Kathmandu, March 12:

As Nepal plunges into economic hardship due to conflict and political instability, young business leaders have come out with a ‘call’ for developing strong and effective linkages between trade, tourism and finance to drive national economy with a new verve.

“Unemployment and inflation are increasing and are even aggravated by political agitation and Maoist insurgency,” they said.

Prasidha Panday, the newly elected president of Nepal-USA Chamber of Commerce and Industry (NUSACCI) said that instead of crying foul over financial, geographical and other constraints, we should start looking for opportunities to reposition our economy as manufacturing sector and hydropower did not fare well despite tremendous efforts and investments by the state and entrepreneurs in the past. “The traditional business practice that has bigger impact on our economy has yet to be redefined,” he added. Multilateral donor agencies need to concentrate on trade, tourism and finance as they are crucial for a country like Nepal, Pandey said stressing for thorough research on these sectors.

Tourism offers multiplier benefits, according to the World Tourism Organisation (WTO) survey. “One incoming tourist in a particular country provides direct and indirect employment to nine people that amply emphasises the importance of tourism in an impoverished nation like Nepal,” states the survey.

The earlier record of migration of people from rural areas to urban areas has been just the reverse, thanks to increased tourism potentials. “However, activities like trekking, mountaineering, rafting, and jungle safari have gone down due to increased conflict, which needs to be stopped immediately,” they demanded.

Prakash Shrestha, president of Hotel Association Nepal (HAN) also opined that triangular linkages between trade, tourism and finance can only be beneficial for Nepal as other sectors are not performing well. Employment generation from tourism – directly and indirectly – is vast, said Shrestha. “We have already observed weak performance and sustainability of other industries but tourism always remains as the real ‘bread and butter’ that is in need of ‘serious’ attention in recent times,” he added.

Recent estimates say, tourism sector has attracted the highest private capital investment among the local entrepreneurs that stands at Rs 100 billion. It has given employment to over 200 thousand directly and, one million indirectly, according to the tourism experts. Tourism sector’s contribution to the national coffer stands over 33 per cent of the total revenue annually.

Shrestha thinks that ‘functional’ support from the government to make tourism industry a priority industry will bring employment to thousands and kick start economic revolution.

Panday stressed that Nepal would evolve as an international finance centre after becoming a transit country between the two economic giants; India and China. “There is a need to conceptualise the idea of ‘international finance centre’ providing required facilities from the state,” he said. This will ultimately lure ‘small and big’ investors to Nepal.

Trade, tourism and finance centre will pave a way for economic prosperity and poverty reduction. The triangular approach for repositioning Nepal’s economy will also be a pragmatic approach to resolve economic crisis and conflict. “Why can’t the World Bank, Asian Development Bank and other global financial institutions conduct a research on such pertinent issues,” Panday questioned.