It is essential that we match resources with results, cost with revenues and efforts with outcomes.

The government has come up with a draft tourism policy. The new policy in the making is relevant in the context of the new governance environment of the country. Tourism objectives can be measurably related to GDP, total arrivals, international/regional or product wise market share, foreign exchange earning, employment generation, infrastructure development,

etc. But the final bottom line should be linked to the overall national goals. The draft has enumerated nine products for promotion and resource allocation. I have a firm view that our scarce resources should be allocated in high-return-oriented products in which we have comparative strengths.

For example, adventure tourism, culture and religious tourism, are our core strength areas, where allocating our resources should create more results than investing in educational tourism, or medical tourism. Any policy or strategy, however good, will not yield results unless they are effectively implemented. A strategy should have an appropriate organisational structure. For the effective implementation of the policy, it is imperative that there is a new responsibility management system. Hence, responsibility officers are to be named, responsibilities defined and the performance evaluation of the responsibility officers made on the basis of their performance.Various I/NGOs, have been involved in Nepal’s various development areas, such as poverty reduction, education, health, women development, empowerment of the underprivileged, and microfinance. The involvement of the organisations

at the grass roots level can do much to augment the tourism industry potential.

New products and market development will be critical factors for the achievement of the draft policy objectives. By developing new products, Nepali tourism can achieve greater volumes from the current tourism markets and effectively intrude new markets. It is important that the new policy in the making should address this issue by providing for incentives to tour operators for substantial product development and new marketing initiatives. When developing new products, it is important to ensure their effectiveness from customer perspective as well as from the local beneficiaries. For marketing purposes, e-initiatives can be particularly relevant for us.

Services of tourist service points such as airports, heritage sites, trekking sites, immigration points are critical for repeated visits. They should be best managed with service benchmarking. It is essential that we match resources with results, cost with revenues and efforts with outcomes.

For the target arrivals, we must have sufficient infrastructure in place. For development of new infrastructure, it is necessary to provide entrepreneurs with fiscal, monetary and process incentives. The government should also have the provision of maintaining and developing heritage sites regularly. Accommodation capacity has decreased in recent years with the closure of a number of hotels. Accommodation capacity will be a key constraint factor in the future.

To be competitive and to be in a position to achieve the policy objectives, it is also important for us to have productive human resources in all the related sub-sectors, including all tourist service points such as immigration, tour guiding, travel management, civil aviation, etc. On productive international sectors, there is a capacity crunch particularly during the high tourist season.

There is a need for a very liberal, continual policy of allowing international charter flights and flights under temporary operating permits. Similarly, the country must have a policy framework for air service agreement.

Aviation turbine fuel (ATF) in Nepal is possibly the most expensive in the whole world. The government must review the ATF pricing policy. ATF pricing for internal remote sector flights should be done for cost recovery only and VAT should be waived on the supply of ATF for such flights. For other domestic and international flights, ATF pricing has to be based on cost plus reasonable profit. This way, ATF prices will decrease substantially which will immensely contribute to the growth of international and internal air traffic due to consequential fare reduction. When there is a resource crunch, cooperation becomes important. We can collaborate with neighbouring countries as a move towards global marketing to promote tourism in our country.

Furthermore, the continuity of leadership is sine qua non for any organisation or a plan to be successful. For tourism to grow at a faster rate, we need leadership continuity in all related organisations in the sector, from the ministry to NAC, CAAN, Nepal Tourism Board (NTB) for a strategic period of time. This enables the continuity of the pursuit of the purpose, strategic implementation and achievement of the purpose, goals and objectives.

Shrestha is president of Airline Operators Association of Nepal