Hotels of Nepal investing more than Rs 1 billion to improve facilities

Star hotels in Nepal are investing more than Rs 1 billion as a part of their capacity building and extension project, considering Nepal Tourism Year (NTY) 2011 campaign.
In accordance to Tourism Industry Division (TID) under the Ministry of Tourism and Civil Aviation, the hotels have presented their extension and reconstruction project, for renouncement of tax on imports of essential logistics and machineries.

Mr. Nirajan Ghimire, Section Officer at Tourism Industry Division said, “The Tourism Ministry has suggested the Finance Ministry to proceed, the 5% custom duty facility on import of wares for hotel sector in financial year 2010/11.”
Mr. Ghimire also said, “We have also suggested the Finance Ministry to inflict 5% custom duty on import of sanitary fittings for hotels.”
Mr. Shyam Sundarlal Kakshapati, General Secretary of Hotel Association of Nepal (HAN) said, “Duty waiver alone would be inadequate for the hotel industry, hotel business requires specific incentives for the government. The government should review raising VAT inflicted on hotel business.”

Hotels in Kathmandu and Pokhara are increasing rooms and improving their amenities to adjust more tourists.
Mr. Ghimire again told that, “Much of the hotels have come up with ideas to substitute boilers and central air conditioning, improving bathrooms and kitchens, furnishing lobby and improving food and beverage amenities.”

2 star hotels eye 5 star rating
2-4 star hotels in Nepal are increasing rooms and renewing their current facilities to improve themselves into five-star grade.

Mr. Ghimire said, “Hotel Himalaya in Lalitpur and Pokhara Grande in Kaski have submitted their ideas to improve into 5 star hotels.”
Sources at Hotel Himalaya told the hotel will append 25 new rooms by December this year as a part of its project to improve into 5 star categories.

Hotels on renovating binge
Mr. Ghimire said, “Hotel Yak and Yeti has submitted Tourism Industry Division to investing Rs 500 million over 3 yrs to substitute boilers, tiles, showers and mattresses in the hotel.

The hotel management has already provided invoice for importing wares and equipment to the Tourism Industry Division.
Aside from Hotel Yak and Yeti, other 5 star hotels like Hotel De l´Annapurna, Soaltee Crowne Plaza and The Everest Hotel have also made important investment to improve their current amenities.

Mr. Yogendra Shakya, President of Club Himalaya told, “Club Himalaya Nagarkot has lately increased 30 new rooms and other amenities with the investment of Rs 80 million, the deluxe resort today has 75 rooms.”
Officials at TID told, entry and renovation of hotels by the end of financial year 2009/10 have attained 636. Sources told the number is 3 times the figures registered a year before.

As per the present rules, unrecorded hotels are banned from hosting tourists and advertising their services.
HAN evaluates that private sector has invested above Rs 100 billion in the hotel industry.