With $15 million daily losses, Nepal’s hotel industry far from recovery

It has been over a year now since the pandemic devastated the hospitality industry last year. Some hotels in Nepal have seized operating, and others resumed partially

Apr 06, 2021
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It has been over a year now since the pandemic devastated the hospitality industry last year. Some hotels in Nepal have seized operating, and others resumed partially. The industry is still losing around a whopping $15 million on a daily basis, says an estimate by the Hotel Association of Nepal (HAN).

Despite the relief package announced by the Nepali government last year, industry veterans believe they have a long road ahead for the full recovery, according to a report in the Himalayan Times.

"The relief packages announced by the government are commendable but the fact is that it is a long and treacherous road ahead for the hotel industry to reach the pre-pandemic level," Shreejana Rana, the president of the HAN, said during the 47th annual general meeting of the association.

The hotel industry in Nepal currently has an investment of over $1.2 billion; around $240 million in bank loans. Rana sees the revival of domestic tourism as the only option for short-term recovery.

“Government should bring short- and long-term policies to promote domestic tourism," she said, adding, "Even the travel leave for civil servants announced earlier has not been implemented yet.”

The health guidelines, imposed by the government, are making operations costlier. Speaking at the meeting, Nepal’s Tourism Minister Bhanu Bhakta Bhakal said political parties are holding protests, agitations all across the country, flouting these norms.

“There is no point in enforcing health safety protocols only in the tourism sector,” he said. Recently, some of the restrictions have been eased, considering the losses suffered by the industry.

In the meeting, Bhakal said he had raised the issues facing the industry with the finance ministry, and asked for more budgetary allocations for relief measures. However, the scope is very limited as the government itself is facing a huge fund crunch.

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