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Tourism industry-focused pre-budget discussion: Industrialists demand effective steps

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Kathmandu. As the government is intensifying its homework for preparing the budget for the upcoming fiscal year 2082/83, the Confederation of Nepalese Industries has organized a pre-budget discussion program focused on the tourism industry.

At the pre-budget discussion program held in the capital, Confederation President Rajesh Agrawal said that the government should take effective steps for the development of the tourism sector. He opined that the only national flag carrier, Nepal Airlines Corporation, should be strong for the development of tourism.

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He said that foreign airlines are taking advantage of the failure of the airline to become competitive and Nepal is becoming a very expensive destination for tourists. He said that it is very necessary to reform and expand the corporation to strengthen the national flag carrier and bring in strategic partners to make it competitive in the international market.

CNI President Agrawal said that although European tourists are among the highest spenders, direct air links with European countries have been cut off since the European Union included Nepal in the aviation safety list since 2013.

He said, “European tourists are among the highest spenders. They also like to visit Nepal. But since the European Union included Nepal in the aviation safety list since 2013, our direct air links with European countries have been cut off.” This has affected Nepal’s tourism industry.’

He said that even though Bhairahawa and Pokhara International Airports have been put into operation with billions of rupees of investment, these airports have not been operated effectively. He said that it is necessary to make arrangements for the effective operation of these airports by arranging special concessions, even if it is through the budget.

According to him, the Nepal government should remove the VAT imposed on air tickets. Stating that the private sector wants our laws and policies to be directed towards regulating industries and businesses, not controlling them, for Nepal’s overall economic development, Agrawal said that preparations should be made to celebrate Visit Nepal Year only after the construction of appropriate infrastructure, roads and air infrastructure.

Speaking on behalf of the Airline Operators Association at the event, Arya Thapa said that Nepal’s airline companies have been going through serious financial problems due to the complete shutdown of regular air services for about seven and a half months in the past two years due to the Corona epidemic.

He said that the International Civil Aviation Organization has estimated that it will take at least until 2024 for the civil aviation sector to return to the pre-Covid pandemic rhythm and that the economic and social impacts of the Covid pandemic will last for a long time. .

Since such accumulated losses are certain to increase further until the aviation sector fully returns to its normal rhythm, he said that due to the large losses incurred for a long time, unbalanced expenditure and operating costs, security challenges will be added to the operation of the business and the business itself may be closed.

He demanded that the aviation sector be recognized as a priority industry through the upcoming budget. He demanded that partial shipment be arranged while importing aircraft-related parts in the upcoming budget. Former Minister Udaya Shumsher Jabra said that although Nepal is expensive to come to, traveling there is cheaper after arriving.

He said, ‘It is expensive to come to Nepal, it is expensive to travel there after arriving, but everything is cheap after arriving here. The kind of hotels there are in Nepal. The rates we are charging. It is cheaper here than in other countries.’ He said that the upcoming budget should come in a way to organize the tourism sector.

At the program, Tourism Secretary Binod Prakash Singh said that VAT is imposed on the tourism industry all over the world and it has been imposed in Nepal as well.

He said, ‘VAT will be imposed on the tourism industry all over the world, not just in Nepal. International flights are low in many places. In the world, VAT is levied up to 20 percent domestically, but in a country like ours, air transport is inconvenient and expensive. This is the first means of connectivity for tourism, so if VAT is imposed in such a place and it makes it even more expensive, it will cause other inconveniences, reduce tourism inflows and also affect employment issues. I think we still need to think about this.’

He also said that the ministry would accept the demands raised by the tourism industry.

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