Soaltee Crowne Plaza. “The average room occupancy that remained stagnant for the last two years could go up in 2011.” It is expected that the average room rate would also increase this year.
Many argue that the success of the NTY will depend on the country’s political scenario. One of them is economist Biswombher Pyakurel. “The future of Nepal’s tourism sector hinges on how leaders work to forge political consensus,” Pyakurel said.
More than the number, according to the president of Nepal Association of Tour and Travel Agents, Arjun Prasad Sharma, NTY will disseminate a positive message about Nepal in the global tourism market. “The major aim of the NTY is to send across a positive message in the international level that Nepal is ready to welcome all,” Sharma said.
According to Pyakurel, the focus should be on hosting the international community in a cordial manner in the post-conflict era rather than counting the number of visitors.
What NTY has done even before its official launch is bring back investment in the tourism sector. Not only the hotel industry, but also the aviation sector is on an expansion drive with Budhha Air even starting its international flight.
“Tourism is now becoming a major industry,” said Birendra Bahadur Basnet, managing director of Buddha Air. Other domestic air operators are also expanding their fleet for the NTY.
Investment made by the private sector has also created much-needed employment opportunities in the country. And, commercialisation of homestay in 2011 means earnings from tourism would now go to the grassroots as well. If properly handled, homestay can become one of the major features of Nepali tourism where tourists can get to know Nepal and the Nepali culture closely.
KATHMANDU, JAN 13 -
After an interval of 13 years, the country is once again all set to welcome tourists in a big way. When President Ram Baran Yadav formally launches the Nepal Tourism Year (NTY) 2011 on Friday, the count of one million tourists the country plans to bring in will also kick off.
The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. That is the reason NTY organisers have invited tourism ministers of SAARC countries and the Secretary General of the United Nations World Tourism Organisation at the official launching of the NTY.
The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry. The fact that over Rs 500 million has been invested by the private sector targeting the NTY and five international airlines are waiting to start their services to Nepal and the record tourist arrivals in 2010, all show that 2011 could become a defining year for the tourism industry.
According to estimates, if one million tourists arrive in Nepal in 2011, tourism’s contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.
From hoteliers to tour operators, everyone is excited. “The Tourism Year is very important for the hotel industry,” said Vini K Gupta, general manager of Soaltee Crowne Plaza. “The average room occupancy that remained stagnant for the last two years could go up in 2011.” It is expected that the average room rate would also increase this year.
Many argue that the success of the NTY will depend on the country’s political scenario. One of them is economist Biswombher Pyakurel. “The future of Nepal’s tourism sector hinges on how leaders work to forge political consensus,” Pyakurel said.
More than the number, according to the president of Nepal Association of Tour and Travel Agents, Arjun Prasad Sharma, NTY will disseminate a positive message about Nepal in the global tourism market. “The major aim of the NTY is to send across a positive message in the international level that Nepal is ready to welcome all,” Sharma said.
According to Pyakurel, the focus should be on hosting the international community in a cordial manner in the post-conflict era rather than counting the number of visitors.
What NTY has done even before its official launch is bring back investment in the tourism sector. Not only the hotel industry, but also the aviation sector is on an expansion drive with Budhha Air even starting its international flight.
“Tourism is now becoming a major industry,” said Birendra Bahadur Basnet, managing director of Buddha Air. Other domestic air operators are also expanding their fleet for the NTY.
Investment made by the private sector has also created much-needed employment opportunities in the country. And, commercialisation of homestay in 2011 means earnings from tourism would now go to the grassroots as well. If properly handled, homestay can become one of the major features of Nepali tourism where tourists can get to know Nepal and the Nepali culture closely.
Tourism Year revitalises hotel industry
SANGAM PRASAIN
KATHMANDU, JAN 13 -
One of the notable things that Nepal Tourism Year has done is bring back investment in the tourism sector after a long gap. Hotels are now on an expansion drive with five-star hotels in Kathmandu alone investing around Rs 500 million in 2010. Luxury hotels have also been established elsewhere in the country, mainly in Pokhara, Bhairahawa, Lumbini and Kanchanpur.
These investments make huge business sense as there is optimism in the hospitality industry after the record number of tourist arrivals in 2010. With the country targeting one million tourists in 2011 through NTY, expansion and upgradation of hotels was bound to happen.
Hoteliers say the industry has been looking for an event to boost their occupancy level. “For the last two years, the average hotel occupancy was around 70-75 percent,” said Vini K. Gupta, general manager of the Soaltee Crowne Plaza. “NTY would increase it to 80 percent.”
Kathmandu’s five-star hotels—Soaltee Crowne Plaza, Yak & Yeti, Shangri-La, Radisson, Everest, De ‘l Annapurna—all have redecorated most of their rooms. 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 Gupta, the Soaltee has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
The Radisson is adding 100 rooms. According to the hotel, the new rooms will be spacious and have contemporary looks, lighting and furniture. The hotel is planning to complete the expansion project by the first half of 2011.
The Yak & Yeti is giving a new look to 150 rooms in the Durbar Wing while the Everest has renovated 40 of its 160 rooms. The Annapurna is now working to refurbish its 150 rooms.
A number of hotels including Himalaya are busy upgrading themselves to five-star status. The Himalaya is adding 25 rooms for a total of 125 rooms.
Two new four-star hotels have come in the Capital alone. The Implementing Expert Group (IEG) has opened the Airport Hotel at Sinamangal while the Red Rose Apartment Hotel is slated to be operational by March. “We are planning to launch Red Rose Apartment by March,” said executive director Binayak Shah.
The investment drive is also visible outside Kathmandu. Nagarkot’s deluxe resort, Club Himalaya, has added ....... to make it a 75-room property.
Nepalgunj, a business hub in western Nepal, saw the opening of a four-star hotel the Siddhartha View in 2010 built with an investment of Rs 290 million. Another hotel in Nepalgunj, the Hotel Sneha, has been upgraded from one star to three stars.
A three-star property the Hotel Kasai has opened in Lumbini, one of the major destinations for Buddhist tourists. The Kasai Group of Japan has invested Rs 500 million in the 46-room hotel.
Two more three-star hotels—Hotel Opera in Kanchanpur and Hotel Ratna in Biratnagar—have upgraded themselves to three-star category.
According to the Ministry of Tourism and Civil Aviation, there has been new momentum in registering resorts in the country. Three new resorts—Sukute Beach Adventure Camp in Sindhupalchok, Balthali Village Resort and Kinnari Resort in Kavrepalanchok—received their operating licenses in 2010.
According to the Tourism Ministry, it is currently reviewing the applications of another four resorts—Narayani Resort in Nawalparasi, Pristine Paradise Tent Resort in Dhulikhel, Tiger Land Safari in Chitwan and Two River Lodge in Melamchi.
The private sector is hopeful that the huge investment will yield results. “The flourishing inbound tourism market has encouraged investors like us, and the response so far is also good,” said Shah.
Apart from expanding infrastructure, hotels are also readying their staff by providing them training.
“We are also training our staff targeting NTY 2011,” said Amir Pradhananga, sales and marketing director of the Everest Hotel. Likewise, the Hotel Soaltee is also currently giving training to its staff.
KATHMANDU, JAN 13 -
One of the notable things that Nepal Tourism Year has done is bring back investment in the tourism sector after a long gap. Hotels are now on an expansion drive with five-star hotels in Kathmandu alone investing around Rs 500 million in 2010. Luxury hotels have also been established elsewhere in the country, mainly in Pokhara, Bhairahawa, Lumbini and Kanchanpur.
These investments make huge business sense as there is optimism in the hospitality industry after the record number of tourist arrivals in 2010. With the country targeting one million tourists in 2011 through NTY, expansion and upgradation of hotels was bound to happen.
Hoteliers say the industry has been looking for an event to boost their occupancy level. “For the last two years, the average hotel occupancy was around 70-75 percent,” said Vini K. Gupta, general manager of the Soaltee Crowne Plaza. “NTY would increase it to 80 percent.”
Kathmandu’s five-star hotels—Soaltee Crowne Plaza, Yak & Yeti, Shangri-La, Radisson, Everest, De ‘l Annapurna—all have redecorated most of their rooms. 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 Gupta, the Soaltee has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
The Radisson is adding 100 rooms. According to the hotel, the new rooms will be spacious and have contemporary looks, lighting and furniture. The hotel is planning to complete the expansion project by the first half of 2011.
The Yak & Yeti is giving a new look to 150 rooms in the Durbar Wing while the Everest has renovated 40 of its 160 rooms. The Annapurna is now working to refurbish its 150 rooms.
A number of hotels including Himalaya are busy upgrading themselves to five-star status. The Himalaya is adding 25 rooms for a total of 125 rooms.
Two new four-star hotels have come in the Capital alone. The Implementing Expert Group (IEG) has opened the Airport Hotel at Sinamangal while the Red Rose Apartment Hotel is slated to be operational by March. “We are planning to launch Red Rose Apartment by March,” said executive director Binayak Shah.
The investment drive is also visible outside Kathmandu. Nagarkot’s deluxe resort, Club Himalaya, has added ....... to make it a 75-room property.
Nepalgunj, a business hub in western Nepal, saw the opening of a four-star hotel the Siddhartha View in 2010 built with an investment of Rs 290 million. Another hotel in Nepalgunj, the Hotel Sneha, has been upgraded from one star to three stars.
A three-star property the Hotel Kasai has opened in Lumbini, one of the major destinations for Buddhist tourists. The Kasai Group of Japan has invested Rs 500 million in the 46-room hotel.
Two more three-star hotels—Hotel Opera in Kanchanpur and Hotel Ratna in Biratnagar—have upgraded themselves to three-star category.
According to the Ministry of Tourism and Civil Aviation, there has been new momentum in registering resorts in the country. Three new resorts—Sukute Beach Adventure Camp in Sindhupalchok, Balthali Village Resort and Kinnari Resort in Kavrepalanchok—received their operating licenses in 2010.
According to the Tourism Ministry, it is currently reviewing the applications of another four resorts—Narayani Resort in Nawalparasi, Pristine Paradise Tent Resort in Dhulikhel, Tiger Land Safari in Chitwan and Two River Lodge in Melamchi.
The private sector is hopeful that the huge investment will yield results. “The flourishing inbound tourism market has encouraged investors like us, and the response so far is also good,” said Shah.
Apart from expanding infrastructure, hotels are also readying their staff by providing them training.
“We are also training our staff targeting NTY 2011,” said Amir Pradhananga, sales and marketing director of the Everest Hotel. Likewise, the Hotel Soaltee is also currently giving training to its staff.
Homestay hospitality with a difference
SANGAM PRASAIN
KATHMANDU, JAN 13 -
Nepal Tourism Year heralds the start of a new kind of hospitality service in the tourism sector, homestay. Originally conceived as an alternative arrangement for an expected hotel room shortage during Nepal Tourism Year, homestay could become a permanent feature of Nepali tourism.
Though planned a decade ago, last year saw the commercialisation of homestay with the government bringing regulations allowing it to operate in urban areas too. Sirubari and Ghalegaon were the pioneer villages with regard to homestay. Another reason why the government is now promoting homestay is to decentralise tourism and boost rural economies. “The encouraging number of registrations has brought additional impetus in the tourism sector,” said Uday Bhattarai, assistant manager at the Nepal Tourism Board. The government has also allocated Rs 30 million to train homestay operators.
There has been a positive response after the government brought regulations governing homestay in August 2010. The Ministry of Tourism and Civil Aviation says over 50 commercial homestay homes have been registered at the ministry and applications are coming in.
Kathmandu has more than 10 community-based and two private homestay homes. The homestay homes registered in Kathmandu have a combined capacity to accommodate over 300 tourists.
Nirajan Ghimire, section officer at the Tourism Ministry, said that Kavrepalanchok has over 26 registered community-based homestay homes. Similarly, here are 10 homestay homes operating in Chitwan, 11 in Makwanpur and 12 in Nuwakot. The ministry says districts like Gorkha, Ilam, Palpa, Syangja, Kailali and Kalikot are also opening homestay homes targeting NTY 2011.
Living in a Nepali village as a homestay guest is perhaps one of the fastest and best ways to know the real Nepal. Daily cultural activities are a major attraction of the homestay scheme. “All the homestay homes we inspected in different parts of the country have planned special events to launch NTY,” said Ghimire.
Community-based homestay involves seven to 10 homes. As per the homestay guidelines, one home can operate up to four rooms for tourist accommodation.
With a record number of tourists expected to visit Nepal in 2011, homestay operators are hoping that a larger number of them would stay with them. Hoteliers, however, are not complaining about the proliferation of homestay homes. Instead, they are now coordinating with homestay operators to provide their clients a truly Nepali experience. The private sector believes that urban homestay will be the perfect alternative arrangement for those who may not get accommodation in hotels in 2011.
Homestay operators are also hopeful that tour operators will incorporate homestay in their packages as a new product. “Homestay is a potentially good product, but adequate preparation has not been done to incorporate it in tour packages,” said Ram Kazi Koney, managing director of Gandaki Travels and Tour. According to Koney, this model can get a boost if it is incorporated in tour packages.
The Tara Gaon Development Board (TGDB) has been assigned to find unexplored destinations to develop this programme. “The NTY implementation committee and the TGDB are now working together to make homestay a professional and managed business,” said Bhattarai. The TGDB has identified some 10 potential places where homestay can be developed, he added.
KATHMANDU, JAN 13 -
Nepal Tourism Year heralds the start of a new kind of hospitality service in the tourism sector, homestay. Originally conceived as an alternative arrangement for an expected hotel room shortage during Nepal Tourism Year, homestay could become a permanent feature of Nepali tourism.
Though planned a decade ago, last year saw the commercialisation of homestay with the government bringing regulations allowing it to operate in urban areas too. Sirubari and Ghalegaon were the pioneer villages with regard to homestay. Another reason why the government is now promoting homestay is to decentralise tourism and boost rural economies. “The encouraging number of registrations has brought additional impetus in the tourism sector,” said Uday Bhattarai, assistant manager at the Nepal Tourism Board. The government has also allocated Rs 30 million to train homestay operators.
There has been a positive response after the government brought regulations governing homestay in August 2010. The Ministry of Tourism and Civil Aviation says over 50 commercial homestay homes have been registered at the ministry and applications are coming in.
Kathmandu has more than 10 community-based and two private homestay homes. The homestay homes registered in Kathmandu have a combined capacity to accommodate over 300 tourists.
Nirajan Ghimire, section officer at the Tourism Ministry, said that Kavrepalanchok has over 26 registered community-based homestay homes. Similarly, here are 10 homestay homes operating in Chitwan, 11 in Makwanpur and 12 in Nuwakot. The ministry says districts like Gorkha, Ilam, Palpa, Syangja, Kailali and Kalikot are also opening homestay homes targeting NTY 2011.
Living in a Nepali village as a homestay guest is perhaps one of the fastest and best ways to know the real Nepal. Daily cultural activities are a major attraction of the homestay scheme. “All the homestay homes we inspected in different parts of the country have planned special events to launch NTY,” said Ghimire.
Community-based homestay involves seven to 10 homes. As per the homestay guidelines, one home can operate up to four rooms for tourist accommodation.
With a record number of tourists expected to visit Nepal in 2011, homestay operators are hoping that a larger number of them would stay with them. Hoteliers, however, are not complaining about the proliferation of homestay homes. Instead, they are now coordinating with homestay operators to provide their clients a truly Nepali experience. The private sector believes that urban homestay will be the perfect alternative arrangement for those who may not get accommodation in hotels in 2011.
Homestay operators are also hopeful that tour operators will incorporate homestay in their packages as a new product. “Homestay is a potentially good product, but adequate preparation has not been done to incorporate it in tour packages,” said Ram Kazi Koney, managing director of Gandaki Travels and Tour. According to Koney, this model can get a boost if it is incorporated in tour packages.
The Tara Gaon Development Board (TGDB) has been assigned to find unexplored destinations to develop this programme. “The NTY implementation committee and the TGDB are now working together to make homestay a professional and managed business,” said Bhattarai. The TGDB has identified some 10 potential places where homestay can be developed, he added.
Prez opens Nepal Tourism Year amid lavish shindig
SANGAM PRASAIN
JAN 14 -
President Ram Baran Yadav declared Nepal Tourism Year 2011 open amid a gala event before 25,000 spectators at Dashrath Stadium on Friday.
Distinguished guests included tourism ministers from South Asian countries, members of the diplomatic corps and the secretary general of the United Nations World Tourism Organization.
Speaking at the inauguration ceremony, Prime Minister Madhav Kumar Nepal recalled the commitment made by 19 political parties on Feb. 26 not to call any strikes in 2011. "Peace and stability is of utmost importance to increase the visibility of Nepal's tourism in the international arena," he said. "The campaign has focused on doubling tourist arrivals," he added.
The government, in cooperation with the private sector, had announced NTY 2011 in 2008 in a bid to revive the country's image and generate greater employment following the end of the conflict that had marred the country's tourism industry. The government has also accorded priority to the campaign in the budget to expand infrastructure and promotional efforts.
Tourism Minister Sharat Singh Bhandari made an appeal to make the campaign a success. He said that tourism could play a vital role in bringing prosperity and mobilizing investment.
"The government has developed 'Mighty East-Wild West' as a new tourism package. Tarai tourism and the Great Himalaya Trail are other products that have been developed to attract visitors," Bhandari said. Strikes, donation drives and other undesirable activities could spread a negative message in the international community and they should be discouraged, he added.
NTY 2011 national coordinator Yogendra Shakya underscored the need to forge a common interest to promote tourism in the country. Shakya said that garnering political commitment to support tourism from all the political parties was the major achievement of the NTY implementation committee. Similarly, the commitments made by union leaders to support the campaign and by investors to invest in tourism are all positive moves that reflect the slogan "Together for tourism", he added.
The country has targeted one million tourists in 2011, double the 2010 figure. Among the projected arrivals, 700,000 are expected to come by air and the rest overland.
After an interval of 13 years, the country is welcoming tourists in a big way. The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry.
According to estimates, if one million tourists arrive in Nepal in 2011, tourism's contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.
JAN 14 -
President Ram Baran Yadav declared Nepal Tourism Year 2011 open amid a gala event before 25,000 spectators at Dashrath Stadium on Friday.
Distinguished guests included tourism ministers from South Asian countries, members of the diplomatic corps and the secretary general of the United Nations World Tourism Organization.
Speaking at the inauguration ceremony, Prime Minister Madhav Kumar Nepal recalled the commitment made by 19 political parties on Feb. 26 not to call any strikes in 2011. "Peace and stability is of utmost importance to increase the visibility of Nepal's tourism in the international arena," he said. "The campaign has focused on doubling tourist arrivals," he added.
The government, in cooperation with the private sector, had announced NTY 2011 in 2008 in a bid to revive the country's image and generate greater employment following the end of the conflict that had marred the country's tourism industry. The government has also accorded priority to the campaign in the budget to expand infrastructure and promotional efforts.
Tourism Minister Sharat Singh Bhandari made an appeal to make the campaign a success. He said that tourism could play a vital role in bringing prosperity and mobilizing investment.
"The government has developed 'Mighty East-Wild West' as a new tourism package. Tarai tourism and the Great Himalaya Trail are other products that have been developed to attract visitors," Bhandari said. Strikes, donation drives and other undesirable activities could spread a negative message in the international community and they should be discouraged, he added.
NTY 2011 national coordinator Yogendra Shakya underscored the need to forge a common interest to promote tourism in the country. Shakya said that garnering political commitment to support tourism from all the political parties was the major achievement of the NTY implementation committee. Similarly, the commitments made by union leaders to support the campaign and by investors to invest in tourism are all positive moves that reflect the slogan "Together for tourism", he added.
The country has targeted one million tourists in 2011, double the 2010 figure. Among the projected arrivals, 700,000 are expected to come by air and the rest overland.
After an interval of 13 years, the country is welcoming tourists in a big way. The campaign aims to project Nepal as a safe tourist destination and a choice of premier holidayers. The decade-long conflict has taken its toll on Nepali tourism and NTY has emerged as the perfect platform for the government and tourism entrepreneurs to revive the industry.
According to estimates, if one million tourists arrive in Nepal in 2011, tourism's contribution to the GDP will be almost 4 percent. And, the country could end up earning foreign currency worth $600 million.
Monday, January 10, 2011
NOC hints at oil price hike
International price increase has compelled NOC to incur massive losses
SANGAM PRASAIN
KATHMANDU, JAN 11 -
Nepal Oil Corporation (NOC) on Monday hinted that the price of petroleum products could increase in line with the Jan. 1 hike in the price in the international market and its continued rise.
NOC general manager Digambar Jha said that the price increment in the international market had compelled it to adjust gasoline prices with global trends.
Speaking at the 41st anniversary of NOC, Jha said that the price of oil was likely to rise to the all-time high of 2008. According to Jha, crude oil in the international market was over US$ 90 per barrel and is likely to cross US$ 100 per barrel soon due to rising fuel demand worldwide.
Crude oil saw an all-time high of US$ 147.27 per barrel on July 11, 2008. The heavy increase in the price in the international market was reflected in domestic prices with petrol costing Rs 100 per litre, diesel Rs 70 litre and kerosene Rs 65 litre in 2008.
The state-owned monopoly said that the price increase since Dec. 1 had compelled it to incur massive losses. “NOC has been incurring losses of Rs 650 million each month since Jan. 1,” Jha added. He said that NOC was not in a position to bear such heavy losses as it was already reeling under outstanding dues worth a hefty Rs 11 billion. “If the government does not consider the issue, there is a chance of rampant smuggling and black marketing that could lead to severe fuel shortages.”
Minister for Commerce and Supply Rajendra Mahato said that the government had adopted a scientific price determining policy and NOC had been entrusted with revising the price based on the international market.
However, social and political pressures had made it difficult to implement the policy. “The government should think about providing subsidies to people who cannot afford to run their household in line with the increased oil price,” he said.
Secretary at the Commerce and Supply Ministry Purushottam Ojha also pointed out that prices could climb back to 2008 levels. “If the price is not adjusted in time, the problem that emerged in 2008 might resurface,” he said.
However, petroleum dealers complained that it was not only rising international prices that has induced NOC to hike gasoline prices. “Unchecked irregularities in the corporation and inadequate reform policy have forced consumers to pay the cost ultimately,” said Saroj Pandey, president of the Nepal Petroleum Dealers Association.
He added that NOC should include the private sector in its discussions to make any deal more transparent. “Bankruptcy or collapse of NOC means it will hurt the entrepreneurs who have
invested millions in the sector. Therefore, NOC should be more professional to become sustainable,” Pandey said.
Petroleum Product increasing demand
Fiscal Year Imports in KL Value in Billions
2005-06 748,935 Rs 31.95
2006-07 754,882 Rs 32.46
2007-08 723,704 Rs 38.93
2008-09 892,562 Rs 39.80
2009-10 1,050,318 Rs 50.26
(Source: NOC)
Sunday, January 9, 2011
No let-up in casino operators’ woes
Govt rejects request to extend royalty repayment deadline
SANGAM PRASAIN
KATHMANDU, JAN 10 -
The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday turned down casino operators’ request to extend the royalty payment deadline. The operators had also demanded that they be allowed to repay in installments.
Casino operators had put up the demand after the Parliament’s Public Accounts Committee (PAC) On Dec. 29, 2010 issued directives to the government to scrap the licences of casinos failing to clear their dues within 35 days.
Pressure further mounted on casinos after Finance Minister Surendra Pandey said at a PAC meeting that the country does not require casinos as they do not pay royalty to the government, rent to the hotels and salary to their workers.
As per the PAC directives, The Department of Revenue Investigation (DRI) on Jan. 8 issued a public notice to Casino Anna, Casino Nepal, Casino Shangri La, Casino Tara, Casino Royale, Casino Venus, Casino Radd, Casino Fulbari and Casino Grand to repay their royalty dues within 35 days.
A meeting between the tourism ministry, DRI, Inland Revenue Department (IRD), Customs Department and casino operators on Sunday decided not to consider the casinos’ request, but follow the PAC directive strictly.
According to a DRI official, representatives of casinos operators, who were present on Sunday’s meeting, requested the ministry to extend the repayment deadline and allow them to repay on installment basis. In response, the ministry said the request could not be considered and they have to repay their outstanding dues within the given timeline or close operations.
“We (the ministry) cannot ignore the PAC decision,” said Laxman Prasad Bhattarai, the tourism ministry spokesperson.
In the meeting, the ministry also endorsed a decision to scrap the licences of the casinos allowing entrance to Nepalis. The PAC had also instructed the government to scrap the licences of those casinos allowing in Nepalis. “Apart from recovering royalties and restricting entrance to Nepalis, the tourism ministry will also regularly monitor casinos,”
said Bhattarai.
The ministry has started preparing directives for casinos, which would be finalised within a couple of months.
The PAC had instructed the government to draft a regulatory framework
and guidelines for the operation of casinos. “After preparing the directives, all stakeholders related to casinos will be invited for a broad consultation. The Cabinet will then endorse the guidelines,” said Bhattarai.
The government has been on a mission to recover royalty dues from the casinos for the last three months. Only a few casinos have made partial payments. Casinos under the Nepal Recreation Centre owned by Rakesh Wadhwa have not made any payment. Wadhwa has been absconding ever since the police issued an arrest warrant against him.
The government has entrusted the DRI with the responsibility of recovering dues from casinos. Casinos so far have paid around Rs 30 million in dues. However, they still owe Rs 193 million.
Of late, the government has been making efforts to recover the casino dues, with police conducting raids and revenue administration authorities summoning casino operators.
SANGAM PRASAIN
KATHMANDU, JAN 10 -
The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday turned down casino operators’ request to extend the royalty payment deadline. The operators had also demanded that they be allowed to repay in installments.
Casino operators had put up the demand after the Parliament’s Public Accounts Committee (PAC) On Dec. 29, 2010 issued directives to the government to scrap the licences of casinos failing to clear their dues within 35 days.
Pressure further mounted on casinos after Finance Minister Surendra Pandey said at a PAC meeting that the country does not require casinos as they do not pay royalty to the government, rent to the hotels and salary to their workers.
As per the PAC directives, The Department of Revenue Investigation (DRI) on Jan. 8 issued a public notice to Casino Anna, Casino Nepal, Casino Shangri La, Casino Tara, Casino Royale, Casino Venus, Casino Radd, Casino Fulbari and Casino Grand to repay their royalty dues within 35 days.
A meeting between the tourism ministry, DRI, Inland Revenue Department (IRD), Customs Department and casino operators on Sunday decided not to consider the casinos’ request, but follow the PAC directive strictly.
According to a DRI official, representatives of casinos operators, who were present on Sunday’s meeting, requested the ministry to extend the repayment deadline and allow them to repay on installment basis. In response, the ministry said the request could not be considered and they have to repay their outstanding dues within the given timeline or close operations.
“We (the ministry) cannot ignore the PAC decision,” said Laxman Prasad Bhattarai, the tourism ministry spokesperson.
In the meeting, the ministry also endorsed a decision to scrap the licences of the casinos allowing entrance to Nepalis. The PAC had also instructed the government to scrap the licences of those casinos allowing in Nepalis. “Apart from recovering royalties and restricting entrance to Nepalis, the tourism ministry will also regularly monitor casinos,”
said Bhattarai.
The ministry has started preparing directives for casinos, which would be finalised within a couple of months.
The PAC had instructed the government to draft a regulatory framework
and guidelines for the operation of casinos. “After preparing the directives, all stakeholders related to casinos will be invited for a broad consultation. The Cabinet will then endorse the guidelines,” said Bhattarai.
The government has been on a mission to recover royalty dues from the casinos for the last three months. Only a few casinos have made partial payments. Casinos under the Nepal Recreation Centre owned by Rakesh Wadhwa have not made any payment. Wadhwa has been absconding ever since the police issued an arrest warrant against him.
The government has entrusted the DRI with the responsibility of recovering dues from casinos. Casinos so far have paid around Rs 30 million in dues. However, they still owe Rs 193 million.
Of late, the government has been making efforts to recover the casino dues, with police conducting raids and revenue administration authorities summoning casino operators.
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