Tourism can reduce trade gap

The increase in the number of Chinese tourists coming to Nepal could help the country balance its trade deficit with China, according to newly appointed ambassador of China to Nepal Wu Chuntai.

Addressing a meeting with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today, the ambassador said that the expansion of the service sector and wooing more Chinese tourists could help Nepal balance the trade deficit between the two neighbours.

Nepal’s trade deficit with China stood at around Rs 52 billion in the last fiscal year 2011-12, according to figures from Trade and Export Promotion Centre.

“Trade deficit was at around Rs 45 billion a fiscal year ago in 2010-11.” Despite China’s duty free access to Nepal for over 100 products, it is Nepal’s fifth largest export market and second largest import market.

“CCTV is planning to broadcast a documentary on Nepal, which will help promote tourism,” he said, adding that Chinese film producers are filming a movie in Nepal which will also help promote the country in China.

“The Chinese aviation industry is keen to help Nepal by providing aircraft so that it can expand the national flag carrier’s fleet.”

With a total of 17,341 arrivals, Chinese tourists comprised 12.1 per cent in total number of arrivals in the last three months from January to March, as the number of Chinese tourists has been increasing in recent years. In March alone, 5,782 Chinese tourists visited Nepal via air. The number stood at 4,260 in the same month in 2012, according to data from Nepal Tourism Board.

Likewise, private sector to private sector cooperation will help promote government to government cooperation, the newly appointed envoy said, praising Nepal’s private sector for its expertise in international trade.

Nepal is in between two smiling elephants, Chuntai said, asking the country to take advantage from growing economic powerhouses India and China. “Nepal should be a bridge between its neighbours that are the second largest and 10th largest economies, apart from utilising its vast natural resources,” he added. “China is helping Nepal with some mega projects like Ring Road expansion — for which a group of advanced Chinese engineers has already arrived in Kathmandu — Pokhara Regional International Airport, and Upper Trishuli A and West Seti hydropower projects.

On the occasion, president of FNCCI Suraj Vaidya urged China to help Nepal in developing infrastructure like Ring Road, Pokhara Regional International Airport, promotion of Lumbini, energy and mining sectors, schools and agriculture.

“Chinese investment in Sri Lanka, Bangladesh and even in India has increased by four to five folds in recent years,” he said, asking the ambassador to expand development aid because unless the economy flourishes, politics cannot sustain.

FNCCI also sought help for a joint study on Nepal-China investment strategy, linking two markets via Nepal and establishing quarantine labs at Nepal-China border to help Nepal take benefit from duty free market access as Nepal has comparative advantages in agro produces. They also sought help for construction of an international trade exhibition centre in Kathmandu.

source: The Himalayan Times,2 April 2013