The association has welcomed the operation of Bhairahawa and Pokhara International Airports, the operation of Nepal Airlines on a company model, efforts to remove Nepal from the European Union's air safety list, and plans to facilitate tourist entry through the border as positive steps for the tourism sector.
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The Hotel Association of Nepal (HAN) has expressed satisfaction over the priority given to the tourism sector as a major pillar of economic transformation in the budget for the fiscal year 2083/84 and urged the government to effectively implement the announced programs.
According to a statement issued by the association on Sunday, it has expressed confidence that the programs announced in the budget such as Visit Nepal Year 2085, Health Year 2027, Nirvana Path, Koshi Corridor, Great Himalayan Trail, hill station development, conservation of Manang-Mustang monasteries, development of provincial tourism corridor and promotion of new tourist destinations will make a significant contribution to increasing tourist arrivals, length of stay and expenditure.
The association has welcomed the operation of Bhairahawa and Pokhara International Airports, operation of Nepal Airlines on a company model, efforts to remove Nepal from the European Union's air safety list and plans to facilitate tourist entry from the border as positive steps for the tourism sector.
At present, the average occupancy of hotels and resorts across the country is limited to about one-third. Such initiatives are expected to increase the number of tourists. Similarly, the association has also praised the development of Janakpur as a wedding tourism destination, further expansion of the Lumbini region, Gandaki Mountain Bike Trail and programs related to international marketing of Himalayan tourism.
The association has acknowledged the private sector as a development partner and stated that the budget's emphasis on economic diplomacy, cooperation with non-resident Nepalis, use of technology and artificial intelligence (AI), stable bank interest rates, skilled human resource development, good governance and control of corruption is positive for the tourism industry.
However, the Hotel Association Nepal has expressed dissatisfaction with the proposal to impose VAT on electricity. It has demanded a reconsideration from the government, saying that even though the hotel industry has been recognized as a manufacturing industry but does not receive electricity facilities like the industry, adding VAT will increase operating costs and affect international competitiveness. The association has also urged the government to re-run the civil servant country tour program to promote domestic tourism, remove the restrictions on holding government meetings, conferences and programs in hotels and resorts, and make arrangements for effective implementation and regular evaluation of the tourism-related budget. In addition, the association has emphasized the need to reform the tax structure to increase the consumption of local agricultural products and household goods, and to start a public review system and timely implementation of the programs announced in the budget.
