International hotel chains seek urgent revisions to investment laws in Nepal

KATHMANDU: In a crucial meeting with Nepal’s Finance Minister, Dr. Prakash Saran Mahat, representatives from prominent international chain hotels operating in the country passionately called for immediate amendments to the Foreign Investment and Technology Transfer Act (FITA).

The urgency stems from certain provisions within FITA that have, according to the hoteliers, unnecessarily burdened them, prompting discussions on potential departures from Nepal.

The meeting, which took place on Thursday, saw a delegation of representatives from these international hotel chains, led by Desh Bandhu Basnet, Chairman of the Tourism and Aviation Committee at the Federation of Nepalese Chambers of Commerce & Industry (FNCCI).

Anirudh Kumar, Juhi Roy, Nikhil Sharma, Amit Nagpal, Javed Ali, and Ajay K were among the participants, all representing international hotel chains.

A focal point of contention revolves around the recent modifications to FITA, particularly concerning royalties, which the hoteliers argue have created complications and adversely affected their operations.

They emphasized that the current situation has forced some international chain hotels to contemplate leaving Nepal, raising concerns about the potential economic impact on the tourism and hospitality sector.

The representatives articulated their concerns, emphasizing the need for swift revisions to FITA to ensure a more conducive and mutually beneficial environment for international hotel chains.

Minister Mahat acknowledged the gravity of the situation and assured the delegation that the government would promptly review the demands and consider necessary amendments to address the grievances raised by the hotel industry stakeholders.

As Nepal strives to maintain its appeal as a tourist destination, the outcome of these discussions and any subsequent revisions to FITA could significantly shape the landscape for international hotel chains in the country.

The government’s response to the concerns raised by these representatives will likely play a pivotal role in determining the future trajectory of foreign investment in Nepal’s burgeoning tourism sector.

Fiscal Nepal |
Friday February 2, 2024, 11:25:42 AM |

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