KATHMANDU, Feb 13: Yak & Yeti Hotel Limited, in response to the government move to scrap the operating license, has said the hotel does not have any financial liabilities due to the government.

Issuing a press release, the five-star hotel has clarified that it has stopped operation of its ‘Casino Royale Nepal’ since April 18, 2014 and has already cleared all the royalty. “As the hotel did not renew the casino license thereafter, the government body has created hypothetical liabilities in the name of the hotel,” reads the press statement.

On Wednesday, the government canceled the casino operating license of Yak & Yeti Hotel Limited, Durbarmarg, Kathmandu, for failing to pay Rs 420 million in royalty to the government. Earlier, the Ministry of Culture, Tourism and Civil Aviation had issued a license to operate a casino in the name of the hotel on January 6, 1992.  

Minister for Culture, Tourism and Civil Aviation Prem Bahadur Ale took a decision to revoke the five-star classification of the Hotel Yak & Yeti for the non-payment of the royalty amount to the state. According to him, the company is yet to settle arrears upto fiscal year 2020/21, renewal fees for the FY 2021/22 and royalty fee worth Rs 420 million.

“The government move has discouraged tourism entrepreneurs at a time when the entire sector has been struggling to sustain their business due to impacts of the coronavirus pandemic,” the hotel said in the statement. The hotel said it pays tax at an average of Rs 260 million per year to the government and provides jobs to more than 500 people.