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Budget fails to create environment for investment in tourism

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KATHMANDU, July 17: Despite high-decible priority to tourism sector, the proposed budget for 2011/12 couldn´t impress tourism entrepreneurs. No special programs have been announced to attract new investments in the sector, they charged. 



At a time when the nation is running a national campaign Nepal Tourism Year (NTY) 2011, the government has proposed a paltry budget of Rs 1.22 billion for the tourism sector, a mere 10 percent more than last year. Last year, the sector received Rs 1.12 billion in budgetary allocation.[break]



Coordinator of NTY-2011 Yogendra Shakya said it is important to go hand in hand with investors while promoting a new destination. He said, "All our districts have tourism potentials in some way or the other but they are just the raw materials, and investment is required to make them into refined products. Shakya said unless there is investment, tourism promotion is not possible.



C N Pandey of Samrat Tours and Travels said focus of the government is not seen in making tourism products any cheaper. "We have been requesting the government to identify tourism as ´large industry´ and provide special facilities to it so that the end-product becomes cheaper," Pandey who also owns Pokhara-based Hotel Landmark said.



Mahendra Singh Thapa, second vice-president of Trekking Agencies Association of Nepal (TAAN), said the government´s commitment to construct new airports and upgrade the existing ones including commissioning of the second international airport is a positive move. "The question is of implementation because many proposals are vague while some are simply too ambitious," he added.



Entrepreneurs said the focus on aviation sector is encouraging to some extent. The government has expressed its commitment to provide guarantee for the procurement of aircraft for Nepal Airlines Corporation. Shakya said it was one of the very positive moves. Pandey opined increasing the number of aircraft is important to make tourism products cheaper.



"Nepal is turning out to be one of the most expensive destinations, but this year´s budget couldn´t focus on that," he added.



The government has also proposed to develop physical infrastructure and tourism service development in 17 destinations including Khaptad-Mansalu, Lumbini, Ruru-Resunga, King Birat´s Palace in Biratnagar, Gadimai in Parsa and others.


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