The final report prepared by the committee led by Prime Minister´s Office Secretary Lila Mani Paudel has asked the government to clearly define tourism industry and provide incentives including tax exemption in selected areas, protection of investment and effect other legal amendments to attract more investment in the sector. [break]
The committee submitted the final report on Wednesday incorporating suggestions from different associations representing private sector like Hotel Association Nepal (HAN), Trekking Agencies´ Association of Nepal (TAAN), Nepal Association of Tour Operators (NATO), Nepal Association of Tour and Travel Agents (NATTA) among others.
Paudel, coordinator of the committee, said the report was being forwarded to the Ministry of Tourism and Civil Aviation (MoTCA) before sending it to the cabinet for final approval. “Although details of the report cannot be disclosed at this stage, we have incorporated most of the suggestions of the private sector and those will facilitate tourism entrepreneurs and bring more investment in this sector,” he said.
The report has recommended to the government to disallow any labor union affiliated to political parties in the tourism industry. Yogendra Shakya, a member of the high-level committee, said that the hospitality industry has suffered a lot from trade unions affiliated to different political parties. “Since tourism is sensitive and priority industry, we have asked the government to declare such unions illegal,” he added.
If the report is approved by the cabinet, tourism industry will also get subsidy in electricity and water tariffs.
Likewise, the report has also recommended exemption in income tax for 10 years for hotels, restaurants, resorts and other tourism related industries in 22 least developed districts and 13 underdeveloped districts identified by the government. Tourism entrepreneurs have also asked the government to provide hoteliers and restaurateurs lands on lease for free or at subsidized rates for long term.
The report has further asked the government to provide bank loans to tourism sector at concessional rates.
Tourism entrepreneurs have been demanding the government to treat tourism industry on par with other industries and provide same incentives. “ We are hopeful that tourism industry will gain the same status like other industries and get special priorities in some needed areas after the endorsement of the report,” Shyam S.L Kakshpati, HAN President said.
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