The Nepal Association of Tour and Travel Agents (NATTA) has stated that Nepal's tourism industry is under serious pressure due to the Value Added Tax (VAT) imposed on air tickets, foreign exchange limits, and complications in the visa approval process.

Stating that these two issues have become the biggest obstacles to tourism-friendly policies, the organization has demanded an immediate review and structural reforms from the government.

According to the annual report presented by General Secretary Yubika Bhandari at the 58th annual program organized by NATTA in the capital on Sunday, VAT on air tickets has increased the cost of international tourists and passengers and has weakened Nepal as a competitive destination. NATTA, which has continued its legal and policy fight against VAT, has filed a case in the Supreme Court and is also in constant dialogue with the Ministry of Economy, Culture, Tourism and Civil Aviation. 

Foreign exchange limits and visa-permit procedures have become another serious problem for tourism entrepreneurs, said General Secretary Bhandari. Although the recent increase in foreign exchange limits is positive, NATTA believes that a more convenient, business-friendly and international practice-based system is needed.

The organization stated that both entrepreneurs and travelers have been affected by the delay in visa and permit procedures, especially in international religious tourism such as the Kailash-Mansarovar Yatra.

The report also mentions that the lack of a tourist bus terminal in Kathmandu is a long-term problem for tourists coming to Nepal. NATTA has demanded from the government to build a modern bus terminal at an alternative location as the unorganized pickup and drop system is weakening the tourist experience and is tarnishing the reputation of Nepal.