Kathmandu, July 15: Prime Minister Balendra Shah has reaffirmed the government’s commitment to supporting the private sector, urging hotel entrepreneurs to work closely with the government to promote Nepal’s tourism industry.
During a meeting with officials of the Hotel Association Nepal (HAN) at the Office of the Prime Minister and Council of Ministers in Singha Durbar on Wednesday, Prime Minister Shah assured the hotel industry that the government was working proactively to strengthen tourism and improve the business environment.
He urged the private sector to serve as a strong development partner, saying the government has accorded high priority to private enterprise.
The Prime Minister also called on hotel operators to comply with existing laws, fulfill their business responsibilities, and encouraged small and medium-sized hotels to register with the Department of Tourism and come within the tax system.
He further suggested exploring greater collaboration through the Public–Private Partnership (PPP) model to boost tourism infrastructure and services.
Hotel industry seeks policy reforms
During the meeting, attended by Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel, HAN officials informed the Prime Minister that Nepal’s hotel industry currently has the capacity to accommodate up to four million tourists annually.
However, they noted that Nepal receives only about 1.2 million tourists each year, leaving much of the country’s tourism infrastructure underutilised.
Hotel entrepreneurs said increasing tourist arrivals would create more domestic employment opportunities and help reduce the outflow of young Nepalis seeking foreign employment.
They also highlighted Nepal’s strong potential to develop as a destination for medical tourism, wedding tourism, and cross-border tourism, while presenting several policy recommendations to the government.
Among their key demands were:
- Providing the hotel industry with the same concessional electricity tariff available to manufacturing industries.
- Increasing the threshold for a Brief Environmental Impact Assessment (BEIA) from 25 beds to 50 beds for small and medium-sized hotels, describing the current limit as impractical.
- Fully operating the Pokhara and Bhairahawa international airports.
- Improving the services of Nepal Airlines.
- Amending the Foreign Investment and Technology Transfer Act, 2018, particularly the provision limiting royalty payments for trademark use under technology transfer agreements to five percent of total sales (excluding taxes), and allowing such royalties to be determined through mutual agreement.
- Reviewing and amending other laws affecting the hotel industry.
- Simplifying procedures for importing jewellery used in destination weddings to promote Nepal as a wedding destination.
- Expanding medical tourism packages by offering comprehensive services beyond one-time photo and video sessions, including full storytelling and expert-supported experiences.
The meeting was attended by HAN Acting Chairperson Dinesh Tuladhar, General Secretary Sajan Shakya, Treasurer Yuvraj Shrestha, committee members Jayadin Shrestha and Ashlesha Karki, and Chief Executive Tek Bahadur Mahat. #nepal
