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Nepal Tourism News

Price hike not to affect tourism

Posted by: NTN | Date: June 22, 2010

Saying recent hikes in taxes levied on hotel rooms and transportation, and a hike in the remuneration of tourist guides will not affect the tourism sector in the country, Dhruba Narayan Shrestha, coordinator for the tourism sector at FNCCI and member of NTY 2011 working committee, said that increment in the hotel room charges, tour guide remuneration, and transportation, is a positive sign for the tourism sector. “It’s like a demand and supply chain. When the demand increases, it also increases the price, which should be taken as a good sign for the Nepali tourism sector,” said Shrestha.

Businessmen in the tourism sector had expressed unhappiness at government’s decision to substantially increase service tax, especially ahead of the year-long Nepal Tourism Year (NTY) 2011, planned for next year. “If the hotels have increased their room rates that means the demand is on the rise and it’s perfectly normal in business that demand causes an increase in prices,” he said adding that it’s time to shed old perceptions that only low-rate and discounted packages attract tourists. This is actually a wrong perception,” Shrestha said.

According to him, Nepal has tour packages for all variety of tourists. “We also have affordable lodge facility and home stay concept for tourists having a limited budget. Along with it, we also have facilities for quality tourists,” added Shrestha. In case of tour guides, it has been more than three years that no increment in their remuneration was given.

So, there is a hike in their remuneration. Price hike in the tourism sector should be taken as a sign of success of NTY 2011, he said. Tourism entrepreneurs have complained about a lack of traffic regulation and poor garbage management.

Shrestha said tourists visit Nepal more for its culture, tradition, sight-seeing, adventure tourism and the Himalayas.

The problem that can affect the tourism sector is strikes and bandh calls by political parties. However now the scene is changing. After the recent general strike fiasco, any political party will have to think twice before calling a strike.

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