Tourism and Air Transport Committee urge Finance Minister Mahat to prioritse hotel sector as tourism industries

KATHMANDU, Dec 25:The Tourism and Air Transport Committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged that the hotel industry be recognized as a tourism industry. Following a meeting with Finance Minister Dr. Prakasharan Mahat, it was urged that the hotel industry be designated as a national priority industry and that industry-like service facilities be provided.

The delegation, led by FNCCI  Vice President Hemraj Dhakal and Tourism and Air Transport Committee Chairman Deshbandhu Basnet (Ajit), stated that the important business and hotel sector, which contributes significantly to the economy and destination development, has been classified solely as tourism in the 'Industrial Business Act 2076' and will receive national priority in the coming days. It has requested inclusion in the industry sector.

Similarly, the FNCCI has requested that the Foreign Investment and Technology Transfer Act 2075 be simplified in this regard, as it states that foreign brands cannot charge more than 5% of total sales as royalty. According to the federation, as international brand hotels do not want to operate at a price less than 5 percent, foreign investment will not be ready to enter Nepal and the situation has been created that the hotels that are currently operating will also leave.

Concerning the hotel industry, the chairman of the committee, Basnet, issued a report based on proposals received from several hotel associations and previously submitted a memorandum to the Ministry of Industry, Commerce, and Supply. As a result, the Ministry of Industry made a ministerial decision in the last week of October to alter the statute to address the royalty issue.

Furthermore, on January 1, the Ministry of Industry wrote to the Ministry of Finance, requesting an opinion on adding hotel business to the Industrial Business Act, so that star hotels, which come within the tourism industry, are included in the national priority industry.

As a result, the federation met with Finance Minister Mahat and demanded that the government help the hotel industry by investing large sums of money and creating jobs for millions, as well as earning a large amount of foreign currency in the state and contributing to the country's GDP.

During the discussion, Finance Minister Mahat expressed his commitment to providing positive results by considering businessmen's demands and stating that the government will provide the necessary support in the functioning of the industry.

Vice President Dhakal, Chairman of the Committee Basnet, hotelier Shashikant Agarwal, President of Hotel Association Nepal Binayak Shah, and other industrialists attended the meeting with the finance minister.