May 4: Star-rated hotels of Nepal have decided to close operation for six months effective from the Nepali New Year citing unprecedented crisis due to lockdown imposed to control the spread of coronavirus.

Operators of big hotels of Nepal on Sunday (May 3) took a decision in this regard. According to the star-rated hotels, all services will remain closed for six months effective from April 13.

The hotel operators informed that the lockdown has affected tourism sector the most. They were of the view that the coronavirus pandemic will have long-term effects on the tourism industry. It is estimated that the current crisis will cause a slump in tourism business for at least a year.

In such a context, the hotel operators decided to shut their business for six months, according to Hotel Association of Nepal (HAN).

During the six months of closure, the hotels have decided to provide 12.5 percent of the basic salary and other remunerations to the staffers.

In case the labour unions do not agree with the decision of providing 12.5 percent salary, the hotel operators have warned of laying off the staffers fully or partially as per Section 145 of the Labour Act 2074.

Sunday’s meeting also agreed to seek support from the government for setting up ‘job retention fund’ to pay the staffers additional amount to the 12.5 percent of basic salary. Both the hotel operators and the trade unions have agreed to this proposal to seek government support, said HAN in a statement issued after the meeting.

Representatives from Radisson Hotel, Hotel Annapurna, Shangri-La Hotel, Soaltee Crowne Plaza, Hyatt Regency, Shankar Hotel, Hotel Akama among others had attended the meeting.

HAN further said that they are open to discussion with  the concerned authorities and stakeholders including the workers for better management of the industry.