May 28: The Hotel Association of Nepal (HAN) has said that the hotel industry will collapse if the government does not adopt policies to support the tourism and hotel industries. The umbrella body of hotel operators drew the government's attention stating that Covid-19 has severely affected the hotel industry and needs a government’s support and budget for revival.

Issuing a press statement on May 27, HAN demanded the government to address various issues that have troubled them. The association has requested the government to address severely affected industries, establish protection funds, provide concession on tax including special concessions, waivers, banking concessions, rebates on electricity tariffs and charges, suspension of financial obligations, in addition to staff and workers welfare scheme and promotion of internal tourism.

According to HAN, the hotel industry, hit by the global pandemic, has not been able to get back on track due to the second wave of coronavirus infection. It is mentioned in the press statement that the hoteliers are in a state of great confusion and panic regarding the risk of their hotel business.

Shreejana Rana, president of HAN, said that the employment of millions of individuals dependent on the hotel and tourism business is at stake. 

Likewise, the press statement says that many hoteliers have been compelled to flee due to the current situation. HAN said that the tourism and hotel industry is at risk of collapsing.

The statement further says it would take time for tourism to return to normalcy even after the coronavirus pandemic subsides. HAN has also demanded the government to establish a business protection fund for the revival of the hotel industry and an employment protection fund for its dependent employees and workers.

Similarly, HAN has demanded the government to provide concession in tax for 3 years along with 50 percent exemption in value-added tax till the business returns to normalcy. HAN also stressed the need to waive direct taxes levied by the federal, provincial, and local governments on the hotel sector for the next three years. The association also has asked for a 50 percent discount on electricity tariffs for the next two years. 

Likewise, the association also has demanded the government introduce policies to promote domestic tourism.