NATIONAL 3 -(Spotlight Weekly)

The European Connection

The renowned airline beginning its flights between Kathmandu and Europe comes as an euphoria for travel industry

By A CORRESPONDENT

Western tourists in the capital : On the rise

The suspension of inbound Indian Airlines flights since December last year may have come as a severe jolt for Nepalese travel traders. But, in the meantime, they have also had reasons to smile. One such good news is the recent beginning of Lauda Air's flights directly from Austrian capital Vienna to Kathmandu.

Replacing Austrian Air's flights -- that began some two years ago -- Lauda has already begun to fly in a 258-seater Boeing 767 300 ER to the capital once a week since early this month. The airlines also plans to increase its flight frequency to thrice a week in October, November, March and April.

The renowned brandname in Europe, Lauda Air will be bringing in 20 per cent more airseats than that of Austrian Air. "After the operation of Lauda Air, the number of inbound tourists is expected to grow by 20 per cent," says Bharat Basnet, Managing Director of Explore Nepal, General Sales Agent of Lauda Air in Nepal.

The 20 per cent increase in inbound tourists, as claimed by Basnet, can be a reality only if the incoming flights of Lauda Air will have good occupancy. And that is not something impossible. Take the case of Transivia Air that flies in from Amsterdam. This airline has had an average occupancy of 90 percent throughout the year. So, no wonder why it has recently decided to increase its incoming flights from the present once-a-week to twice-a-week beginning this September.

"Inspired by the good business results here, Transavia has already begun aggressive marketing to promote Nepal in different European markets," says Subodh Rana, Managing Director of Marco Polo Travels, Transavia's local General Sales Agent.

Of the total inbound tourists, around 45 percent are from western countries. Western Europe comprises 33 percent of that number followed by the USA (nine percent). Nearly 500,000 tourists visited Nepal last year -- up from around 460,000 in 1998.

European tourists have been dubbed as the upper bracket visitors in Nepal with better spending capacity. "We did try to tap the European market since the late 70's but now that we have direct flights between Kathmandu and Europe, we have more business opportunities," says Sashi Ram Bhandari, General Secretary of Nepal Association of Travel Agents (NATA).

Nepal earned more than 150 million US Dollars as gross foreign exchange earnings from tourism in 1998 -- above 30 percent increase in 1997 record.

Apart from Lauda Air, Transavia and Qatar Airways are the two foreign airlines flying between Kathmandu and Europe. Of course Royal Nepal Airlines Corporation has also been flying to different European destinations like London, Frankfurt and Paris. But, it has not been doing well in these routes.

At a time when foreign airlines have been doing brisk business flying between Kathmandu and Europe, many with the national flag carrier believe that its (RNAC's) European routes should be cut down. "The flights to Europe have been incurring heavy loss to RNAC," they say.

Will RNAC learn few lessons from the success stories of the foreign airlines shuttling between Nepal and European countries?