Sunday, February 13, 2011
The penny drops
Eight casinos which have not paid their dues are to be shut down
SANGAM PRASAIN
KATHMANDU, FEB 14 -
The axe has finally fallen. Eight casinos which have been delinquent in paying their royalties are on track to lose their operating licenses.
The Department of Revenue Investigation (DRI) on Sunday wrote to the Tourism Ministry to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
After the stipulated time limit ran out on Friday, the department dispatched a formal letter to the ministry recommending action against the eight gambling houses as per the directives of the parliamentary Public Accounts Committee (PAC). With the DRI’s latest move, the eight casinos are virtually set to lose their licenses.
“We sent a letter to the Tourism Ministry on Sunday recommending that it scrap the operating licenses and close down the eight casinos that have failed to clear their outstanding royalties and dues to the government,” said DRI director general Mahesh Dahal.
Of the 10 casinos currently operating in the country, only two—Casino Tara at the Hotel Hyatt Regency and Casino Everest at the Hotel Everest—have cleared their dues.
PAC had directed the government on Dec. 28 to scrap the operating licenses of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos telling them to either clear their dues or face cancellation of their operating licenses.
Following PAC’s directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year. According to Dahal, the operators of these three casinos had pledged to pay the remaining Rs 10.08 million within two months.
Likewise, Casino Shangri-La and Casino Royale paid the royalty and fines for the current fiscal year, but didn’t make payments of the previous year. The management of Casino Shangri-La, according to Dahal, had argued that the royalties and dues of earlier fiscal years were accumulated by Nepal Recreation Centre (NRC), its previous operator.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite the constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
Following the DRI’s letter, tourism secretary Kishore Thapa said that the ministry would take action against the casinos based on the directives of PAC. “As per PAC’s directive, we must initiate action against them,” said Thapa.
As per the Finance Bill, casinos that fails to clear their royalties by mid-January would lose their operating licenses. “Their licenses will be automatically scrapped if they fail to clear their royalties by mid-January as per the Finance Bill,” said a senior official at the Finance Ministry.
“Those whose licenses have been scrapped should go for a new process to acquire licenses.” Finance Ministry officials said the government could recover the dues of from defaulting casinos by confiscating their properties. The government, through the new budget, has made compulsory renewal of casino licenses and annual licenses.
The government from the last six months has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act.
Getting into the swing of things
SANGAM PRASAIN
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
KATHMANDU, FEB 11 -
Golf tourism has been gaining momentum in the country with international enthusiasts flocking to its all year round courses despite lack of government support.
Nepal’s mountainous and tropical backdrops make for endless golfing options for any season, and the niche product is attracting more tourists, said golf experts.
Statistics of Gokarna Forest Resort, which boasts an exclusive par 72 golf course, show that an increasing number of foreign tourists are visiting Nepal to play golf. Around 8,000 tourists played golf at the resort in 2010, an increase of over 50 percent from 5,300 golf tourists in 2009. The resort plans to increase the number of golfers through different promotional activities.
“Focusing on Nepal Tourism Year, we have planned two events. We plan to invite prominent persons as golf ambassadors from different countries, and two upcoming events, Surya Nepal Masters and Everest Golf Challenge, will be dedicated to NTY,” said Deepak Acharya, a professional golfer and golf director of Gokarna Forest Resort.
Acharya added that the resort was currently making an international tour with Nepal professional golfers in the Middle East, Malaysia, Thailand, China, Korea and other destinations for the promotion of golf in Nepal. “The tour is expected to be one of the major promotional events to promote this tourism product,” Acharya said.
The Nepal Golf Association (NGA) is also working on organizing a four-day golf tournament in September this year to mark World Tourism Day and support NTY. “The contest will see participants from over 20 countries,” said Tashi Ghale, president of the NGA.
The increasing attraction of tourists towards golf has also boosted investment in the sector. Himalayan Golf Club in Pokhara is upgrading its golf course to 18 holes. Golfers said that golf tourism was booming in Southeast Asia as a niche tourism product that could help any country to showcase other tourism attractions and attract foreign tourists in the off-season also.
“We met tourism secretary Kishore Thapa a week ago and we have been assured that the government would support golf tourism,” said Ghale. He added that the NGA had sent a letter for the promotion of golf three times to the Nepal Tourism Board but there has been no reply.
With tourists expected to grow in the next few years, golf could be an attractive product for Nepal to meet the need of the visitors said Ghale. He added that Nepal’s golf courses were not of international standard. Nepal needs at least three (18-hole) golf courses. “If the government provides land, investors are willing to invest in golf in Nepal.”
As of now, there are seven golf courses in the country, four of them outside of the Kathmandu Valley. According to golf experts, golf tourists spend on an average US$ 400-500 per day, roughly seven times more that what an average tourist spends.
According to them, 52 percent of travelling golfers are likely to take two or more golfing holidays in a year, and they spend on an average 33 percent more on their holidays compared to regular holidaymakers.
Golf is a different segment business, and it needs different marketing tools in the international arena, said Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents. “Golf tourism has huge potential in Nepal as high-end tourists from across the world are the major customers of this sports tourism activity.”
Although the National Tourism Council (NTC) of Nepal has highlighted developing golf tourism as a potential tourism product, no efforts have been made by the Tourism Ministry, said Ghale. The NGA has proposed setting up training centres, but the ministry was not interested.
The golf courses in the country are Gokarna Forest Golf Resort (18 holes), Kathmandu, Nepal Golf Club (9 holes), Kathmandu, Himalayan Golf Course (9 holes), Pokhara, Yeti Golf Club (9 holes) Pokhara, Nirvana Country Club (9 holes), Dharan, CG Golf Course (9 holes), Nawalparasi and Nepal Army Golf Club in Kathmandu.
Experts said that China and India have realized the potential of golf tourism and every year new golf courses are constructed. In China, they have started diverting their concern from agriculture to sports tourism, specifically golf courses, as it makes good economic and employment sense.
Pay up Deadline ends; six casinos cough up dues
SANGAM PRASAIN
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
KATHMANDU, FEB 11 -
With the deadline to clear their dues ending Friday, six casinos paid royalty to the government on Friday.
The casinos paid Rs 43.1 million in royalties and dues of the current and last fiscal year. However, eight casinos still owe Rs 355 million to the government.
On Dec. 28, the Parliament’s Public Accounts Committee (PAC) had given a 35-day deadline to the government to recover the dues and had directed it to scrap the licences of casinos that fail to pay the dues.
On Friday, Casino Tara at the Hyatt settled its Rs 1.71 million dues for the current fiscal year. According to the Department of Revenue Investigation (DRI), only two casinos—Casino Everest and Casino Tara—have cleared all their dues.
Casino Rad, Casino Venus and Casino Grand also paid their royalty—Rs 5 million each—for the current fiscal year. However, these three casinos still owe Rs 10.8 million as interest of the current fiscal year, according to the DRI. Earlier, these three casinos had paid Rs 15 million each as royalty. Likewise, Casino Fulbari in Pokhara paid Rs 2 million on Friday.
Similarly, Casino Shangri-La at Hotel Shangri-La paid Rs 24 million for the current fiscal year. It paid the royalty and interest of only the current fiscal year as Hotel Shangri-la had taken over the casino only this year after Rakesh Wadhwa, who used to own it, failed to pay the rental dues. However, the casino still has Rs 25.9 million dues of the previous year.
Despite revenue enforcement agencies’ constant pressure, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Both the casinos are being run by Wadhwa who is still absconding. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The DRI says it will formally write a letter to the Ministry of Tourism on Sunday asking it to take action against those who failed to clear their total dues. According to Mahesh Dahal, director general of the DRI, eight casinos might face action.
“We will recommend action against those casinos who failed to clear their full dues on Sunday,” said Dahal.
Thursday, February 10, 2011
Casinos not paying their dues likely to be shut down
SANGAM PRASAIN
KATHMANDU, FEB 11 -
With Parliament’s Public Accounts Committee (PAC)’s 35-day deadline to the government to recover outstanding royalties from casinos ending on Friday, tough action is on the cards against casinos who have defied the government.
The Department of Revenue Investigation (DRI), which is handling casino royalty row, is expected to recommend the tourism ministry to scrap operating licenses of casinos who fail to clear their dues by Friday. “We will wait till 3 pm on Friday.
If casinos failed to clear their dues, we will recommend the ministry to scrap their licenses and shut them,” said Mahesh Dahal, director general of the DRI.
As of now, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues of the last fiscal year. These casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.
As per the new finance bill, casinos have to pay their royalty in advance by mid-September. However, they can pay it by Mid-November with 15 percent additional charges. Those who have failed to pay royalty for the current fiscal year will also feel the heat henceforth.
According to the DRI, Casino Everest at the Everest Hotel has paid all its dues and royalties for the current fiscal year. Casino Tara at the Hyatt has paid its royalties for the current fiscal year, but has been behind in paying interest. Three casinos—Casino Rad, Casino Venus and Casino Grand—each have paid Rs 15 million as royalty for the current fiscal year. “These casinos together still owe Rs 15 million as royalty,” said Dahal.
The new budget has made it mandatory to get casino operating license renewed every year. However, casinos have to clear their royalty—Rs 20 million—for license renewal.
Fearing that the government would issue another notice making hotels, where the casinos are housed, liable for the outstanding dues, Hotel Association Nepal (HAN) had forwarded a request to tourism ministry on Feb. 7 to consider hotels until the end of the Nepal Tourism Year.
“We have also requested the ministry to entrust the responsibility to HAN if the government fails to recover dues from Nepal Recreation Centre owned by Rakesh Wadhwa,” said Madhav Om Shrestha, executive director of HAN. Wadhwa has been in hiding since the police issued an arrest warrant against him.
Wadhwa is still operating Casino Everest, Casino Anna and Casino Tara. “We have requested PAC to take action against Wadhwa who operates casinos in Goa also by contacting the India authorities,” Shrestha said. Apart from the dues issues, other issues could be settled after the implementation of the casino guidelines or act, HAN said.
The government could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre. The government has been taking a tough stance against casino operators since the last four months, pressuring them to clear their royalty dues.
With the haphazard running of casinos and their increasing negative impact on society, PAC has even asked the government to explore the possibility of relocating them outside the Kathmandu Valley recently.
Last week, PAC instructed the Tourism Ministry to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
KATHMANDU, FEB 11 -
With Parliament’s Public Accounts Committee (PAC)’s 35-day deadline to the government to recover outstanding royalties from casinos ending on Friday, tough action is on the cards against casinos who have defied the government.
The Department of Revenue Investigation (DRI), which is handling casino royalty row, is expected to recommend the tourism ministry to scrap operating licenses of casinos who fail to clear their dues by Friday. “We will wait till 3 pm on Friday.
If casinos failed to clear their dues, we will recommend the ministry to scrap their licenses and shut them,” said Mahesh Dahal, director general of the DRI.
As of now, four casinos—Casino Anna, Casino Shangri-La, Casino Nepal and Casino Fulbari—haven’t cleared their royalty dues of the last fiscal year. These casinos owe Rs 188.83 million in royalty dues to the government. Of them, Casino Anna, Casino Nepal and Casino Shangri-La have not paid any money.
As per the new finance bill, casinos have to pay their royalty in advance by mid-September. However, they can pay it by Mid-November with 15 percent additional charges. Those who have failed to pay royalty for the current fiscal year will also feel the heat henceforth.
According to the DRI, Casino Everest at the Everest Hotel has paid all its dues and royalties for the current fiscal year. Casino Tara at the Hyatt has paid its royalties for the current fiscal year, but has been behind in paying interest. Three casinos—Casino Rad, Casino Venus and Casino Grand—each have paid Rs 15 million as royalty for the current fiscal year. “These casinos together still owe Rs 15 million as royalty,” said Dahal.
The new budget has made it mandatory to get casino operating license renewed every year. However, casinos have to clear their royalty—Rs 20 million—for license renewal.
Fearing that the government would issue another notice making hotels, where the casinos are housed, liable for the outstanding dues, Hotel Association Nepal (HAN) had forwarded a request to tourism ministry on Feb. 7 to consider hotels until the end of the Nepal Tourism Year.
“We have also requested the ministry to entrust the responsibility to HAN if the government fails to recover dues from Nepal Recreation Centre owned by Rakesh Wadhwa,” said Madhav Om Shrestha, executive director of HAN. Wadhwa has been in hiding since the police issued an arrest warrant against him.
Wadhwa is still operating Casino Everest, Casino Anna and Casino Tara. “We have requested PAC to take action against Wadhwa who operates casinos in Goa also by contacting the India authorities,” Shrestha said. Apart from the dues issues, other issues could be settled after the implementation of the casino guidelines or act, HAN said.
The government could confiscate three ropanis of land and a house at Kalimati which is under the name of Nepal Recreation Centre. The government has been taking a tough stance against casino operators since the last four months, pressuring them to clear their royalty dues.
With the haphazard running of casinos and their increasing negative impact on society, PAC has even asked the government to explore the possibility of relocating them outside the Kathmandu Valley recently.
Last week, PAC instructed the Tourism Ministry to draft a working procedure for casinos within 15 days in consultation with the Home and Finance ministries and implement it.
Wednesday, February 9, 2011
Soaltee, Tara Gaon report increased Q2 profits
SANGAM PRASAIN
KATHMANDU, FEB 09 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 74.59 million and Rs 97.1 million respectively for the second quarter (July 17-Dec. 31) of the current fiscal year.
The first quarter profit of the Soaltee amounted to Rs 28.68 million profits while the Tara Gaon earned Rs 18.81 million. The two five-star properties saw their incomes rise with improved tourist arrivals during the period.
According to an analysis report released by the management of the Soaltee, tourist arrivals by air during the period July-December 2010 increased by 19 percent against 16 percent in the same period previously.
“Considering the increased tourist arrivals since the beginning of 2011 and the projected rise for the whole year, the hotel plans to strengthen its various business segments and market promotion,” the report said.
Hoteliers said the industry was looking for an event to boost their occupancy level. For the last two years, the average hotel occupancy stood at around 70-75 percent, and the Nepal Tourism Year campaign is expected to push up occupancy to more than 80 percent.
The Soaltee has refurbished 130 rooms in the Princep Wing. It is replacing the TVs in all its rooms with 42 inch-LCD TVs. According to the hotel, it has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
Similarly, the hotel is planning to strengthen and attract meetings, incentives, conventions and exhibitions (MICE) tourism.
The Tara Gaon’s analysis report said its occupancy has increased to 62 percent in the second quarter of the current fiscal year against 51 percent in the same period last year. The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year. With the Q2 profit, the hotel’s cumulative loss has dropped from Rs 961.46 million to Rs 864.32 million.
Tara Gaon aims to push up its occupancy to 65 percent in the current fiscal year. The hotel has targeted earning a profit of Rs 360 million.
It plans to offer a “special rate” to attract customers during the off season. Non-occurrence of strikes and bandas, which had badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase business in the days ahead.
According to the government’s statistics, arrivals by air in July, August and September amounted to 29,338, 34,415 and 41,331 travellers respectively. Arrivals in October, November and December amounted 62,712, 48,331 and 36,323 respectively.
KATHMANDU, FEB 09 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 74.59 million and Rs 97.1 million respectively for the second quarter (July 17-Dec. 31) of the current fiscal year.
The first quarter profit of the Soaltee amounted to Rs 28.68 million profits while the Tara Gaon earned Rs 18.81 million. The two five-star properties saw their incomes rise with improved tourist arrivals during the period.
According to an analysis report released by the management of the Soaltee, tourist arrivals by air during the period July-December 2010 increased by 19 percent against 16 percent in the same period previously.
“Considering the increased tourist arrivals since the beginning of 2011 and the projected rise for the whole year, the hotel plans to strengthen its various business segments and market promotion,” the report said.
Hoteliers said the industry was looking for an event to boost their occupancy level. For the last two years, the average hotel occupancy stood at around 70-75 percent, and the Nepal Tourism Year campaign is expected to push up occupancy to more than 80 percent.
The Soaltee has refurbished 130 rooms in the Princep Wing. It is replacing the TVs in all its rooms with 42 inch-LCD TVs. According to the hotel, it has planned to spend Rs 750 million during 2010-12 on infrastructure expansion and upgradation.
Similarly, the hotel is planning to strengthen and attract meetings, incentives, conventions and exhibitions (MICE) tourism.
The Tara Gaon’s analysis report said its occupancy has increased to 62 percent in the second quarter of the current fiscal year against 51 percent in the same period last year. The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year. With the Q2 profit, the hotel’s cumulative loss has dropped from Rs 961.46 million to Rs 864.32 million.
Tara Gaon aims to push up its occupancy to 65 percent in the current fiscal year. The hotel has targeted earning a profit of Rs 360 million.
It plans to offer a “special rate” to attract customers during the off season. Non-occurrence of strikes and bandas, which had badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase business in the days ahead.
According to the government’s statistics, arrivals by air in July, August and September amounted to 29,338, 34,415 and 41,331 travellers respectively. Arrivals in October, November and December amounted 62,712, 48,331 and 36,323 respectively.
Saturday, February 5, 2011
Janakpur airport to go international by 2012
SANGAM PRASAIN
KATHMANDU, FEB 05 -
The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.
The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.
Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.
Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.
The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.
Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.
KATHMANDU, FEB 05 -
The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.
The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.
Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.
Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.
The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.
Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.
Domestic airfares to go up 13-49 pc
SANGAM PRASAIN
KATHMANDU, FEB 05 -
The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).
Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.
MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.
“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.
Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.
On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.
Proposed Airfare by CAAN (excluding fuel surcharge)
Tourism Sector existing (in Rs) proposed (in Rs) up (in %)
Kathmandu-Mountain 4,616 7,172 28
Kathmandu-Lukla 2,355 3,227 17
Kathmandu-Bharatpur 1,635 2,241 13
Kathmandu-Pokhara 2,420 3,317 16
Kathmandu-Jomsom 3,402 4,662 16
Long-Haul
Kathmandu-Biratnagar 4,273 5,020 17
Kathmandu-Janakpur 2,352 2,689 14
Kathmandu-Bhairahawa 3,680 4,303 17
Kathmandu-Dhangadhi 7,758 9,234 19
Kathmandu-Nepalgunj 5,742 6,813 19
Kathmandu-Bhadrapur 5,309 6,275 18
Kathmandu-Surkhet 6,465 7,530 16
Remote Sector
Biratnagar-Bhojpur 1,329 1,972 48
Biratnagar-Tumlingtar 1,507 2,241 49
Biratnagar-Lamidanda 1,635 2,421 48
Biratnagar-Rumjatar 1,812 2,689 48
Biratnagar-Phaplu 2,117 3,138 48
Nepalgunj-Dolpa 2,304 3,407 48
Nepalgunj-Bajhang 2,541 3,765 48
Nepalgunj-Bajura 2,363 3,496 48
Nepalgunj-Simikot 3,151 4,662 48
Nepalgunj-Jumla 2,363 3,496 48
KATHMANDU, FEB 05 -
The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).
Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.
MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.
“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.
Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.
On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.
Proposed Airfare by CAAN (excluding fuel surcharge)
Tourism Sector existing (in Rs) proposed (in Rs) up (in %)
Kathmandu-Mountain 4,616 7,172 28
Kathmandu-Lukla 2,355 3,227 17
Kathmandu-Bharatpur 1,635 2,241 13
Kathmandu-Pokhara 2,420 3,317 16
Kathmandu-Jomsom 3,402 4,662 16
Long-Haul
Kathmandu-Biratnagar 4,273 5,020 17
Kathmandu-Janakpur 2,352 2,689 14
Kathmandu-Bhairahawa 3,680 4,303 17
Kathmandu-Dhangadhi 7,758 9,234 19
Kathmandu-Nepalgunj 5,742 6,813 19
Kathmandu-Bhadrapur 5,309 6,275 18
Kathmandu-Surkhet 6,465 7,530 16
Remote Sector
Biratnagar-Bhojpur 1,329 1,972 48
Biratnagar-Tumlingtar 1,507 2,241 49
Biratnagar-Lamidanda 1,635 2,421 48
Biratnagar-Rumjatar 1,812 2,689 48
Biratnagar-Phaplu 2,117 3,138 48
Nepalgunj-Dolpa 2,304 3,407 48
Nepalgunj-Bajhang 2,541 3,765 48
Nepalgunj-Bajura 2,363 3,496 48
Nepalgunj-Simikot 3,151 4,662 48
Nepalgunj-Jumla 2,363 3,496 48
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