Number of tourist-standard, star hotels rises 46 percent

The number of star and tourist-standard hotels in Kathmandu has increased by around 46 percent over the last five years.

Encouraged by a rise in the number of tourists, especially after the 2008 announcement of the Nepal Tourism Year 2011 (NTY 2011), investors are pouring in a huge amount of money into the hotel sector.

The number of star and tourist-standard hotels in Kathmandu has reached 503 in 2011 from 345 in 2007, the Tourism Ministry statistics shows. The number of hotel rooms increased by 42.07 percent over the period to reach 10,752 rooms, against 7,568 in 2007. Also, the number beds in star and tourist-standard hotels rose by 40.23 percent.

In 2011, these hotels produced 20,941 room nights, meaning that Kathmandu-based star hotels can accommodate 628, 230 tourists every month.

There are currently eight five-star, two four-star, 15 three-star, 29 two-star, 26 one-star and 423 tourist-standard hotels in Kathmandu, according to the ministry. In the last two years, two three-star hotels, one two-star hotel and 36 tourist-standard hotels were added.

Hoteliers say the rise in tourist arrivals was the major catalyser of the growth in the number of hotels. Arrivals increased by 39.77 percent in the last five years. The announcement of NTY 2011 in 2008 played a crucial role in boosting the private sector confidence in the hospitality sector, hoteliers said.

The Hotel Association of Nepal Executive Director Madhav Om Shrestha said a number of new hotels were in pipeline, but investors were in ‘wait and see’ mode. The current political situation has made them to rethink their investment plans, said Shrestha.

source: The Kathmandu Post,27 June 2012