Tibetan tourism potential not fully exploited

By Shree Ram Subedi

KATHMANDU, July 12 - Despite over one-and-half decade of land and air-link between Nepal and Lhasa, the capital city of the Tibetan autonomous region of China, its vast tourism potential remains to be exploited to its fullest.

Tourism link between the two cities was established immediately after Tibet, the city of Snow and Lamas, was opened up for tourism about 15 years back.

The fact that only about twenty thousand tourists visited Tibet via Nepal during "Visit Nepal Year 1998" itself speaks about how woefully Nepal has failed to develop Kathmandu as the gateway to Tibet, which still entrances many tourists. Westerners regard Tibet as the city of mystery.

There are a number of reasons to hope why tourists flow to Tibet via Nepal has a tremendous potential. First, Tibet is at a relatively shorter distance from Kathmandu compared to its vast distance from Mainland China.

Second, as Tibet falls in the rain shadow area, tourism entrepreneurs in Kathmandu can target Tibet during the monsoon seasons.

Third, not only for the western tourists, but the Tibetan region holds importance for Indian tourists as well. Besides its majestic beauty, Manasarobar Lake, which lies at the lap of Mt Kailash, Tibet has a religious value as well for the Indian tourists. Many Indians revere visiting Manasarobar Lake and Mt Kailash as their life time dream.

Every year thousands of Indian pilgrims compete for limited quota provided by China to visit Manasarobar. However, there is "no limit" for Indian tourists visiting the revered lake via Nepal. Moreover, the route to the lake via Nepal is less challenging for the pilgrims.

"Our success to market Indian tourists aspiring to visit the lake alone will provide a much needed boost to our tourism industry," says an entrepreneur.

Unfortunately, we have neither vision nor programs to tap this opportunity, say tourism entrepreneurs. Lack of national commitment to exploit this opportunity is compounded by problems that China has failed to address.

The two cities are air-linked by a single airlines, China Southwest Airlines, which enjoys a state monopoly. Entrepreneurs complain that the state-run airlines has exploited the monopoly situation and increased the airfare every year since 1998. Increase in airfare for three consecutive years has reduced the number of tourists flying to Lhasa from Kathmandu, says Arjun Sharma, Managing Director of Shiva Travels.

Tourism entrepreneurs complain that the Airlines has not only increased the airfare but also compromised over its service quality.

Besides, oft-changing Chinese policies and rules also aggravate the situation, say entrepreneurs.

In addition, Nepal-Tibet tourism is further plagued by illegal business conducted by Indian, Chinese and foreign operators, which is easily proved by South West Airlines brochure.

Of the four sales agencies mentioned in its brochure, two of them are not even registered in Nepal, which is against Nepalese law. The unregistered agencies are Tibet Tourist Corporation (TTC) and Tibet International Sports Travel (TIST).

"Sales of such unauthorized travel packages is leading towards unhealthy competition and is adversely affecting our business," says a tour operator preferring anonymity.

On the other hand, officials at the Tourism Ministry say that problems facing the genuine tour operators has not yet been heard officially, though they were aware of the problem.

"The operation of unregistered travel agencies is against law and so the government will take steps to ensure that such malpractice would not take place," says Shankar Koirala, chief of the Industry Administration Division at the ministry. He also said that efforts would be made to develop Nepal as China’s outbound destination in order to encourage visits by Chinese tourists.

"The tourism industry would receive an additional boost if Nepal is recognized as China’s outbound destination," says Pradeep Raj Pandey, Chief Executive Officer of Nepal Tourism Board (NTB).

The government has to recognize the problems facing tourism related entrepreneurs in Nepal-Tibet sector, and should take proper steps to resolve those problems, say businessmen.

Statistics vital for economic growth

By a Post Reporter

KATHMANDU, July 12 - Governor Dr Tilak Rawal said that apart from the Bank’s conventional responsibilities of controlling inflation and managing other monetary issues Nepal Rastra Bank has been working to enhance economic growth and assist government in its poverty alleviation target.

The Governor was speaking in a workshop on economic statistics and Nepal Rastra Bank’s role, organized by Research Department of the Bank today.

On the occasion, Governor Rawal said that he has been giving top priority to the data and statistics while executing the Bank’s role to advise the government in various issues. He said that statistics on any issue plays very important role in deciding policies and future course.

In the workshop Economic Advisor Rebat Bahadur Karki presented a paper on the significance of economic data and Nepal Rastra Bank’s role in collecting such data. Though the economic data covers a vast arena, Rastra Bank has been focusing in the collection of data from real sector, inflation, monetary and banking sector, government finance, external sector and few other sectors, Karki said.

In his paper, Karki added that economic data played crucial role for Nepal Rastra Bank while advising the government, explaining the country’s real economic status, for the internal use of the Bank etc.

The paper criticized that after deregulating licensing in the industrial sector the industries have become oblivious in providing data to the Bank, which has forced the Bank to rely more on its own sources.

Nepal Rastra Bank has been collecting data from over 50 industries in valley and over 300 industrial units scattered around the country through its nine branches. The Bank has said that it is capable of collecting 95 percent of the total GDP’s statistics on its own sources.

Karki also discussed the problems and challenges experienced in the collection of economic data from the various sectors of the economy. For that matter he also urged the private sector to act more responsibly in providing such information to the concerned authorities.

The discussion and paper presentation session of the workshop was chaired by Chief Economic Advisor of Nepal Rastra Bank Dr Yubraj Khatiwada.

69 year young GD Shrestha & his 18 month old Radisson

By a Post Reporter

KATHMANDU, July 12 - Allured by the temptation of going around the world, Govinda Das Shrestha opened a travel agency 32 years back. Within three decades, Himalayan Travels and Tours really bloomed, earning not only money but also a name for himself and his family as one of the pioneers in tourism industry.

Shrestha claims tourism as the only industry to develop the country. He says Nepal can hardly compete with huge manufacturing industries of its neighboring countries, especially in the context of globalization where protection is illegitimate.

Tourism is the only industry left for us which has competitive edge, says he.

Even in the afternoon of his life, Shrestha is equally energetic and enthusiastic as in his youth. He has enriched himself with the wealth of experience, which puts him at par with university scholar, shielding his high-school level education.

Though Shrestha and his business have experienced many ups and downs, he and his entrepreneurial family recently moved ahead to take a challenge of establishing a five star hotel in the capital.

Radisson Hotel Kathmandu was established to cater the need of a five star hotel in true sense, claims Shrestha.

Inspired by the concept of Conrad Hilton, proponent of chain and franchise in hotel industry, the hotel has been built in a prime location which enjoys comparative advantage over others. Location is one of the principal factors making a hotel successful, he says.

Now Chairman of Oriental Hotels Limited (managed by Radisson Hotel), G D Shrestha is hopeful of good business of the hotel along with the growth in tourism sector.

However, he is saddened by the performance of Royal Nepal Airlines Corporation (RNAC), which could play a greater role in promoting Nepal’s tourism. Thai Airways and RNAC were established in the same year "but look at Thai Airways." It has come a long way while RNAC has become a political recruitment centre, he laments.

To operate the national flag carrier professionally, recruitment of political workers in the Corporation should be stopped at once. RNAC should be developed as a reliable airlines in the international arena, he says.

Lack of commitment at the national level is another factor affecting the growth of hospitality industry, opines Shrestha.
The industry has multiplier positive effects which other sector hardly has.

Shrestha is quite happy with the performance of Radisson Hotel Kathmandu, which enjoys 60 percent room occupancy within the 18 months of their operation. Built at a cost of one billion and 350 million rupees, the hotel has 172 beautifully appointed rooms.

Encouraged by the room occupancy and bright future, the Radisson is going to issue public shares on July 25. Our occupancy is expected to rise to 80 percent soon and if it continues, we will be able to recover the loan within 2/3 years, says optimistic Shrestha.

As the return from the hospitality industry is satisfactory, more people are investing in hotels, he said replying a query.

Radisson has 400 plus hotels in various countries across the world, which are run by thorough professionals. Therefore, buying the shares of our hotel is an opportunity for the general public to get a good return, he adds.