National 6 (Spotlight Weekly)

New Blow To Tourism

Nepal's economy braces for another major jolt following Singapore Airlines' decision to suspend flights

By A CORRESSPONDENT

By announcing the suspension of its flights to Kathmandu, Singapore Airlines has given a clear message to policy makers in Nepal: reliance on foreign carriers for tourism development is fraught with risks. Unlike the national flag carrier, foreign airlines are under no obligation to continue flights if they no longer find it profitable.

Singapore is one of Nepal's major business centers for the import of high-tech products like computers. Along with the setback to tourists, the suspension of flights has also created difficulty for Nepalis working for Singapore Police.

"Singapore Airline's decision must open the eyes of our policy-makers who have completely ruined Royal Nepal Airlines in the last 12 years," says a tourism entrepreneur. "Their folly has reduced the national carrier to a regional airline."

At a time when Royal Nepal Airlines, too, has suspended flights to Singapore, tourist arrivals from Australia and South East Asian countries could be sharply affected. Singapore is one of the oldest routes for Nepal and used to be one of the profitable ones until a few years ago. After Singapore Airlines began direct flights to Kathmandu, the number of passengers on RNAC saw a decline. Inconsistency and irregularity only worsened RNAC's plight.

"Foreign airlines cannot fly their aircraft if they cannot maximize their profits. It is the duty of the government to protect its own flag carrier," said Tek Chandra Pokharel, a prominent tourism entrepreneur and former president of Nepal Association of Travel Agents (NATA).

Serving the Kathmandu-Singapore route for the past 14 years, Singapore Airlines has made a major contribution to Nepal's tourism industry. With the upsurge in Maoist violence in the country and decline in tourist arrivals after the September 11 terrorist attack in New York and Washington DC, passenger flow on Singapore Airlines has been drastically reduced, making the route unprofitable.

Although Singapore Airline's press release does not specify a period, it seems likely that the suspension will continue for a long time. Singapore Airlines is the second carrier in a year to suspend flights to Nepal. Aeroflot pulled out of the route last year.

RNAC, too, suspended its flights to Europe and Singapore last year, paving the way for more flights to Bangalore, New Delhi, Mumbai, Bangkok, Hong Kong, Osaka and Shanghai.

NATA has already urged the government to request Singapore Airlines to continue its service for the time being. "I don't understand why Singapore has gone in for a total suspension of flights," says a tourism entrepreneur. "It can continue at least one flight a week."

Indian Airlines has also cut down the number of flights to various Indian cities from last year, citing low tourist flows. Because of overflight restrictions imposed by the Indian government, Pakistan International Airlines was forced to suspended its service to Kathmandu since December 28 last year.

Tourism entrepreneurs say policy makers must urgently consider resuming RNAC flights to Singapore. After the withdrawal of Singapore Airlines flights, RNAC can make more profits, especially as its operation costs are lower.

For the last two years, RNAC has teetered on the brink of bankruptcy because of frequent intervention from political other sectors. Instead of requesting foreign carriers to continue their flights, the government must come out with a new policy to upgrade the quality of its own carrier.