Tourism industry awaits relief package

BY B. M. DAHAL

The government is yet to come up with concrete programmes despite its commitment to introduce measures to sustain the tourism industry. Tourism is considered as the country’s biggest forex earner and the economic mainstay of this Himalayan Kingdom. With the potential it has, tourism is taken as the most lucrative sector of the economy if managed and promoted properly.

It is a fact that the country’s tourism industry has been facing severe problems and constraints since the last couple of years due to unfavorable incidents at home and also the last month’s terrorist attacks on the United States and the subsequent retaliation against terrorism. Tourism entrepreneurs in the country had pinned their hopes on this autumn for the revival of the industry, but after the September 11 terrorist attacks on US, many foreign holiday-makers cancelled or postponed their trips and some are still sending their cancellations.

Considering the critical situation faced by the tourism industry, tourism entrepreneurs have been asking the government for relief packages and programmes to help sustain the tourism industry. They now fear that even the upcoming spring might be disappointing if things do not improve.

"The government must offer more incentives to the online international airlines so as to attract them to operate flights to and from Kathmandu. Once the airlines continue to fly to Nepal, the tourist inflow will go up definitely," says Joy Dewan, President of Nepal Association of Travel Agents (NATA).

Dewan, who is also the Managing Director of Zenith Travels that is the General Sales Agent (GSA) of Qatar Airways in Nepal, opines that the number of tourists could be increased to some extent if the visa fees and others like the entrance fees to enter heritage sites and national parks are waived off at least for some time.

But first and foremost, he emphasizes the need for the government to come up with a ‘relief package’ to revive the ailing tourism industry.

"If Nepal is able to disseminate the information that the government has offered more facilities to tourists, it can have immediate positive results. So, the government should not make any delay to take such measures," he suggests.

Some weeks ago, different travel trade-related associations like NATA, Hotel Association Nepal (HAN), Trekking Agents Association of Nepal (TAAN), Pacific Asia Travel Association- Nepal Chapter had jointly submitted a recommendation to the Ministry of Culture, Tourism and Civil Aviation for its immediate implementation. The Ministry had also shown positive attitude toward it. The government is said to be introducing the relief package soon. But due to Dasain holiday, the concerned officials could not be contacted.

The hotel industry, which has provided employment opportunities to a greater number of people than other tourism-related industries, seems to have suffered the most due to the cancellations. Some hotels are said to be on the verge of closing down, as they are unable to bear the operating costs as well as the salaries of employees.

"As we are witnessing financially difficult situations to continue to run hotels, the government has to show its firm commitment towards the tourism industry by taking relief measures to sustain it," says Ajaya R. Sthapit, Honorary Secretary of HAN.

Sthapit, however, is hopeful that the government may offer some banking facilities such as arrangement of working capital at soft interest rate and deferring on the payment of loan installments.

"The government has already agreed to help support the travel trade industry. I think, it will announce such facilities soon," Sthapit says with full of optimism.

In the meantime, NTB has decided to lobby hard with the government to fulfill the demands as forwarded by the various tourism-related associations.

"With the tourism industry facing recession, NTB, as the representative of the industry as well as the government, has realized the necessity of a package programme to give a relief to the industry," says Yogendra Sakya, member of NTB.

Sakya, who is also former President of HAN and Nepal Incentive and Convention Association (NICA), further says that the government and NTB have to give thrust to help the tourism industry to flourish.

"Entrepreneurs have not asked for grants. We have only demanded loans at nominal interest rate as we are facing financial crunch now. We will pay back once the situation changes for better," he demands.

He also says that the politicians and bureaucrats must change their negative attitude towards the industry.

In a bid to avert the ongoing unfavorable situations, the government, NTB and the private sector entrepreneurs have to work together and the government has to introduce a relief package to give a boost to the industry. Only joint efforts could be beneficial for reviving the tourism industry, which is regarded as the goose that lays golden eggs.