Himal Press 
KATHMANDU: Prime Minister Balendra Shah continued his outreach to the country’s private sector on Wednesday, holding talks with leading hotel entrepreneurs on ways to boost the country’s tourism industry.
Speaking during a meeting with office-bearers of the Hotel Association Nepal (HAN), he said the government’s efforts to promote the tourism sector are already moving ahead at a rapid pace and assured hotel entrepreneurs that their concerns would soon be addressed. Shah also encouraged the private sector to move forward as a strong partner of the state.
He also called on HAN to encourage small and medium-sized hotels to register with the Department of Tourism and come under the tax net, and to study areas where the government and the private sector could collaborate under the Public-Private Partnership (PPP) model.
Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel was also present in the meeting.
In response, HAN officials told the Prime Minister that hotels in Nepal can accommodate four million tourists annually. Stating that Nepal was currently receiving only about 1.2 million tourists a year, the hotel entrepreneurs said a significant increase in tourist arrivals would generate domestic employment and help discourage Nepali youths from seeking foreign employment.
HAN has urged the government to provide the hotel industry with concessional electricity tariffs similar to those enjoyed by other production-based industries. They also requested that the threshold for the mandatory Initial Environmental Examination (IEE) for small and medium-sized hotels be increased from 25 beds to 50 beds. Likewise, the association also called for the full-fledged operation of the international airports in Pokhara and Bhairahawa and to strengthen Nepal Airlines Corporation (NAC) to bring more international tourists into the country.
The association also called for amendments to the Foreign Investment and Technology Transfer Act, 2019, specifically the provision that caps trademark royalty or licensing fees under technology transfer agreements at 5% of total sales, excluding applicable taxes. It said such fees should be determined through mutual agreement between the parties involved.
In addition, the hoteliers requested the government to simplify procedures for bringing jewelry into Nepal for destination weddings. They also called for stronger promotion of wellness tourism through comprehensive storytelling campaigns and the engagement of subject-matter experts, rather than relying solely on photos and videos.
