13 percent additional fee on air tickets discourages the tourism sector: Chandra Dhakal

KATHMANDU, March 29:Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that the government's 13% additional tax on air tickets has discouraged Nepal's tourism industry.

On Thursday, President Dhakal spoke at a meeting of the House of Representatives' International Relations and Tourism Committee. President Dhakal stated that the 13 percent higher tax on flight tickets has harmed the tourism industry since international airfares are expensive and fewer foreigners visit Nepal.

He stated that the administration must fix the 13 percent additional tax on air tickets arranged by the government in previous year's budget. He stated that the government's policy of imposing a 5% royalty charge has made it impossible to invest in and run high-quality international hotels in Nepal.

He stated that there is a trend of conducting weddings for Indian and non-resident Indian residents outside of India, and that policy preparations must be made to allow the ceremony to take place in Nepal.

He stated that Nepal would gain greatly if this wedding ceremony were brought to Nepal. President Dhakal stated that it is vital to facilitate all tourism-related activities at the border.

He went on to say, "It is becoming difficult for quality foreign brands to come to Nepal due to the 5 percent service charge of five-star hotels." Last year's budget included flight tickets and luxury VAT. It has discouraged Nepal's tourism industry. We demand a VAT rectification.

He went on to say, "There is a trend of holding weddings of Indian and non-resident Indian citizens outside India." They are traveling to Thailand, the Philippines, Indonesia, and Dubai. These incidents are occurring in enormous numbers. Because India has an open border, enacting regulations to encourage wedding activities in Nepal could result in a surge in tourism in a short period of time. They should also be able to establish an environment in which they can conveniently transport the gold decorations to the wedding. That can provide significant benefits.

He demanded private sector participation in order for the tourism board to function effectively. He stated that tourist promotion can only be more effective if the business sector participates in the tourism board.

President Dhakal stated that the government must promptly open the Bhairahawa and Pokhara international airports, since there is a lot of potential for tourism in Nepal if the airports are operational.