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TOURISM INDUSTRY IN HIMALAYA
High hopes in the Himalaya
There are some tour operators in Nepal who have a dream in which visitors who come to the kingdom stay at posh hotels, explore the sights from the back of stretch limousines and spend US$100 per day on trinkets. But currently, the average traveller to the kingdom slings his knapsack into a US$9-a-night guesthouse, squeezes on a local bus for a city tour and thinks of buying a can of imported beer as a big night out on the town.

This may soon change. The government has decided to actively court the more mainstream tourist market as a much-needed source of foreign exchange. Armed with a US$10 million budget for the next two years, the new Nepal Tourism Board took over the duties of the government’s Department of Tourism in June. Loosely modelled on the Tourism Authority of Thailand (TAT), the board is responsible for tourism education and marketing, creating new travel products, and infrastructural development. About US$6 million will be spent on marketing, with the goal of spreading the word that there’s more to Nepal than low-rent hostels and lofty summits.

Everyone seems to be delighted with the concept. Hotel and tour operators are happy because the private sector’s majority representation on the board gives them control, and the recently-elected Communist government seems content to let someone else handle the headache. The new board will be able to project Nepal in a better light with higher-quality marketing, better service standards and streamlined operations. We’ll put professionals in charge instead of bureaucrats,” says Ashok Pokharel, honorary secretary of the Nepal Chapter of PATH (the Pacific Asia Travel Association), and director of Shangri La Tours.

The government and private sector will contribute US$5 million each to operate the board. But finding the money to peddle Nepal’s charms has always been difficult — in 1996, only US$1 million was found for promotion. The answer? Make visitors pay. A new 2% “tourist service” tax has been slapped on everything from hotels to trekking trips. This goes on top of the existing 13% tourism tax, an airport tax, trekking fees and visa charges, all of which earn Nepal US$12-15 million per year.

The new tourism board is just one part of the Everest-sized drive to boost the tourism business. With much fanfare the government designated 1998 “Visit Nepal Year”, and aims to boost arrivals from 390,000 in 1996 to more than 500,000 in 1998. The scheme includes opening new trekking areas, developing cultural and anthropological tours, inviting foreign investment and wooing conference-goers.

But they also realize there are serious infrastructural problems to overcome. Kathmandu is served by only three international airlines in addition to the national carrier, Royal Nepal Airlines. With few flights, American and European travellers face a taxing journey of stopovers, plane changes and sleepless nights. Access from Asian cities is easier, with direct flights via Bangkok, Singapore and India. Thai International recently increased its Bangkok service from five to seven flights per week, but Lufthansa grounded its Nepal service in May. The government has now invited five private companies to offer flights to Kathmandu’s Tribuvan Airport, but so far none have started.