National 4 (Spotlight Weekly)

‘It Is Wise For Us To Concentrate In This Region For The Time Being’

— Yogendra Sakya

Yogendra Sakya, Executive Chairman of Ace Hotels and Resorts — including Hotel Ambassador and Club Himalaya, Nagarkot - and director of Nepal Tourism Board (NTB), spoke to SANJAYA DHAKAL on the current situation of tourism in the country and on mobilizing regional tourists to provide the boost to the ailing industry. Excerpts:

Hw do you assess the present situation of tourism in the country?

You are aware that in 1999 we had welcomed nearly 500,000 tourists. In 2002, it came down to 250,000 — less by 50 percent in a matter of three years. Now in 2003 we are seeing a little positive growth compared to 2002 but we are still nowhere near to the figures of 1999. It is true that tourism is picking up especially with respect to the region. We have witnessed remarkable growth in the incoming tourists from India — some months the figure has registered growth by even 40 percent or more. But I think we have a long way to go because even in 1999, when we had half a million visitors, the average occupancy rate of hotels here was less than 30 percent. Furthermore, after 1999, Hotel Hyatt came up with 300 plus rooms and Hotel Yak and Yeti added so many rooms. So, it is but natural that with around 300,000 tourists this year, we may not be doing well.

Last two years had been quite miserable for Nepalese tourism. How did the tourism entrepreneurs survived the bad times?

When the tourism was doing so badly, I thought that many hotels were going to close down. In fact, I had thought that it was going to be a blessing in disguise because even in 1999 — the best year — there was overgrowth in hotel rooms and travel agencies. And sometimes when there is overgrowth, you have no choice but to kill the unproductive ones. I thought this process would actually kill to conserve the healthy ones. However, except for few hotels of Sauraha, everybody seems to be surviving. God knows how this happened. I am also perplexed.

Following the 9/11 incident and increased threat of terrorist attacks, there has been a shift in global tourism trend whereupon people rarely venture out on long-haul destinations and rather visit their neighborhood. So, what should be Nepal's tourism strategy now?

This is a fact especially since the Americans are going to be skeptical about traveling to the east. I think they will be traveling within their country and to the European countries. Likewise, the Europeans, too, will be following the suit. This trend is caused not merely by the prevailing political scenario but also because many countries in the west are currently going through economic recession. So, the long haul traffic to Nepal will take a little longer to revive. That is why, the government, in its budget this year, has allocated Rs 25 million to promote tourism in the SAARC region and China. The government and the private sector will have to join hands to lure tourists from these regions.

What is the target of volume of tourists that Nepal can lure from the region?

The government has already waived visa fees for the tourists from the region. There is a target to bring in at least 200,000 tourists from the region alone. Last year just over 100,000 tourists from the region came to Nepal. In fact, in good years, India alone fetches us 100,000 to 130,000 tourists. This is all by air alone. This is not an unachievable target. With the start of flights to Malaysia, the traffic from Malaysia has grown here. Likewise, tourists from Thailand and Japan have always been there. The growth in the Chinese tourists did not happen as we expected. This was primarily because of problems in flights. Once flights are established, there will be substantial growth in this front. It is wise for us to concentrate in this region for the time being.

There has been remarkable growth in tourists coming from India over the last couple of months. What are the reasons?

I think the main reason is the price. We thought the Indians did not come due to security but I think price made all the difference. Particularly, from Bangalore there is a big surge of tourists because the airfare is so lucrative — its cheaper to come to Kathmandu than to go to Delhi. Besides, there were many programs and packages that were floated. Secondly, we also approached India from different angle. For too long we thought Indians would be interested in merely shopping and casinos. But the Indians of today are no more the Indians of ten years ago. They have access to best casinos and foreign goods now. So, we are slowly luring Indian tourists for soft adventure. These apart, if we can again lure Indians on convention tourism or MICE tourism, then everything will get back on track.

What about luring Indians for religious tourism?

The South Indians have responded very well to the promotion of religious tourism in Nepal. It seems people from Bangalore and Chennai are much more excited about religion. For every Hindu, Pashupatinath is a very important destination. And also places like Muktinath are important to them. I believe the joint promotion program launched by the Nepal Tourism Board (NTB) was effective.

On the other hand, Chinese tourists have not responded too well. What could be the reasons? Is it because Nepalese tourism entrepreneurs were not able to devise packages that are attractive enough for Chinese people?

Chinese tourists are basically interested in pleasure tourism. Nepal will never be able to compete in pleasure tourism (gambling, bars, nightclubs, discos and so on). We were never tuned to that kind of tourism. But there are enough people in China who will be interested in adventure tourism. We will have to target that section of Chinese people. And also we could lure them for conferences and meetings.

Do you think it is high time that Nepalese entrepreneurs need some sort of crisis management so that they can work well even during crisis situation?

If you talk about crisis management with respect to tourism going down, there is not much anybody can do. You are very helpless. If tourists do not come, that's it. But if you are talking about crisis management with respect to some accidents or things like that, yes there is a need to have an active cell for crisis management and damage control. Crises are not always bad. There are opportunities in crises as well. They say that the best time to get mileage is at the time of crisis. For instance, if it was not for the Maoist insurgency, how could we have so much of international media coverage? But it is important to be able to turn those crises to your advantage.

How do you think will the upcoming tourist season be?

As far as bookings in my hotels are concerned, they are good. But one never knows how much of these bookings will actually materialize. These things are all subject to different factors. It was in the group tourism sector that we suffered most in the last two years. The group tourisms handled by tour operators dropped but the individual tourists kept on coming. Perhaps, the group tourism, which includes high-end tourists, is more vulnerable to travel advisories and things like that.