Tourism

TOURISM TOURISM

Tourism prospects in the last quarter looked bleak due to COVID-19. Although travel had come to normalcy, the recent surge in the COVID-19 cases has put the tourism industry to halt once again. Restrictions have also been set by neighboring countries and this has affected people involved in the tourism sector as well as the tourists themselves. However, the recent meeting held between Nepal and Qatar and the rise in number of climbers in Everest have brought some positive changes and revenue generation for the country.

Tourism industry takes a major hit as China sets restrictions in

Tibet: Between 2014 and 2019, over 100,000 Indian nationals have been to Manasarovar lake via Nepal. As China announced the closure of Tibet’s international boundaries until December 2021, the tourism activities around Mansarovar lake have decreased. As an alternative, locals involved in the tourism sector have planned to make Surma Sarovar an alternative destination as it falls inside the boundaries of Nepal.86

Nepal and Qatar collaborate to promote tourism in both the

countries: A meeting was held between the Ambassador of Qatar to Nepal and the Chief Executive Office, Nepal Tourism Board (NTB) to collaborate for tourism promotion between both the countries. Nepal remains a popular destination for Qatari tourists. For the last few years, problems like lack of proper transportation facilities and expensive airfare have refrained tourists from visiting Nepal. Such issues are to be taken care of by the concerned authorities and Nepal further plans to introduce Halal food and prayer rooms throughout the nation.87

Permits issued for climbing Mount Everest despite COVID-19 cases:

Over 150 climbers reached the peak of Mount Everest on the same day, on May 23, 2021, according to the government officials. The number was not fixed as additional climbers were also on their way up. For this climbing season, 408 members were given climbing permits. A few COVID-19 cases were reported at the base camp.88

Nepal Tourism Board (NTB) to promote tourism in Nepal in an

event held in India: The board members of NTB participated in the South Asia Travel and Tourism Exchange (SATTE) held in India. The participation is in line with the strategy of first approaching markets of neighboring countries to promote tourism. The event was attended by 25 Nepali companies including Nepal Airlines Corporation and was led by the NTB.89

COVID-19 hits the tourism business,

leaves several unemployed: A survey conducted by Kathmandu Living Labs in partnership with organizations in the hospitality and tourism industry shows that 17% of tourism enterprises have permanently shut down since March 2020 due to COVID-19. The pandemic has also left 65% of employees working in the tourism industry unemployed. The highly affected areas are located in Thamel, Kathmandu’s tourist hub.90

Budget highlights

Out of the total federal budget of NPR 1.67 trillion (USD 13.87 billion) for the FY 2021/22, NPR 27.4 billion (USD 0.457 million) has been allocated to the Ministry of Culture, Tourism, and Civil Aviation (MoTCA). The budget highlights for the tourism sector are as follows:

• The government has decided to provide free visas to foreign tourists for one month to promote tourism.

• Incentives to be provided for hotels that are shut due to the COVID-19 pandemic are turned into isolation centers.

• GPS tracking system to be implemented on the trekking routes for tourists.

• Government to reimburse 75% of the investment in all star hotels.

• Exemption of value-added tax will be provided on transportation service, freight, cargo service, e-library service, security deposit fee, trekking, and tour package and in the issuance of the certificate of origin.

• The income tax for the hardest-hit industries such as travel & tourism, transportation, health clubs, and such have been reduced to 1% with provisions to carry over losses up to 10 years.

• Tribhuvan International Airport (TIA) to bring advanced passenger information system into use, and make visas available via QR codes to make immigration service systematic and of international level.

OUTLOOK

Nepal’s tourism is known to thrive even in the lean season of May–August. The outbreak of the COVID-19 pandemic has meant a steep decline in the number of foreign tourists visiting Nepal. Keeping in mind and hoping that the situation may return to normal in few months, the government must work in ensuring safe travel facilities for all tourists coming to Nepal and should work towards bringing in foreign investments to facilitate tourism.