Jun 21, 2024

Hotel Industry Not Yet Recovered, Protect it : HAN

Hotel Industry Not Yet Recovered, Protect it : HAN

KATHMANDU, March 20: Hotel Association Nepal(HAN) has said that the hotel industry is on the brink of closure due to high bank interest rates.

According to the HAN, despite the fact that the tourism industry has been operating since the corona pandemic, it is losing money and is unable to pay employees' salaries.

Binayak Shah, the HAN's first vice-president, stated at a press conference on Monday that only 25% of bookings are currently in the country.

According to HAN's study,  business only breaks even at 38% occupancy. '20 percent of businessmen have fled,' he said, citing the fact that the hotel business has not been fully operational for a long time and that he has not been able to pay the bank's interest. If the government does not pay attention in a timely manner, all hotels will be forced to close tomorrow.'

According to the association's president, Shreejana Rana, the hotel industry is going bankrupt as a result of Covid. She complained that there was no hearing, despite the fact that the association had spoken to the relevant authorities about the hotel sector problem several times. 'Even when I spoke to various ministries about the issues in this area, no one listened. The government apparatus was not fortified. 'How many times do you have to bring up the same issue?' she asked.

She also stated that the hotel industry in Nepal has declined because it is not subject to the same rules and regulations as other industries and is not subject to the government's financial and monetary policy rules.

The HAN's demand is to increase loan principal and interest payments in a practical way to help the hotel industry recover from its difficult financial situation.

Similarly, the HAN has asked the government to lower the rising interest rates to single digits, which is required for loan restructuring and rescheduling.