Australia based NRN pledges Rs 6.4b investment

KATHMANDU, Oct 12, 2012

Nepal is expected to see investment of Rs 6.41 billion in the tourism sector soon from a non-resident Nepali (NRN).

Shesh Ghale, an NRN based in Australia, on Thursday formally announced his decision to make an investment of 75 million Australian dollars (approximately Rs 6.41 billion) in Nepal. “The money would be used to set up a five-star hotel in Kathmandu," Ghale told an audience present during the inaugural session of NRN Day 2012.

The construction of the hotel will kickstart from next year and will complete within the next three to three-and-a-half years, according to Ghale, who made his fortune in real estate in Australia.

The 54-year-old millionaire, who owns the Melbourne Institute of Technology, said the promoters are currently negotiating with different international chains to seek affiliation.

Ghale´s investment is coming at a time when many investors are shying away from pouring money into the country due to the fluid political situation and labor-related problems.

The community of NRNs, which is scattered all over the world, has long been asking political parties to forge consensus to resolve the political impasse that has hindered all development activities and discouraged potential investors from making new investments in the country.

"The prolonging transitional phase has been a major obstacle facing the development of the country and many potential investors are not interested in making new investments due to political instability," Jiba Lamichhane, president of NRN Association, told the gathering. "We appeal to all the political parties to forge consensus and work together for the country´s prosperity."

Lamichhane also requested the government to play a pro-active role in bringing all parties to a common platform to forge consensus. "We want to work for the betterment of our motherland. It´s a humble request to all the political parties to understand the painful situation of the country."

In response, Prime Minister Baburam Bhattarai said the government was working toward creating an investment-friendly environment.

“Establishment of the Investment Board is a major achievement and it´s working on identifying 50 viable projects," PM Bhattarai said. "The government is also working on reducing power cuts and expanding transmission lines between Nepal and India.”

He also claimed the political parties would soon reach consensus. "Political parties are holding discussions on what would be best for the country," PM Bhattarai said.

Meanwhile, Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), requested the NRN community to invest in the country. "Of course there are problems but we should be optimistic and keep pushing for new investments in the country," Vaidya said.

Source: Republica

Big hotels sprucing up for peak season

KATHMANDU, Aug 19, 2012

With the peak tourism season round the corner, hoteliers are gearing up for renovation and upgradation. Besides, regular renovation, hoteliers are also preparing to add power supply alternatives and other amenities.

Peak tourism season is likely to start mid-September, according to them.

Soaltee Crowne Plaza is adding a new restaurant which will come into operation shortly. The China Garden restaurant has the capacity of approximately 90 people. The hotel had opened Garden Terrace earlier this year.

Hotel Yak and Yeti is focusing on augmenting the power supply for the peak season. The hotel plans to complete installing new generators by the first week of September. Bharat Joshi, resident manager at the hotel, said that the hotel was also installing new chiller and cooling plant.

“We have also started changing interiors of public areas which include club lounge, bar, corridor and others,” he said. Although the hotel was initially planning to renovate the old wing, it has postponed the plan for January as the hotel has already received 70 percent confirmed bookings for September.

Likewise, Hotel de l´Annapurna is introducing club room by September 15. Raj Bikram Shah, sales manager at the hotel said that they were upgrading existing 30 rooms into club rooms. “The renovation of swimming pool has been completed and we are organizing food festival from this Sunday at Coffee Shop,” he said.

The Everest Hotel has also started refurbishment of 84 rooms and the work is expected to be complete before the start of the peak season. Amir Pradhananga, director-sales and marketing at the hotel said they are also adding new cuisines to their menu.

Source: Republica

Pokhara locals agitate for international airport

POKHARA, Aug 15, 2012

Local people in Pokhara on Wednesday staged a sit-in for an hour at the Pokhara office of the Civil Aviation Authority of Nepal (CAAN) to pressure the government to begin the process of building an international airport in Pokhara.

The locals have also threatened to intensifying their agitations if the government fails to pay attention to their one-point demand.

On Wednesday, a committee formed by the locals to press for the construction of an international airport in Pokhara also sent a memorandum to Prime Minister Baburam Bhattarai through the District Administration Office (DAO), Kaski. The committee sent the same letter to the director general of CAAN.

Before converging at the Pokhara office of CAAN, the locals took out two separate mass rallies, from Lakeside and Srijana Chowk. Tourism entrepreneurs, industrialists, businessmen, sportsmen and members of mothers´ groups participated in the rallies.

“So far, our protests have been simple,” said Krishna Mohan Shrestha, chairman of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), Pokhara chapter. Shrestha, who is also coordinating the locals´ agitating committee, said, “We ask the government not to force us into announcing more stringent protests.”

According to Shrestha, the committee is to hold a meeting with the representatives all airlines operating flights to and from Pokhara. “If our demand is not met, we might go on to disrupt all flights to and from Pokhara,” he said. “Our agitations will continue so long as the airport construction does not begin.”

CAAN authorities are in a fix over construction of an international airport in Pokhara due to stiff resistance from CAAN staff. CAAN employees have already threatened to launch an agitation if the airport construction is not called off. They argue that CAAN cannot afford the cost of the construction.

Earlier, CAAN had estimated the cost of the international airport construction at Rs 12 billion. However, China CMC, which was the lowest bidder in the tender process for the international airport, has proposed Rs 27 billion, and this has prompted CAAN officials to stand against the project.

The government is preparing to take a soft loan from the Export-Import Bank of China to build another international airport for which 3,106 ropanis of land has already been acquired at Chhinedanda, Pokhara.

Source: Republica

Five countries keen to increase flights to Ktm

 As Nepal witnesses substantial rise in number of air passengers, five countries have expressed interest to increase flight frequency to Kathmandu. United Arab Emirates (UAE), Bhutan, Pakistan, Saudi Arabia and Jordan have approached the government to increase flight frequency and seat frequency.

Along with number of flights, these countries have approached Nepal to review other particulars like route schedule while reviewing the Air Service Agreement (ASA), according to Suresh Acharya, joint-secretary at Ministry of Tourism and Civil Aviation (MoTCA).

Currently, four airlines from UAE -- Air Arabia, RAK Airways, Fly Dubai and Etihad, are operating 38 flights a week to Kathmandu. The existing ASA allows UAE-based carriers to operate 28 flights a week on the route.

The government has allowed them to operate 10 additional flights a week on temporary operation permit (TOP) basis. Air Arabia and Fly Dubai have permission to operate 14 flights a week each, while Etihad can operate up to seven flights. RAK Airways, which has permission to operate three flights a week, is currently operating two flights on weekly basis.

UAE has requested the government to increase number of flights to Kathmandu to 60 flights a week.

Similarly, Pakistan, which has single-designated ASA with Nepal, has approached the government to add more seats to and from Kathmandu. Bhutan and Jordan are also planning to add flight frequencies to and from Kathmandu. Earlier this year, USA and Australia had sent a proposal to the government, expressing interest to establish air connectivity with Kathmandu. However, there has been no further development on the proposals.

Nepal has signed ASA with 36 countries so far.

Although requests for increasing flight frequency to Kathmandu is encouraging, officials said recent instructions of International Relations and Human Rights Committee of parliament, which has asked the government to not be generous on fifth freedom rights, could pose difficulties for them while reviewing ASA.

The committee had issued such an instruction mainly after the MoTCA decided to grant fifth freedom rights to Air Arabia on Kathmandu-Kuala Lumpur sector. A writ petition too was filed against the decision at the Supreme Court. The case is currently sub judice in the apex court.

Though the apex court has yet to issue verdict on the case, instruction of the parliamentary committee had compelled the ministry to revoke its decision of awarding fifth freedom rights to Air Arabia in December, 2010.

“As the committee´s decision goes against existing ASA with UAE, it is likely to create problem while reviewing it,” the official said, adding: “Other countries are also seeking fifth freedom rights.”

Source: Republica