Loss of tourism sector hits Rs. 34 billion in lockdown

Kathmandu, Jul 3

Loss of the tourism sector in the country is estimated to be Rs. 41 billion by July 22 – until the measures of lockdown are in place.

A joint study committee of the Civil Aviation Authority of Nepal and Nepal Tourism Board, formed to assess the loss in the tourism and aviation sectors due to the COVID-19 pandemic, had estimated that the sectors in the country are losing Rs. 10 billion every month.

"So far the country has lost Rs. 34 billion in aviation and tourism sectors and by 22 July, additional Rs. 7 billion would be lost," said Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai in an interaction with journalists on Friday.

He said that some relief measures like refinancing, concessional loan and extension of VAT payment period had been announced while a request was sent to the government for 75 per cent discount on aircraft parking charges and 50 per cent discount in licences and renewal fee.

"Similarly, discounts are announced in demurrage charges and Rs. 200 million budget is provided to support the concept of rehabilitation and sustainable tourism," said Rudra Singh Tamang, spokesperson at the Ministry.

The Ministry has also issued Health Safety Protocol to be applied while resuming hotel, restaurant and tourism sector businesses. Likewise, airline protocol for operating aviation services has also been prepared.

Pressure from the entrepreneurs is mounting on the government to pave the way to resume the businesses in the tourism and service sectors.

Minister Bhattarai said that work was going unabated at various pride projects of the tourism and aviation sectors like the  Gautam Buddha International Airport, Nijgadh Airport, Pashupati Area Development and Lumbini Development.

"After initial fear and confusion, construction and reconstruction works were resumed with work-site quarantine and health safety measures," he said. "Priority is given to the pride projects. Had COVID-19 not there, flight operations would have been launched at the GBIA but we are forced to extend the deadline instead," he added.

The pandemic hit at the time of project execution and capital spending. The GBIA would be the first pride project to be completed.

 

Jobs affected

Minister Bhattarai said that the pandemic had hit hard the Rs. 1 trillion investment in the sector while 800,000 people directly or indirectly employed in the sector are affected.

Tourism sector had employed 250,000 people in pre-coronavirus period.

He defended the higher rate charged to bring back Nepali workers from foreign land saying that it was expensive as the aircraft had to make a two-way travel. "However, Nepali airlines have discounted the charges. They are flying at a cheaper rate compared to their international competitors," he said.

The ministry also said that the government had airlifted 950 tourists – 611 foreigners and 339 Nepalis – since the beginning of the lockdown while 879 foreign tourists were rescued via roadways.

Likewise, 16,672 Nepalis were brought in the country from the Gulf and other countries from March 24 to June 30, and 12,408 passengers flew from the Tribhuvan International Airport.

Published in The Rising Nepal daily on 4 July 2020.