Sep 22, 2006

Hope And Anxiety

This year, for the first time since 1999, the prospects for tourism have brightened substantially. With the political change of April and the possibility of restoration of lasting peace has encouraged the tourism entrepreneurs. Hotels have informed that the booking for the upcoming autumn season has surged. Airlines have informed that their flights have been booked for the next three months. New international airlines have shown interest to operate flights to Nepal . The overall positive image Nepal enjoyed after April in the international media has helped lure tourists from around the world. But this is only one side of the coin. Unfortunately, just as the tourism entrepreneurs were demonstrating excitement, a series of activities by the Maoists has dampened their spirits. The unabated rise in extortion, the unchecked intrusion and forced unionization in hotels and politicization of the sector has compelled the entrepreneurs to send out signals of distress and frustration. So much so that the leading tourism organizations have published a notice stating that they could shut down the whole industry if the situation is not brought under control

By SANJAYA DHAKAL

Although Charles Dickens used it in a different context for a different meaning, his phrase “It was the best of times and it was the worst of times” applies equally well to the situation of Nepalese tourism industry at this juncture.

On the one hand, the country is basking in a newfound sense of security after a decade-long conflict but, on the other hand, the fragile nature of the peace threatens to trigger further uncertainty.

Tourism entrepreneurs who were waiting for a return of peace could not have been happier with the start of credible peace process between the government and the Maoists. However, their joy seems to be short-lived. No sooner were they planning for a problem-free tourist season, they have encountered numerous problems like continued extortion, harassment, forced unionization, surging demands and the lack of response from the government. These apart, the utterly fragile nature of law and order has exposed them to new challenges that are beyond their control.

A tourist in Kathmandu : Individual travelers on the rise

A case in point could be the incident of last Wednesday (September 13) when due to rumors of arms import, the Maoists suddenly brought the city to halt. The workers of hotels were asked to stop their work and join their rally. Although the problem was resolved soon afterwards, it showed how vulnerable the industry is.

Earlier, the country suffered from violent riots on August 19 and 20 quite suddenly after the government decided to increase the price of petroleum products. For two days, the city was under siege as protestors disrupted all normal activities.

As tourism is one of the most sensitive industries, the daily strikes, sit-ins, traffic jams and crimes have further hurt its brightening prospects. As the phase of transition prolongs, the tourism entrepreneurs are concerned that the volatile situation could worsen in the coming days.

Hoping Against Hope

Since 1999, tourism sector has had no chance to recover from a series of bloody blows. The year of 1998 and 1999 are the best in terms of the number of tourist arrival. Since then, everything has changed.

It all began with the 1999 Christmas eve hijacking of Indian airlines (en route from Kathmandu to New Delhi ) to Afghanistan . In 2000, the country suffered from anti-India riots on Hrithik Roshan episode. The year 2001 was particularly brutal – the unprecedented royal palace massacre, intensification of Maoist insurgency and clamping down of state of emergency together dealt a knock-out blow to the tourism industry as the country suffered from terrible image abroad.

Hotels : Great Expectation

In subsequent years, the nation tottered from one crisis to another – never able to return back to peace and stability.

However, the mass uprising of April this year has created a situation where people can expect durable peace returning to the country. As such, this season, given the favorable image of Nepal abroad, hotels are reporting around 90 percent booking even as airlines have announced that they are fully booked for the next three months.

After wallowing in 20 percent occupancy for years, the hotels are looking forward to the coming season. “Hotel booking is around 85 percent for the season beginning from October,” said Prakash Shrestha, president of Hotel Association of Nepal (HAN).

Not only the big and five-star ones, the smaller non-star hotels in Thamel also hope for 80 percent occupancy during the season. Airlines like Thai, Qatar , Gulf and others have indicated that their flights are almost booked for the coming season. There were even reports that big groups from Europe had to cancel their trip due to lack of tickets.

Likewise, new airlines like Sri Lankan Airlines, Ettiyad, Orient Thai have shown interest to operate flights to Kathmandu . Korean Air has already received permission to operate chartered flights once a week for three months.

These news have been received with expectation and excitement by the tourism entrepreneurs.

But these positive news have come with a pinch of salt as well. Unfortunately, even before they could start smiling, the entrepreneurs are facing tremendous challenges due to the pressures in the domestic front.

Industry in Distress

On September 19, ten leading tourism organizations came out with a joint public notice stating that they were on the verge of announcing shut down of the total industry.

Tourists : Seeking Information

The organizations revealed that even before they could benefit from the positive vibes created by the April uprising followed by credible signals of improvement in situation, the tourism industry was facing unprecedented crises.

In the public statement, the organizations noted “the incidents of recent weeks such as forced donations from tourism industry, enterprises and entrepreneurs; politicization of tourism institutions in the name of trade union; unilateral and random fixation of salary and other benefits; and holding of lock-outs if management express inability to fulfill such demands; harassment of management and daily increase of unnatural and undesirable activities” as having seriously jeopardized the whole tourism sector.

The public statement signed by presidents of major tourism organizations - such as Hotel Association of Nepal (HAN), Nepal Association of Tour and Travel Agents (NATTA), Nepal Association of Tour Operators (NATO), Nepal Mountaineering Association (NMA), Trekking Agents Association of Nepal (TAAN), Nepal Association of Rafting Agents (NARA), PATA Nepal Chapter, Nepal Freight Forwarders Association (NEFFA), Himalayan Rescue Association (HRA), and Thamel Tourism Development Board (TTDB) – has also expressed frustration over the lack of cooperation from the government.

“We entrepreneurs have felt discouraged and clueless after the government authorities demonstrated indifference and incompetence instead of assuring us of help when we apprised the concerned Minister, Ministry and authorities about our plight,” the hard-hitting public statement adds.

“If the concerned agencies do not take any required initiative even when a serious threat is hanging over the key component of national economy, a situation will arise where all enterprises and industries will have to shut down. Such a move would not only soil the international image but also cause negative impact to other industries and enterprises,” the statement adds.

Earlier, last week, a meeting of the leading tourism organizations was held in which the entrepreneurs concluded that they would have no option other than to shut down their businesses if their pleas went unheeded.

This conclusion was drawn a few days after the Hotel Association of Nepal (HAN) issued a warning that the hoteliers may be compelled to halt the operation of hotels if the Maoists continued to demand huge amount of donations. “We will be forced to close down our hotels if the Maoists keep on making illogical demands,” said Prakash Shrestha, president of HAN.

The half-yearly meeting of the HAN held in early September even endorsed a proposal allowing its member hoteliers to take the extreme step of closing down their business if they face such situation.

This decision was a result of extreme frustration especially as it came soon after the reports that the hotels have registered around 90 percent booking for the forthcoming season beginning October. In recent months, hotels like so many other industries in the country, have also come under severe pressure from the pro-Maoist trade union groups, who have not only tried to make huge demands for workers but also press for ‘donations.’ 

The hapless hoteliers complain that they have been running on losses for many years and many of them are already under pressure due to the need to pay bank loans and interests. “And on top of that, we are now facing exorbitant demands from the Maoists. How can we meet such demands?” a hotelier asked.

Added tourism entrepreneur Hari Man Lama, “In this kind of environment, it will be hard to expect that large number of tourists will come. Perhaps the individual travelers would come but the big groups may stay away.”

Lama, director of the Incentive Tours and Travels, said that due to lingering doubts about the peace process here and frequent disruptions and riots, the foreign tourists, particularly the Americans, have continued to stay away from Nepal . “Definitely, there has been some improvement in the arrivals and bookings. But that is not the whole story,” Lama added.

As the tourism industry stands in the cross-roads, the industry can expect to survive and prosper only if the peace process heads towards right direction. Otherwise, all hopes will be lost.