Kathmandu, January 22

At a time when trade unions are saying that they are the sole beneficiaries of the entire 10 per cent service charge that is being levied on consumers, hoteliers have said that there is no rationale behind service charge.

They have stressed that the hospitality industry needs to remove such additional charges, which is a burden on consumers.

As per the agreement with the trade unions when the service charge was introduced in 2006, the trade unions and management share 68 per cent and 32 per cent of the service charge, respectively. However, the trade unions in various hotels and restaurants have been protesting against the management and demanding the entire service charge that is being levied on consumers.

Organising a press meet today, Hotel Association Nepal — umbrella body of tourist standard hotels in the country — said that as the salary and allowance of the employees in hotels and restaurants are adjusted every two years there is no rationale behind the protest by trade unions seeking the entire amount levied as service charge.

Taking into context the removal of such charge in neighbouring India, the hospitality business in Nepal also needs to think about removing such service charges, according to HAN.