Interview

Under WTO, our success depends on our investment

JL Khanna, who started in Nepali travel trade sector in 1960 and is now heading as MD the Yeti Travels (P) Ltd. that won the distinction of the largest foreign exchange earner travel trade organization for several years in a row till now, shares his views on the current situation of Nepali tourism. Excerpts from an interview:

Your involvement in Nepal’s tourism Industry is very long. How do you evaluate your contribution in this sector?

Well, when I look back I get great satisfaction; with whatever little I could contribute to this trade. I tried my level best to persuade the foreign tour operators to sell Nepal and include it in their brochure when the tourism was in its infancy in the late sixties and seventies. Now I am happy to see that Nepal has been recognized as a destination in its own right. I tried to develop Yeti Travels as a world-class organization where customer care is the most important thing and over the years we have earned a name in the market for efficiency and high standard of service.

Sometimes I am bit worried when I see the quality tourists not coming to the country due to many factors. Of course, the security concern is there, but my main concern is the liberal policy of the government to issue license without evaluating the capability of the agents as some of them are selling Nepal as a cheap destination and country is loosing the revenue, which the country rightly deserves.

But not issuing new Licenses would be against Liberalization Policy?

No I am not against the issuing of new license. It is always good if we have many players in the market, but we also need to see that they are serving the nation and the trade in a right manner and not promoting the destination as a cheap destination that eventually will create the image we never wanted.

Then how can we improve the image of being backpacker’s destination?

In sixties Nepal received many Hippies when Jhochen and Thamel came into existence. It was okay then. Now we need to move on and project Nepal as a destination where we could get more quality tourist. I am not against those tourists who have tight budget and look for cheap accommodation and food, but I am not in favor of those tourists who are capable of spending and still look for cheap accommodation and meals.

We need to project Nepal forcefully and creatively as a quality destination. For that we need to come out with a long-term sustainable tourism policy, brand Nepal as a high class destination, improve our infrastructures, train the required manpower, increase the air seat capacity and come out with a minimum price level.

The competition in Nepal’s Tourism is increasing globally as well as locally. Also WTO has opened travel and tour business for foreign players. How prepared are the local travel agencies to face the challenge?

Unfortunately, we are not prepared to fight with the mega travel companies with rich resource. I feel they will not come unless they see the opportunity to make big money. It is better for all us if we take a united stand and work together. And also our success will depend on the investment we make.

How are the government authorities reacting to this bleak situation?

They are also aware and working on it, but it is mostly the private sector that needs to be more concerned and discuss with the government to come out with amicable solutions.

Sometime it is pointed out that Nepal’s tourism Industry has been in mess due to the multiplicity of associations. What do you suggest for a better cohesion?

I think all the associations should sit together and form a high power committee comprising of one or two members from each association. Our joint objective should be to increase the inflow of tourists to Nepal. Once we achieve that goal, all of us will be benefited.

Some travel agencies have been complaining that the hotels have breached the contract by cutting down the prices and thus reducing the commission earnings of the agencies. What will be the impact in Nepal’s tourism industry?

The impact will not be positive and might have a far-reaching consequence. The image of the destination will be affected. It has already been known as a cheap destination and I don’t know how long it will take to bring back the high spending clients. I suggest we work together and bring more tourists. Going direct to the clients by cutting price or breaching the contract is not a good strategy and might back-fire in the long run.

Many additional airlines have started to fly in and out of Nepal. Will they really help to increase the tourist inflow or will they be sharing from the same pie?

I think it will help if we have more airlines flying into the country because they will bring more tourists. While saying this I must caution that we need to monitor carefully and see what they have done to promote the destination. The most important thing is the total number of seats rather than the number of airlines.

Many countries including China have separated travel agency and tour operating businesses. And demand for similar policy is being voiced also in Nepal. What is your suggestion?

I think it is a good idea to separate travel agents from tour operating, as both are specialized fields. Making a separation will encourage them to be more professional, hence, better service to the clients and country will benefit in the long run.

What do you suggest to increase the per capita spending of the tourists?

First of all we need to reposition ourselves by branding the destination so that we are viewed in the international market as a quality destination where the tourist wouldn’t mind spending.

Secondly, we need to create some high quality night markets for shopping along with the dining facilities and nice entertainment; of course, without spoiling our traditional values and social norms.

Thirdly, we need to open new areas for the general tourists so that we could keep them for a longer period of time. This might need investment on infrastructure development.

What is your opinion about the drafting of new policy of the government? What is your suggestion?

The new policy is the need of the hour. The guiding principle should be a sustainable development of tourism for generating more employment and bringing high spending tourist. It should focus on infrastructure development of existing as well as new areas. It should be liberal and forward-looking.

What do you suggest the NTB for its promotional focus in the year 2004-2005?

NTB should focus more on India, far eastern countries and that market from where we are receiving large numbers of tourists. It should try to get more funds from the government and use it to target the consumer through electronic as well as print media.

How do you evaluate the performance of the NTB in promotion?

They are doing all right. I wish they could do more, but they have their own limitation – lack of sufficient fund and the present situation in the country.

Yeti Travel has been continuously maintaining its distinction of being the largest foreign exchange earner travel agency of the country. What is the secret behind this success?

We invested a lot to bring the best equipment, trained our staff and familiarized our principle agents about the destination. We are interested in handling only that traffic from where we get good return. And above all we always try to give the best service to our clients. These are the secrets of our success.

How do you see the future of Nepal’s tourism Industry?

The future is very much promising. Of course, we need to invest and work hard. If we plan and manage properly we could easily make a billion dollar a year within next 5-7 years from this industry alone. We definitely need peace in the country to achieve that goal, as in absence of that most of the tour operators will stop their business to Nepal. And if that happens then we could be totally out of this trade in the next 4-5 years.

Send your feedback to the editor: bizline@mos.com.np  
2004 © 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 NEW BUSINESS AGE may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to us.  Send us your feedback : contact us.