NATIONAL8 (Spotlight Weekly]

Future Uncertain

As the deadlock between hoteliers and unions continues, a large number of visitors have canceled reservations

By KESHAB POUDEL

A popular Nepalese proverb says: If you set your house on fire, you won't face a shortage of ashes.

This is exactly what is happening in the Nepalese tourism sector. All concerned parties are setting their houses on fire and giving away the ashes. If the trade unionists and hoteliers show no sign of flexibility, the smoldering wreckage could soon poison the air beyond that sector.

Although it is one of the pillars of Nepalese economy, nobody seems to understand the importance of the tourism industry. Even the government has not taken any initiative to find a compromise formula before the deadline.

Although the trade unionists have some valid arguments, the timing of their bid to push their agenda is wrong. The unionists are pressing their demand at a time when the Nepalese tourism sector continues to face one crisis after another.

After the hijacking of an Indian Airlines plane in December 1999, Nepal's tourism sector has continued to go downhill.

Earlier, Nepal's hotels normally had 60-70 percent occupancy rates during this time of year. Today that rate has fallen between 10 and 20 percent. "It will take many years to recover from this situation," said an executive member of the Hotel Association Nepal (HAN).

After the Indian Airlines hijacking, the number of Indian tourists visiting the country has declined by 30 percent. The recovery of Indian tourists will take another couple of years, some analysts say.

Nepal's tourism industry has been struggling under exaggerated stories of pollution, garbage crisis, deteriorating law and order situation and bird hits at the airport. The dispute between hoteliers and unionists the latest in the series and could prove to be the proverbial last straw.

An international agency has sent in a cancellation notice to a leading five-star hotel, citing the uncertainty hovering over the hotel business in the Himalayan kingdom.

"We have already asked travel agencies to cancel bookings till a final settlement is reached," said a senior executive of a leading five-star hotel.

Many hotels are adamantly against accepting bookings for big group now. If the dispute continues, the country will have to face a considerable loss a sector that has brought in money and helped to popularize the country abroad.

As the February 11 deadline set by the government on deciding whether or not to introduce the 10 percent service charge demanded by the unions is approaching, that fear is looming larger.

Since the unions have the strong backing of political parties and leaders, the dispute cannot be settled without political intervention. "If the government leaves us alone in finding a solution, we can reach a settlement within hours," said a leading member of HAN.

Union leaders are digging in their heels. "We will begin our strike from February 13 if our demand is not met by then," warned Bishnu Lamsal, general secretary of the Joint Action Committee of the two unions of hotel workers.

Although the annual contribution of the tourism sector to GDP is insignificant, it remains one of the major foreign currency earners of Nepal.