According to Shyam Sundarlal Kakshapati, general secretary of Hotel Association of Nepal (HAN), saw a business growth by nearly 15 percent in the study period against a growth of eight percent in the previous year. "The transaction is also positive and we are encouraged," he said. [break]
Data provided by HAN suggests that around Rs 100 billion has been invested in the hotel industry which is considered to have the highest local private sector investment.
The growth in hotel industry depends mainly on tourist arrivals. In 2009, tourist arrivals rose by 1.89 percent to 509752.
Kakshapati, however, said earning of major star hotels was not good as expected.
No big hotel has opened in the capital since the opening of Hyatt Regency Hotel 10 years ago. As the capital cost is very high, investors are not attracted to open new hotels, said Kakshapati. Besides, real estate value, bank rates and cost of materials force investors to shy away from investing in hotel industry.
The interest rate on credit of banks has increased to 15 percent from 8 to 10 percent a year ago. "Opening a new hotel in Kathmandu is a tough job," he said.
Meanwhile, Implementing Expert Group (IEG) is planning for a soft opening of two four-star hotels -- Airport Hotel and Red Rose Apartment Hotel -- in the valley with an investment of more than Rs 1 billion.
Kakshapati demanded tax waiver for hotel industry as this is a major sector to earn foreign currency, consume agro products and provide direct employment to more than a million Nepalis.
With Nepal Tourism Year (NTY) 2011 just six months away, hoteliers are planning different offers and demanded the government to improve and upgrade the capacity of Tribhuvan International Airport (TIA) and regional airports.
Kakshapati said Nepal Airlines Corporation should also add new aircraft to bring more tourists to Nepal.
There are eight five-star, three four-star, 12 three-star, 22 two-star and 18 one-star hotels and 165 non-star, four allied and 33 resorts affiliated with HAN. There are 307 hotels including 42 outside the valley which have 22,661 rooms with 34,958 beds in the country.
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