Tourism income stands lower than last year
KATHMANDU, June 29:
Despite an aggregate growth of 23 percent in tourist arrivals in the first five months of Nepal Tourism Year (NTY) 2011, tourism income has declined by Rs 1.24 billion during this period. However, the good news is that in April and May, the tourism income grew by Rs 50 million, compared to the same period last year.
Tourism income in first two months had declined by over 20 percent while the drop in tourism income in the first five months is a little over 10 percent, compared to the same period last year.
Nepal Rastra Bank (NTB) data shows that the aggregate income from travel business is less compared to last year but the trend is positive. Foreign exchange earnings from tourism were Rs 11.45 billion in first five months of 2010 whereas this year the revenue during the same period was Rs 10.21 billion only.
Tourism entrepreneurs cite presence of low-end tourist and unhealthy competition as the major reasons for the decline. Bijay Amatya, Director, Sales and Marketing at Yeti Travels, said, "The number of tourists with high spending capacity has gone down compared to last year." Tourism income is not in line with tourist arrivals.
The figures show that except in April and May, the income has declined every month. The income in January is Rs 2.64 billion against Rs 3.20 billion last year.
Similarly, tourism income in February, March and April this year was Rs 1.34 billion against 2.31 billion, Rs 1.58 billion against 1.89 billion and Rs 2.18 billion against Rs 1.90 billion of 2010 respectively.
The travel come in May 2011 amounts to Rs 2.45 billion against Rs 2.13 billion in May 2010. However, tourist arrivals as per immigration office of Tribhuwan International Airport (TIA) in May has gone up by 47.1 percent.
Is it flying out of the country?
Nepal Rastra Bank (NRB) officials claim that the main reason for declining tourism income was mis-reporting and black-marketeerng which have been controlled to some extent. "The gap is narrowing in recent months after supervision by the central bank," the official said.
He said that overall income was increasing but some amount was still going to informal account. "The foreign currency under informal account is going outside in the form of capital flight and informal trade," the official said.
NRB officials further stressed that the income was growing but because of structural problem, the income was not being properly reflected in figures. "Apart from monitoring, it´s important to have investment environment to avoid capital flight," he said.
Coordinator of NTY Implementation Committee Yogendra Shakya ruled out any foul play by tourism entrepreneurs. He cited declining rate of dollar against Nepali currency and the fall in income of national flag carrier as the reason for low tourism income. Shakya said, "Income from Nepal Airlines Corporation (NAC) constituted a big chunk of the total tourism income, which has drastically gone down compared to last year."
Source: Republica
Despite an aggregate growth of 23 percent in tourist arrivals in the first five months of Nepal Tourism Year (NTY) 2011, tourism income has declined by Rs 1.24 billion during this period. However, the good news is that in April and May, the tourism income grew by Rs 50 million, compared to the same period last year.
Tourism income in first two months had declined by over 20 percent while the drop in tourism income in the first five months is a little over 10 percent, compared to the same period last year.
Nepal Rastra Bank (NTB) data shows that the aggregate income from travel business is less compared to last year but the trend is positive. Foreign exchange earnings from tourism were Rs 11.45 billion in first five months of 2010 whereas this year the revenue during the same period was Rs 10.21 billion only.
Tourism entrepreneurs cite presence of low-end tourist and unhealthy competition as the major reasons for the decline. Bijay Amatya, Director, Sales and Marketing at Yeti Travels, said, "The number of tourists with high spending capacity has gone down compared to last year." Tourism income is not in line with tourist arrivals.
The figures show that except in April and May, the income has declined every month. The income in January is Rs 2.64 billion against Rs 3.20 billion last year.
Similarly, tourism income in February, March and April this year was Rs 1.34 billion against 2.31 billion, Rs 1.58 billion against 1.89 billion and Rs 2.18 billion against Rs 1.90 billion of 2010 respectively.
The travel come in May 2011 amounts to Rs 2.45 billion against Rs 2.13 billion in May 2010. However, tourist arrivals as per immigration office of Tribhuwan International Airport (TIA) in May has gone up by 47.1 percent.
Is it flying out of the country?
Nepal Rastra Bank (NRB) officials claim that the main reason for declining tourism income was mis-reporting and black-marketeerng which have been controlled to some extent. "The gap is narrowing in recent months after supervision by the central bank," the official said.
He said that overall income was increasing but some amount was still going to informal account. "The foreign currency under informal account is going outside in the form of capital flight and informal trade," the official said.
NRB officials further stressed that the income was growing but because of structural problem, the income was not being properly reflected in figures. "Apart from monitoring, it´s important to have investment environment to avoid capital flight," he said.
Coordinator of NTY Implementation Committee Yogendra Shakya ruled out any foul play by tourism entrepreneurs. He cited declining rate of dollar against Nepali currency and the fall in income of national flag carrier as the reason for low tourism income. Shakya said, "Income from Nepal Airlines Corporation (NAC) constituted a big chunk of the total tourism income, which has drastically gone down compared to last year."
Source: Republica
