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 Kathmandu Thursday June 07, 2001 Jestha 25,  2058.


Tourism braces for bleaker days ahead

By Bhaskar Sharma

KATHMANDU, June 6 - With the United States and Britain issuing travel warnings to its citizens, while Japan and Australia advising theirs to stay inside away from street protests in Kathmandu, Nepal’s tourism sector seems bracing for more turbulent days ahead.

The advice of the USA, Britain, Japan and Australia, among other countries, as per international media, follows the latest street demonstrations in the Capital, and other parts of Nepal, that sparked off as a result of the shooting incident in the Narayanhiti Royal Palace last Friday.

The Friday night Royal massacre had led to the death of His Late Majesty King Birendra Bir Bikram Shah Dev and Her Late Royal Highness Queen Aishwarya Rajya Laxmi Shah, among other senior members of the Royal Family.

The violent public furore after the killings prompted the government to clamp curfew in the capital valley for two days further damaging the already tainted image of the Nepali tourism industry.

Even the domestic tourism entrepreneurs concede that the industry’s future now hangs in limbo, despite the latest three-month promotional canvassing with the slogan "Nepal Festival of Life."

"It is quite normal that the public reacted violently over the death of the beloved King, among other members of the Royal Family. However, there is a need for public calmness. The furore is having a detrimental effect on the Nepali tourism sector," says Narendra Bajracharya, president of Hotel Association of Nepal (HAN).

The 15 million rupees promotional campaign launched on May 1, though targeting only the Indian visitors to lure them back again into the Himalayan Kingdom, now seems going down in drains.

The anti-Hrithik Roshan demonstrations in Nepal over the alleged derogatory remarks by the Indian cine heart-throb on Nepal last December had prompted the Nepal Tourism Board (NTB) to launch such a face-saving campaign.

Though the latest tension is coming back to normalcy slowly, NTB officials are skeptical that its promotional campaign will go smoothly in the next two months. "The unfortunate, tragic and unexpected incidents lately has impacted the country’s economy, including the tourism industry and the latest campaign of the NTB," says Tek Bahadur Dangi, Marketing Director of NTB.

The sailing for the tourism industry has been rough ever since the Indian Airlines flight 814 that took off from the Tribhuwan International Airport (TIA) at Christmas eve in December 1999 was hijacked, following which India suspended flights to Nepal for five months.

The series of turbulence in the industry continued with the ten per cent service charge issue, which hotel employees wanted to be implemented. The resulting mayhem even led to a one-day closure of the hotels last December. Then, the next damaging incident was the anti-Hrithik demonstrations.

In addition, frequent bandhs and chakka jams, not just by the Maoists but also by the leftist parties demanding resignation of the Prime Minister Girija Prasad Koirala, has all the way proved detrimental to the tourism industry.

Tourist inflow since December 1999 has slumped considerably. As per the NTB statistics, air tourist arrivals, which constitute over 85 per cent of total tourist inflow, declined by over 11 per cent in 2000 as compared to that of 1999. The flow of Indian tourists in the same period slumped by over 30 per cent.

The government, NTB and tourism entrepreneurs have at last, as a measure to facilitate the stay of tourists in Nepal, have set up an emergency cell at the TIA. The cell, which operationalized from today, would ensure that tourists are not stranded during times of bandhs, chakka jams and other untoward incidents in the future.

It is not just the tourism entrepreneurs who are facing the heat of such incidents. A single day of closure, according to the apex body of the business community, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), result in losses of over Rs 700 million, out of which the tourism sector loses 7 per cent.

Says Pradeep Kumar Shrestha, the President of FNCCI, "Any kind of bandh affect normal life, not just economically, but socially and politically too. There is a need for public restraint in the present context and it is of utmost importance that the broad based implications are understood."

The tourism industry alone earns almost 15 per cent of the total foreign exchange and contributes around 4 per cent to the country’s total Gross Domestic Product (GDP).


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