Kathmandu, May 31: The Hotel Association Nepal, an umbrella organization of hotel entrepreneurs in the country, has welcomed the government’s budget estimates for the upcoming fiscal year 2025/26, as favourable for the tourism and hospitality sector.
Lauding the provision to provide income tax and electricity tariff exemptions to hotels and resorts as for manufacturing industries, the HAN has thanked the government for fulfilling this decades-long demand, describing it as recognition of the contribution made by the hotel industry.
The Association has stated that the initiative taken to extend the stay of tourists and increase their spending in the budget is positive, including the development of additional tourist destinations, and to increase the number of adventure, religious, cultural, film, health, sports and other tourism activities in the bordering areas.
Other positive aspects of the budget include the development of welcome and service centers at border checkpoints, the development of evening heritage trails at UNESCO-listed heritage sites such as Swayambhunath, Hanuman Dhoka, Pashupatinath and Boudhanath, and the development of safe eco-tourism trails at tourist attractions across the country. The HAN has also welcomed the announcement to allow tourists entering Nepal by air or land to bring foreign currency equivalent to five thousand US dollars that can be exchanged in Nepal, which will increase the convenience and spending capacity of tourists.
The association has stated that the budget is a strong point in developing tourism through economic diplomacy, in collaboration with the private sector and non-resident Nepalis, and operating tourism activities using modern technology. The association has also stated that in the context of the 2 percent luxury tax and 13 percent value-added tax on air fares not being removed, domestic tourism services have become expensive and less competitive, and it is necessary to effectively implement the announced tourism development works to make the service quality and competitiveness.
Appreciating the fact that the budget seeks the leading role and contribution of the private sector in achieving the goal of branding Nepal as a safe and reliable tourist destination through the development of existing tourism infrastructure, expansion of quality services, and effective marketing, the HAN has stated in a press statement that the private sector will be encouraged with necessary investment in tourism development and a leading role in international promotion, especially focused on India and China.
