National 7 (Spotlight Weekly)

Neighboring Market

Nepal needs to increase the frequency of transport contact with India to increase regional tourism

By A CORRESSPONDENT

At a time when there is a global recession in the international tourism market, Nepalese tourism entrepreneurs see Indian tourists as the best alternative for their survival.

Nepal’s star hotels are benefiting from special packages run by different travel agencies and airlines designed to lure Indian tourist. In the last one year, the arrival of Indian tourist has increased by many folds.

With the breakdown of ceasefire between the government and the Maoists the hope of Nepalese tourism entrepreneurs to gain recovery has been shattered. Soon after the spreading of news about breakdown of ceasefire, Nepalese hotel entrepreneurs received large number of cancellations from Indian tourists.

Of late, Nepalese tourism industry has seen astronomical growth of arrival of Indian tourists. Thanks to the spread of SARS in China and south east Asian countries, many Indian tourists were diverted to Nepal. The seven months long cease-fire period also witnessed positive growth in the tourism sector.

However, despite the breakdown of cease-fire, Nepal remains one of the safest places for the Indian and western tourists since no tourist has been hurt by the insurgents yet. At a time when the country’s law and order situation in the urban areas is better and there is a very low number of crime, the hope of tourism entrepreneurs to lure more Indian tourists in coming days could still materialize..

At a program organized to convene annual meeting of the Hotel Association of Nepal (HAN), hoteliers demanded special compensation package from the government. “We need to boost the tourism related activities luring more Indian tourists,” said Narendra Bajracharya, president of the HAN. “Since the star hotels occupancy is not satisfactory, we need certain relief.”

Since there are many possibilities to increase Indian tourists from north India and other major metropolitans, the limited transport facilities are hindering the process. If Nepal and India increase transport facilities including surface and railways, the volume of Indian tourists will increase by many folds.

“Economic boom and rising number of middle class in northern parts of India will benefit Nepalese tourism industry. There is a need to increase frequency of transport links including railway and bus service to different cities of India,” said Shyam Saran, Indian Ambassador to Nepal addressing the HAN’s meeting.

Nepalese tourism entrepreneurs also agree that the development in the transportation link with India could benefit them. Since the frequent disturbance in the high way including frequent strikes and landslides discourage Indians travelers, direct railway link to major Indian cities could work better.

“India and Nepal also need to increase frequency of flights between different Indian cities. Although some Indian and Nepalese private airlines have also shown interest to start flights to different Indian cities, it is yet to materialize,” said tourism entrepreneurs.

Tourism entrepreneurs are eyeing tourists from Nepal’s southern neighbor as a viable substitute to western tourists.

Trolley Bus In Ringroad

A study conducted by the Winrock International has suggested that additional 98 trolley buses are required to displace all the diesel-run buses and minibuses from the Ringroad area in the Kathmandu valley.

According to Ranjan Prakash Shrestha, of the Winrock International, the total investment required to implement the trolley bus project in the Ringroad would be about Rs 1032 million. However, this cost would be reduced to Rs 870 million if the trolley bus could be assembled locally with imported chasis from India and the electrical components from China. As such, the cost of trolley bus would be Rs 5.5 million if imported and Rs 4.2 million if assembled locally.

Ratna Sansar Shrestha, senior advisor of the Winrock International, carried out the pre-feasibility study of the trolley bus in Ringroad. R.S. Shrestha has been appointed as the National Technical Expert of the Promotion of Renewable Energy, Energy Efficiency and Greenhouse Gas Abatement (PREGA) by the Asian Development Bank. PREGA is a three-year project co-financed by the Dutch government. The Ministry of Population and Environment is the focal point of the PREGA in Nepal.

Significant part of the trolley bus study was the analysis that necessary funding for the trolley bus could come through the Certified Emission Reductions (CERs) through Clean Development Mechanism (CDM). The CDM as defined in the Article 12 of the Kyoto protocol are expected to help to promote non-polluting rapid mass transport system in Nepal.

“If we take into account the potential funding that could come through CDM, the rate of return of more than 14.55 percent can be ensured for private sector who will invest in the trolley bus service,” said Ratna Sansar Shrestha.