NATURALLY NEPAL "once is not enough"

Sunday, September 19, 2010

Red Rose Apartment Hotel

The hotel industry in Nepal, which had suffered much during the decade-long insurgency, is back in full shape. The industry started recovering with the start of the peace process in the country in 2006. More international airlines began flying to the country bringing in more visitors from across the world and also spurred domestic tourism. The increasing movement of tourists encouraged hotelier to invest more. But they cautiously waited for the initial few years and waited for the ripe moment. The declaration of the Nepal Tourism Year 2011 (NTY 2011) opened the floodgates and entrepreneurs are investing on hotels not only in the capital but all over the country.
The decade-long insurgency was harsh for the Nepal tourism industry and it was even cruel for the hotel industry. Nepali tourism industry passed through one of the worst recessions in its history of five decades. The deteriorating security situation in the country during the period not only led to the decline in tourist arrival but also triggered curtailing of price rates, displacement of trained hands, and closure of travel trade enterprises. Hotels, having big investments and often on bank loans, were the first ones to resort to price undercutting. Even five star hotels started selling their rooms at a very low rate. Such was the scale of price undercutting that some tour operators even say that five star hotels even robbed Thamel-based lodge owners of their business.
According to Hotel Association Nepal (HAN), the apex body of hotels in Nepal, there were 11 four star hotels in the country in 2003 AD. These four star hotels were providing 987 rooms per night. But with the closure of four four-star hotels and upgrading of two four-star hotels into five-star category, the number of rooms available in the four-star category has reduced to just 430 rooms per night. Because of the recession, the tourism industry lost more than 500 rooms per night in four-star category. 

Club Himalaya ResortBut the end of conflict and declaration of the year-long tourism promotional campaign has encouraged investors and more and more people are investing in hotel business. According to Tourism Industry Division under the Ministry of Tourism and Civil Aviation (MoTCA), 38 new hotels were registered in the capital in fiscal year 2009/10. According to the Tourism Industry Division, a total of 736 hotels have been registered across the country, including 422 in the capital alone. Of them 10 are five-star hotel -- eight in the capital and two -- in Pokhara and two with four-star rating. Similarly, there are 17 three-star hotels, 31 two-star hotels, 37 one-star hotels and 639 tourist standard hotels. These hotels produce 14,272 rooms per night. Private sector has invested about Rs 150 billion in the hotel industry, according to HAN. 

Two new four-star hotels in the capital:
Two new four-star hotels are beginning operation in the Valley right on the eve of Nepal Tourism Year 2011. Implementing Expert Group (IEG) – the investment group of businessmen and professionals involved in international trade – is preparing for the grand opening Red Rose Apartment Hotel at Pulchowk and Airport Hotel near Tribhuvan International Airport in December. The group is spending more than Rs 1 billion in the two projects. This is the biggest investment in Nepali hotel industry after the Hotel Hyatt Regency more than a decade ago.
Airport Hotel, which is located just in front the Golden Gate of Tribhuvan International Airport, will have 55 rooms in five floors. The hotel plans to cater people traveling to and from Tribhuvan International Airport. Similarly, Red Rose Apartment Hotel at Pulchowk will have 11 apartments and 30 rooms upon completion. The hotel aims to cater travelers needing accommodation for more than a week. The group is also planning to establish exotic restaurants and shopping areas in both the hotels.
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