Review Nepal News

Hotels in Nepal to be closed down till mid-November
  Kathmandu, Nepal      May 05 2020

Review Nepal

Kathmandu, Nepal, May 5, 2020: Though no sector is remained untouched from the adverse effects of global pandemic, corona virus (COVID-19) tourism business sector of the country is largely affected, which would not recover soon. The tourism business entrepreneurs have said that they have faced unprecedented uncertainty into the sector.

Nepal’s tourism sector would face the adverse effects of the deadly virus even after the relaxation of the ongoing lockdown.  It is likely that the much-touted Visit Nepal Year 2020 would translate into a darken period of the history for the tourism business sector in Nepal. The government has spent billions of rupees with the aim to attract at least 2 million foreign tourists throughout the year.    

As there is no certainty whether the tourism activities will resume this year, the Hotel Association of Nepal (HAN), the representative organization of the hoteliers, has already decided to close all tourist standard hotels across the country till mid-November, by paying 12.5 per cent of staff’s basic monthly salary.
With the decision, about 1,300 star and tourist standard hotels with bed capacity of over 41,000 per day, across the country will be shut triggering a multiple effects even in other service and business sectors from ranges of agriculture farming to poultry farming.  

We have no alternative of shutting hotels, Shreejana Rana, president of HAN, said seeking government’s support to survive the sector. According to her, country’s hotel sector alone has been losing nearly Rs 1.80 billion monthly after the corona virus crisis. 

Tourism sector is one of the major backbones of the Nepalese economy. Nepal had witnessed a total inflow of more than 1.17 million foreign tourists via air and land routes while the average length of stay of a tourist in Nepal was recorded at 13 days with per day expenditure at US$ 44 in 2029.

As of the Nepalese tourism business sector other countries have also faced the similar fate due to the global pandemic. According to the World Tourism Organization- UNWTO, the world would see a decline in international tourism receipts between USD 300 to 450 billion in 2020. The estimate stands almost one third of USD 1.5 trillion generated in 2019, with 96 percent of worldwide destinations having travel restrictions.