Rising revenue encourages tourism entrepreneurs


KATHMANDU, Nov 14: With the number of high end guests on the rise, tourism entrepreneurs have witnessed a steady growth in their revenues. This has given a strong boost to tourism entrepreneurs preparing for the upcoming Nepal Tourism Year (NTY) 2011. Assistant Manager of Revenue at Soaltee Crowne Plaza Sagar Chandra Bantawa Rai informed Republica that the average expenditure of guests has increased by 18 percent as compared to the previous year. “The total revenue of the hotel has increased by 24.8 percent and 30 percent growth is expected by the end of 2010,” he added.

Associate Director of Sales and Marketing at Hotel Yak and Yeti, Surendra Thakuri said that the average stay of guest ranges from 3- 5 nights and trekkers stay mostly up to three nights “Although the duration of their stay has not increased, their expenditure has. This has resulted in the growth of our revenue,” he said, adding, that it was unlikely for tourists to stay longer during tourism year. “The trend has remained the same for a couple of years and this is unlikely to change.” Likewise, owner of Road House Café Chandan Kayastha said that his restaurant had witnessed a revenue growth of 15 percent. “Tourists are not to be blamed if they don´t spend more. If our products are attractive we can always do good business,” Kayastha said.

However, President of Restaurant and Bar Association of Nepal (REBAN) Tejendra Shrestha said that sales were not as encouraging as it used to be a decade earlier. “Tourists tend to bargain due to unhealthy practices prevalent in the business,” he added. Shrestha said most of the restaurants are training their staff as the part of their preparation for the tourism year.

Dirga Lama of Hotel Elite, however, said that tourists do not haggle as much as they did in the past. “Tourists now bargain less as compared to what they did in the past,” Lama said. He further said that previously tourists used to limit their budget but now they generously spend on activities like trekking, paragliding, etc.

Tourism expert and researcher Rabin Jung Pandey said tourism entrepreneurs have to work out on a number of issues, including diversification of tourism products, construction of proper infrastructure, and involvement of local people in the promotional campaigns to attract more tourists during the tourism year. “We need to develop our basic infrastructure for the qualitative growth in tourism,” he said.

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