Inner-View

One of the promoters of one of its kind hotel, Vajra, Narendra Bajracharya is the incumbent President of Hotel Association Nepal (HAN). And it is during his tenure (only last month) that China declared Nepal its ninth outbound tourist destination – the first in the whole of South Asia. HAN was swift to try to cash in on the opportunity as a delegation headed by Bajracharya flew to China on a promotional compaign. The HAN President talks to Editor Madan Lamsal on the outcome of his recent visit and also sheds his views on NTB with which HAN is at constant loggerheads over various issues. Excerpts:

Since HAN delegation visited China at a time when Nepal was recently included in the outbound destination list of China, it was fruitful and productive. Promotion of Nepal as a destination was undertaken for the first time in an official manner. Cities of China we visited, to our utmost surprise, were ignorant about Nepal. Our vis it has aroused inquisitiveness in them to see our country.

HAN has been complaining of the 2% Tourism Service Fee not being effectively utilized by NTB. What is the solution suggested?

There is no doubt that we support NTB. Our association has been one of the major supporters in its formation. Our main concern about NTB has been its traditional working style. We have been demanding that it should first concentrate on India, USA, Japan, UK, Germany, France, Netherlands and Italy. Other places should be identified as major secondary markets. Apart from this, while promoting Nepal we should target the consumer directly. Secondly the available fund in NTB and its activities have not been transparent enough.

With this year’s budget, the government has made all export earnings taxable thus bringing all exporters at equal footing with hoteliers. What is the hotel sector’s reaction to this?

It is really a matter of despair and pity that our government has not taken up tourism seriously. Let us take the example of Indian Government regarding tourism industry in the recent years. It has announced to give export status to the tourism industry. If our government is really serious to enhance the tourism industry, one of the major foreign currency earning industries of the country, what we need is the same level of commitment from HMG as shown by the Indian government to the tourism industry there.

The recently concluded half yearly general meeting of HAN called for bringing tourism services under Essential Services Act. How do you justify the demand?

Cheap labour is the only attraction for foreign investors in Nepal. But a wrong tradition has been evolving in the country after the restoration of democracy – the tradition of organizing strikes, closure of traffic etc. instead of discussion, negotiation and agreement. Investors in tourism sector, no matter whether they are Nepali or foreign nationals, have recognized that peace and security are essential for the tourism industry to prosper. Other industries may open up again after ‘bandhs’ and transport strikes whereas it takes a long time for the tourism industry to regain its momentum. Therefore, there should be legal provision to stop activities like transport strike etc in tourism industry in Nepal, just as there is no labour act in Bangladesh for their garment industry and the judiciary has banned all closures in the state of Kerala in India. It goes without saying that the hotel industry helps to promote many industries, therefore the closure of hotels means big loss to many industries. It is because of this fact that we are demanding with HMG for declaring tourism industry as an essential service, and subject to ban on strikes.

Added recently to the existing problems of garbage, environment and poor flight connectivity suffering Nepal’s tourism business is the problem of security. How is HAN going to address these problems?

The problems faced by tourism sector are getting more complicated and serious. Environmental pollution is increasing, garbage problem in Kathmandu Valley has been a serious one, poor flight connectivity is also one of the major problems of the tourism industry. There are more, if we go on listing them down. Some of the serious instances of attack on tourists are damaging the image of Nepal in foreign countries and it will certainly affect tourism adversely. Hotel Association Nepal is a major tourism association of the country. Basically we belong to pressure groups. Therefore, we are putting pressure on government on all these major issues. We are happy that the government is seriously responding to the issues we have raised. Response from parliamentarians, opposition parties is also encouraging.

One important point frequently raised in criticism of the tourism industry is the low retention it has on the foreign exchange it earns. How much has this situation changed recently?

Tourism industry is one of the major industries which earns about 24% of the total foreign currency of the country. There is no doubt that tourism industry certainly needs foreign currency to procure materials, which are not available in the country, to compete with world tourism market. But we are trying our best to procure things from within the country itself if available. Therefore, the allegation of low retention is biased.

How is HAN going to address the problem of tariff undercutting that has been going on among the hotels?

The root cause of price undercutting in tourism industry is basically the supply exceeding demand. Usually in a progressive business world, supply and demand are kept in check to get maximum benefit for the nation’s economy. Even in an open market economy, it is the responsibility of the State to derive the best returns by keeping a judicious check and balance. Hotel Association Nepal is aware of this problem and we are in a serious deliberation with regards to this serious issue.

Due to the pressure of the tourism entrepreneurs, the government stooped to India’s terms and conditions for resuming flights of the Indian Airlines. But, the tourist arrival has not increased even after two months of the IA’s flight resumption. How do you explain the situation?

We strongly feel that our national carrier, Royal Nepal Airlines, should be revamped, strengthened and equipped with at least three more Jet planes. Secondly, India is the biggest market for us and we always stressed the need for aggressive marketing in India to attract Indian tourists to visit Nepal. Again for this we have appealed to NTB to adopt consumer-oriented approach to promote Nepal in India. The way NTB has recently started marketing in India has to be reviewed and more appropriate strategy should be taken in this regard.

Send your feedback to the editor: bizage@ecomail.com.np
1999 © Mercantile Communications Pvt. Ltd. P.O. Box 876, Durbar Marg, Kathmandu, NEPAL. Tel : 977 1 220 773, 243 566 . Fax: 977 1 225 407. Reproduction in any form is prohibited without prior permission. No part of the articles which appear in the internet version on BUSINESSAGE may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to us. Send us your feedback:contact us . CLICK HERE FOR PAST ISSUE. This site is best viewed at : 800 X 600 resolution

"Ban strikes in hotels !"

Narendra Bajracharya, President, HAN