NATIONAL 6 -(Spotlight Weekly)]

Too Little, Too Late

The government's fresh incentives to revitalize the tourism industry may turn out to be of limited value

By A CORRESPONDENT

By announcing a package of measures to inject new life into the country's moribund tourism industry, the government seems to have finally realized the need to take urgent steps to revitalize what was once seen as Nepal's path to prosperity. While the new package has some positive elements, it may have come too late to address the industry's burgeoning problems.

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The package, which includes a waiver on royalty for foreign documentary producers, the opening up of restricted areas in six districts to foreigners, and exemption of visa fees for a limited time, has nine components. The government has also introduced a single-window policy to issue license for those interested in filming the country's scenic wonders. A producer will be granted permission from the Ministry of Information and Communication, doing away with the cumbersome process of going through several agencies. Royalty for filming a documentary at Upper Dolpa and Mustang has been reduced to $5,000 from $40,000.

In response to demands from tourism entrepreneurs, restricted areas like Limi of Humla district, Byas of Darchula district, Olangchungola of Taplegung district, Namche and Nagpala of Solukhumbu district, Kimathanka of Sankhuwasabha district and Kandadhuli of Bajhang district have been opened to tourists.

These places were restricted to foreigners at the request of the Chinese government in 1971 as part of the campaign against the Khampa rebellion. Although the government claims there no longer is any security threat in these areas, one cannot make easy predictions, especially when Maoist terrorists have expanded their hidden camps in the northern areas bordering the Tibet autonomous region of China.

"The cabinet has decided to waive all the charges for shooting documentaries in different parts of the country," said Minister of Information and Communication Jaya Prakash Prasad Gupta, who is also the spokesman of the cabinet. "The government has brought out the new tourism package to ease the problems of the tourism industry."

The government has also decided to waive visa fees for visitors who stay for one day in Nepal from January 1 to July 15. The existing three visa groups have been reduced to single- and multiple-entry categories. The charge of single-entry visa has been fixed at $30, which would be valid for 30 days. The fee for a multiple-entry visa, valid for five months, has been set at $50.

Over the last two years, Nepal's tourism industry has been facing one crisis after another. From the hijacking of an Indian airliner in December 1999 to the upsurge in Maoist violence and from the June 1, 2001 royal palace massacre to the terrorism attacks in New York City and Washington DC, Nepal's tourism industry has had to face an endless series of hurdles. Apart from such grave national and international incidents, the strikes called by tourism workers have severely damaged the credibility and image of the country's hotel industry.

Along with these new measures, the government is said to be considering a plan to provide hotels some concessions in the repayment of their loan. Because of diminishing transactions, many hotels are simply in no position to repay their loans.

The government's decision comes at a time when most of the big stars hotels are considering whether to grant forced leave to employees for at least six months. Many tourism entrepreneurs say the new package would not be adequate to revamp the industry.

"At a time when many countries are waiving visa fees for tourists and charges for charter flights, the government's package amounts to little more than populism," said a tourism entrepreneur on condition of anonymity. "If the government is really sincere about revitalizing tourism, it must waive visa fees for at least a year and allow more charter flights into Kathmandu."

Continuing decline in the tourism industry would have a significant adverse effect on the overall economy. As tourist bookings for 2002 fall short of those in previous years and the possibility of further contraction in coming years looms large, the government will have to pay more attention to what tourism entrepreneurs are saying.