KATHMANDU, JULY 15 Prime Minister Balendra Shah on Tuesday said the government has given high priority to the private sector and urged hotel entrepreneurs to work in partnership with the state, assuring them that efforts to boost tourism are being pursued at a fast pace. During a meeting with office-bearers of the Hotel Association Nepal (HAN) at the Office of the Prime Minister and Council of Ministers, Shah said hoteliers should not be concerned as the government is actively promoting the tourism sector. He called on businesses to comply with laws, fulfil their responsibilities, register small and medium-sized hotels with the Department of Tourism, and bring them into the tax net. He also urged stakeholders to explore projects that could be implemented under public-private partnership (PPP) models. The meeting, attended by Minister for Culture, Tourism and Civil Aviation Khadka Raj Paudel, heard HAN officials state that Nepal's hotel industry has the capacity to serve up to four million tourists annually, although the country currently receives around 1.2 million visitors each year. The association said higher tourist arrivals would help create domestic employment opportunities and reduce the outflow of Nepali youth seeking jobs abroad. It also highlighted Nepal's potential as a wellness tourism, destination wedding and cross-border tourism hub. HAN submitted several policy recommendations to the government, including providing electricity tariff concessions to the hotel industry similar to those enjoyed by other productive industries. It also sought to raise the threshold for mandatory Initial Environmental Examination (IEE) for small and medium-sized hotels from 25 beds to 50 beds, arguing that the current provision is impractical. The association further urged the government to fully operationalise the Pokhara and Bhairahawa international airports, improve Nepal Airlines' services, amend provisions of the Foreign Investment and Technology Transfer Act, 2019 (2075 BS) relating to trademark royalty payments, and review laws affecting the hotel industry. The hoteliers also called for easier procedures for bringing jewellery into Nepal for destination weddings and urged the government to strengthen the promotion of wellness tourism through comprehensive storytelling campaigns and the mobilisation of experts, rather than relying solely on promotional photos and videos.