"Integrated Tourism Strategy Is Imperative"
When it comes to the Nepali hospitality sector, Binayak Shah, is, indeed, a name to be reckoned with. Apart from being Managing Director of Airport Hotels, he holds the designation of first Vice-President of the Hotel Association of Nepal, the representative body of hotels of the country. In his exclusive tete-a-tete with corporateangle.com, Shah divulges his views regarding the current scenario of the country’s travel trade business that is grappling with the COVID-19 pandemic. Excerpts:
1. What is the latest situation of the hotel industry battered by the COVID-19 pandemic erupted some two years back?
It continues to reel under a big financial crisis due to the pandemic and subsequent prohibitions. There are over 1200 hotels across the country and they have incurred the combined losses of a whopping Rs 71 billion over the last two years. This loss has much to do with the lack of foreign tourists visiting the country.
Because of absence of international guests, the room occupancy rate of almost every kind of hotel, whether big or small, is at its lowest ebb.
Given the onset of the latest variant of the virus like Omicron, international travelers are still visiting Nepal in large number. This naturally means the chances of the immediate recovery of the anemic hotel industry are virtually non-existent at least for now.
Nevertheless, the hotel operators are optimistic that the situation will definitely improve in the days to come. I am among them who is running a hotel near the Tribhuvan International Airport hoping for the growth in my business with more air flights bringing more foreign tourists landing there.
2. Domestic tourism is said to account for more than 50 percent of the total the total revenue of the country’s travel trade industry. In this light, how do you see the potentials of mobilizing internal tourists to help reinvigorate the industry?
Such potentials are simply immense. Thousands of Nepalis tend to visit countries like Bangkok, Dubai and Egypt every year for recreation. But in recent times the global onset of the pandemic has prevented them to do so. So, we can impel them to make excursions to rather explore the beauties of their own country.
In fact, we have already announced a series of tour packages targeting the domestic tourists as part of our survival strategy?
3. Could you please elaborate such packages?
They were developed soon after the mitigation in the second wave of COVID-19 in coordination with the related stakeholders of the tourism industry like hotels, airlines companies and tourist bus operators.
The tour packages are still there as we want to constantly promote domestic tourism. Under them, one can make a pilgrimage tip to religious sites like Pathibhara, Gosaikunda, Lumbini and Janakpur and visit popular recreational destinations such as Pokhara and Chitwan in the weekends with families. Similarly, the aspiring domestic traveller may trek to the adventurous places like Mananag and Mustang.
While carrying out any kind of the said touristic activities, he/she enjoys attractive discount rates offered by the hotels, airline companies and bus operators.
In order to impel the domestic tourists to go for excursions of their choice , we are also actively assuring them of the required health safety amidst the prevalence of the pandemic.
4 .How can the government assist in bolstering the domestic tourism?
As I have already told, internal tourism could play a vital role in taking the country’s travel trade business to the direction of revival. So, the government should at least implement its own announcement of sending its employees for holidays with 10 days of monthly income for now. This will surely contribute in encouraging domestic tourists to travel.
Internal tourism could play a vital role in taking the country’s travel trade business to the direction of revival.
5. What are the challenges and opportunities in terms of attracting foreign tourists in the country in 2022?
When it comes to the challenges, the placing of Nepal in the travel red list by many European countries and the US due to high Covid-19 risks is a prime one. Among others, this is making the international insurance companies reluctant to insure those who want to visit this country. (Such companies usually don’t cover insurance or charge high premiums for travellers who want to visit risky places).Likewise, another critical challenge is the prolonged delay on the part of the government to implement its decision of providing a one-month gratis tourist visa to the foreigners made last year.
As far as the opportunities go, the prime one is the growing inquiries from foreign tourists to visit Nepal especially from March this year. It, among others, could be ascribed to the relatively low the number of cases of severe infections here in the country (despite being hit by Omicron last month).
Similarly, another tourism potential is the listing of Nepal by Lonely Planet as one of the top 10 destinations across the world to travel (especially for trekking) in 2022.
It may be noted that the number of foreign tourists visiting Nepal increased by 35 percent in 2021 compared to 2020. If the challenges and the opportunities discussed above are properly addressed, it will be helpful to further increase the very figure in 2022.
The placing of Nepal in the travel red list by many European countries and the US due to high Covid-19 risks is a prime chalenge. Among others, this is making the international insurance companies reluctant to insure those who want to visit this country.
6. The country tourism industry supports more than 1 million jobs (directly and indirectly) and, above all, contributes around 8 percent to the country’s gross domestic product (GDP). In your view, what should be done for the sustainable growth of the industry?
For this, there should be a joint- effort from all the stakeholders. In this regard, the government will do well to take the lead in formulating an integrated tourism strategy in coordination with hotels, airlines sector, trekking, travel and rafting agencies., etc. Such strategy should be focused on the totally innovative promotion of Nepal’s tourism products and services by increasing vaccination drive against CVOID-19.