Recession-hit Dhulikhel eyes local tourists

By Khagendra Bhandari

DHULIKHEL, Kavre, Dec 27 - Plagued by the recession witnessed in the tourism industry of the nation lately, Dhulikhel is now banking its hopes on local tourists to revive its past business.

The mountainous town, hardly an hour’s drive from the capital was doing good business until a few months back. However, the town could not keep aloof of the slump in the tourism sector, leading to near closure of more than half a dozen hotels and resorts.

Hoteliers say that the main reason behind the current downturn is decline in the flow of tourist into the country, especially after the September 11 unprecedented attack in the United States that caused tourism globally to slump. Furthermore, the situation in Nepal is aggravated by a feeling of insecurity created by the Maoist insurgency and escalated by the recently declared state of emergency.

Hoteliers now say that they are facing trouble even in distributing salaries to their staff due to a downturn in their business. And added to that is the burden of bank loan that is accumulating day by day. And they lament, no solution seems near in sights.

Says Premkanta Shrestha, owner of Dhulikhel Lodge Resort, "We have invested millions of rupees in the hotels and only with the income from the local tourists will it be possible to service out debt. Presently, it is very difficult to pay even the interest of the bank." He further says that entrepreneurs are in dilemma whether or not to continue their business.

Due to low income of the hoteliers, even the cultural programmes, major attraction for the tourists inside the hotel, have been closed. Tourists also used to overstay due to the attraction of local Tamang culture of the region and which used to generate a good earning for the hoteliers. "Those good earning days are gone," says a frustrated hotelier.

And it is not just the hotels and resorts that are reeling under pressure of the downturn in the tourism industry. Even the local tourist guides are now going out of jobs. With the chances of increase in the inflow of foreign tourists unlikely in the near future, they are now banking on hopes that in-country tourists would make up for their lost business.

Entrepreneurs are expectantly awaiting the local tourists. However, they are not sure that local tourists will come in respectable numbers and contribute significantly in increasing their income levels.

Karna Nepali, Manager at Mirawel Resort, says that the hotels are little expensive as they were built with to attract foreign tourists and hence Nepali tourists hesitate to pay same amount of money.

Tourists, especially from Japan, USA, France and Australia used to visit Dhulikhel during their trips to Nepal. However, their inflow lately have gone down drastically not just in Dhulikhel, but in all Nepal.

Some hoteliers are optimistic that the tourism industry in the region will prosper, once peace is restored in the nation. They are also hopeful that the recent signing of a tourism pact between Nepal and China would rescue the Nepali tourism industry.

Nepal had recently signed a tourism pact with China to allow Chinese nationals to visit Nepal. China now recognises Nepal as one of its outbound destinations. "We are optimistic that Chinese tourists will revive the ailing tourism industry of Dhulikhel," says Bhim Shrestha, Supervisor at Himalayan Sangrila Resort.

Dhulikhel and its surroundings is famous for a panoramic view of the Himalayan range and peaks like Langtang, Dorje Lakpa, Chowa Bhamari, Furbi Chyachu, among others. Similarly, neighbouring places with religious and archaeological importance like Panauti, Namobuddha, Palanchok Bhagawati are also visited frequently.

Paddy production expected to decline

Post Report

KATHMANDU, Dec 27 – The annual production of paddy, which contributes over 20 per cent in the overall production of principal food crops, is expected to decline by 1.91 per cent to 4.14 million tons against a surge of 4.62 per cent of last year.

According to a preliminary estimates of production of the major food crops for the current fiscal year prepared by the Ministry of Agriculture and Cooperatives, the decline in the paddy field is the major cause for such slid in the production. In the review period, the area of paddy field went down by 2.76 per cent to remain at 1.52 million hector whereas it was 1.56 million hectors last year.

The unfavorable weather condition seen particularly in the Eastern region of the country is the main cause for such decline. According to the estimates, around 54 thousand hector of paddy land in the region remained uncultivated during the period.

Despite such huge decline, the increment in the area of paddy field in other parts of the country prevented a nationwide massive decline. Despite all these pessimistic figures, the yield of paddy – per hector production – improved to touch 2.73 tons against 2.70 tons observed last year.

Notwithstanding the plunge of the major food crops, the overall production of maize is expected to register a nominal increment of 1.8 per cent to 1.51 million tons whereas it was 1.48 million tons last year. Similarly, the maize field also increased to 826 thousand hectors from last year’s 825 thousand hectors. Despite some adverse conditions, the increase in per hector productivity largely contributed for such surge. The overall yield of maize, during the period also surged to 1.83 tons per hector form 1.80 tons of last years.

Similarly, the production of millet is estimated to record yet another decline for the current year, albeit, marginally. The overall production of millet is expected to touch 282,570 tons as opposed to 282,852 tons realized last year. Squeeze in the millet land by around 1 per cent was one of the influential factors for the decline.

The area of millet land went down to 258 thousand hectors from 260 thousand hectors of last year. The trend of decline in the millet land is higher in the Terai region than other parts of the country. According to the estimates, such decline in the Terai region is expected to remain around 7 per cent this year.

However, despite decline in both production and area of cultivation, per hector productivity of millet is expected to touch 1.095 tons from 1.088 tons recorded last year. Smooth supply of fertilizer and increased use of improved seeds are some major cause for such surge in productivity.

FNCCI urges govt to follow its suggestions

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KATHMANDU, Dec 27 – The executive committee meeting of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has stressed on following the recommendations submitted by the Federation to the government and to implement duty draw back, voluntary disclosure of income scheme (VDIS) and to end labour problem.

Participants in the meeting suggested to consolidate the federation, carry out various programmes to promote its member chambers, to wipe out corruption, and to end the terror created in the name of tax collection.

According to a press release, President Shrestha said that the government has constituted Board of Investment, Minister for Industry, Commerce and Supplies has published working calendar, the central bank has adopted flexible monetary policy and the government has decided to form Industrial Security Force.

The Federation has played a crucial role in pushing the government to decide on those issues, he added. Ananda Raj Mulmi, past president and special member of the FNCCI emphasized on enhancing the performance of the Federation. First Vice President Binod Bahadur Shrestha said that the Federation has recently given primary membership to Triyuga Chamber of Commerce and Industry, associate membership to Luna Nepal Chemicals and Fertilizers Pvt Ltd, Thomson Nepal Pvt Ltd, Harati Wire Industries, Nepal Liquors Limited, Trishakti Textile Pvt Ltd and Aarati Stripes Pvt Ltd.

Third Vice President Rajendra Kumar Khetan presented the preliminary report of the auditor of last fiscal year and shed light on the efforts of the Federation in resolving revenue-related problems.

Revenue Office begins surprise inspections

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KATHMANDU, Dec 27 – The Inland Revenue Office, Kathmandu Area number two has begun surprise inspection of business enterprises, with a view to proper implement Value Added Tax (VAT) and billing system.

According to a press release, the Office has expedited the process of investigating those businessmen who do not issue bills to buyers.

The office has raised a total revenue of over Rs 3 million from sudden inspection carried out on Bhotahity Departmental Stores Pvt Ltd, Ram Prasad Lal Bahadur Traders, Sati Computer Trade Concern, Shiva Stores, Shuva Pratibha Enterprises, Sangmu Enterprises, Bibek Enterprises and Sandesh Enterprises.

Similarly, Prakash Enterprises, Halesi Enterprises, Mechi-Kali Suppliers, Luna Enterprises and Shiva and Traders were also inspected suddenly on the occasion. It is also stated in the release that investigation is being carried into Bhotahity Departmental Stores and Shiva Stores.