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Budget fails to excite hoteliers

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KATHMANDU, July 18: Hoteliers have expressed serious disappointment with the government for not addressing their demands and concerns in the budget for the fiscal year 2011/12.



The had, among others, demanded that the government give them facilities on par with other industries, waive off visa fee for two years and reduce exorbitant landing and parking fee for aircraft at Tribhuvan International Airport.[break]



They also said programs announced in the budget were mere duplication of past projects and hence won´t benefit the tourism industry.



“Though the government has prioritized the tourism sector, the budget lacks concrete plans and programs,” Prasidha Bahadur Pandey, president of Hotel Association of Nepal (HAN), said at a program here on Monday.



“Tourism industry is one of the largest foreign currency earners. We were expecting some incentives through the fiscal budget. But the budget disappointed us.”

Speaking on the occasion, Rajesh Kazi Shrestha, chairperson of HAN´s media committee, said the budget lacked concrete programs on infrastructure development and tourism promotion.



Hoteliers, however, welcomed the decision of prohibiting bandas and strikes in 15 sectors of economy, including the tourism industry. They also hailed the government decision of standing as a guarantor for Nepal Airlines Corporation´s fleet expansion.


Occupancy up, revenue down



Pandey also said overall hotel occupancy increased by about 20 percent over the first six months of Nepal Tourism Year (NTY) 2011 campaign.



“It is a very encouraging sign,” Pandey said, adding that the occupancy could increase further if there is political stability and necessary encouragement from the government.



“The movement of tourist is increasing. But revenue mobilized during the period was lower than that of last year because of the rise in the number of low-end tourists,” he added.


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