Happy with bale-out packages, tourism industry asks for more

By Satyendra Timilsina

KATHMANDU, Dec 30 – While a number of measures have been taken lately to revive the tourism industry, the entrepreneurs are still hoping for some more on the same lines, especially in the rafting sector.

Not only has the government simplified the visa regime, and scrapped restrictions on trekking in six districts, it has also thrown open over 100 virgin peaks for mountaineering.

But the rafting lot has been left out, and it is being hoped that soon the government will make an announcement that will boost the rafting industry.

"We are eagerly awaiting the government to make an announcement in this regard," said Kumar Ranabhat, President of Nepal Association of Rafting Agents (NARA).

Government officials say that homework is on to open new rafting routes in the country. This comes almost two years after NARA submitted a report to the government suggesting the opening of eight new rivers for rafting. These rivers are--Upper Seti, Karnali, Upper Bheri, Rapti, Seti Gandaki, Budhi Gandaki, Dudh Koshi and Tamor.

Now the possibility of the government allowing rafting in the rivers proposed by NARA, seems to be high. "The government is considering to open some rivers for rafting in the second phase of announcements," said Ganesh Raj Karki, Under Secretary at the Ministry of Culture, Tourism and Civil Aviation. "Currently we are preparing the rafting code of conduct," said Karki. "The announcement on the rules and regulations is likely to be made next week."

The case for more Nepali rivers for rafting is a strong one. "Nepali rivers have immense potential for rafting tourism. For example, Tamor the river in the eastern region, is one of the most attractive for high water rafting," says Megh Ale, Chairman of Nepal River Conservation Trust (NRCT).

Ale says that rafting ought to be permitted in more rivers because many of the known rafting rivers are now running almost dry. The construction of water reserves at many places has prevented the perennial water flow downstream, making rafting impossible.

Some compare Nepali rivers’ rafting potential to that other much-touted wealth-- hydropower. And in both cases, things have not moved on.

"The government must open new and challenging rivers. Nepal is known for adventure tourism. However, rafting here does not fall among the best in the world. It is high time that the government takes a decision to promote Nepal as a rafting destination," says Sharad Pradhan, a member of Nepal Association of Tour Operators (NATO).

The Nepali tourism industry has been on a continuous slide for the past two years since the hijacking of a New Delhi-bound Indian Airlines flight from Kathmandu in late 1999. A series of mis-happenings followed, including the ten per cent service charge row, the anti-Hrithik demonstration, the Royal massacre, the continuing Maoist insurgency, the terror strikes in the United States, and the present state of emergency.

For the industry to make a good comeback, it is important now for it to create new "tourism instruments". This becomes especially important in the coming year which will be observed as Destination Nepal Year and the International Year of Mountains. And new avenues are all the more important for an industry that is one of the prime foreign currency earners and which contributes almost 3 per cent to the Gross Domestic Product.

The government’s latest moves to help the tourism industry out in its time of crisis, have obviously been welcomed by the entrepreneurs. But they are also asking for more. Says one, "The government has done a lot lately to enliven the sinking tourism sector. A lot of encouraging announcements have been made, yet yeh dil maange more (this heart asks for more)."

Economy, finance and market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs) dipped by 20 basis points to 4.72 compared to previous week and the AWDR of 364-day TBs also dipped by 26 basis points to 5.12 percent. The rupee was traded higher at NPR 98.83 for 364- day lower at NPR 98.81 for 91 day TBs and higher at 95.14 and lower at 95.02 for 364 day TBs. The NRB had received 31 bids worth NPR 3075 million against the notified amount NPR 1100 million for 91 day TBs and 27 bids worth NPR 1410 million against the notified amount NPR 500 million for 364 day TBs. The Repo rates for member banks and institutions have been quoted at 5.7298 for the trading days 25 to 31 December 2001 for 91 days TBs. The outright purchase facility for bank, institutions and other on TBs is also available. In the regular weekly auction, the NRB is going to issue 91 day TBs worth NPR 789.345 and 364 day TBs worth NPR 500 million on January 01, 2002.

Domestic capital market:

The stock market headed towards a weakening trend on ailing economy. The NEPSE Index-100 opened weaker at 27.84 improved marginally in second day but it lost in remaining trading days and finally closed lower to 271.43, netting a loss of 8.62 points over the week., This week, trading was estimated at 42146 shares valued NPR 14.9 million compared to 102361 shares valued NPR 27.70 million of previous week. Commercial Bank and Finance companies shared 80 percent and 10 percent of total traded amount respectively. This week, production sector and other sector improved while commercial banks and Finance/Insurance lost. Business sector and Hotel sector remained unchanged. This week brokers had quoted the prices of 54 companies on the trading board but only 31 companies were traded so far. Out of thirty-one traded companies, three companies improved, twenty-one companies lost and seven traded companies remain uncharged at their previous prices. Oriental Hotel, Nepal B'desh Bank and NIC Bank registered the first, the second and the third most traded companies trading 8390, 6130 and 5380 shares respectively. Shares of Nabil Bank, Nepal B'desh, Bank of Kathmandu, NIC Bank, Oriental Hotel, Nepal Merchant Bank & Finance and Siddhartha Finance were able to trade in all five working days. Likewise, Nepal Bank Ltd, Everest Bank, Sagarmatha Insurance and Nepal B'desh Finance were able to trade in four working days.

Forex round-up:

The USD strengthened against all major trading partners. The greenback has improved marginally against the GBP but it recovered sharply against the euro. The cash euro is going to the launched from January 01, 2002 in the 12 European zone. The Nepal Rastra Bank will also stopped quoting the rates of German Mark, French Franc, Italian Lira, Austrian Shilling, Belgium Franc and Netherlands Guilder from the day.

The yen lost sharply against the dollar to 131.33 which was hit after profit taking from Japanese market participants in their last day of trading for the year. The market is pushing the yen lower and the Japanese authorities are endorsing the yen weakness over the past few weeks. An indication from Japanese Prime Minister that they will inject public funds into the countries ailing banking system will only benefit the yen in the long term if it is perceived to the part of a structural reform package, currency analysts said.

The INR headed towards a record low as war fears continued to shake the Indian financial market. The RBI did not intervene the market. It seems rupee's weakening was acceptable to authorities, particularly as regional currencies had weakened against the dollor. The NPR buoyed with the INR depreciated by 20 paisas against the dollar over the weak.