Fostering Growth and Innovation: A pivotal meeting between parliamentary & industry leaders in Nepal’s tourism sector

KATHMANDU: In a significant move towards fostering innovation and growth in Nepal’s tourism sector, a landmark meeting was convened at the historic Singha Durbar in Kathmandu.

This gathering brought together Hon’ble Raj Kishore Yadav, the Chairperson of the International Relations and Tourism Committee of the Nepalese Parliament, and key industry leaders including Mr. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce & Industry (FNCCI), Mr. Desh Bandhu Banset, Chairperson of the Tourism & Air Transport Committee, alongside esteemed members of the Tourism & Air Transport Committee and FNCCI.

The meeting’s agenda was both ambitious and forward-thinking, aimed at addressing critical issues such as taxation and policy reforms to boost Nepal’s tourism industry’s growth and global competitiveness.

Among the discussed topics were the proposed 13% VAT on air-travel tickets and a 2% luxury charge on high-end hotel services, which have raised concerns about their potential impact on Nepal’s appeal as a travel destination.

In a significant discussion Mr. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce & Industry (FNCCI), emphasized the need for the government to proactively address the challenges faced by the tourism industry and seek effective solutions. Mr. Dhakal highlighted several key issues and proposals aimed at fostering growth and innovation within the sector.

Desh Bandhu Basnet, Chairperson of Tourism and Air Transport Committee pointed out the necessity of revisiting taxation policies, particularly the proposed 13% VAT on air-travel tickets and a 2% luxury charge on services in high-end hotels, citing concerns over their potential to deter tourists from choosing Nepal as a destination.

In a significant discussion Mr. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce & Industry (FNCCI), emphasized the need for the government to proactively address the challenges faced by the tourism industry and seek effective solutions. Mr. Dhakal highlighted several key issues and proposals aimed at fostering growth and innovation within the sector.

Desh Bandhu Basnet, Chairperson of Tourism and Air Transport Committee pointed out the necessity of revisiting taxation policies, particularly the proposed 13% VAT on air-travel tickets and a 2% luxury charge on services in high-end hotels, citing concerns over their potential to deter tourists from choosing Nepal as a destination.

He stressed the importance of making Nepal’s tourism industry more competitive on a global scale by creating a more favorable tax environment.

Furthermore, Mr. Basnet called for legislative modernization to make Nepal more attractive to investors, suggesting amendments to critical pieces of legislation such as the Foreign Investment and Technology Transfer Act 2075 (FITTA), the Special Economic Zones Act, and the Electronic Transactions Act. These reforms, he argued, are essential for the sustainable development of the tourism sector.

The discussion also covered the strategic operationalization of key infrastructure projects like Pokhara International Airport and Gautam Buddha International Airport in Bhairahawa, which are crucial for enhancing air connectivity and facilitating tourism growth.

Mr. Basnet underscored the importance of India as a vital market for Nepalese tourism, proposing policy revisions to enhance the travel experience for Indian tourists, including increasing their spending limit and improving hospitality at road entry points.

Mr. Basnet advocated for the establishment of a special task force, a collaborative effort between the government of Nepal and the private sector, aimed at driving the development and promotion of the tourism and civil aviation sectors.

He also highlighted innovative strategies for promoting Nepal globally, such as hosting international tourism conclaves and road shows, which could significantly boost the country’s visibility as a premier tourism destination.

This meeting between parliamentary and industry leaders marks a crucial step towards a collaborative approach in addressing the challenges facing Nepal’s tourism and air transport sectors.

Mr. Basnet’s insights and proposals reflect a deep commitment to advancing the tourism industry, underscoring the need for a united effort to ensure its growth, innovation, and sustainability.

In a collaborative meeting that brought together members of the International Relations and Tourism Committee of the Nepalese Parliament and representatives from the Federation of Nepalese Chambers of Commerce & Industry (FNCCI), including its Tourism and Air Transport Committee, the focus was squarely on the pressing issues and challenges currently facing Nepal’s tourism industry.

The discussion was comprehensive, covering not only the contemporary problems but also potential solutions aimed at revitalizing and sustaining the growth of this crucial sector.

This assembly underscored a concerted effort to address and overcome the hurdles hindering the development of tourism in Nepal, highlighting a unified approach towards ensuring the industry’s prosperity and resilience.

In a decisive meeting focused on bolstering Nepal’s tourism and air transport sectors, Hon’ble Raj Kishore Yadav, Chairperson of the International Relations and Tourism Committee of the Nepalese Parliament, emphasized the committee’s commitment to addressing the concerns raised by the Federation of Nepalese Chambers of Commerce & Industry (FNCCI) and its Tourism and Air Transport Committee.

Acknowledging the critical issues presented during the discussions, he assured that the committee would meticulously compile a draft highlighting the identified challenges.

This draft is set to serve as a blueprint for engaging in comprehensive dialogues with various ministries, departments, and secretaries, aiming to expedite the formulation of effective solutions.

Chairperson Yadav’s proactive approach underlines a significant move towards collaborative problem-solving, demonstrating the government’s dedication to advancing Nepal’s tourism industry through swift and strategic action.