'Though the number of tourists visiting the country is continuing to climb, tourism entrepreneurs are light-years away from seeing any benefit," is a cliché in the tourism sector. But here is data that goes against the cliché. Tourism Service Fare (TSF) mobilization at Nepal Tourism Board (NTB) over the first 11 months of the current fiscal year has been greater by 17 per cent than that of TSF over the last fiscal year as a whole. According to figures compiled by the NTB, it has so far collected TSF amounting to Rs 65.5 million, whereas its collection during the last fiscal year totaled Rs 56.4 million. Furthermore, the NTB expects to collect Rs 3.5 million during the last month of this year, taking the total TSF collected this year to Rs 69 million. Added to this, data compiled by Nepal Rastra Bank shows an 'amazing growth in gross foreign exchange earnings in 2003.' The data reveals that earnings in the year 2003 shot up by around 80 percent from those of 2002.

Talking to The Kathmandu Post, Tek Bahadur Dangi, Chief Executive Officer of NTB attributed the upsurge in TSF mobilzation largely to the increase in tourist numbers. "Since the number of visitors has risen considerably in recent times, total tourism earnings have surged. As a result, we see a rise in TSF mobilization," he said. He further said that following a decline in business lasting around three years, the tourism sector has now begun to heave a sigh of relief. "In fact, increasing tourist arrivals appear to have salvaged the sector, and tourism entrepreneurs are seeing a marked improvement in their business," he said. However, tourism entrepreneurs do not buy the claim that the tourism sector is en route to betterment and prosperity. Narendra Bajracharya, President of the Hotel Associations of Nepal (HAN), said that the financial condition of hotels is worsening by the day. "Needless to say, the number of tourists has substantially increased. However, hotels have suffered a continuous decline in earnings over the years," he said. He attributed the decline in earnings to the shortening of average tourist stay length and to cutbacks afflicting hotels. "The average tourist stay was 13 days some years back. Now it's just seven. So, the increase in tourist arrivals does not spell any respite for entrepreneurs," he said.

OTHER NEWS

• No Impact of WTO on Tourism: Experts: As foreign investment has been flowing into the tourism sector for many years, the country's accession to the World Trade Organization (WTO) does not bring any negative impact to the sector, said experts. Speaking at a program organized here recently on Impacts of the WTO on the Tourism Sector, Prachanda Man Shrestha, Joint-Secretary at the Ministry of Industry, Commerce and Supplies said that as per the government's commitment to the WTO, foreign investment is welcomed in all star hotels. "And, they are allowed to retain foreign employees, in executive and management positions only, for 10 years," he said. He also said that the existing hotels and tourism service charge will not be affected by the country's commitment to the WTO.
  
  
• PATA, Nepal Forms New EC: The 29th Annual General Meeting of PATA, Nepal Chapter that was convened recently has selected a new Executive Committee (EC). The newly selected executive committee includes Prabin Pandey, Chairman, Tek Bahadur Dangi, First Vice Chairman, Gautam Das Shrestha, Second Vice Chairman, Shikher Prasai, Honorary Secretary, and Pawan Bahadur Tuladhar, Honorary Treasurer. Similarly, Basanta Mishra, JL Khanna, Rajiv Malla, Shariq A. Lari, Viroj Sirihorachai, Raju KC, Shankar Prasad Pandey, and Prabhakar SJB Rana have been selected as executive members.
  
  
• TAAN Emphasizes on Enhancing Trekking: With an aim of increasing tourism returns by conserving the mountainous environment of the country, the Trekking Agent Association of Nepal (TAAN) has organized the Seventh TAAN Eco Trekking Workshop, which is being attended by over 200 representatives, from 26 districts. The 3-day workshop, which was launched in the capital recently, is focused on providing training to hotel entrepreneurs, teachers and students, and representatives of various tourism areas of the country. The workshop, which is organized every year, is this year concentrating on 23 tourism-related subjects.
  
  
• B'deshi Airline to Operate in Nepal: GMG Airlines, a private Bangladeshi airline, has formally requested the Nepali government's permission to operate flights in Nepal. "We have received a request from the airline for a route permit. And, we will soon take the final decision on this matter," said Nagendra Prasad Ghimire, Director General of Civil Aviation Authority Nepal (CAAN). He also said that Sahara Airlines, which already has permission to operate flights in the country, will launch its service in July. "Chinese Eastern Airlines (CEA) is also to launch in Nepal," he added.
  
  
• Attract Foreign Investment in Hydropower: Experts: Experts and businessmen recently stressed on the need of creating an appropriate environment to attract foreign direct investments on the largely untapped hydropower sector of the country. They also pointed out that at a time when the country had not been able to explore the water resources in full swing, the domestic electrical companies have not been encouraged to realize full potential of the available water resource.
  
  
  

By Hari Shrestha, Resident Representative in Kathmandu