May 29: The government has categorized the hotel industry and tourism business as productive sector.

Minister for Finance Bishnu Poudel made such announcement while presenting the budget for the upcoming fiscal year on Saturday, May 29.

The government has listed tourism sector as productive sector as per the demand of the tourism entrepreneurs and hoteliers of the country. Tourism entrepreneurs had been pressing the government to include tourism industry in the productive sector since a long time. 

The government has announced relief packages to provide concessional loans, tax exemption, and discounts on various types of charges to tourism and aviation businesses.

Last year, the government while announcing special packages for the productive sector as Covid-19 relief in the previous budget had excluded tourism and hotel business from the list. 

Meanwhile, the new budget has announced a 30 percent waiver on electricity tarriffs for sectors with consumption of electricity above 200 units, which includes hotel industry. 

Likewise, the government has waived the electricity demand fee of the hotel industry in the upcoming annual budget. The government will also provide the pledged relief packages to hotels that were used as quarantine and isolation facilities. 

The budget also provides a waiver on renewal fees for tourism-related industries.  

The government has also decided to provide 50 percent waiver on rents and give continuity to the concessional loan of 5 percent to support the tourism industry along with other productive sectors against Covid-19. 

Likewise, Minister Poudel also announced to provide 10 days’ salary to a government official for promoting domestic tourism.

“We will also encourage the private sectors to provide similar packages to their employees,” the Minister added.

The government has announced plans to develop and promote Nepal as an attractive and safe tourism destination.   

The government has allocated Rs 590 million for the development of tourism-related infrastructure in Janakpurdham and other destinations. 

The government has also allocated budget to continue infrastructure development in Muktinath and Kagbeni and to build new hiking trails in Khaptad, Rara, Lower Dolpo, Simikot.

In addition, the government  has plans to develop a cycling lane along the Phewa Lake in Pokhara and various trekking trails across the country. 

Likewise, the government has allocated budget for establishing an integrated GPS system for rescuing and tracking tourists. 

The government has announced plans to introduce special packages to promote adventure, agro, gastro, and religious tourism activities. Similarly, the government has announced plans to conduct a physical study for a sports project aiming to promote sports tourism.  

The government has allocated Rs 27.47 billion for the development of tourism infrastructure and promotional activities.