HAN express concern over monetary policy for FY 2023/24

KATHMANDU, July 26: The Hotel Association of Nepal (HAN) has expressed concerns over the monetary policy announced by the Nepal Rastra Bank for the current fiscal year 2023/24. As per a statement issued by the association, the monetary policy is unlikely to help resolve the existing issues faced by the hotel and tourism sector, which has been affected by COVID-19 and other global uncertainties brought forth due to the war between Ukraine and Russia.

As the provisions related to rescheduling and refinancing of loan repayments which was continued by the government through the third-quarterly review of last year’s monetary policy have not been mentioned in the monetary policy announced for the current fiscal year, the decision has confused the hotels and tourism sector,” the statement reads.   

According to HAN, hotels across the country have been operating at less than one-third of their total capacity and are having to operate at a loss. As a result, hotels are facing difficulties in paying the principal and interest to the banks. 

Furthermore, the increase in taxes under various headings such as vegetables and luxury tax has dampened the possibility of attracting more tourists to the country, the statement reads. HAN has expected the Nepal Rastra Bank to make the necessary reforms to attract investments and encourage the hotels that have already invested to provide stability to the tourism sector.