Himalayan News Service

Kathmandu, July 18:

Nepal Association of Tour Operators (NATO) commenting on the budget today said “at a time when the tourism industry is passing through hard times, government’s decision to upgrade Lumbini Airport to the international standard and initiate tourism promotion at home and abroad is a welcome step.” “These steps will help in changing perception of international consumers on Nepali tourism products,” states a NATO press release issued here today. “The announcement of improving and conserving heritage sites are encouraging, states the release. NATO expressed its thankfulness saying that the budget had addressed recommendations submitted to finance minister by NATO. NATO feels that the country is in a dire need of another international airport as an alternative to the Tribhuvan International Airport (TIA). The government’s decision to upgrade Bhairahawa International airport would not only promote Nepali tourism but would also establish Lumbini as a popular tourist destination.

Since the performance of national flag carrier, Royal Nepal Airlines Corporation (RNAC) is at the lowest ebb, its privatisation — in its current state — would mean that we are ready to sell it at ‘scrap value’. “The RNAC, therefore, needs to be strengthened before initiating privatisation,” NATO release stressed. “Despite government’s announcement of privatisation of RNAC, it needs a lots of ‘safety measures’ to be taken before starting the privatisation.”

Unlike in other industries, the application of VAT threshold in tourism industry is having serious impact. Those, who are registered under VAT are compelled to sale their packages at 13 per cent higher price that is affecting the service quality, the release stated, “The VAT must be totally abolished to encourage the tourism industry.” Before opening tourism and trekking sector for foreign investment, government should make certain criteria. Time is running out to make local tourism entrepreneurs more competitive to compete with global players, the statement further read. Meanwhile, Hotel Association of Nepal (HAN) has welcomed the budget saying that it will boost tourism industry.