Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: A delegation from the Hotel Association Nepal (HAN), led by President Binayak Shah, met Nepal Rastra Bank (NRB) Governor Dr. Bishwanath Paudel on Monday to present recommendations for the upcoming monetary policy, aiming to bolster the tourism and hotel sector. Congratulating the governor, the delegation emphasized effective implementation of the 2082/83 (2025/26) budget’s tourism initiatives.
Shah highlighted the sector’s challenges, including rising operational costs due to inadequate infrastructure and an oversupply of hotel rooms, with demand at just one-third of capacity. This has strained loan repayments, prompting HAN to request special industry status for hotels, allowing flexible principal and interest payments based on financial conditions.
Shah also proposed easing restrictions on hotel dollar accounts, suggesting prepaid or credit dollar cards and expanding the $300 daily exchange limit for tourists, as the current cap is insufficient for high-spending visitors at star hotels.
HAN addressed online booking platforms, where commissions are paid in dollars despite local currency bookings by Indian and Nepali customers, urging a resolution. Recognizing hotels as a national priority industry, HAN sought loans at base rate plus no more than 1% interest.
Shah advocated for foreign exchange approvals for Nepali firms expanding hotel chains abroad to promote tourism and relax currency restrictions for Bangladeshi taka and Sri Lankan rupee to boost regional tourist inflows.
Additionally, HAN requested low-interest loans for electric vehicles and kitchen appliances to support eco-tourism and carbon reduction goals.
Shah raised concerns about foreign exchange permits being tied to environmental impact assessment renewals, which delays hotel registrations and deprives the sector of entitled benefits. Governor Paudel assured the delegation that their suggestions would be considered in the monetary policy formulation.
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