Ethical wealth creation key to growth and bridging inequality: Dr Subramanian Krishnamurthy

Ethical wealth creation is key to growth and bridging inequality, according to International Monetary Fund (IMF) executive director and former chief economic advisor of the Government of India, Dr Subramanian Krishnamurthy Venkata.

Speaking at the first Prabhakar SJB Rana Memorial Lecture as the keynote speaker in Kathmandu today, he also stressed religious capitalism. “Wealth generation is not a necessary evil but a boon – and this is an ideology that has been adopted from the ideologies of the East – built from dharmic capitalism and the civilizational ethos that enabled our ancestors to pursue and receive enormous success,” he added.

“Socialism and communism are the ideologies that originated in the West – not in the East," he said, adding that the entire ideology was bankrolled by a capitalist. “The dharmas – four purusharthas that include Dharma, Artha, Kaama and Mokshya are parts of our ethos,” Dr Subramanian said, reminding the Sri Suktam. “Wealth is not a necessary evil, but a boon to be received. So, we have to disband the imported ideologies.”

He also reminded ethical wealth creation for a prosperous nation, in the program organized by the Nepal-India Chamber of Commerce and Industry (NICCI) to honor the late Rana’s contribution to the economy. “Inclusive growth is critical and India has been able to have an inclusive growth. India’s poverty has decreased and consumption inequality has declined significantly, according to the latest survey.”

The speakers, on the occasion, remembered late Prabhakar SJB Rana as a towering figure, very close to the political powers, who had maintained good relations with political parties but never took advantage for his benefit.

Remembering his father, Siddhartha SJB Rana, chairman of Tara Management, said that Nepal was ahead of India in the 90s in opening up the economy, but Nepal somewhat stalled. “A disheartening thing is that Nepal has prioritized changing the political systems without addressing economic needs,” he said suggesting that the Bhairahawa and Pokhara Airports could have been fully operational, had the government well planned.

The NICCI has organized 'the Prabhakar SJB Rana Memorial Lecture: Celebrating Leadership, Vision, and Legacy' to celebrate his legacy and contribution to the economy and nation.

Late Rana, the founder President of NICCI, played a pivotal role in Nepal's development by founding not only NICCI, but also a range of vital business and social organizations such as the Hotel Association of Nepal (HAN), Independent Power Producers’ Association, Nepal (IPPAN), PATA Nepal Chapter, and Nepal Heritage Society.

Likewise, Prasanna Srivastava, Deputy Chief of Mission, Embassy of India to Nepal in Kathmandu, noted some of the major achievements of the Indian government in Nepal. He highlighted the recent commerce secretary-level talks that followed the trade and transit meet in January this year. He also highlighted Nepal-India engagement in facilitating bilateral trade and energy, the tripartite power agreement between Nepal, India, and Bangladesh, and the net revenue Nepal earned by exporting energy, apart from digital connectivity.

“The NICCI is honored to remember Mr Rana as a visionary leader, entrepreneur, and trailblazer in Nepal’s overall business, hospitality sector, industry and hydropower,” NICCI President Sunil KC said, on the occasion, “The NICCI will organize Prabhakar SJB Rana Memorial Lecture every two years.”

NICCI Immediate Past President (IPP) Mrs Shreejana Rana, on the occasion, remembered late Prabhakar SJB Rana as a trailblazer in Nepal’s private sector.

NICCI, on the occasion, also launched “Business Climate Survey for Indian Companies in Nepal, 2024." The survey, led by Kuber Chalise, and supported by Sweta Karki and Sajina Rai, have given recommendations for the government to help facilitate the Indian joint ventures (JV) so that they can create more jobs in the country and pay more tax to the government coffer.

NICCI vice president and Surya Nepal managing director Ravi Kumar Rayavaram, on the occasion thanked all the participants.

The NICCI, a not-for-profit organization, was founded in 1993 by late Prabhakar SJB Rana. It has played a key role in promoting bilateral economic relations focusing on key sectors such as trade, transit, logistics, tourism, energy, infrastructure, and FDI since its establishment.

Nepal to celebrate 70 years of Mt Everest ascent

Tenzing Norgay Sherpa and Sir Edmund Hillary – for the first time – reached the top of the world on May 29, 1953. And it has been 70 years since the highest peak in the world Sagarmatha (Mt Everest) was scaled by humans.

Nepal is celebrating the seven decades of Sagarmatha ascent, in commemoration of the human feet on the top of the world. Nepal Mountaineering Association (NMA) confirmed that a platinum jubilee function celebration will be organised in a grand manner on May 29, 2023.

The government has formed a main organising committee under tourism secretary Suresh Adhikari. The committee includes representations from Nepal Tourism Board (NTB), NMA, Hotel Association Nepal (HAN), Trekking Agencies Association of Nepal (TAAN).

According to NMA, the committee has started working with a calendar to make the platinum jubilee celebration a grand event. The guests from various countries will be invited, the NMA informed, adding that all Sagarmatha (Mt Everest) climbers from across the world are being invited. They will also be honoured during an event ‘Everest Summit.’ 

A special programme is being organised at Khumjung of Solukhumbu on May 29, according to former chair and chief advisor of NMA Ang Chhiring Sherpa. “The programme is scheduled to be attended by Tenjing Norgey's son Jamling Tenjing Sherpa and Hillary's son Peter Hillary,” he said, adding that a separate programme will also be held in Kathmandu, after concluding the formal programme at Khumjung. “There will also a record-keeping competition among the climbers, including Kami Rita Sherpa, who has scaled Mt Everest for 26 times.”

The platinum jubilee celebrations is expected to send a new message across the world and give Nepal much needed promotion to lure more trekkers as the event will be covered by the international media.

Nepal is home to eight highest peaks of over 8,000-meter. Some 7,000 national and foreign climbers have reached the top of the world till date.

Promoting accessible tourism can help Nepal drive recovery, boost economy

Investing in disability-friendly infrastructure and services can help hoteliers and entrepreneurs tap the accessible tourism market in Nepal, a growing segment globally, while driving economic growth and accelerating recovery, reveals a new IFC study.

The report -- 'Open to All: A Survey on Accessibility for Persons with Disabilities in Nepal’s Hotels' -- covers 90 starred hotels in major cities. While 95 per cent of the participating hoteliers are aware of accessible tourism as a concept, they have not invested in necessary measures to ensure accessibility for persons with disabilities.

With existing facilities limited to ramps and lifts in most hotels, only 17 per cent of the surveyed hotels put up signs to help visually-impaired guests and 74 per cent of the hotels did not have any Braille signage on door plaques and room directories, according to the survey. "Further, only about 9 per cent of the hotels had staff, who were trained in or had basic knowledge of sign language while only 33 per cent of the participating hotels had extra wheelchairs for guests."

The poor numbers were attributed to a range of factors including old structures, remote locations, and fewer guests with disabilities. Many of the surveyed hotels also cited extra cost as a key deterrent to building ramps, purchasing wheelchairs, or providing other accessible infrastructure and services.

"Globally, the concept of accessible or inclusive tourism has gained ground in recent times," IFC country manager for Nepal, Bangladesh, and Bhutan Wendy Werner said, ading that accessibility at tourism destinations is key to responsible and sustainable tourism to ensure everyone can be part of the tourism experience, regardless of physical limitations, disabilities, or age. "Accessible tourism is not only a human right, it also makes business sense."

According to the World Health Organisation (WHO), globally, around one billion people are affected by some form of disability. According to disability rights experts in Nepal, as more persons with physical limitations and disabilities travel around the world, a focus on accessible infrastructure in hotels as well as tourism destinations can boost the number of foreign tourists in the country.

"Currently, around 2,000 tourists with disabilities visit Nepal every year," president of the National Federation of the Disabled–Nepal Mitra Lal Sharma said. "But, with improved facilities and conditions that are more disability-friendly, the number could easily go up to over 10,000 tourists a year."

“Although accessible tourism is relatively new in Nepal, we are confident that with adequate support, we can push ourselves to explore and attract this growing segment of tourists to our country,” said president of Hotel Association of Nepal (HAN) Shreejana Rana.

The study also recommends, going forward, the government, the private sector, and deveelopment partners will need to work together to create a conducive environment by incorporating universal accessibility practices into relevant legal and policy provisions, with the involvement of persons with disabilities.

The study was conducted by the Society of Economic Journalists–Nepal, in collaboration with the National Federation of the Disabled–Nepal, with financial and technical assistance from IFC.

Quarantine hotels for passengers from India

The government has shortlisted eight hotels in the valley to accommodate passengers coming to Nepal from India.

As the government has halted operation of most international flights from midnight of May 6, it has allowed flights to and from India. The government has shortlisted eight hotels to quarantine passengers arriving from India, according to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA). "The air travellers from India will have to stay quarantined in the designated eight hotels only."

The ministry has shortlisted View Bhrikuti Hotel at Godavari, Madhav Hotel at Guheswari, Airport Hotel at Gaushala, Amadablam Hotel at Gaushala, Readers Inn at Gaushala, Ananda Ashram at Gaushala and A-One Resort at Jagati for hotel quarantine. The hotels have allocated between 10 and 91 rooms in their facility for the quarantine of the passengers.

According to the ministry, these hotels will transport passengers from the airport as well as provide food and accommodation at Rs 3000. "The hotels have been instructed to charge Rs 3,000 per person, including value added tax (VAT) and service charges," the ministry said, adding that Nepal Tourism Board (NTB), in coordination with the Nepal Airlines Corporation (NAC) and Air India, has been assigned the responsibility of collecting the details of the passengers and assisting in quarantine management of the passengers. "Passengers from India must stay in quarantine for 10 days."

If they're found to be not abiding by the rules, the hotels will have to report them to the police.

though, the government has stopped the international and domestic flights, there will be emergency flight as and when required.

Hoteliers to pay staff from Rs 4000 to Rs 10,000 wages

The hotel and hospitality sector staff will get their minimum wages – from Rs 4,000 to Rs 10,000 depending on the grading of hotel – for the lockdown period.
Hotel Association of Nepal (HAN) and three major trade unions – active in tourism and hospitality sector – sealed the deal ending a longstanding row over the workers’ salary for the lockdown period.
Since the government imposed lockdown on March 24, the hotels have been closed. AS the staff have not been working, the hoteliers have been saying that they will get paid some 12 per cent only. But the HAN today confirmed that the agreement – applicable for the period of April 13 to December 31 by considering that the situation caused by the pandemic coronavirus infection will last till 2020 – the staff will get paid from Rs 4,000 to 10,000 per month depending on the grading of the hotels, from star deluxe hotels to non-start hotels.
The staff working in the hotels having 200 plus rooms will get Rs 10,000 per month, whereas the workers of five-star hotels with less than 200 rooms will collect Rs 9,000 per month. Likewise, the staff of four-star hotels with 100 plus rooms would be given Rs 8,455 per month and Rs 8,000 to those workers employed in the four-star hotels with less than 100 rooms. “The staff of three-star hotels and resorts will get Rs 5,000 per month,” according to a press note issued by the HAN that has organised a press meet in Kathmandu today.

Government lists out hotels available for quarantine

The government has listed some 47 hotels – in the first phase – in Kathmandu Valley, Pokhara, Chitwan and Rupandehi that are available for quarantine service for migrant worker returnees, who will be evacuated from abroad starting from yesterday.
Yesterday, some 26 Nepalis have been evacuated from Myanmar, and some 168 Nepalis from UAE in a chartered flight of Air Arabia. They have been transported to holding centres – managed by the Nepal Army (NA) – before they travel back to home their districts. About 20 holding centres have been set up in Kathmandu for returning Nepalis and are designated province-wise. The passengers will stay there for 2 to 3 days awaiting results of their PCR tests, and will then be taken by bus to their home province for further quarantine and self-isolation. Hotel Association of Nepal (HAN) has offered the hotels for quarantine.
However, there is a confusion as the Kathmandu District Administration Office (DAO) – under the Ministry of Home Affairs – published the list of hotels in Kathmandu Valley available for quarantine service public yesterday, according to the HAN. “We have provided the list of hotels including star, tourist standard and deluxe resorts in the Kathmandu Valley, Chitwan, Rupandehi and Pokhara, but the Kathmandu CDO yesterday published the notice of hotels in Kathmandu Valley only,” complained HAN representatives.
HAN had provided the Kathmandu district office with the preliminary list of hotels willing to provide their space to be used as quarantine facilities. “There is no coordination among the Covid-19 Crisis Management Center (CCMC) that acts as the secretariat of the high-level coordination committee led by deputy prime minister and defence minister Ishwor Pokharel, and chief district offices,” the HAN said, adding that they will hold talks tomorrow on the issue with them. “HAN will also update the list as more hotels will come forward to offer this service in the future.”
Star hotels like Grand Hotel, Swiss International, Hotel Sarowar, Airport Hotel, Hotel Baishali, Summit Residency Hotel, Hotel Marsyangdi, Platinum Hotel, Hotel Manang, Hotel Landmark, Hotel Moonlight, Hotel Sabrina, Hotel Landmark, Hotel Kamal are available in Kathmandu and Pokhara for quarantining the Nepali returnees. The tourist standard hotels including CG Group of Hotels, Vivanta Kathmandu, Lapha Hotel, Hotel Readers Inn, Hotel Everest Mount Holiday, Mirage Lords Inn, Hotel Yambu, Hotel Family Home, Shiva Shankar Hotel, Hotel River, Landmark Forest Park in Kathmandu and Chitwan have also offered their services for the returnee Nepalis.
Likewise, Dreamland Gold Resort at Rupandehi and Park Village in Kathmandu are also available for the quarantine service. The rate of the hotel rooms starts from Rs 2,000 inclusive of four meals a day and the rate can vary depending on the grading of the hotels.
The government has started evacuating migrant Nepali workers from yesterday. The government has made it mandatory for the migrant Nepalis to be quarantined once they reach Nepal. Those who want to and are able to afford the hotel arrangements can use the available hotels for their quarantine, according to the CCMC.
HAN offered their help as the hotels across the country remain shut – from March 24 onwards – due to lockdown because of the Covid-19 outbreak across the world. The travel restrictions imposed across the country have also affected the hotel industry.

Hoteliers seek government support to sustain

Since the hotels across the country have invested billions as Nepal was observing Visit Nepal Year 2020 (VNY2020), they are about to collapse due to restriction on movement because of Covid-19 (coronavirus) pandemic that has hit almost all the countries around the world.
Thus, Hotel Association Nepal (HAN) – issuing a press note today – has asked the government to immediately bring special policies and relief package to help prevent the hotel sector from collapsing.
The association also said that hotels across the country cannot sustain workers, pay rental charge and electricity tariffs, pay bank loans and different other taxes to the government as they have been shut down since long. “In such a difficult situation, where hotels are fighting for their existence, the government should immediately introduce a special policy to help share liabilities until the situation turns normal,” the press note reads, adding that the tourism sector across the globe has been affected and is not going to be normal until the next few years. “Hotel business relies on tourists and normal international flights are expected only from next January forcing the hotels to be closed until then.
The association has asked the government to focus on special measures to sustain hotel businesses and the workers, instead of continuing with the current tax and labour policies.
As hotels are the backbone of tourism and the tourism sector is the driving force behind Nepal’s economy, the government should immediately introduce special relief measures for hoteliers,” the press note of association reads.

Tourism agencies announce discount offers

As the Visit Nepal Year 2020 (VNY2020) starts in two days, tourism agencies have announced discount offers to encourage foreigners to prolong their stay in Nepal and also visit frequently.
The VNY2020 being launched with formal programme on January 1 warrants attention and engagement of the people from diverse sectors for its grand success. Tourism ministers from 10 countries and special guests from various 40 countries will take part in the inaugural ceremony of the VNY2020.
Hotel Association of Nepal (HAN) has decided to provide 30 per cent discount on its services, according to the first vice chair of HAN Binayak Shah.
There are some 2,000 hotels including the luxury star hotels affiliated to HAN, which can accommodate some 2.5 million guests.
Likewise, Trekking Agencies' Association of Nepal (TAAN) is also launching promotional activities and providing 20 per cent discount on its service, whereas Nepal Association of Tour and Travel Agents (NATTA) is going to provide concession of 10 per cent to the service seekers. Similarly, Nepal Association of Tour and Travel Agents (NATA) has offered 10 per cent discount on its services on the occasion of VNY2020. According to NATA president CN Pandey, the customers, who purchase tour packages through NATA-associated travel agencies shall be provided 10 per cent discount in its services. Similarly, Nepal Association of Rafting Agencies (NARA) president Ganga Prasad Nepal shared that NARA has announced 15 per cent discount for rafting and other water-related adventure sports to the foreign visitors on the occasion.
Likewise, Nepal Mountaineering Association (NMA) is also going to announce some package for the tourists, whereas Homestay Association's president Keshav Badal informed that foreign guests choosing homestay will be offered up to 20 per cent discount on lodging and foods. There are more than 600 homestays being run in 57 districts and are associated with the association.
Pacific Asia Travel Association (PATA) Nepal Chapter president Bidhutichand Thakur also informed that PATA Nepal Chapter is going to organise various promotional events targeting the VNY2020, one of which is Nepal, India, China Expo ('NICE' event) coming February.
Thamel Development Council is also going to organise various promotional events round the year in 2020.

Rana becomes first female president of NICCI

Shreejana Rana has become the first female president of Nepal India Chamber of Commerce and Industries (NICCI) from the 25th annual general meeting of the bilateral chamber.
Outgoing president of the chamber Saurya SJB Rana handed over the presidency to Rana during a ceremony held in Kathmandu today. She was serving as the vice president of the chamber in the last executive committee.
Speaking on the occasion, the new president said she intended to further promote tourism between Nepal and India by creating a platform for bilateral cooperation through a working forum. “I hope to take forward the important initiatives already set in motion by NICCI – from coordination between bi-national chambers and ensuring consistent and corresponding recommendations to discussion of foreign trade, transit, railways and hydropower – earlier.

TAAN to provide discount packages for VNY 2020

Trekking Agencies’ Association of Nepal (TAAN) is preparing to offer a 15 per cent discount on trekking packages to tourists during the Visit Nepal Year (VNY) 2020.
A board meeting held today decided to write a letter to all the TAAN member agencies requesting to provide 15 per cent discount on trekking packages to both domestic and foreign tourists during the VNY 2020 campaign, according to, president of TAAN Khum Bahadur Subedi. “It has targeted to attract around 800,000 tourists for trekking in 2020,” he said, adding that generally, Nepal receives around 400,000 trekkers annually.”
According to TAAN around 70 per cent of tourists travelling to Nepal come for adventurous activities — trekking, mountaineering, and rafting, among others.
The letter will be forwarded to the member agencies from Wednesday.
Currently there are altogether 1,724 members in TAAN.
Meanwhile, Subedi also said that the private sector is all set to make VNY successful. However, the government has to be responsible towards the stakeholders.
In recent days, the trekking stakeholders, including guides and companies, have been complaining of random taxation system of the government. “The government must regulate the double taxation system imposed on tourism entrepreneurs, which is discouraging them,” he said, adding that the government has to focus on managing infrastructure, transportation, travel and other things for the convenient stay of tourists in Nepal.
Prior to this, Hotel Association Nepal (HAN) and Homestay Association had also announced they will provide 30 per cent and 20 per cent discount, respectively, to tourists during VNY 2020 campaign year.
The government had announced VNY 2020 campaign in 2018 targeting to bring in two million tourists.

Tourist standard hotels to offer discounts

Hotel Association Nepal (HAN) has announced a discount scheme on room tariff and food bills at its member hotels, resorts and guesthouses to foreigners visiting Nepal next year.
Effective from January – throughout the Visit Nepal Year 2020 to support the national campaign – all member hotels of HAN will offer 30 per cent discount on room tariff and 15 per cent off on food bills to foreigner visitors till the end of December next year, confirmed HAN.
“Almost 2,300 small to five-star hotels of the country are affiliated with HAN,” it claimed, adding that HAN is supporting the government through all means to make the tourism campaign successful. ”Discount on room and food tariff rate is a direct support of HAN to the campaign.”
HAN is also promoting the tourism and Nepali cuisines in different countries targeting the tourism campaign Visit Nepal Year 2020. The government has set a target of bringing in 2 million foreign visitors to the country in 2020.
Established in 1966 with eight hotels as its members, HAN that has chapters in Dhankuta, Biratnagar, Pokhara, Sauraha, Biratnagar, Dhulikhel, and Bhaktapur, is also preparing to introduce other events and packages for visiting foreign tourists in 2020.
Earlier, the Home Stay Association of Nepal (HOSAN) has also announced discount packages for tourists on homestay services throughout 2020. “All member homestays – both private and community-based – will offer 20 per cent discount on their service throughout 2020 targeting the Visit Nepal 2020 campaign,” it said, adding that around 1,006 homestays are members to HOSAN. “Of the total number of homestay facilities, some 628 are community-based homestay services while 378 are private homestay services.”
After two similar mega tourism campaigns in 1998 and 2011, the Visit Nepal Year 2020 (VNY2020) campaign is being hosted with a more ambitious target to bring in two million tourists annually by 2020.

TAAN seeks Ramechhap airport upgradation

The Trekking Agencies’ Association of Nepal (TAAN) has urged the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to upgrade Ramechhap airport as the tourist season has started.
A delegation of TAAN led by its president Khum Bahadur Subedi met with joint secretary at the ministry Buddhi Sagar Lamichhane today to discuss about the government’s decision to continue flights on the Ramechhap-Lukla sector. After operating flights smoothly in this spring season, CAAN has decided to give continuity to regular flights in the sector in the coming days.
Citing the need to create hassle-free travel for tourists on the Ramechhap-Lukla route, Subedi requested joint secretary Lamichhane to focus on developing the infrastructure of Manthali airport in Ramechhap and also sought complete a halt in the Kathmandu-Lukla flights.
The team has further requested the ministry to call a joint meeting between TAAN, Air Security and Authority Supervision Division, Civil Aviation Authority of Nepal (CAAN), Helicopter Association of Nepal (HAN), Airlines Operators’ Association of Nepal (AOAN), Ramechhap Chamber of Commerce and Industry and Nepal Association of Tours and Travel Agents (NATTA) to coordinate for the smooth operation of Ramechhap-Lukla flights, according to the TAAN secretariat.
According to the TAAN secretariat, unethical practices of airline companies of giving priority and preference to individual online bookings over those handled by trekking companies in Kathmandu should be stopped for the successful operation of Ramechhap-Lukla flights. “The government must discourage offering seats in Kathmandu-Lukla flights,” said senior vice-president of TAAN Nabin Trital.
Responding to the requests of TAAN, Lamichhane said that CAAN is currently working on the upgradation of Ramechhap airport. He further assured that along with the airport upgradation, the government will also ensure the security, accommodation and convenient travel of tourists.
Flights to Lukla were diverted from TIA to Manthali airport in Ramechhap since April 1 due to the renovation works of TIA runway as an alternative route till June 30. However, taking into consideration the convenience for passengers and public demand, CAAN had decided to allow airline companies to operate regular flights on the Ramechhap-Lukla route.
According to the CAAN, renovation of Manthali airport is underway and will be completed within this fiscal year, while remaining infrastructure will be renovated accordingly.

Average tourist spending drops

Average tourist spending has dropped against the government’s plan to bring in quality foreign tourists with high-spending capacity.
“The average spending of foreigners dropped by 22.73 per cent in 2018,” according to the Nepal Tourism Statistics-2018 that revealed that the average per day spending of a foreign tourist in Nepal was $54 in 2017 but it came down by  $10 to $44 per day in 2018.
Nepal Tourism Statistics 2018 – prepared by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) – revealed that not only the number of high-spending tourists in Nepal is declining in recent years against the government’s plan to increase the inflow of such travelers but also the average length of the tourists has been decreasing. “The average length of stay of foreign tourists in Nepal also dropped to 12.4 days in 2018 from 12.6 days in 2017,” the statistics revealed.
The government’s three-year development plan (2016-2018) that aimed at increasing the length of stay of foreigners to 14 days by 2018 – which ranged from eight to 13.5 days in the past – has failed despite the increasing number of the tourists.
Nepal can offer products suitable for both backpackers and high-end tourists, according to president of Pacific Asia Travel Association (PATA) Nepal Chapter Sunil Shakya. “The historical, cultural, natural and spiritual products on offer could cater to a variety of guests as per their need,” he said, adding that most of the trekkers and travellers are backpackers, who spend money on our roadside shops and local markets that could actually uplift the livelihood of people living in rural areas.
Currently, almost 65 per cent tourists travelling to Nepal are backpackers, he added. “Backpackers may be good for growth of numbers, but in terms of revenue, we have to develop good strategies to bring in high-end tourists.”
“Nepal needs to develop ample tourism packages beyond major cities like Kathmandu and Pokhara to increase the length of stay of tourists and their spending,” according to the vice chair of the Hotel Association Nepal (HAN) Binayak Shah.

Listed hotels post handsome profits

The listed hotels – though they are only three in number – have posted record profits in the third quarter on increased arrivals and occupancy, though the average daily expenditure of tourists has been on decline.
Among the three listed hotels on the Nepal Stock Exchange (Nepse), which have published their unaudited financial reports for the third quarter ending mid-April, Soaltee Hotel and Taragaon Regency Hotels posted profits, whereas Oriental Hotels witnessed decline in profit.
Soaltee Hotel – according to its unaudited third-quarter report – posted Rs 231 million net profit, some 52.35 per cent increase compared to the same period last fiscal year. During the same period last fiscal year, Soaltee Hotel had posted net profit of Rs 151.64 million.
Soaltee Hotel earned revenues totaling Rs 1.31 billion, up by 16.61 per cent year-on-year while its total expenses amounted to Rs 1.02 billion, up by 8.77 per cent only, according to the report of the hotel  that claimed that it had been marketing aggressively to increase its occupancy in the fourth quarter in the key source markets including India.
Likewise, profit of another share market listed hotel – Taragaon Regency Hotels – has jumped by 29.47 per cent before bonus and tax in the third-quarter, compared to the same period in the last fiscal year. According to the unaudited financial statement published by the hotel – mandatory under regulatory order – it has posted a net profit of Rs 356.57 million in the third quarter of the current fiscal year, whereas Taragaon Regency Hotels had posted a net profit of Rs 275.40 million in the third quarter of the last fiscal year.
Taragaon Regency Hotels’ revenues – according to the third quarter report – increased by 14.28 per cent year-on-year to Rs 1.04 billion, whereas revenues totalled Rs 915.7 million. Likewise, Taragaon Regency Hotels’ paid-up capital stood at Rs 1.88 billion including Rs 777 million in reserves, the report reads, adding that its revenue swelled due to a rise in tourist arrivals and effective marketing strategy. “It may face competition in the coming days with the proliferation of five-star hotels in Nepal prompted by an improving political and business environment.”
However, Oriental Hotels, which operates the five-star Radisson Hotel in Kathmandu, reported a net profit rise of 6.32 per cent in the third quarter of the current fiscal year, according to the hotel’s unaudited report of the third quarter. “Oriental Hotels posted a net profit of Rs 207.45 million after tax, up from Rs 195.11 million in the same period in the last fiscal year,” the report reads, adding that its revenue collection stood at Rs 876 million. “Oriental Hotels’ profit growth slowed in the third quarter due to an increase in expenses as it had renovated 40 of its rooms.”
The fourth hotel – Yak N Yeti – that was earlier listed at the Nepse is no more in the share market since last half decade.
Nepal has lately witnessed a large number of hotels due to increasing number of tourists, though the tourist spending has not been increasing. “It will be challenging, if tourist arrivals do not match the increasing number of hotels lately,” Oriental Hotels writes in its report.
Tourist arrivals crossed the one-million mark for the first time in 2018, with 1.17 million foreign visitors travelling into the country, but their spending has plummeted to a seven-year low to $44, according to Hotel Association Nepal (HAN). “The average spending was $54 per day in 2017, whereas in 2003 – during the Maoist insurgency – the per day tourist spending hit a record $79.1.”
Last year, Nepal received 1.17 million tourists and earned a record Rs 70 billion in foreign exchange,” according to the statistics of HAN. “The previous year, the country had welcomed 940,218 foreign visitors and earned Rs 65.8 billion.”
But the increase in tourist arrivals does not match earnings also due to low spending of the tourists. “A arge number of hotels have been selling their rooms at cheaper rates, and as a result, earnings had not increased despite arrivals crossing the one-million mark,” according to HAN.

Business icon Prabhakar Rana passes away

A pioneer of Nepali tourism industry Prabhakar SJB Rana passed away while undergoing treatment in New York yesterday. Rana, 84, was admitted to the hospital one year ago.
Starting his career in the hotel industry, Rana built an empire with his honesty and moral in business. Engaged in multiple business including tourism, trade, automobiles, and hydropower, Rana believed in earning credibility and transparency in his business rather than making profits because ‘that’s what makes businesses successful’, according to him.
The first generation of Nepali entrepreneurs, chairman Emeritus of Soaltee Crowne Plaza, Rana was not only recognised for his initiative to bring an international hotel chain to Nepal but also for promoting tourism through hotel.
Rana was the founding chairperson of Soaltee Crowne Plaza and later on the chairman emeritus of the five-star hotel, though Soaltee was founded in 1966 by late prince Himalaya Bikram Shah and late princess Princep Rajya Laxmi. Rana later converted the hotel to a public limited company in 1975. Soaltee Crowne Plaza is one of the three hotels listed in the Nepal Sock Exchange (Nepse).
Until recently he was working on Soaltee Westend Hotel in Nepalgunj expanding the Soaltee brand outside the Kathmandu Valley.
Starting from the hotel industry, Rana expanded his business to travel and trekking, automobiles, tea garden and hydropower projects. He is also the founder president of Hotel Association Nepal (HAN) and Pacific Asia Travel Association (PATA) Nepal chapter.
Issuing press notes, both HAN and PATA said Rana could solely be credited for introducing international standards in the hospitality sector of the country.
Rana established Sipradi Trading – the authorised dealer of Tata Motors in Nepal – in 1982. In 1986, he invested in Surya Nepal, a multinational undertaking in joint partnership with firms of India and UK. Likewise, He started Bhotekoshi Power Company (BPC) – the first privately funded, run-of-the-river (ROR) power project in Nepal – in 1996.
Besides, he has also invested in Himalayan Tea Garden and Amravati Travels.
Rana was both professionally and personally close with late kings Mahendra and Birendra and in recent times with former king Gyanendra. But he never misused the power as usually is seen. He kept his freidship and professionalism separate though he was business partner of forme king Gyanendra.
He is survived by a son Siddhartha and a daughter Maya. Siddhartha Rana is currently looking after the entire business operations. The final rites of Rana will be performed in New York tomorrow.

Trade unions threaten to shut restaurants nationwide

Trade unions of hotels and restaurant workers have threatened to close the restayrents nationawide demanding rollback of a decision to withdraw 10 per cent service charge levied on restaurant bill.
Restaurant and Bar Association Nepal (REBAN) – a professional body of restaurants and bars across the country – had last week decided to withdraw 10 per cent service charge in Kathmandu, Sauraha and Pokhara, citing complaints from consumers. It also said that other restaurants and bars in other cities will withdraw the service charge gradually.
All Nepal Hotel Casino and Restaurant Workers Association, Casino and Restaurant Workers Union, and National Tourism and Hotel Associated Workers’ Union organised a rally today demanding REBAN to withdraw its decision of scrapping service chargeand also threatened to close all restaurants and bars from Tuesday, if the decision is not rolled back immediately.
A day after REBAN took a decision to scrap service charge, the trade unions had given a 24-hour ultimatum for rollback of the decision.
The mandatory service charge system came into force on January 1, 2007. Since then, hotel and restaurant customers have been paying 24.3 per cent extra on the restaurant bill as 10 per cent compulsory service charge, 13 per cent value added tax (VAT) and 1.3 per cent service tax. The VAT and service tax go to the government.
REBAN, Hotel Association Nepal (HAN) and trade unions of hotels and restaurant workers had revised the agreement on May 26, 2018 to provide larger share from funds collected from 10 per cent service charge to workers. The agreement had come into effect on June 8, 2018. Under the revision, hotel employees would get 72 per cent, the hotel management would get 23 per cent and HAN would get 2 percent. The trade unions claim that instead of giving workers their due share, REBAN chose to scrap the service charge.
"REBAN has acted against the spirit of the agreement," president of All Nepal Hotel, Casino and Restaurant Workers Association Madhav Pandey said, adding that they are forced to go streets.
However general secretary of REBAN Araniko Rajbhandari said that there was no point conducting protest as the Supreme Court has also issued a show cause notice against the decision. REBAN – also issuing a press note today – said that it is serious about the well being of its workers. “We have already taken needful initiative to implement basic salary announced by the government," the note reads, adding that tips collected from the clients will be distributed among workers.
But the three trade unions affiliated to the ruling and opposition parties have decided to shut down all member restaurants of the Restaurant and Bar Association of Nepal for an indefinite period from Tuesday onwards.
"The service charge is workers’ rights and has to be implemented at any cost," according to president of Casino and Restaurant Workers Union Surya Bahadur Kunwar, and president of National Tourism and Hotel Associated Workers’ Union Khemraj Khadka.
But the consumer rights activists have welcomed the REBAN’s decision. The rights group said that the Consumer Act and the Constitution stipulate that consumers not be cheated on the pretext of collecting a service charge.

Trade unions give 3-week ultimatum to hotels

The row between the hoteliers and trade unions is going to hit the tourism sector hard, if the government does not intervene immediately, Hotel Association of Nepal (HAN) has warned.
Organising a press meet in Kathmandu today, HAN said that the trade unions have given ultimatum to provide them entire 10 per cent service charge amount.
Claiming that the agreement between HAN and unions – some 11 years ago – to share the service charge was not in favour of the workers, the trade unions – Nepal Tourism and Hotel Labourers Association joint struggle committee – have announced protest programs from today. "If our demands are not met, we will be forced to announce more stricter protest from February 12,” a ultimatum letter by the trade unions reads, adding that they have started their protest programs from January 22.
"But the ultimatum given by trade unions could hit the tourism sector hardly as it has just started to pick up again,” president of HAN Amar Man Shakya said speaking at a press meet.
Shakya also said that tourists planning to visit Nepal will cancel their booking and will change their travel plan and go to other countries, if there is disturbance in the tourism sector. “It will directly affect the tourism sector,” he said, adding that the service tax should be charged only after providing quality facilities to the customers. “Making the service charge compulsory has already passed a bad impression to both domestic and foreign tourists.”
In 2006, HAN had decided to levy 10 per cent service charge compulsory from the customer’s after the trade unions and employees pressurised the hoteliers to charge customers. According to the agreement, the amount thus collected from the service tax would be shared between employees and hotel.
The hotel management has been taking 32 per cent of service charge to maintain and improve its facilities and service and employees are getting the remaining 68 per cent of the total service charge. But the trade unions lately have been asking for all the service charge.
The number of tourists travelling to Nepal has started increasing after the massive earthquake in 2015 and the economic blockade imposed by India.
In 2016, more than 700,000 tourists visited Nepal which is around 200,000 more as compared to 2015. But the disturbance in the tourism sector will again push the number of arrivals.
The association also informed the government of the unions demand that is going to hit the tourism sector very hard, Shakya added. "But there is no rationale behind service charge."
The hoteliers have stressed that the hospitality industry needs to remove such additional charges, which is a burden on consumers.
HAN said that as the salary and allowance of the employees in hotels and restaurants are adjusted every two years, there is no rationale behind the protest by trade unions seeking the entire amount levied as service charge.
Taking into context the removal of such charge in neighbouring India, the hospitality business in Nepal also needs to think about removing such service charges, according to HAN. The Indian Department of Consumer Affairs has recently announced that ‘service charges’, which restaurants include in the bill in addition to taxes, are actually optional and not mandatory.
Currently, three tourism and hotel labour associations have demanded that the staff should get all of the amount collected as service charges.
"The concerned authorities will have to take responsibility for any harm caused to the tourism industry from the protest,” the committee said in a joint statement.
The mandatory service charge system came into force on January 1, 2007. Since then, hotel and restaurant customers have been paying 24.3 per cent extra on top of the advertised prices as 10 per cent compulsory service charge and 13 per cent value added tax (VAT).

One hour of bandh bleeds economy Rs 150 million

The economy bleeds Rs 150 million directly due to per hour of strike, according to a study.
The three-day bandh called by the UCPN-Maoist led 30-party alliance will bleed economy Rs 5.40 billion in three days, according to the study conducted by the central bank on 'the economic impact of general strikes', which revealed that one day of a nationwide strike causes a loss of about Rs 1.80 billion directly, most of which is borne by the service and industry sectors.
However, the entrepreneurs estimated the losses to be at Rs 3 billion per day at the current rates as the bandh has domino impact on economy. The private sector claims that the economy will bleed Rs 250 million per hour as of today.
The alliance has called three day strike from Wednesday to Friday to pressurise the government. Requesting the 30-party alliance led by the UCPN-Maoist to withdraw the three-day strike, the private sector has called for more creative form of protest except disturbing the business and economic activities.
The bandh – called to pressurise the government – will not only bleed the economy blue, but also curtails the fundamental constitutional rights of a common man. The constitution has ensured a free movement of a person apart from freedom of choice of profession and economic freedom.
Likewise, political stability in recent years has helped create investment-friendly environment in the country. So, the private sector has asked the parties not to disturb the investment-friendly environment.
Federation of Nepalese Chmbers of Commerce and Industry (FNCCI), Confederation of Nepalese Industry (CNI) and Nepal Chambers of Commerce (NCC) have urged the political parties not to disturb the investment-friendly environment.
They have also urged the parties to expedite the process of promulgation of the constitution and end the political instability, and shun any strikes that will again pull the economic growth down.
The central bank study – based on data and strike incidents in period from 2008 to 2013 – also revealed that such recurring bandas has a total output loss of Rs 27 billion on average per year. "It has brought down some 1.4 per cent of GDP growth per year from 2008 to 2013," the central bank study stated.
The private sector fears that strikes and protests would once again dampen investors’ confidence. "Investors will run away if they face a sense of insecurity and uncertainty," FNCCI vice president Pashupati Muraraka said, adding that the strikes could not by any means address any problem.
Likewise, Hotel Association Nepal (HAN) has also urged to withdraw bandh, saying its impact on the tourism industry would be huge, long-lating and directly or indirectly hit livelihood of over 4.5 million people. Strike induced uncertainty will hit the tourist arrivals, it added. "As such strikes would have adverse impacts in the economy by discouraging investors and worsening the business environment in the country.

Action plan on economic diplomacy in pipeline

The government is planning to bring an economic diplomacy action plan that is expected to promote tourism and attract investment in hydropower, apart from helping solve problems of Nepali migrant workers.

The government has also formed a high-level coordination committee led by Minister for Foreign Affairs, apart from setting up an economic diplomacy desk at the ministry, and also in Nepali diplomatic missions in foreign countries.

"Economic diplomacy is one of the important aspects of foreign policy," minister for Foreign Affairs Madhav Prasad Ghimire said, at an interaction here today.

There is a need of crafting new vision and restructuring existing mechanism for its effective enforcement, he said, recommending to set up bilateral chamber of commerce by private sector in foreign countries, add more honourary consulate generals, organise trade and investment fairs and appoint tourism advisors by Nepal Tourism Board (NTB).

Senior economist Prof Dr Biswambhar Pyakurel, on the occasion, stressed the need to lay emphasis on quality service and production apart from boosting foreign trade based on the principle of comparative costing.

Likewise, president of Non Resident Nepalis Association (NRNA) Shesh Ghale called for coordination on concrete agenda for economic diplomacy. "The NRNA has presence in 65 countries across the globe," he said, adding that the association is helping promote Nepal abroad.

"Nepali embassies should be made hospitable and business-friendly as Nepal has been famous for tourism in the world," advised president of Hotel Association of Nepal (HAN) Shyam Kachhapati, on the occasion.

The officiating secretary at the Ministry of Foreign Affairs Shankar Bairagi informed about the policy-level decision and structural changes to boost economic diplomacy.

Newly elected CA members stress tourism

Newly elected Constituent Assembly (CA) members vowed to promote tourism for the economic development of the country.

Nepali Congress CA elect member from Lalitpur-3 Madan Bahadur Amatya said that they would prioritise tourism promotion.

Likewise, another newly elected CA member from Bhaktapur-2, Rameshwor Dhungel said that tourism, agriculture and energy are key sectors the government should focus on. "The country cannot develop economically, unless the government concentrates on tourism," he said, stressing on the development of the ‘homestay'.

During a programme organised here today by Hotel Association-Nepal (HAN),  Restaurant and Bar Association of Nepal (Reban), Tourist Guild Association of Nepal (TGA Nepal), Nepal Association of Travel and Tour Agents (Natta), PATA Nepal Chapter, Nepal Association of Tour Operators (Nato), Trekking Agents Association of Nepal (Taan), Nepal Association of Rafting Agents (Nara), Himalayan Rescue Association (HRA) and Society of Travel and Tour Operators Nepal (Sotto Nepal) to feleicitate 15 newly elected CA members from Kathmandu Valley, president of HAN Shyam Sundar Lal Kakshapati said that the tourism sector contributes to around 2.4 per cent to the total gross domestic product (GDP) but the government is yet to give a serious re look to it.

"The government has, though prioritised tourism industry, it has not been able to help bring any positive development to the sector," he said, adding that the government has even failed to buy a new aircraft for the national flag carrier and construct an alternate regional international airport.

He also urged the government to work together with the private sector for the development of tourism. "The country can earn foreign currency, create employment opportunities, control poverty, promote exports and make regional balance and maintain surplus Balance of Profit (BoP) through tourism promotion," he added.

General Secretary of the Nepali Congress and newly elected CA member from Kathmandu-1 Prakash Man Singh, on the occasion, said that absence of local representatives has also hit the development at the local level that has caused negative impact on the tourism sector. "Dirty roadways, poor drainage system and drinking water have contributed to send a negative message of Kathmandu as an ugly city," he said, urging the private sector to come up with development agendas for the development of tourism sector.