‘Tourism: A means of narrowing down trade deficit’

Kathmandu, Nov. 5:

Rabindra Adhikari, Minister for Culture, Tourism and Civil Aviation, said on Wednesday that tourism has the potential to narrow down the growing trade deficit with major trade partners of the country.

"Tourism can be a better alternative for trade balance till we develop other industrial infrastructure and promote Nepali goods in the international markets," he said at an interaction programme on 'Economic relations between Nepal and South Korea in the perspective of trade, tourism and investment' organised by Nepal Chamber of Commerce (NCC).

He said that the government and the private sector must think innovative ways to increase exports and tourist arrival.

"This is unfortunate that we have such a huge trade gap. We must develop a new trade strategy and rethink about goods and services that we can export in a large amount. The government will talk with the Korean government to facilitate the export of Nepali goods there," said Adhikari.

Nepal imported goods worth Rs. 110 billion from Korea last year while it export amounted only Rs. 169 million.

In 2013, the size of import and export was Rs. 11.1 billion and Rs. 111 million respectively.  

Nepal exports things like wigs, carpet, red lentils, paintings, lenses, medical instruments and alcohol to Korea and imports items such as machineries, automobiles, heavy equipment, newsprint, polythene and raw materials.

Adhikari also stressed the need for increasing the frequency of flights between Nepal and Korea.

Stating that South Korea has extended quality support to Nepal's infrastructure, health and other areas through Korean International Cooperation Agency (KOICA), the Minister urged the Korean private sector to invest in Nepal's infrastructure, agriculture, tourism and other potential areas.

According him, the government has been gearing up the preparations for the Visit Nepal Year 2020.

The Gautam Buddha International Airport in Bhairahawa will be ready in eight months while the Pokhara Airport will be completed in 2020, before its stipulated deadline of July 2021.

Korean Ambassador to Nepal Park Young-sik said that Nepal should boost investment to support the economic growth and create trade balance with its trade partners.

"Nepali economy does not have enough resources for large infrastructure projects which can help to make Nepal a middle-income country by 2030. Attracting Korean investment can be an alternative to bridge the investment gap. Hydropower can be a field of attraction for the Korean developers," he said.

He said that the Korean Mission in Nepal was putting its efforts to promote bilateral trade and tourism between the two countries.

President of NCC Rajesh Kazi Shrestha said that since there was a stable government and favourable investment environment, the NCC expected Korean investment in potential areas of business in Nepal.

"There was a thriving business of herbal products such as honey and yarsagumba from Nepal to Korea which is slowed down in recent times. We want to revive the export business," he said.

Vice President of the NCC Kamlesh Kumar Agrawal told the government and private sector entrepreneurs to tap the Buddhist tourist market in Korea.

About 34,000 Koreans visited Nepal last year which is about 57 per cent more than the previous year.

"The two countries must enhance cooperation in arts, culture and tourism.

Likewise, a formal remittance channel should also be established to facilitate Nepali workers in South Korea," he said.

Jeon Byungju, Assistant Vice President of Korea Plus, said that they were ready to work with Nepal for the bilateral promotion of trade, business and investment.

Published in The Rising Nepal daily on 6 December 2018.