KATHMANDU, July 15: Prime Minister Balen Shah has assured hotel entrepreneurs that the government is working rapidly to promote Nepal's tourism sector and urged them not to be concerned about the industry's future.
During a meeting with office bearers of the Hotel Association Nepal (HAN) at the Office of the Prime Minister and Council of Ministers on Wednesday, Shah said the government has given high priority to the private sector and asked businesses to view the state as a strong development partner.
He urged hoteliers to comply with the law, fulfill their business responsibilities, register small and medium-sized hotels with the Department of Tourism, bring them into the tax net, and explore opportunities for collaboration under public-private partnership (PPP) models.
At the meeting, attended by Minister for Culture, Tourism and Civil Aviation Khadga Raj Paudel, HAN officials said Nepal's hotel industry has the capacity to accommodate up to four million tourists annually.
Kerala Tourism’s first STREET project inaugurated in Maravanthu...
They noted that Nepal currently receives around 1.2 million tourists a year and said increasing tourist arrivals would create more domestic employment opportunities and help reduce the outflow of Nepali youth seeking jobs abroad.
The association also highlighted Nepal's potential as a destination for wellness tourism, destination weddings and cross-border tourism, while presenting several policy recommendations to the government.
Among their key demands were electricity tariff concessions for hotels similar to those provided to other productive industries and raising the threshold for requiring an Initial Environmental Examination (IEE) for small and medium-sized hotels from 25 beds to 50 beds.
The hoteliers also urged the government to fully operationalize the Pokhara and Bhairahawa international airports and improve the services of Nepal Airlines.
They further requested amendments to the Foreign Investment and Technology Transfer Act, 2019, seeking greater flexibility in setting royalty payments for trademark use under mutual agreement instead of the current ceiling of five percent of total sales, excluding applicable taxes. They also called for revisions to other laws affecting the hotel industry.
The association additionally urged the government to simplify procedures for bringing jewelry into Nepal for destination weddings and to promote wellness tourism through comprehensive storytelling packages supported by experts rather than relying solely on photo and video promotion.
The meeting was attended by HAN Acting President Dinesh Tuladhar, General Secretary Sajan Shakya, Treasurer Yuvraj Shrestha, Executive Committee members Jayadin Shrestha and Ashlesha Karki, and Secretariat Chief Tek Bahadur Mahat.
