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KATHMANDU, May 31: The umbrella organization of hotel entrepreneurs has welcomed the budget for the upcoming fiscal year 2025/26, stating it appreciated the government's announcement to grant income tax and electricity tariff exemptions to hotels and resorts, treating them at par with productive industries.
In a press statement, the Hotel Association Nepal (HAN) thanked the government for fulfilling a decade-long demand and recognized this provision as a reflection of the hotel sector's significant contribution.
HAN highlighted several important aspects of the budget. It noted that the government has prioritized the timely construction of upgraded national highways connecting major tourist destinations, expanded services and networks at international airports in Kathmandu, Pokhara, and Bhairahawa, committed to improving Nepal Airlines, and announced efforts to remove Nepal from international flight safety restriction lists—all of which mark significant steps for tourism development.
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The association praised the government's efforts to increase tourist stays and spending. The budget promotes the development of new destinations in high-hill, mountainous, and Terai regions, as well as across provinces. It also encourages diverse tourism activities, including adventure, religious, cultural, film, wellness, and sports tourism initiatives HAN described as positive and timely.
HAN also praised the government's plan to boost cross-border tourism by setting up welcome and service centers at border points. It welcomed the evening heritage trail development at UNESCO-listed sites like Swayambhunath, Hanuman Dhoka, Pashupatinath, and Boudhanath, along with the initiative to build safe tourism trekking routes at major attractions nationwide.
The association stated that the provision allowing tourists to bring in foreign currency equivalent to USD 5,000 for exchange in Nepal will enhance both convenience and spending capacity. It also welcomed the announcement to develop Bhrikutimandap into an international-standard conference center.
The association commended the budget's emphasis on developing tourism through economic diplomacy, involving the private sector and non-resident Nepalis, and using modern technology to manage tourism activities. However, HAN expressed concern that domestic tourism services remain expensive and less competitive due to the 2% luxury tax and 13% value-added tax on airfare. It stressed the need for the government to implement declared tourism development programs effectively to ensure quality services and strengthen competitiveness.
HAN concluded by applauding the budget's goal to brand Nepal as a safe and reliable tourist destination through infrastructure development, improved services, and strong marketing.
It expressed optimism that the budget's focus on private sector leadership and targeted international promotion-particularly in India and China-would encourage further investment and active engagement from the private sector in advancing Nepal's tourism industry.
