Income from tourism declines: NRB

KATHMANDU, March 27: Despite growth in tourist arrivals, the income from tourism sector has gone down by 18 percent in the first month of Nepal Tourism Year (NTY) 2011. The statistics of the central bank shows the travel inward of January was less by more than a half billion rupees.

The data shows that total travel inward of January 2010 was Rs 3.2 billion whereas this year during the same period the income was limited to Rs 2.64 billion.


Tourism entrepreneurs attribute the decrease in income to limited tourism activities and unhealthy competition amongst entrepreneurs who offer tourism products at uncompetitive prices.

Yadav Khanal of Nepal Association of Tour Operators (NATO) said, "Unhealthy practices amongst tour operators who offer services at low prices and sluggish tourist activities have slashed the income down."

Adventure tourism entrepreneurs informed Republica that the number of tourists opting for rafting and trekking has gone down in recent months.

Second Vice-president of Trekking Agents´ Association of Nepal (TAAN), Mahendra Singh Thapa told that though the two months that passed were not the peak trekking seasons, the number of trekkers considerably was less. "Our season begins from March and the outlook is not so bad so far," he added, and expressed hope for upcoming season. Rafting operators have said that their business went down by 50 percent in recent months.

The business of star hotels has also not been good so far. Hoteliers say compared to last year the occupancy has been low with only some hotels reporting increase in the number of guests. Most claim revenue growth of up to 10 percent which can be considered negligible.

A senior NRB official, outlining some other reasons apart from low spending by tourists, said that the central bank has found some tourism entrepreneurs resorting to misreporting and black marketing.

Coordinator of NTY main organizing committee, Yogendra Shakya has different opinion on the issue. Analyzing the data on tourist arrivals, he said Indian tourists, who are not included in travel inward, constituted 35 percent of the visitors coming to Nepal in the first month.

"Therefore the method adopted in showing the income is not proper as the spending by Indian tourists is not incorporated." Contradicting Shakya´s claim, the official at NRB said that travel inward includes the spending of Indian tourists as well.

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