Attraction to hospitality industry on the rise

KATHMANDU, Oct 17:

Many entrepreneurs and businessmen have lately been attracted toward the hotel industry. That an investment commitment of an estimated Rs 100 billion has been made for construction of new hotels in the country shows that the tourism industry in Nepal holds a bright future.

It is not just tourism entrepreneurs but also the country´s established conglomerates like Chaudhary Group, Golyan Group, TM Dugar Group, Everest Hospitality Group -- a subsidiary of the MS Group, and MIT Group Holding Nepal, among others, are investing billions of rupees in the hospitality industry.
 
Everest Hospitality Group is constructing a five-star deluxe hotel under the banner of Marriott International, a leading hotel chain based in Maryland, USA, and Fairfied -- a four-star hotel.

“As investors are finding it safer to invest in hotels as they provide good returns, more investors are being attracted toward the hospitality industry. The confidence of investors has been boosted due to increase in tourist arrivals,” Basu Tripathi, who recently started construction of Hotel Adam in Pokhara, says.
With tourism entrepreneurs setting a target of bringing in two million tourists by 2020, many investors are optimistic and are finding the hospitality industry safer to invest.

Currently, annual tourist arrivals hovers at around 800,000 and tourism entrepreneurs have projected a growth of at least 10 percent in 2014, with the number of Chinese tourists increasing significantly.

“With the tourism industry showing positive signs and the 2 million-target set for 2020, investors are into the hotel industry and adventurous activities,” Dhanendra Bahadur Shrestha, treasurer of Hotel Association of Nepal (HAN), says.

According to Shrestha, rough estimates show that 1,600 new rooms will be added in four years. Currently, around 16,000 rooms are available in the hotels across the country.

According to data from the Department of Tourism (DoT), Nepal currently has around 5,000 hotels, of which 730 are starred and tourist-standard hotels. As the number of star hotels has remained the same for almost a decade, investors are attracted toward opening star hotels.

The DoT data shows that construction of around 24 star hotels has started since last year following completion of the environmental impact assessment (EIA).

Hotel Nilgiri, Hotel Galaxy, Rara Hotel and Recreation Center, Star Hospitality, Himalayan Shangri-La Village Resort, Hotel Samna, RM Group Hotel, Everest Hospitality, Shyam Singh, Rupakot Resort, Himal Water Park and Village, Nepal Hospitality Group, Hotel View Bhrikuti, Lanmark Forest, Sriji Hotels, Soaltee Sikkim, Thamel Plaza, Hotel Mountain Monastry, Centurion Hotel, Chamero Plaza and Hotel Garima have received permission for construction from DoT.

Non-Resident Nepalis president Sesh Ghale recently announced that he would be investing Rs 8 billion to construct Kathmandu Sheraton Hotel.

Rs 2 billion flowing into Pokhara hotels

The hotel entrepreneurs of Pokhara are making fresh investment as it is difficult to fulfill the growing demand from domestic and foreign tourists during the peak season. Pokhara is not only getting new hotels but the existing hotels are also adding rooms and increasing their occupancy
capacities.

Glacier Hotel in Lakeside, Pokhara, is investing Rs 200 million and adding 31 rooms after 12 years of operation. Temple Tree Resort is also adding 20 rooms with an additional investment of Rs 150 million.

“As there is a huge potential in the hotel industry, I have left my travel agency and started constructing Hotel Adam with an investment of around Rs 30 million,” Basu Tripathi, owner of the hotel, says.

The Shangri-La group is opening a new resort at Begnas, Pokhara, under a new name -- The Lost Horizon Resort -- with an investment of Rs 500 million.
According to Bharat Raj Parajuli, vice-president of Western Regional Hotel Association, around 20 new hotels are under-construction in Pokhara and it is estimated that investment worth Rs 2 billion being injected into these hotels.

New hotels outside Sauraha in Chitwan

In Chitwan, new hotels are being constructed outside Sauraha. Investors are keeping their eye on Patihani, Jagatpur and Meghauli, and are constructing new hotels in the areas.

According to tourism entrepreneurs, earlier the hotels used to be based only in Sauraha but now new hotels are coming up outside Sauraha.

“The tourism industry has started to gain momentum in recent years and new hotels are coming up in Chitwan. It is estimated that around Rs 1 billion is being invested in the new hotels, while smaller and existing hotels have attracted another Rs 1 billion. The hotel industry here has thus attracted around Rs 2 billion,” Suman Ghimire, vice-president of Regional Hotel Association, Sauraha, says.

Seven Star Hotel, Green Park, Tiger Land, Machan, Landmark, Barahi Jungle Lodge are the new hotels that recently came into operation in Chitwan.
Likewise, Zinc Journey Chitwan, with investment from Chaudhary Group, is under construction.

(With inputs from Santosh Pokharel in Pokhara and Ramesh Kumar Paudel in Chitwan)

Source: Republica