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 Kathmandu Wednesday July 26, 2000 Sharawan 11,  2057.

China declares Nepal outbound destination

By Shree Ram Subedi

KATHMANDU, July 25 - The government of the Peoples Republic of China has declared Nepal as its ninth international outbound tourist destination, which makes Nepal first such destinations in South Asia.

Talking to The Kathmandu Post, Chen Feng, Attache at the Chinese Embassy to Nepal informed that the Chinese State Council took the decision early July to include Nepal in the outbound tourist destination list thereby allowing Chinese nationals to visit Nepal as tourists.

" This is a landmark achievement for Nepalese tourism industry," says first vice-president of Hotel Association Nepal (HAN) Prakash Shrestha, and added that the Chinese decision would send Nepalese tourism industry into greater heights.

Treasurer of Nepal Association of Travel Agents (NATA) Ram Kazi Koney says the increasing economic activities in China in the context of globalization and liberalization has provided Nepal an opportunity to reap the benefits.

Marketing Director of Nepal Tourism Board (NTB) Tek Bahadur Dangi says declaration of Nepal as a holiday destination for the Chinese has necessitated Nepalese tourism entrepreneurs to concentrate on Chinese markets and come up with tourism appropriate packages to cater to the needs of Chinese tourists.

He says China, in the coming years would be the second largest country in terms of tourist arrival to Nepal besides India.

HAN had been requesting the Chinese authorities and tourism associations to declare Nepal as an outbound destination for China. Nepal now needs to pay due attention for the promotion and growth of the potential Chinese market, says Shrestha.

However, Nepal will have to wait for sometime before it welcomes the Chinese tourists. The decision will have to be complimented by various procedural arrangements. A press release issued here today by the Ministry of Tourism and Civil Aviation and Culture says the concerned authorities of the two countries will agree on the modality of Chinese tourist’s visit to Nepal.

Shrestha said appointment of a Consular General in Shanghai and arrangement for visa issue from Shanghai would greatly facilitate the flow of tourists to Nepal.

The Chinese decision has build up morale pressure upon the Nepalese authority to accept Chinese proposal for establishment of China National Tourist Office (CNTO) in Kathmandu which has been put on pending since last two years.

The government has not been able to decide on the issue so far due to staunch opposition from tourism entrepreneurs, handling tourists to Tibet. The entrepreneurs argued that
the move would only befit the Chinese.

Prakash Shrestha says development of tourism in both countries is dependent upon mutual cooperation and understanding.

"Under the present circumstances, Nepal should allow China to establish the tourist office here soon," he says.

Attache Feng also hopes that Nepal would follow suit and allow China to share mutual benefits of the tourism sector on a reciprocal basis.

Xue Yaping, Director of proposed China National Tourist Office, Kathmandu welcomed the Chinese government’s decision as a monumental achievement, adding that he is keen to work together with the concerned authorities.

Once CNTO opens office in Kathmandu, we will try our best to reap mutual benefits, says Yaping.

According to China Tourism Administration statistics, over 8.4 million Chinese tourists, including those on business trips, traveled abroad in 1998, which crossed the 9 million mark in 1999.

SAARC looks into business

By Ameet Dhakal

KATHMANDU, July 25 - "SAARC means Business - opportunities for partnership," as the name suggests, it is a book of business perspective. The name seems to have been chosen deliberately to demystify the image, as the West perceives, of South Asia.

For many Westerners, South Asia resembles an exotic destination full of temples and tribal arts; a life full of rituals and traditions enriched with the legacies of the past millennia. And yet a region of unresolved problems and poverty, teeming with millions of people and unable to move into a more prosperous, material future. The book, edited by Amit Das Gupta, Director at the SAARC Secretariat and Prof. Bivek Dev Roy, tries to present South Asia in other perspective: a region with tremendous opportunities for progress and partnership.

Thus, away from the present stagnation and poverty that blights the lives of millions of South Asians, the book looks into the future opportunities, which could earn SAARC a modest respect of a cooperating and prospering region.

The book is, therefore, about the other SAARC - not the one often bogged down by foreign and local media as the ‘poor man’s club.’

The book identifies the tremendous potential of the region, especially the competitive advantages that it possesses in a number of sectors. It mainly discusses eight different sectors, which offer not only the immense potential but also the possible area of regional cooperation. These key areas as identified by the book are; engineering industry, information technology, plantation and food processing, pharmaceuticals and chemicals, power, textiles, garments and fashion technology, transportation service and tourism. It discusses in detail the strengths and weaknesses of the member countries in each of these sectors.

If you carefully go through these sectors as presented in the book, you will come across one important message: the assemetric development of these sectors in different member countries indicates scope for wider cooperation among them. For instance; member countries can learn from India in areas such as information technology and pharmaceuticals. Moreover, it also indicates a tremendous scope for deepening intra-regional trade in areas such as; pharmaceuticals, engineering, textiles, information technology, tea and rubber.

This is also handy for prospective foreign investors who want a quick grasp into what economic activities are taking place in the region and what the investment opportunities are.

Mahendra P Lama, Professor at the Jawahar Lal Nehru University, Delhi has made an outstanding contribution to the book by providing a comprehensive regional perspective on power. Lama has minutely analyzed the present and future power scenario in the region.

Fueled by region-wide economic liberalization-led industrial activities and rise in income level-led switching over of the rural and urban families from bio-fuels to more efficient and convenient modern fuels, the region will have widening power deficit in the future, writes Prof. Lama.

He estimates that India will face the most serious power deficit in the region in a few years to come. The power deficit for India is estimated at 1,18,000 MW by the end of 2007. Nepal, located at an advantageous position in terms of supplying power to India, is also facing deficit but has a tremendous potential in harnessing hydropower. And this is precisely what makes sense for regional cooperation.

Unfortunately, the region has so far failed to make tangible efforts towards regionalization and is paying its price. Take, Pakistan, for instance. She is one of the leading importers of tea but a disproportionate share of her domestic demand is met by imports from beyond the region, and obviously at a higher price!

The book has added to its utility by including a fifty-three full-page address of SAARC’s major business houses working in different fields. Unfortunately, the book with such valuable business-related information about the region, is beyond the reach of average South Asian. The book priced at US$ 50 is equal to about one-sixth of the annual earnings of the average South Asian!

NCF manages to get urea at cheaper price

By Ram Sharan Sedhai

KATHMANDU, July 25 - At a time when the prices of chemical fertilizer is rising in the international market, National Cooperative Federation of Nepal Limited (NCF) has managed to strike a deal with Indian Federation of Fertilizer Cooperatives (IFFCO), an Indian cooperatives association, to buy 60 thousand tons of urea at a cheaper price.

The per ton price offered by IFFCO is about US $ 54 less than the prevailing international price. The low import price of fertilizers will, at least for the time being, relieve farmers from rising international prices. The lowest quoted price of urea in the international market currently stands at US $ 174 per ton.

As per an agreement reached between National Cooperative Federation of Nepal Limited (NCF) and IFFCO, a few months ago, the latter will sell 60 thousand tons of urea fertilizer at 5,300 Indian rupees (8 thousand 480 rupees) per ton, which NCF has been asked to import by the end of December this year.

Due to its weak financial position it could not purchase the fertilizer and asked AIC, among others, to help in clearing the consignment from IFFCO’s plant at Bareli, India some 150 km away from Dhangadhi, the nearest point from Nepal.

Nitya Raj Koirala, General Manager of Agriculture Input Corporation (AIC), says NCF had asked the Corporation in writing to buy 15 thousand tons of urea out of the 60 thousand tons.

AIC Board meeting on Monday decided to buy 15 thousand tons of urea as per the request and has forwarded its proposal to the Ministry of Agriculture, which requires cabinet approval, says he.

It is mandatory for AIC to procure fertilizers only through global tenders. Since this is a special case and the price offered is significantly lower than the international market price, we are trying to procure it through Cabinet decision, says Koirala.

Urea fertilizer procured through global tender costs more than Rs 650 per 50-kg bag whereas the Corporation would be able to sell the urea bought under the agreement at around 4 hundred and 50 rupees per bag, he says.

"This is the peak time for top dressing and we are running short of our stock. We are desperately in need of the fertilizer," says Koirala.

It takes more than 4 months to import fertilizers from international market through global bidding but the season for sowing wheat is just two months away, he adds.

If approved by the cabinet, we will be able to supply the fertilizer at a very competitive price during the peak season. In keeping with the gravity of situation, I hope, the cabinet will approve our proposal, he says.

The government cannot afford to miss the opportunity by rejecting the proposal put forward by AIC as it could result in a serious shortage of chemical fertilizers at a time when farmers need it. Procuring the said fertilizer, AIC will not only be able to meet the demand at a cheaper price but will also save the country’s convertible currency as it can pay IFFCO in Indian currency. Importing fertilizers under global tender requires settlements in US Dollars.

Sushil Dutta Mishra, General Secretary of Employees Union AIC, says that the has been pressuring the board to propose to the ministry to procure the urea as the board was initially dilly-dallying on the issue.

Transavia Airlines to double flights to Amsterdam

By a Post Reporter

KATHMANDU, July 25 - Transavia Airlines (TA), the Dutch carrier based in Schiphol airport, Amsterdam, is to double its flights schedule between Kathmandu and Amsterdam from one to two flights a week, says a press release issued from TA office here today.

According to the release, from 21st September this year, Transavia will operate a Boeing 757 on Monday and Thursday each week with a stop at Sharjah in the United Arab Emirates.

It is said that this additional capacity, which means the airline will be bringing in more than 430 people a week into the country, will also mean that passengers have more choice in terms of departure dates and the length of their stay. Transavia expects many of the extra seats to be taken up by travellers going to and from other parts of Europe and USA connecting to the service at Amsterdam.

The return fare for the flight to Amsterdam starts at US $888 travel agents in Nepal will be able to quote for connecting services to other parts of Europe and beyond.

TA is 80 percent owned by KLM Royal Dutch Airlines. Originally set up in 1966, Transavia Airlines is a separate airline with the KLM Group that mainly operates charter flights and scheduled services from Amsterdam and Rotterdam to some 70 destinations in and around the Mediterranean.


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