Season of windfall beckons tourism industry

Govt's budgetary programme,if implemented,could give a Rs 800-million fillip to the sector.Quite often, the following days of budget are open season on the government for a reason or two, but the domestic tourism industry may in the coming fiscal year enjoy a season of a windfall.

If the government succeeds in implementing its budgetary programme that mandatorily calls for financial institutions and profit-making public enterprises to send their employees on paid trips to local destinations, the domestic tourism industry is likely to get a boost of around Rs 800 million.

In the budget presented yes
terday, Minister for Finance Shankar Koirala categorically said that commercial banks, development banks and profit-generating state-owned enterprises must send their employees on a seven-day paid trip to domestic tourist destinations every year. The programme, according to the minister, was introduced to give a fillip to domestic tourism businesses.

“The programme mentioned in the budget is aimed at promoting domestic tourism which is quite appreciable,” said Madhusudan Acharya, Vice-president, Nepal Association of Tour and Travel Agents. “If the programme is
implemented effectively, it will help cushion the off-season blow, as these institutions are home to over 31,700-strong potential tourism clients.” Let’s have a look at how domestic tourism industry can benefit. Thirty-one commercial banks, including stateowned banks, employ around 12,000 people. Eighty-eight development banks in the country, on the other hand, have around 6,360 staff on their payroll, while 15 of the 37 public enterprises that were operating in profit last fiscal employ around 13,363 staff.

Going by the figures given to The Himalayan Times by the NATTA, each domestic tourist
has the capacity of spending an average of Rs 3,500 per day, which implies each of these people will be spending around Rs 24,500 a week. If over 31,700 employees listed in the payroll of commercial banks, development banks and profit-making public enterprises go on seven days’ holiday every year, the domestic tourism industry can earn revenue to the tune of Rs 776 million per annum.

However, it is not that these institutions do not send their staff on holidays.

According to Rajan Singh Bhandari, President, Nepal Bankers’Association, most of the private commercial banks in the country provide annual paid leave of 10 days to their employees. “But we have not developed a package of sending our staff to tourist destinations,” Bhandari, also the CEO of Citizens Bank International, said.

source:the himalayan times,15 july 2013