We should not be happy by increase in bilateral trade only

Rabindra Man Singh Pradhan, 59, is one of the veteran travel business persons in Nepal with almost 35 years of experience behind him. He is the managing director of Everest Travel Service (P.) Ltd. and Everest De Cargo, which handles the biggest bulk of the country’s cargo business. He has been associated with almost all aspects of the country’s tourism- hotel, travel agency, freight forwarding and airlines - in various capacities as adviser, president, board member and executive member of different tourism-related organisations. He was also a member of business delegation in Prime Minister Koirala’s recent India visit. He says unless India is more considerate towards Nepal’s transit problems Nepal’s trade with third countries can not improve. He is also one of the few tourism entrepreneurs who says despite its limitations, RNAC has been doing a fairly good job. He adds that the problem with RNAC is mainly associated with the government and if the government can get its acts right there are good chances of the airline improving much quicker. Recently, Pradhan talked to The Independent about different aspects of tourism and tourism-related business. Excerpts:

Q. You have been involved in the travel and tourism business especially in cargo for a long time. Nepalese tourism is going through a difficult period, what could be the reason for this?

A. The infrastructure has been much developed in comparison to the past, and a lot of money and resource has been invested in tourism. But the growth of tourism has been limited. The major problem as I see is, it has not been managed well. Sometimes you find that the return is less than what you expect. There has not been a balance between marketing and investment and also in doing the business itself. Only a few people who have been involved in this business for a long time have been doing it in a professional way and their share of business is higher. Again, Nepalese tourism has suffered from negative approach. Time to time there have been negative publicity like the problem of garbage, pollution and regarding security. That has also affected Nepal’s tourism industry. You know tourism industry is highly sensitive to media and any negative publicity can affect it profoundly. So, something needs to be done quickly both from the private and the government side. As we now have Nepal Tourism Board, it needs to take things seriously. But they are mostly involved in marketing, but little thought has been give to the actual need of the tourism industry and about what tourists actually want to see and find in Nepal.

It is often said that the problem within the Royal Nepal Airlines Corporation is also affecting the tourism industry. Do you also agree to this?

Yes. The Royal Nepal Airlines is also a part of the problem. As I have been involved with the Royal Nepal Airlines for so long, I would say that RNAC has its own limitations mainly because it is a government airlines. And they have to compete with private commercial airlines. I would say that much of the problems faced by the RNAC is directly related to the government or it is mostly the government’s problem rather than that of RNAC alone. So, it is very difficult for RNAC to proceed ahead as an independent, commercial airline. For example, just to buy an airplane they have to call tender for several times. I take RNAC and the government as one not two entities. So, if they can go together it will click. Secondly, there are capable people in RNAC and they can do better job if they are given a chance. So, the RNAC needs to have more autonomy from the government. However, I agree that ultimately it has to be privatised, but till that is done RNAC can be improved if the professional people inside the airline are given a free hand. But I must appreciate whatever they have been doing despite the limitations.

Q. You are also involved in the freight business, how is that business doing now?

A. Regarding the freight forwarding business in Nepal, it is still at an infant stage compared to other parts of the world. This business in Nepal was started by the travel agencies, but it is now a little more professionalised and it is now working separately in a more organised way. But it is a difficult business in Nepal, whether you do it by air or by land and sea. The most difficult part is time. Consumers want their goods to reach their destinations on time, safely and economically. Even by air, it takes longer than the anticipated time to reach goods to their destinations. So, we also face problems with the airlines. Airlines give low priority to goods for export. They are not much motivated to take goods for exports. Regarding the land-sea route, it sometimes takes several days even to reach Birgunj. Again, from Birgunj it take several days to reach the goods to the nearest port of Calcutta or Haldia. We also face problems in the transit like theft, damage and harassment by the Indian officials on the way and at custom. In India it is very difficult to get the job done and as Nepalese forwarders have to export 90 per cent of the goods through India, the problem is compounded. Although the freight forwarders give only logistic support, we have to face much problem from the time we pick up the goods from the clients’ warehouses till they reach their destinations. Meanwhile, one good things is that recently the airline representatives have agreed to do business with the members of the Nepal Freight Forwarders Association only. It will help in the freight forwarders business to become more professional.

Q. As you were also one of the delegates in the recent visit of Nepalese Prime Minister to India, weren’t these problems discussed with the Indian side?

A. We had informed the Nepalese Prime Minister through the FNCCI about these problems and for India to give us some facilities and assurances for safe transportation of our transit goods. We had also asked for the facility of an alternate port for smoother movement of our goods, but nothing has been done so far. During the visit of former Indian Prime Minister I.K. Gujral, India had assured us the facility of Bombay and Kandala ports, but this has not materialised till now and HMG of Nepal has also not told us officially that we can use those alternative ports.

Q. Do you mean to say that nothing was discussed about the transit facility during the visit?

A. You can see it very clearly in the press statement that this issue was not mentioned at all. Nothing was discussed according to our expectation about the transit facilities to strengthen our trade relations with the third countries. India may have interest to increase and expand bilateral trade relations, but it is less interested in Nepal’s expansion of trade with other countries. So, we should not be happy for only those facilities which help increase our bilateral trade.

Q. Hasn’t the transit treaty of 1996 between Nepal and India helped to overcome the problems faced by Nepalese forwarders?

A. It is a different matter altogether what facilities Nepal has got from that treaty. Many of the problems we face regularly have not been mentioned in that treaty. But we want those problems to be solved. For example, if a container has crossed over to India, and if the client wants it back immediately for it to be sent by air we cannot do it. Our government must ask the Indian government that we need a speedy and safe transport and there should be no hassles. Till now we have been doing business in a very difficult manner and most of the time even our government does not know about these problems.

However, regarding the Inland Container Depot (dry port) at Birgunj, they have said that there will be a railway linkage from Raxaul in India to the ICD by November. But for the smooth operation of the dry port, we must be clear with the Indian government about the operational modality of the dry port before it begins. We have been saying that the railway facility from the dry port at Birgunj should go all the way to the Calcutta or the Haldia port and we should also have facility of alternative port. So, in case anything happens we can use those alternative ports. About the transit through Bangladesh, the infrastructure has not been so good. But this route should be developed not only to promote trade between Nepal and Bangladesh but also for Nepal’s trade with other countries. Even this can not be done without active cooperation from India.