" The Tourism Should Be Sustainable As Well As It Should Support The Livelihood Of People" - Madhav Prasad Ghimire
MADHAV PRASAD GHIMIRE , Secretary at the Ministry of Culture, Tourism and Civil Aviation, is a senior civil servant with wide range of knowledge on Nepal 's economic and social issues. Ghimire, who did MS from Asian Institute of Technology, has completed Master in Business Administration from Tribhuwan University . Having served as consulate general in Nepalese mission in Honk Kong, Ghimire also headed the Foreign Aid Division in Ministry of Finance in the past. Ghimire spoke to KESHAB POUDEL He talked about the situation of economy and tourism. Excerpts:
How do you see the state of tourism in Nepal ?
First of all, tourism is one of the basic area of Nepalese economy. Whether it is in the short term or long term plan of the government, the importance of tourism is clearly mentioned. In terms of foreign exchange, the tourism has a major contribution as it is still one of the major foreign currency earners. In overall GDP, the tourism has made 2.5 percent contribution. In terms of employment, the tourism provides employment opportunity for large number of population. According to a study, a tourist provides direct and indirect employment opportunities for at least 12 Nepalese. In terms of investment, tourism has a leading role. Hotel sector, which is one of the major components of tourism, is one of the major sectors of investment.
What are the major concerns now on tourism sector?
Although it has made major contribution in economy, the debate is growing about how to give benefit to the large segment of the population. During the last 12 years of conflict, the tourism industry also suffered a lot. After the signing of peace treaty, there is growing hope of its revival. As it is in the revival stage, we must develop a plan to expand the tourism sector from urban concentration towards the rural. In the past, it was seen as an urban based business and its benefits were confined to certain key stakeholders like travel tour operators, airliners, hoteliers and traders. The perception of tourism was that it was just a business of blue collar class. Now, there is slight deviation in this concept.
What is the challenge now?
The challenge of tourism at present is how to tickle down its benefits to the broad stake holders at the grass root level. The challenge is now how to share benefit in fair and just manner. In other words, the challenge is how to make it pro-poor or to give benefit to broad stake holders including residents of far flung areas and rural parts of Nepal . In the past, tourists were taken to many parts of Nepal but local people did not have any say on benefit sharing. The local communities and people felt ignored and neglected in power sharing. People did not feel ownership. The time is now to broaden the area and benefit sharing and ownership. The community should get benefit as per their contribution in tourism sector. Now we are developing a policy for pro-poor or sustainable tourism. The tourism should be sustainable as well as it should support the livelihood of people. Along with its contribution in GDP growth, we must work out a plan to trickle down the benefits of the tourism sector. It must go for far flung and remote areas.
As the government wants to widen the benefit of tourism in rural parts of Nepal , a pro-poor Tourism for Rural Poverty Alleviation program (TRPAP) is going to phase out soon. Does the government have anything in mind to extend it or consider another project similar to that?
If we see the plan documents, they always stress on the pro-poor based rural tourism. In practice, no such programs were implemented targeting the poor. When I was heading the Foreign Aid Division of Ministry of Finance negotiating the program, we proposed to UNDP, DFID and SNV to implement pro-poor tourism as a pilot program in six districts. TRPAP aim was to target the poor population of rural areas.
How do you see the implementation of TRPAP?
The implementation of TRPAP is satisfactory as it produced good results in those six districts where it was implemented. We need to replicate the lessons learned from this kind of program and there is a need to expand such programs in other districts also. This is donor-funded program so we are now discussing regarding the program. We are getting positive indications. TRPAP must be replicated and scaled up.
Mountaineering is still confined to certain areas, and we still have many new mountains to explore. Does the government have any plan to open up new mountain areas for expedition?
When we are talking about the tie-up of the tourism with poverty alleviation program, we must open new tourist areas including mountaineering. It can be most important instrument in terms of balanced regional development. Mountaineering is now confined to Khumbu region of Mt. Everst , Annapurna region and Langtang region and many other beautiful areas like in Dolpa, Humla, Rara of western and other areas in eastern parts of Nepal are yet to be explored. If we encourage tourists to visit these areas, poor people will benefit from them. Most of the visitors who come to visit Nepal do mountaineering in these areas only. It means the benefits are limited to these areas only. If you see average GDP of Khumbu region, it is about US$1200. It shows how much tourism can benefit the people. We have to develop new products in other areas of tourism potential.
How many new products have been developed during the period of implementation of TRPAP?
TRPAP has made important contribution to develop the new product in the remote parts of Nepal . In Dolpo of mid-west, the TRPAP has developed a new trekking circuit. Similarly, the project developed a Tamang Trekking Circuit and in Chitwan also. TRPAP is taking package for tourism development. From giving training to tour guide to building small infrastructures like information centers and community building and room for home stay tourists, TRPAP has made excellent contribution. TRPAP has also venture capital for promotion of tourism.
What are other contributions of TRPAP?
TRPAP has contributed to develop human resources as well as other infrastructures. It has made very important contribution in Rasuwa and Taplejung. We need to explore the potential of Rara, Khaptad and many other parts of far western and mid-western region. If we develop new venues, benefits will automatically trickle down. TRPAP helps create demand also. It also helps to institutionalize the rural tourism at the grass root level. It develops unit at village levels and district levels in the process of social mobilization. From VDCs to central level at Nepal Tourism Board, it builds linkages. In all six districts, there are tourism units. This is very innovative and important steps to implement tourism program in sustainable way.
What are other problems faced by tourism ?
It is easier to said than done. It is very difficult to develop new products. Dolpa and Rara areas are known for their bio-diversity but they have not yet been capable to develop as tourist destinations. Airline services are unreliable and there is a lack communication facility. We need to analyze minutely the supply and demand side.
How much money do you allocate to the local level?
Last year we generated about Rs.160 million revenue from mountaineering as a royalty and we allocated 30 percent of such resources to particular districts for the development of tourism related infrastructures and environment. Our aim is to provide the resources to grass root level. This is the way of sharing benefits. This will also give incentives to the local community.
At a time when there is a growing concern about pollution in mountaineering areas, what has government planned to clean up the mountains?
This is a very serious concern. The government is allocating additional resources to clean up areas like Mt. Everest and Khumbu region. We have made mandatory for expedition groups to carry out the garbage used during the climbing. Every climbing team has now to deposit certain amount of money for that. In case, some groups do not bring the garbage, their deposit money will be used to clean up the rubbish.
There is a complaint that the royalty of mountaineering is high compared with China . How do you look at it?
There are two schools of thoughts on that. Some groups believe that Nepal has unique ecology so that the royalty is not high. Others hold the view that it needs to be reduced. In my opinion, we need to make our mountains attractive and competitive. Compared to peaks in Tibetan Autonomous Region of China, Nepal has higher fees and royalty. I think we need to review it. For instance, a tourist has to pay about US$700 for ten days, whereas tourists from Tibetan sides are coming without paying such price. This is the area where we have to consider the pro-poor tourism policy. Our package needs to be competitive and attractive. Many restricted areas have already opened in Chinese side but we are still closing them. I know that some of those areas were very vulnerable in terms of geo-strategic interests in the past. Now the situation has changed.
Tourism entrepreneurs are complaining that the number of air seats available is very low. What do you say?
One of the major problems is the accessibility. There is a problem to get ticket during the peak tourist season. We have been suffering from this problem. The government has taken some important steps allowing international operators to add additional flights to Nepal . This was immediate reform action taken in the past. We also issued a public notice requesting private airlines to start the international flights. One airline has applied for that and it is in due process. We will upgrade it. Third step is to allow more international airlines to link Nepal . We also changed some air service agreement with certain countries.
Are any new airlines flying to Nepal ?
Korean Air, China South West Airlines, and Air Arabia have already started their flight to Nepal. Air Sri Lanka is in process to begin its operation to Nepal . Orient Thai is also in the pipeline. We are also discussing with other private airlines in India to start the flight from different cities of India. We will do new agreement with India if necessary.
Do you have any plan to expand the fleet of Nepal Airlines?
Another important step will be to reform the Nepal Airlines. We have to reform its management side. For this, we want to turn it into a public limited company where the government will have majority share. This system will provide certain flexibility to reform certain things. Another important part of reform will be to increase the number of aircraft. Nepal Airlines has now two old aircraft to fly the international sector. Both the aircrafts have already completed 22,000 cycle and it has four twin otter. Keeping in mind, the growing demand, there is a need to increase the number of aircrafts. We have already formed a committee to do a feasibility study. Nepal Airlines need new aircrafts soon. We will proceed to purchase new aircraft following the hand over of the study .
