Private sector has driven tourism gains but more work needed: FNCCI executive member Basnet

KATHMANDU: Desh Bandhu Basnet, chairperson of the Tourism and Air Transport Committee of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has said the private sector has been the main driver of Nepal’s tourism achievements, but that significant work remains to be done.

As his three-year term as an FNCCI executive committee member nears its end, Basnet said he has “carried out fruitful work as the chairperson of the committee by holding frequent meetings and discussions with the government and subordinate agencies.” Basnet was appointed to the post by FNCCI President Chandra Prasad Dhakal in May–June 2023.

Basnet said the committee has held repeated discussions with the Office of the Prime Minister and Council of Ministers (OPMCM), relevant ministries, departments and subordinate bodies about problems facing the tourism sector and possible solutions, and that those talks have produced 'optimistic results.'

He highlighted efforts to operate Pokhara and Bhairahawa international airports at full capacity, saying the committee and FNCCI “repeatedly raised the issue of operating Pokhara and Bhairahawa international airports at full capacity” and that the government introduced discount schemes for airlines flying to those airports. “Although they operated for a while, both airports are not currently being utilised for international flights,” Basnet said. “We are now optimistic that the new government will increase diplomatic initiatives to operate both these international airports at full capacity.”

Basnet said the committee also pressed for legal and regulatory changes, including amendment of the Tourism Act, granting hotels the status and facilities of an industry, and reviewing provisions related to VAT on air tickets. He noted that the previous government decided to recognise hotels as industries by amending the act, but added that “practical implementation of that provision is now necessary.”

On international connectivity, Basnet said he has pressed for direct air links between Nepal and European countries and urged coordinated government action to remove Nepal from the European Union’s aviation blacklist. He also called for stronger global branding led by the Nepal Tourism Board with active participation from the private sector.

Basnet thanked FNCCI President Dhakal and the federation’s leadership for their support and acknowledged the contributions of co-chairpersons Achyut Sharma Guragain and Nilhari Banstola, committee members Shiva Adhikari, Kul Prasad Neupane, Srijana Shrestha Nepali, Sachin Dhakal, Ramesh Thapa and Binayak Shah, and advisors Shashikant Agrawal, Bikram Pandeya and Dr Dhananjaya Regmi.

While committing to continue efforts for the development and expansion of Nepal’s private sector, Basnet expressed confidence that he will “receive the continued support and cooperation of all industrialists and businesspeople.”