Saturday, February 5, 2011

Janakpur airport to go international by 2012

SANGAM PRASAIN

KATHMANDU, FEB 05 -

The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.

The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.

Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.

Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.

The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.

Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.

Domestic airfares to go up 13-49 pc

SANGAM PRASAIN

KATHMANDU, FEB 05 -

The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).

Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.

MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.

“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.

Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.

On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.

Proposed Airfare by CAAN (excluding fuel surcharge)


Tourism Sector
existing (in Rs) proposed (in Rs) up (in %)

Kathmandu-Mountain 4,616 7,172 28

Kathmandu-Lukla 2,355 3,227 17

Kathmandu-Bharatpur 1,635 2,241 13

Kathmandu-Pokhara 2,420 3,317 16

Kathmandu-Jomsom 3,402 4,662 16

Long-Haul

Kathmandu-Biratnagar 4,273 5,020 17

Kathmandu-Janakpur 2,352 2,689 14

Kathmandu-Bhairahawa 3,680 4,303 17

Kathmandu-Dhangadhi 7,758 9,234 19

Kathmandu-Nepalgunj 5,742 6,813 19

Kathmandu-Bhadrapur 5,309 6,275 18

Kathmandu-Surkhet 6,465 7,530 16

Remote Sector

Biratnagar-Bhojpur 1,329 1,972 48

Biratnagar-Tumlingtar 1,507 2,241 49

Biratnagar-Lamidanda 1,635 2,421 48

Biratnagar-Rumjatar 1,812 2,689 48

Biratnagar-Phaplu 2,117 3,138 48

Nepalgunj-Dolpa 2,304 3,407 48

Nepalgunj-Bajhang 2,541 3,765 48

Nepalgunj-Bajura 2,363 3,496 48

Nepalgunj-Simikot 3,151 4,662 48

Nepalgunj-Jumla 2,363 3,496 48

Thursday, February 3, 2011

Fuel shortage may ‘prolong’

SANGAM PRASAIN
KATHMANDU, FEB 04 -

Demand for petrol and diesel in the Kathmandu Valley, of late, has jumped up considerably. Increased load-shedding hours, fuel hoarding and the Nepal Oil Corporation (NOC)’s inability to supply even half of the Capital’s demand are some of the reasons behind the latest rise in gasoline demand.

According to NOC and petroleum dealers, demand for petrol in Kathmandu surged to above 400 kiloliters (KL) per day from earlier 250 KL and diesel to over 500 KL per day from 350 KL.

Nepal Petroleum Dealers’ Association (NPDA) on Thursday recorded a sale of 350 KL of petrol and 500 KL of diesel. “Sales record shows that demand has increased dramatically,” said Saroj Pandey, president of NPDA, adding that gasoline shortage might prolong if NOC fails to import adequate amount.

The ongoing shortage has compelled NOC to resume its Thankot depot services during public holiday too. “We are opening Thankot depot on Friday to ensure smooth supply,” said Mukunda Dhungel, spokesperson for NOC. Dhungel said supply is improving, but not easing.

However, NPDA said NOC does not have enough stock in its depot. Thankot depot fulfils Kathmandu Valley’s demand for four days. Normally, diesel demand increases with increase in load-shedding hours, as a huge number of businesses and industrial firms rely on diesel-run generators during outage hours. However, rise in petrol demand is artificial, said Dhungel. “It is due to hoarding,” he said.

Another factor responsible for the latest gasoline shortage is rise in fuel prices in international market. This has compelled NOC to incur Rs 970 million losses every month, said an NOC official.

The finance ministry has approved a loan worth Rs 1.30 billion to NOC to ensure that NOC does not hike fuel prices for at least two months. The amount is yet to be released, though.

The Indian Oil Corporation (IOC) is providing petroleum products to Nepal on credit. Earlier, IOC had stopped credit facilities in the wake of huge outstanding dues and NOC’s inability to make timely payment, the official said.

“The reason behind all these problems is the government’s reluctance to adopt a scientific price revision system in line with international market,” added Pandey.

On Dec. 6, the oil monopoly had hiked major petroleum products’ prices. The NOC had again planned to hike fuel prices; however, wide criticism from consumer rights activists and political parties, among others, prompted the government to stop NOC’s fuel price hike plan.

According to a source, IOC is planning to curtail petroleum export to Nepal significantly, as India itself has been coping with fuel shortage.

Wednesday, February 2, 2011

PAC to govt: Explore possibility of moving casinos out of Kathmandu

SANGAM PRASAIN


KATHMANDU, FEB 03 -

Continued defiance by casinos of government orders to clear their royalty dues and bar Nepalis from entering their premises has prompted the parliamentary Public Accounts Committee (PAC) to issue the sternest directives against them till date.

PAC on Wednesday even asked the government to explore the possibility of relocating the gambling houses outside the Kathmandu Valley. Stating that the haphazard running of casinos in the Capital has made negative impact on the society, the PAC directed the government to relocate them outside the Capital.

PAC has instructed the Ministry of Tourism and Civil Aviation (MoTCA) to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.

With the casinos still running without a Casino Act, the committee has also instructed the government to prepare laws governing casinos at the earliest. “As of now, we do not have any act that says that it is illegal for Nepalis to enter a casino. The terms of reference (TOR) while issuing licenses for casinos only has a condition applied to operators that they will not allow Nepali into their casinos,” said home secretary Govinda Kusum.

PAC has also directed the government to explore the possibility of shifting the casinos out of the Kathmandu Valley. Inspector General of Police Ramesh Chand Thakuri supports the plan to move the casinos out of Kathmandu. “Relocating casinos from the capital could be an option to regulate and manage them well,” said Thakuri.

Finance Secretary Rameshwor Khanal was also in favour of relocating casinos outside the Capital. “Instead of running casinos without guidelines in the Capital, they can be relocated to a location that can be developed into casino hub,” said Khanal. “Las Vegas of the US and Macau are some examples of casino hubs.”

In order to curb illegal entry of Nepali citizens, the Nepal Police had proposed to the Home Ministry to relocate the casinos to the outskirts of the capital from downtown.

Following the proliferation of electronic gaming clubs (mini-casinos) outside Kathmandu, PAC has asked the government to shut them down. Of late, star hotels outside Kathmandu have been running such gaming clubs. And a number of them were even inaugurated by Tourism Minsiter Sharat Singh Bhandari. The onsite inspection of MoTCA had found that mini-casino at Hotel Sneha, Nepalgunj, had flouted the norms. “We’ve found that the casino is being run against the spirit of the license,” said Tourism Secretary Kishore Thapa. “The ministry has taken this issue seriously.”

These “mini-casinos” were given licenses without consulting other ministries. Finance secretary Rameshwor Khanal said that the MoTCA issued licenses for mini-casinos two years ago without consulting them. “We have forwarded a letter to the MoTCA stating that issuing licenses unilaterally was not right,” Khanal said.

A minister-level decision of the MoTCA allowed the operation of electronic gaming clubs, but these clubs have upgraded themselves to mini-casinos. Tourism secretary Kishore Thapa has admitted to this.

Despite the constant pressure of revenue authorities, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues. PAC on Dec. 29, 2010 had issued directives to the government to scrap the licenses of casinos failing to clear their dues within 35 days. This deadline will end on Feb. 11. It is still not clear whether the government will go for cancelling their permits.

As of now, these four casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.

If the casinos do not pay up, the government is mulling seizing their land and property. “The ministry could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre if it fails to clear the dues by the time limit,” said Khanal.

Lawmakers on Wednesday asked the government to be serious about the casino issue. Stating that frequent raids by the police could frighten away tourists, UML lawmaker Rabindra Adhikari said that casino operators should be made more accountable.

Tourism secretary Kishore Thapa said that the frequent raids and arrests in hotels have terrorised tourists. “If casinos are important for Nepali tourism, then they should be properly managed; if not, they should be closed,” Thapa said. If the government decides to shut them down, it should be done gradually as around 10,000 people are currently employed in this business, he added.

PAC has also asked the Home Ministry to amend the Gambling Act.

NTY wagon picks up pace, arrivals up 26 pc

SANGAM PRASAIN

KATHMANDU, FEB 02 -

Nepal welcomed 32,914 tourists in the first month of 2011, a gain of 26.2 percent compared to the same period last year. The first month of the Nepal Tourism Year 2011 campaign saw an increase of 6,843 visitors.

Tourism entrepreneurs have attributed the growth to improved air connectivity. According to the government’s tourist arrival figures, Nepal recorded significant inbound growth from the major targeted markets, India and China. Indian arrivals were up 35.5 percent to 7,905 while arrivals from China saw a robust growth of 79.6 percent. Total Chinese arrivals amounted to 3,203 as against 1,783 in the same period last year. Indian and Chinese arrivals made up 24 percent and 9.7 percent of the total arrivals.

Nepal has targeted the northern and the southern neighbours as major markets during Nepal Tourism Year. Projected arrivals from India and China are 265,000 and 100,000 respectively.

“The significant growth in Chinese and Indian tourists can be attributed to increased air accessibility. Despite the poor performance of the national flag carrier, international airlines serving Nepal have upgraded their aircraft and increased their flight frequencies,” said Ram Kazi Koney, a tourism entrepreneur.

China Eastern and China Southern have also increased their flight frequencies leading to a growth of Chinese tourists in Nepal, Koney said.

Similarly, arrivals from South Korea amounted to 2,720, up 20.3 percent. South Korean tourists made up 8.3 percent of the total arrivals.

Following the signing of a peace accord between the Maoists and the government in 2006, the number of Buddhist pilgrims from East Asia has risen. Arrivals from Malaysia, Singapore, Thailand, Japan and South Korea have also been increasing. “Korean Air has doubled its flight frequency to two weekly which has also contributed to the growth in Korean arrivals,” said a travel trade entrepreneur.

In the South Asian region, arrivals from Bangladesh and Pakistan registered a 10.3 percent and 13.3 percent growth respectively. However, arrivals from Sri Lanka declined by 47.5 percent. On aggregate, the South Asian segment registered a growth of 28.8 percent.

Arrivals from Asia excepting South Asia have also recorded a growth of 36.6 percent with all the markets showing improved performance. Arrivals from Japan, Malaysia, Singapore, Thailand and South Korea increased by 8.2 percent, 51.9 percent, 29.1 percent, 3.2 percent and 20.3 percent respectively. The European market saw an overall growth of 14.6 percent. Arrivals from the UK, Germany, the Netherlands and Russia were up 7.5 percent, 35.3 percent, 48.9 percent and 40.3 percent respectively. However, arrivals from France, Italy and Switzerland declined by 17.4 percent, 5.0 percent and 5.5 percent respectively compared to the same month last year.

Tourist arrivals from Australia, New Zealand and Canada have also registered robust growths of 23.8 percent, 59.7 percent and 9.8 percent respectively. Meanwhile, arrivals from the US increased by 27.6 percent to 2,446, making up 7.4 percent of the total arrivals.

Nepal has been enjoying sustained growth in international visitor arrivals since June 2009. These figures reflect rising confidence among visitors and tour operators to Nepal. The country saw a very strong surge in international visitors in 2010. The year-end growth for Nepal was 18.8 percent.

Monday, January 31, 2011

PAC to jump at NOC jugular

SANGAM PRASAIN

KATHMANDU, FEB 01 -

The parliamentary Public Accounts Committee (PAC) formed a seven-member subcommittee on Monday to prepare a report on Nepal Oil Corporation’s price adjustment, fuel transportation system, financial audit and capability to maintain adequate fuel stocks at its depots should an emergency occur.

Constituent Assembly member Dhan Raj Gurung is coordinator of the subcommittee which plans to prepare the report within one month. PAC has put the state-owned oil monopoly under its scanner following widespread criticism from consumers, consumer rights activists and political parties over its irregularities and reluctance to conduct organizational reforms.

Lawmakers had been urging NOC to implement a scientific price adjustment policy to match international market prices. They have also asked NOC to put up public signs showing the price of fuel in Kathmandu and other districts for greater transparency.

Another major issue concerning NOC is the low capacity of its depots. NOC has been told to expand the capacity of its depots to stock petroleum for at least four months. “NOC needs to develop strategic depots to stock fuel enough for at least three-four months in case of political turmoil, strikes and other natural calamities,” said lawmaker Prakash Chandra Lohani.

Transportation and NOC’s annual audit report are other issues pointed out by the lawmakers. PAC had directed NOC to submit by January 24 its financial details for the last three years and the quantity of petroleum products imported.

The committee had summoned NOC officials and Finance Ministry officials to grill them about oil imports, NOC’s plan for organizational reforms and irregularities.

The fuel price disparity between Nepal and India is another issue. According to NOC, the recent price hike by Indian Oil Corporation (IOC) has made gasoline cheaper in Nepal.

NOC said that petrol and aviation fuel cost Rs 10 less in Nepal compared to India which could encourage smuggling. “Prices in Nepal and India should not differ by more than 10 percent,” said Lohani.

Saturday, January 29, 2011

India, China both flexible over Himalaya 2 air route

SANGAM PRASAIN
KATHMANDU, JAN 29 -

India and China have shown flexibility in allowing Nepal to use the Himalaya 2 air route that connects Kathmandu with Bagdogra, Guwahati, Silchar, Imphal and Kunming.

As per the letter of agreement (LOA) on air routes signed between China and India in September 2009 and ATS coordination procedures, Nepal has been permitted to use this airspace (excluding military bases) over India. Meanwhile, the Chinese government has been reviewing Nepal’s proposal.

“However, a bilateral memorandum of understanding on a specific airspace is yet to be signed between Nepal and India, and concurrence from Indian defence authorities is in progress,” said Ram Prasad Neupane, director general of the Civil Aviation Authority of Nepal (CAAN).

With regard to permission from the Chinese side, Nepal’s proposal is being reviewed. “Further process will begin after a government-to-government deal,” Neupane said. Apart from the ongoing development on the Himalaya 2 route, CAAN is also in the process of finalizing the Kathmandu-Lhasa B345 route up to Beijing and Shanghai in the context of signing a letter of agreement with China on ATS coordination procedures.

If the route is opened, it will be the shortest route to China and the Far East and to the Middle East and Europe from Nepal and the Indian subcontinent. The air distance from Kathmandu to Hong Kong will also be reduced.

The existing route via Bangladesh is 1,770 nautical miles while the proposed route via Imphal is 1,669 nautical miles. The distance can be further reduced by 35 nautical miles if direct routing from Kathmandu to Kunming can be done, said CAAN. According to CAAN, Nepal has proposed three air routes—Himalaya 1 (Bangkok-Kolkata-Nepalgunj-Indek in Pakistan), Himalaya 2 and Himalaya 3—at different ICAO meetings and other forums. Among them, the most beneficial route is Himalaya 2, but it is one which requires much effort by Nepal to get India and China to agree.

“We admit that there are several issues regarding defence and technical barriers in China. However, China is moving towards a liberal aviation economy, which could be positive for Nepal as well,” Neupane said. The government should deal through diplomatic channels to make it happen, he added.

The L626 route that links Kathmandu-Mahendranagar-Pantanagar-Delhi has been operational since November 2009. It took nearly seven years for the airway to be opened. The International Air Transport Association (IATA) has kept the Himalaya 2 airspace as a future requirement. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal.

CAAN expects that Cathay Pacific, Qatar Airways, Saudi Arabian Airlines, Nepal Airlines, Dragon Air, China Southern and Air Hong Kong among other international carriers will be direct beneficiaries.

“We have raised the implementation of Himalaya 2 at many international forums at different times. IATA and the International Civil Aviation Organization has appreciated the proposal and assured us their fullest cooperation in its implementation,” said Neupane. Moreover, implementation of the route will help environment protection with less carbon emission. Rising fuel costs, increasing air traffic congestion and increased emissions are growing concerns in international air transport presently, said Neupane. These routes will reduce congestion of westbound traffic flows across the Bay of Bengal.

CAAN officials said that access to international airspace would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. According to them, international air accessibility had changed the face of Southeast Asia over the period 1979-97. The proposed route could establish Nepal as an international transit point. The second international airport that the government has planned to construct in Nijgadh would be the greatest beneficiary.

For the past several years, Nepal has been focusing on promulgation of international routes across the Himalaya to establish an air corridor across a considerable part of Nepali airspace.