Jun 20, 2024

Hotel Entrepreneurs urge minister of law to facilitate to classify hotel industry as Priority Industry

Hotel Entrepreneurs urge minister of law to facilitate to classify hotel industry as Priority Industry

KATHMANDU, Jan 05:The Tourism and Air Transport Committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged that the hotel industry be designated as a national priority industry by Minister of Law, Justice, and Parliamentary Affairs Dhanraj Gurung. 

Because the hotel business has invested a lot of capital and provided a lot of employment possibilities, the committee has demanded that service facilities similar to industry be supplied with a high priority to this sector.

The delegation, led by FNCCI Vice President Hemraj Dhakal and Tourism & Air Transport Committee Chairman Deshbandhu Basnet, stated that the hotel industry, which contributes significantly to the economy and destination development, is also important to the country's dignity. 

The vital sector has only been designated as tourism in the 'Industrial Business Act 2076,' and the delegation has urged that it be added to the national priority industry sector in the coming days.

Similarly, the delegation has requested that the Foreign Investment and Technology Transfer Act 2075 be simplified because foreign brands cannot charge more than 5% of total sales as royalty. 

According to the FNCCI, the current provision in the Act allows foreign brands to not  take royalties not exceeding 5 percent of the total sales, making it difficult for international hotel resorts to operate in the country. It has been requested to facilitate it immediately.

Deshbandhu Basnet, chairman of the tourism and air transport committee of the FNCCI, prepared a report based on the suggestions from various associations and organizations related to the hotel business and submitted a memorandum to the Ministry of Industry, Commerce and Supply earlier. 

During the meeting, Minister of Law Gurung stated that he will take steps to add big-star hotels that attract foreign tourists as a high-priority industry. He also stated that he is optimistic about businessmen's requests, stating that the government will provide the essential assistance in the functioning of industry and business.

In line with this, the Ministry of Industry has decided to amend the law in order to solve the problem in royalty by taking a ministerial decision in the second week of November. 

In addition, the Ministry of Industry has written to the Ministry of Finance on December 17th asking for an opinion to add to the Industrial Business Act to include star hotels under the category of tourism industry as a national priority industry.

Vice President Dhakal, Chairman of the Committee Basnet, President of Hotel Association Nepal Binayak Shah, Dhananjay Regmi, Chief Executive Officer (CEO) of Nepal Tourism Board (NTB), and other entrepreneurs attended the meeting with the Minister of Law.