Special provisions for hotels sought in supplementary budget

Kathmandu, December 13

Hoteliers have urged the government to implement tourism-related programmes that the government had introduced in the budget speech for fiscal year 2016-17.

They said that though the government had announced that it would hold several tourism-related promotional programmes and observe 2018 as ‘Visit Nepal Year’ and fiscal year 2016-17 as ‘Ghumfir Barsa’ (Travel Year), the government has not done much till date to attract tourists in the country for these two years.

The comment from the hoteliers has come at a time when the government is preparing to bring a supplementary budget.

“The budget for fiscal 2016-17 has made a number of promises to boost domestic tourism which had been hit hard by the earthquake and blockade last year. However, the government has not properly implemented any of its announcements made during the budget speech to revive Nepal’s tourism,” said Binayak Shah, spokesperson for Hotel Association Nepal (HAN), adding that the government should first implement all the programmes announced to boost domestic tourism.

HAN officials said government’s supplementary budget, besides focusing on implementing previous tourism projects, should also focus on development of tourism infrastructure, including improved air connectivity to different nations.

The hotel association has also asked the government to put the hotel industry under priority industry and give incentives to hotels like those being given to national priority industries. Similarly, HAN has also urged the government to announce VAT refund facility for hotels on agro-products through the supplementary budget as agro products are largely consumed by hotels.

Talking to The Himalayan Times few weeks ago, HAN President Amar Man Shakya, had also sought reduction in electricity tariff for hotels. “The government has differentiated hotels from other industries while fixing electricity tariff. The hotel industry should also enjoy lower electricity tariff rate as enjoyed by other priority sectors,” Shakya had said and informed that a five-star hotel in Nepal pays up to Rs 700,000 electricity tariff to the government every month.