'Policy instability will discourage investors'

Foreign investors have urged the government to review the new draft of Casino Regulation, saying that it is against the norms of the global trade regime. Stating that the proposed draft of Casino Regulation is against Nepal's commitment made to the World Trade Organization (WTO), they have asked the Department of Tourism, Tourism Minister, and Tourism Secretary, in written, to review the draft. Among others, the proposed draft envisages lowering foreign direct investment in casinos to 49 percent." "As we have come to know the government is decreasing limitation of equity on casino business for foreign investment, we request, in the capacity of a foreign investor, to review"it," reads the letter seen by Republica. The letter sent by Rajendra Bajgain, chairperson of the Millionaire's Club & Casino, also claims that the provision in the new draft is a clear violation of commitments that the country made to WTO" "Nepal has made commitment to allow a maximum of eighty percent equity in tourism and travel service related sector," he said, adding that the commitment is an integral part of the International Convention and have to be recognize and executed as good as a national legislation of Nepal. "We want to recall the requirements of the Nepal Treaty Act, 2047 whereas if any contradict on any provisions between the International Convention and National Legislation, the provision of the International Convention will be prevailed." As casino business, one of the tourism products in Nepal, was originated some half century ago, the infrastructural design has not been developed to support the business, also due to the non-existence of the conceptual framework or policy, the letter reads, adding that the government policy had earlier ruled out any possibility of casino business without five and four-star hotels. "But the new Casino Regulation, 2070 has a provision of issuing license to gambling based on electronic device with a new experimental technology which is positive." Two Casinos in two five-star hotels - Hyatt Regency Kathmandu and Hotel Shangri-La - have come into operation under foreign investment. Similarly, the government has recently approved a proposal to open one more casino on the premises of a five-star hotel. However, the government's recent move will not only discourage entrepreneurs but also send a negative message to foreign investor that Nepal has no policy consistency. "Policy deviation in such a short period of time will only relay negative message about Nepal's investment climate all over the wo"ld," Bajgain said. Source: Republica