Thursday, July 2, 2009

BUDGET BUZZ: Declare hotel sector a national industry

As a responsible sector of Nepali economy, Hotel Association of Nepal (HAN) has been urging the government to develop it. Development of tourism and hotel sector will provide geometric benefits to the nation.
Hotel industry, a primary sector of the tourism industry, should be given due priority and the government should address its grievances in the budget.
Government should implement minimum VAT rate compared to that of multiple Vat rate, so that inflow of foreign currency increases. Items used by hotels like agricultural products are non-VAT items. Therefore, the VAT of three per cent on these should be refunded.
The tourism sector plays a vital role in the development of the country, and this sector should be updated and upgraded. There should be facility for minimum customs charge or discount on the custom charge.
Most hotels are in need of renovation. The government should allow discounts on the maintenance materials used by hotel industries such as furniture, carpet and equipment
The government should allow free visa facility for Nepal Tourism Year 2011.
Hotel industry being a sector of major capital investment should be granted loan facility at cheap rates.
There should be discount on the electricity charge for hotel and restaurants registered under hotel industry and restaurants industry.
There should be income tax discounts on foreign currency earned by tourism industry
The hotel industry for years is facing loss due to huge investment and the present income tax act is not satisfactory. The new budget should increase the lease period from seven to 10 years so that it will be easy to recover the loss.
Targeting Nepal Tourism Year 2011, Nepal Airlines Corporation should buy two new aircraft.
To increase the number of tourist arrivals, the construction of regional international airports should start as soon as possible.
Parking charges at Tribhuwan International Airport (TIA) should be at par with the neighbouring countries.
Old taxis should be phased out. CAAN should appoint trained workers and bring taxis of international standards. The trained taxi drivers should be provided uniforms and the simple loan interest facility granted for buying taxis.
To encourage internal tourism, people related to government and non-government organisations should be given travel leave and concessions.
Diplomatic mission offices should be facilitated with travel desk.
New VAT system should be formed to reduce the effects of global financial crisis on Nepal Tourism Year 2011
Illegal monasteries at Lumbini charging illegal donations from tourists against the Lumbini Development Fund Policy should be booked according to the law.
HAN confirmation should be made compulsory while categorising hotels and certifying them.
The government should renew the contract of the hotel resort that is managing the Chitwan National Park Area since 25 years.

Prashiddha Bahadur Pandey
President
Hotel Association of Nepal (HAN)

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