Laxman Prasad Bhattarai, spokesperson of the Ministry of Tourism and Civil Aviation (MoTCA), Tuesday told Republica that the ministry has requested the Ministry of Industry (MoI) to amend the Appendix of the Foreign Investment Regulations to reopen five sub-sectors of tourism -- travel agency, trekking, rafting, pony trekking and horse riding -- for foreign investment.[break]
“We are in regular discussion with MoI after tourism entrepreneurs said they would have no objection if the government allowed foreign individuals or firms to invest up to 49 percent of the total investment in those sub-sectors,” Bhattarai said.
“As Nepal is a member of World Trade Organization (WTO), Nepal can´t restrict foreign investment in the industrial sector.”
Following pressures from tourism entrepreneurs, MoTCA had put those sectors in negative list of industries for foreign investment. Tourism entrepreneurs had argued then that the foreign investment in those sectors would inflict their business interest.
“We have received the letter from the MoTCA regarding the lifting of restriction in foreign investment in those five sub-sectors. However, we can do nothing as only the Industrial Promotion Board can amend the Appendix of Foreign Investment Regulations,” said Yam Kumari Khatiwada, the joint secretary at MoI.
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