Tourism disappoints in 2013 after 2-year growth

KATHMANDU, JAN 01 -
The tourism boom in 2011 and 2012 had raised the hopes of the travel trade that the good times would continue in 2013, but that did not happen.

A series of unfortunate issues dampened the country’s tourism industry—the European Commission’s (EC) blanket ban on Nepali airlines for their poor safety record, the Constituent Assembly (CA) election, strikes by anti-poll parties, Nepal’s bad air safety record, lack of tourism marketing due to the Nepal Tourism Board’s (NTB) remaining headless, and runway problems at Kathmandu’s airport necessitating load restrictions on international aircraft.

“Due to a combination of factors, the tourism sector didn’t show resilience in 2013,” said Hari Sarmah, the CEO of the Nepal Association of Tour and Travel Agents (NATTA). “In fact, due to the political transition, the government and concerned stakeholders didn’t focus on tourism issues, and the sector remained neglected, resulting in a gradual decline in tourist arrivals,” added Sarmah. “But 2014 will be better as the CA election has been successfully concluded. The travel trade sector has high expectations from the new government.”

The year just past was particularly ruined by three major incidents. First, the government’s announcement in June that it would hold the CA election in November created a fear psychosis among travellers as potential holidaymakers usually avoid countries where an election is being held.

Hoteliers said they suffered at least 15 percent booking cancellation since the beginning of September this year due to the polls. Unexpected events again happened when the Civil Aviation Authority of Nepal (CAAN) asked international airlines flying wide-body aircraft to observe a load restriction following repeated damage to the runway at Tribhuvan International Airport (TIA). And finally, the EC’s ban on Nepali carriers and its advisory to European citizens not to fly on them led to incalculable damage to the country’s tourism image.

The repercussions of the EC’s ban are expected to be seen in the country’s tourism industry in 2014. NTB Spokesperson Aditya Baral said that the EC’s decision to blacklist Nepali airlines would create a psychological impact on travellers in the short run.

“If the country’s aviation safety is not addressed in time, it can badly affect tourist arrivals,” he added. He said that if aviation infrastructure and air safety standards were not improved, the tourism sector would be greatly harmed.

Baral said that there was a need for massive investment and reforms in the civil aviation sector. “The time has come for the government to be more liberal in its aviation policy by allowing more and more international airlines to enter the country,” he said.

Considering the large number of air service agreements (ASA) gathering dust on the government’s shelves, Baral said that the government should aggressively move ahead to revise or sign new pacts as a number of airlines plan to connect Nepal.

However, a number of things like expanding the fleet of Nepal Airlines Corporation and upgradation of Gautam Buddha airport to a regional international airport are positive signs for the country’s tourism, Baral added.

Meanwhile, a spate of air accidents in recent years have raised concerns over Nepal’s aviation safety, and industry insiders have blamed the mishaps for damaging the country’s image and scaring away potential visitors.

Nepal’s tourism started to pick up speed after the announcement of the Nepal Tourism Year 2011 national campaign in 2008, but the industry lost momentum following a series of air crashes, said analysts.

National and international aviation experts have pointed out that CAAN has not been serious about addressing issues like training manpower and injecting adequate investment into aviation technology.

However, former CAAN director general Tri Ratna Manandhar has a different opinion of Nepal’s recent focus on air safety. He said that CAAN had presently started mobilizing its own resources in a break from the past practice of seeking donor funds.

“On the physical infrastructure front, CAAN is doing well,” he said. For example, CAAN has blacktopped the runways at 10 remote airports through its own resources. Likewise, it is also injecting hefty amounts into navigation and communication equipment and training manpower. CAAN has spent Rs 250 million on its training project.

Manandhar added that despite many improvements, documentation remained CAAN’s weak point. “CAAN has not been able to provide documents to the global aviation watchdog, the International Civil Aviation Organization (ICAO), as evidence of the steps it has taken on the safety front,” he said. “This is why Nepal has failed to satisfy ICAO and other international aviation regulators.”

Labels: Highlight, Tourism