Top Stories»
Tourism paradox: arrival up, revenue down
KATHMANDU, JAN 13 - The year 2003 marked a paradoxical trend in tourism industry with the number of tourist arrival registering a robust growth, while the revenue from tourism sector going down significantly.
According to The Kathmandu Post estimates the revenue earning from tourism sector has plunged by 13 percent whereas Nepal Tourism Board (NTB) figures show the number of tourist arrival has increased by 23 per cent in 2003, as compared to the preceding year.
In monetary terms, all together the tourists spent Rs 12.8 billion in 2003, which is less by Rs 1.6 billion as
compared to what they had spent in 2002.
Though the official figures of tourism revenue will come out only after five months, the figures from revenue earned by hotel industry in 2003 prove the Post’s finding. Total earning of hotel industry declined to Rs 1.28 billion in 2003 from the preceding year’s Rs. 1.44 billion. On average, hotel industry absorbs ten per cent of the total tourist spending.
The fact that tourists’ average length of stay has declined continuously for the past three years, and the per day spending has remained almost constant also underscores the fact that Nepal is slowly becoming a cheap destination for tourists.
The average length of tourists’ stay declined to 7.9 days in 2002 from 11.4 days in 2001.
The major factor that has contributed to tourists’ low spending is the cut-throat competition in the hotel industry. The Kathmandu Post study found that average room rates have reduced by almost 33 per cent in the year 2003 compared to the previous year.
Narendra Bajracharya, president of Hotel Association Nepal, concedes the fact and says that hotels are now offering rooms at as low as 10-15 per cent of actual room rates.
The plunge in the tourist revenue is also contributed by strong increase in low-budget tourists, thanks to the aggressive promotion and heavy discounts offered in the Indian market. Arrival of Indian tourists, which constitutes 33 per cent of the total tourist inflow, grew by 33 per cent in 2003.
"This growth is mainly due to the heavy discount offered in the Indian market during the period which has attracted low-budget tourists," said Bajracharya.
Almost 40 per cent of tourists in Nepal stay at star rated hotels, while the rest 60 per cent opt for cheaper non-star hotels and guesthouses. Similarly, of the total high-paying tourists, a total of 30 per cent stay at five star hotels, 50 per cent at 3 and 4 star hotels and the remaining 20 per cent at one and two star hotels.
Subash Nirola, director at Nepal Tourism Board (NTB) also blames heavy slash in hotel rates for declining tourism income. "Nepali tourism industry would not have fetched less revenue compared to last year, had the hotel entrepreneurs not gone for extreme level of unhealthy competition," he said.
Nirola, however, expressed hopes that the situation would improve in coming days as NTB is proposing for the standardisation of hotel and other tourism services vis-à-vis price.
The current paradox demands government’s interference to set a minimum price for tourism products as per the standard and quality of the services, he added.
Normally, tourism earnings contribute almost 3 per cent to country’s Gross Domestic Products and 15 per cent of total foreign currency earnings.Posted on: 2004-01-14 04:20
Headlines
Advertisements
