Prime Minister Balendra Shah Assures Hotel Entrepreneurs of Accelerated Tourism Promotion

Kathmandu. Prime Minister Balendra Shah has stated that the concerns of hotel entrepreneurs will now end as work has started at a rapid pace for the promotion of tourism in Nepal. The Prime Minister's Secretariat informed that Prime Minister Shah gave encouragement to the private sector to move forward as a strong partner of the state during a special discussion held at the Office of the Prime Minister and Council of Ministers on Wednesday with the officials of the Hotel Association Nepal (HAN).

Prime Minister Shah also urged the HAN officials to fulfill their business responsibilities by obeying the law, to bring small and medium-sized hotels under the tax net by registering them with the Department of Tourism, and to study possible collaborations that can be done in a public-private partnership (PPP) model.

In the discussion, which was also attended by Minister for Culture, Tourism and Civil Aviation Khadakraj Poudel, HAN officials informed that the hotel industry of Nepal is fully capable of serving 4 million tourists annually. Stating that only 1.2 million tourists are currently entering annually, the entrepreneurs said that the hotel industry will be a strong medium to create unprecedented growth in domestic employment and prevent Nepali youth from going for foreign employment as tourist arrivals increase.

Highlighting that there is immense potential for health tourism, destination weddings, and cross-border tourism in Nepal, they presented some policy demands to the government.

The entrepreneurs demanded from the Prime Minister to provide concessions in electricity tariffs like other manufacturing industries and to amend the provision of brief environmental assessment study for small and medium-sized hotels up to 25 beds, which is impractical, to up to 50 beds.

Similarly, they urged to fully operate the Pokhara and Bhairahawa airports and improve the services of Nepal Airlines, to amend the provision in the Foreign Investment and Technology Transfer Act, 2075, which states that the royalty or fee amount for trademark use under technology transfer should not exceed 5 percent of the total sales value, excluding applicable taxes, and to amend and review other laws related to the hotel business.

Hotel entrepreneurs also requested to facilitate the process of bringing jewelry for destination weddings and to arrange packages with 'full storytelling' and experts for the promotion of health tourism, not just photos and videos.

HAN's acting president Dinesh Tuladhar, general secretary Sajan Shakya, treasurer Yubaraj Shrestha, executive committee members Jaydin Shrestha and Ashlesha Karki, and HAN secretariat chief Tekbahadur Mahat participated in the discussion.