Strong dollar cheers travel traders

The continuous devaluation of the Nepali rupee against the US dollar has brought some cheers for the travel trade sector. Strong dollar has not only increased

tourism earning, but has also made Nepal a cheaper destination for foreign travellers.

Travel trade entrepreneurs say more foreigners may be tempted to visit the country as they will have to sell fewer dollars to enjoy a vacation in Nepal. Hotels and tour operators could make good gains from a possible rise in the number of tourists.

Temple Tiger Group Executive Chairman Basanta Raj Mishra said the appreciation of the dollar means a rise in tourists’ purchasing power in Nepal. “Travellers from around the world that deal in dollar terms will have a huge advantage while visiting Nepal,” said Mishra.

According to Nepal Tourism Board Spokesperson Aditya Baral, tourists visiting Nepal might spend more in the country. “As they will have more money while exchanging dollars, their spending in shopping, dining, transportation and entertainment will be higher,” said Baral. Tourists might also get prompted to stay in Nepal for a longer period. The average length of stay of tourists reached seven-year high of 13.1 days in 2011. And, each of them spends $39.60 per day on an average.

Gandaki Tours and Travel Manging Director Ram Kaji Koney said strong US dollar has made Nepal a cheaper destination for foreign travellers. “As tourists have to exchange fewer dollars, their stay in Nepal might increase,” said Koney. The Nepali currency plummeted to an all-time low on Friday and the Nepal Rastra Bank (NRB) fixed the exchange rate at Rs 91.88 for Saturday. The Nepali currency has devaluated by 29 percent since mid-July 2011. The exchange rate was at Rs 70.95 a dollar in mid-July 2011.

Strong dollar also means more tourism earnings for the country. NRB’s recent macroeconomic report shows revenue from tourism surged by 26.8 percent in the first 10 months of current fiscal year. Income from tourism rose to Rs 26.72 billion over the period, against Rs 21.08 billion in the same period last year. There has been a 20.5 percent increase in tourist arrivals in the first five months of 2012. The NTB statistics show 250,781 visited Nepal during this period.

source: The Kathmandu Post,23 June 2012