Making investments in hospitality sector sustainable

Published On: July 17, 2023 07:03 AM NPT By: Republica  | @RepublicaNepal

The recent surge in the number of tourists visiting the country is a positive sign of recovery for the tourism industry battered by Covid-19. The surge in the number of foreign tourists comes in the wake of significant investment made in the country’s hospitality sector. At least three new five-star hotels were brought into operation in the past year in response to the arrival of an increasing number of foreign tourists. This takes the number of star hotels in the country to 148 including 18 hotels awarded with the notable five-star rating. With the COVID-19 pandemic gradually fading away, it is crucial for the government to take necessary measures to make the investment made in the hospitality sector sustainable. By implementing the strategic initiatives, we can continue to attract more tourists, diversify our source countries and develop tourist infrastructures to increase their average length of stay in Nepal.

One of the key steps that the government should take is to launch a comprehensive and targeted publicity campaign to attract more tourists. Highlighting the natural beauty, cultural heritage and adventure opportunities of our country can entice travelers from around the world. By showcasing our unique offerings through various platforms and channels, we can create a strong and positive image that will resonate with our potential visitors. Additionally, it is essential to diversify our source countries to reduce reliance on a few specific markets. Relying heavily on  a limited number of countries for tourism can make our industry highly vulnerable to fluctuations in their geopolitical factors. The government should proactively engage in diplomatic efforts to promote tourism in untapped markets. This can be done through bilateral agreements, cultural exchanges, and targeted marketing campaigns in emerging economies. In addition to attracting more tourists, it is equally important to focus on developing tourist infrastructures that enhance their overall experience and encourage them to stay longer. Improving transportation networks, upgrading accommodation facilities and enhancing recreational and entertainment options can significantly contribute to increasing the average length of stay of the tourists. By collaborating with the private sector investors and international development agencies, the government can mobilize resources to undertake these infrastructure projects.

The latest surge in hotel expansion is a positive indication of investors’ confidence in the tourism sector. However, it is essential to ensure that this growth is not just driven by short-term gains but also contributes to long-term sustainability. The government should provide incentives and support to hotel investors who prioritize  sustainable practices, such as energy efficiency, waste management and local community engagement.  It is equally important to streamline the regulatory processes and create a favorable business environment for hoteliers and tourism entrepreneurs. Simplifying licensing procedures, providing access to affordable financing options and offering tax incentives can encourage more investments in the sector. The government should also invest in training programs and capacity-building initiatives to enhance  the skills of the local workforce, ensuring that they are well-equipped to meet the demands of the growing tourism industry. As a newspaper, we believe that the surge in the number of established star hotels in the country presents a significant opportunity for our country's economic growth. However, to harness the full potential of the tourism sector, the government must take necessary measures to ensure its sustainability. By launching  effective publicity campaigns, diversifying source countries, and developing tourist infrastructures, we can attract more tourists and increase their average length of stay. With the right strategies and support, we can establish a thriving and sustainable tourism industry that benefits our economy and communities and make the investment put in the hospitality sector sustainable in the long run.



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