According to Tourism Industry Division (TID) under the Ministry of Tourism and Civil Aviation, the hotels have submitted their expansion and renovation plan for waiver of tax on imports of necessary logistics and machineries. [break]
Nirajan Ghimire, section officer at Tourism Industry Division, said the Tourism Ministry has proposed the Finance Ministry to continue the 5 percent custom duty facility on import of goods for hotel sector in fiscal year 2010/11 as well.
“We have also proposed the Finance Ministry to impose 5 percent custom duty on import of sanitary fittings for hotels,” Ghimire added.
Shyam Sundarlal Kakshapati, general secretary of Hotel Association of Nepal (HAN), said duty waiver alone would be insufficient for the hotel industry. “Hotel industry needs special incentives for the government. The government should reconsider lifting VAT imposed on hotel sector,” Kakshapati added.
Hotels in Kathmandu and Pokhara are adding rooms and upgrading their facilities to accommodate more tourists.
“Most of the hotels have come up with plans to replace boilers and central air conditioning, upgrading bathrooms and kitchens, furnishing lobby and upgrading food and beverage facilities,” Ghimire informed myrepublica.com.
Two hotels eye 5-star rating
Two four-star hotels in the country are adding rooms and renovating their existing facilities to upgrade themselves into five-star category.
“Hotel Himalaya in Lalitpur and Pokhara Grande in Kaski have submitted their plans to upgrade into five-star hotels,” Ghimire said.
Sources at Hotel Himalaya said the hotel would add 25 new rooms by December this year as a part of its plan to upgrade into five-star category. The hotel operates with 100 rooms at present.
Ghimire informed myrepublica.com that the hotel will soon get five-star rating. He further added that Pokhara Grande is constructing another building as a part of its plan to upgrade into a five-star hotel.
Hotels on refurbishing spree
Ghimire informed myrepublica.com that Hotel Yak and Yeti has proposed Tourism Industry Division to investing Rs 500 million over three years to replace boilers, tiles, showers and mattresses in the hotel.
The hotel management has already furnished invoice for importing goods and equipment to the Tourism Industry Division.
Apart from Hotel Yak and Yeti, other five-start hotels like Hotel De l´Annapurna, Soaltee Crowne Plaza and The Everest Hotel have also made significant investment to upgrade their existing facilities.
Club Himalaya Nagarkot recently added 30 new rooms and other facilities with the investment of Rs 80 million. Yogendra Shakya, president of Club Himalaya, said the deluxe resort now has 75 rooms.
Officials at TID said registration and renewals of hotels by the end of fiscal year 2009/10 have reached 636. Sources said the number is three times the figures recorded a year earlier.
As per the existing regulations, unregistered hotels are barred from hosting foreign visitors and they can publicize their services.
HAN estimates that private sector has invested more than Rs 100 billion in the hotel industry.
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