KATHMANDU, JULY 7

Unscrupulous foreign agents and their sub-agencies have mushroomed here in recent days, capitalising on the country's tourism-related policies that are either ambiguous or non-existent, and at a heavy cost for local industries.

Despite steady revival from the pandemic-induced slowdown, majority of the global insurers have begun limiting their partnership with local agencies while shaking hands with foreign sub-agencies to oversee operations in Nepal, according to industry insiders. Some have even started overseeing their own operations.

'While the shift is understandable, it could jeopardise the achievements of the local stakeholders across a span of two decades,' the source said.

'As foreign sub-agents and operators enter the market, local agencies will have to go through the same hardships and abuse faced in the early days when foreign sub-agents would delay payment for rescue and medical assistance claims,' the source explained, further claiming that some such incidents have already been reported. Local operators complained that foreign agents of insurance agencies including Pinnacle Assistance, Traveller Assist, Inherent Risk and Global Rescue among others have long been fleecing Nepal's tourism and adventure industry.

Mingmar Sherpa, chairman of Seven Summit Treks Pvt Ltd, accused Global Rescue of not paying over $80,000 in insurance claims of their clients.

'They have challenged us to take them to court instead of paying the claims for the rescues, even in cases related to some of our clients requiring rescue and treatment for extreme frostbites,' Sherpa alleged.

'Insurance companies used to make direct payments, but now with a sub-agency overseeing the works on their behalf, delays and non-payment of claims have become recurring issues for agencies here. Thus, the future of the whole tourism sector is in peril,' he added.

Furthermore, Ramesh Thapa, immediate past president of Nepal Association of Tour and Travel Agents (NATTA), also highlighted that insurance costs for many tourists coming to Nepal has increased in recent years and called for stricter regulations and adherence to international standards for restoring trust and stability in Nepal's helicopter rescue sector.

In view of the changing times, local stakeholders stressed on introducing relevant policies and regulations alongside necessary infrastructure to tackle the issues seen in the local market

'The government should form proper guidelines for local agencies to operate in the country as a regulated entity, mandate such agencies to operate 24 hours a day to adhere to rescue calls and have professional liability insurance as per international standards,' the source told THT.

Sherpa, meanwhile, opined that it was high time travel-related insurance was provided to tourists by local bodies as per the rules and regulations set by the government of Nepal to abolish such insurance hurdles which can in turn help provide tourists with a favourable insurance package at a cheaper price than foreign competitors and generate extra revenue for the country.

It may also be noted that international media reported a number of local travel agencies, helicopter companies and hospitals working together to scam rescue agencies and insurers through fraudulent claims in 2018, which was later investigated by the government of Nepal.

'While several travel-related companies were summoned, they were let off the hook with a slap on the wrist and the Tourist Search, Rescue, Treatment and Monitoring Guidelines 2018 was later scrapped, which has allowed such practices to continue unabated. This is another factor behind the shift in the market and should be looked upon with seriousness by stakeholders and authorities concerned,' the source said.

Meanwhile, Sherpa claimed that the shift is the result of self-interest of the foreign insurers in overseeing their own operations here rather than distrust towards the local agencies. He also shared that following the actions taken by the government a few years ago, such incidents have not surfaced as much. 'Personally, I don't have any information of fake rescues being conducted in recent times and there haven't been any formal complaints or cases filed against anyone yet,' Sherpa added.

In a brief conversation with THT, Rakesh Gurung, director of the Mountaineering Section at Department of Tourism (DoT), said that the department is looking into the issue. He did not respond to repeated

calls and messages thereafter seeking further clarifications on the matter.