Trekking agencies for fixing minimum handling charge

Trekking agencies have proposed that the government fix minimum handling charge in order to end unhealthy competition in the business and generate more revenue.

Trekking Agencies´ Association of Nepal (TAAN) pushed for enforcement of minimum handling charge, arguing that it would discourage price undercutting in trekking business. Also increased unauthorized operation of trekking business is eating up our business, the association said.

Trekking agencies say their revenue has remained almost the same despite healthy rise in the number of trekkers over the past few years.

“We´ve felt we need to fix minimum handling charge if we are to maintain healthy business environment and to ensure quality of service,” said Mahendra Singh Thapa, president of TAAN. “We´ve already requested tourism ministry to fix minimum handling charge.”

TAAN has proposed a minimum fee of $50 per person per day in Annapurna Region and $60 per person per day in Everest Region. The association has also requested the government to lift restrictions in Manasulu, Upper Dolpo and Upper Mustang.

According to TAAN, more than 100,000 trekkers visited Annapurna Region in 2011, a rise of 15 percent compared to a year ago.

Similarly, a total of 37,000 trekkers visited Everest Region during the year. TAAN officials say more than 20 percent of tourists visiting Nepal come here with the sole purpose of trekking.

Sita Ram Sapkota, who operates Karyang Kurung Treks and Expedition, said handling charge has remained the same even though expenses have doubled over the past four years.

At present, trekking agencies are selling packages starting $20 per person per day, which, they say, should be sold at a minimum of $50 per person per day if they are to provide better service and survive in the business.

“Agencies are not being able to provide quality service due to low handling charge. This can create negative impressions about Nepal in the international market,” said Sapkota.

Thapa, who operates Equator Treks and Expeditions, said there is a need to check illegal operation in trekking business if the government authorized trekking agencies are to survive in the business. “We are doing our part to control these illegal practices, but we also need government support,” said Thapa.

source: republica, 11 march 2012