Current State of Tourism Service Sector_Unctad Presentation 2

7/26/2019 Current State of Tourism Service Sector_Unctad Presentation 2

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Current State of Tourism ServicesSector in Nepal and Ways Forward

Presentation byDr. Ramesh C. Chitraar

[email protected]@yahoo.com!"pert #

AtAtSecond National Stakeholder Workshop on ServicesSecond National Stakeholder Workshop on Services

(27th 28th October 2009)(27th 28th October 2009)

Co-organize by !"C#$%-&inistry o' Commerce an **+iesCo-organize by !"C#$%-&inistry o' Commerce an **+ies

,athman "e*a+,athman "e*a+

October 27, 2009October 27, 2009
mailto:[email protected]:[email protected]:[email protected]


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Role of Tourism and Travel-RelatedServices

Sector of comparative advantage instrumental inspreading benefits & providing alternative economic

opportunities

Located between te two fastest growing countries

namel! "ndia and #ina$ndowed wit ric and diverse natural resources and

cultural attractions % "ncomparable cultural eritage

as well as a ric environmental spectrum from teigest mountains to te erai plains'


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!$ect of the Tourism Service Sector on the National!conomy

#ontributes to te econom! ()*+, emplo!ment (including women & !out,foreign e-cange earnings'

.elps in meeting /*)s & povert! reduction Sector wit ig multiplier andpositive spill%over effects etc'

ree 1ear "nterim +lan (2007%2009 ormulated new plans and policies fortourism infrastructure development (creating awareness about tourism, developings3ills, e-panding tourism activities4 improving standards of tourism services4 andunderta3ing international promotion and mar3eting'

ourism 5ision 2020 (/a!, 2009 5alued tourism as te ma6or contributor to asustainable epalese econom!, aving been developed as an attractive, safe,e-citing and uni8ue destination troug conservation and promotion, leading toe8uitable distribution of tourism benefits and greater armon! in societ!'

e ourism 5ision 2020 also envisaged two goals "ncrease annual international tourist arrivals to epal to two million b! 2020,

and

Augment economic opportunities and increase emplo!ment in tourism sector toone million'

*eclared epal ourism 1ear 20 as a national campaign loo3ing at teencouraging trend in 200: and 2009


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%aret Trends

e opening of epal for foreigners 9;9 wen Arnold .eim made an

aerial fligt over *aulagiri, S' *illon s e-pedition made a 99%da! alpine tre3 around?ancan6unga

o' of tourists increased since ten, but decreased during a decade long

/aoist movement'1ear 2007 re%started to attract more tourists' "n te !ear 200@07,tourists visiting epal reaced B@,000, wit foreign e-cange earningof C20B million, average sta! D da!s and average spending about C@0 ada!'

About 00,000 people directl! emplo!ed in providing tourism serviceswile 2B,000 indirectl! involved'$conomic surve! records onl! te contribution of otels and restaurants(2'@E in 200:09'


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Table: Number of Tourists by Purposeof Visit


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Growth Rate of Tourist Arrivals by a!orRe"ions


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&NWT'( developed tourism satellite account in )**#

According to te =orld ravel & ourism #ouncil (=#,

te SA is based on a demand%side concept of economicactivit!

ourism industr! does not produce or suppl! a omogeneousproduct or service li3e man! traditional industries

*iverse collection of products (durables and non%durablesand services (transportation, accommodation, food andbeverage, entertainment, government services, etc tat aredelivered to visitors

+olic! ma3ers to understand tat tis diversit! as man!

comple- lin3s to different parts of te econom!, wic ma3este economic impact of tourism so significant


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WTTC +)**,- ives a comprehensive pictureabout the economic impact of tourism to NepalAccording to 200: update, & e-pected to contribute directl!

D'0E to )*+ in 200: (+


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Contribution to National Development'b/ectives and !conomic Diversi0cation

#ontributes to development and povert! reduction in a number of wa!s'ot onl! economic benefits, but also social, environmental and culturalbenefits

"n terms of povert! reduction

provides emplo!ment and diversified liveliood opportunities'


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Table: Foreign Exchange Earnings from Tourism


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Table: ountaineerin" #$peditionTeams


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Contribution to National %D1s

/*)s% agreed set of goals to be acieved b! 20B based on all

actors wor3ing togeter at global, regional and national levels

=orldHs main development callenges povert! reduction,opportunities for education, better maternal ealt, gendere8ualit!, and reducing cild mortalit!, A"*S and oter diseases'

"nternational tourism contributes to /)*s b! generating benefitsto poor people and poor communities in te conte-t of sustainabletourism development, usuall! witout specificall! targeting tepoor

argeted interventions to address te issues raised in /*)s also

re8uire tat te lin3ages between tourism and povert! beidentified' igure D illustrates man! of tese lin3ages'


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%i"ure &: 'in(a"e between tourism andpoverty


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)ontribution of tourism to achievin" *GsGoal Contribution of tourism

' $radicate e-tremepovert! and unger

(a ourism stimulates economic growt bot at te national and locallevels and promotes te growt of te agricultural, industrial and service sectors4

(b ourism provides a wide range of emplo!ment opportunities easil!accessible b! te poor' ourism businesses and tourists purcase goods andservices directl! from te poor or enterprises emplo!ing te poor' iscreates opportunities for micro, small and medium%siIed enterprises in wicte poor can participate4(c "nternational and domestic tourism spreads development to poorregions and remote rural areas of a countr! tat ma! not ave benefited fromoter t!pes of economic development4

(d e development of tourism infrastructure can benefit te liveliood of tepoor troug improvement in tourism%lin3ed service sectors, including transportand communications, water suppl!, energ! and ealt services'

2' Acieve universalprimar! education

(a e construction of roads and trac3s to remote areas for tourists alsoimproves access for scool%age cildren and for teacers4(b ourism can elp local resource mobiliIation, part of wic can be spent onimprovement of educational facilities'

D' +romote gender e8ualit!and empower women

a e tourism industr! emplo!s a ig proportion of women and createsmicro enterprise opportunities for tem' "t promotes women>s mobilit! and

provides opportunities for social networ3ing'


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;'


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ourism services regulated b! various acts "ndustrial $nt' Act, ourism Act,20DB (97: amended in 20BD (997, te .otel, Lodges,


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#ivil Aviation Autorit! of epal (#AA


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Potential for %edical Tourism

Groadl! defined as provision of Kcost effective> private medical care in collaborationwit te tourism industr! for patients needing surgical and oter forms ofspecialiIed treatment+otential in epal' =ill ave to consider ow to position itself as a medical tourismprovider in te global mar3et'

e ew ourism +olic! (+ 200:%identified ealt tourism as one of tepotential tourism products of epal

amous for natural metod of treatment + empasiIes to develop epal as a

place of traditional Aurveda and naturopat! metod for treating diseaseswitgreater participation of te private sector

As epal is e8uipped wit valuable natural, istorical and cultural eritage, +also igligts topubliciIe te importance of post%treatment rest around naturaleritage sites in epal % re8uires infrastructure development wit te participation ofprivate sector'

.ig altitude sports li3e cric3etma! also be included in epal>s ealt tourism'

ualified doctors, aving teir master and doctorate degrees from developedcountries wit several !ears wor3ing e-periences are also available in epal'

/edical cec3 up, diagnosis, lab facilities, indoor service, surger! and follow upsare possible at a ver! low cost compared to developed countries'


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!$ect of Trade 2iberalisation on Tourism

)AS and =O

s active participation in numerous international

organiIations and trade agreements'

epal>s membersip in =O in 200;' Fpon accession,

epal assumed a large number of general and specificcommitments'


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Nepal+s )ommitmentsGroadl!, te commitments made b! epal in te services sector are divided into

,A General )ommitments:$-tended mar3et access to bot imports and e-ports in a specified manner e-cept arestriction of providing onl! FS dollar 2000 for epalese citiIens wile going abroad'

Suppl! of services b! an e-isting foreign supplier will not be made more restrictivetan te! e-ist at te time of epal>s accession to =O'

.owever, movement of natural person as been made unbound or restrictive e-cept in

te categories of services sales persons, persons responsible for setting up a commercialpresence, and intra%corporate transferees'

"n commercial presence, no limitation on national treatment placed on foreigninvestments and reinvestments e-cept two conditions, i'e' approval of *O" andincentives and subsidies provided available to woll! owned epalese enterprises onl!'

e scedule restricts foreigners to bu! and sell real estate in epal' e present civil

code proibits selling, mortgaging, gifting or endowing or disposing real estate toforeigners'

+rovide decisions witin D0 da!s of te date of application for investments e-ceptwere of environmental impact assessment ($"A is needed'

. l f i d ,& ) b d l ,/


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. supply of services modes: ,& )ross border supply ,/)onsumption Abroad ,0 )ommercial Presence ,. Presenceof Natural Person1 the commitments made in tourism undereach mode are as follows:


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S3FT3

Bt SAA


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Table: Trade in Travel Services

Table: Tourists Arrivals from SAAR)


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Table: Tourists Arrivals from SAAR))ountries1 /223

/ore tan 9,000

i'e' B:E as beenfrom "ndia,followed b! SriLan3a andGanglades, wittourists visitingfrom oter SAA


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)onstraints to 4nter-SAAR) tourism

"nternal factors inade8uate infrastructure, insufficientfunding of tourism promotion, sortcomings in 8ualit!and efficienc! in oter sectors li3e educations, andealt' (#$*A 2007M =orld Gan3 200;

$-ternal factors include among oters4 immigrationlaws, documentation re8uirements, restriction oncurrenc! movements, lac3 of transparenc!, and policiestat wor3 as a disincentive for specific destinations

(#$*A 2007

Nepal


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NepalStrengths Fnmatced natural products /t' $verest, .imala!an range and

eigt of te worlds fourteen :,000m pea3s, diverse landscape,sublime natural scener!, protected areas wit diverse flora andfauna, fast flowing rivers, !ear%round pleasant weater'

Fltimate adventure destination umber one destination formountaineers and tre33ers, wite rafting, largest assortment ofaerial, terrestrial and a8uatic sports'


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Nepals Tourism Sector

Strengthsatural assets#ultural diversit!


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Points to be re-emphasi8edStren"ths: s dominant service e-port

5ea(nesses: +oor services provided b! small restaurants, guest ouses and

ta-is o direct air connection to $urope and ver! few international

fligts aving connections to ?atmandu =ea3 national fl!er

Fnable to reap benefits from intra%regional tourism ailure to provide attractive and incentive pac3ages to travelers

from "ndia and #ina compared to competing destinations

Points to be re emphasized (Cont )


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6pportunities: Adding new tourism products li3e ealt and wellness tourism, educational tourism,

communit! tourism, sporting vacations, etnic tourism etc'

Attracting middle income tourists during off season and from non%traditional mar3ets *ecrease costs troug e%tourism .ig prospect of attracting surface travelers in future, bot from "ndia and #ina, wit te

opening and development of new tourism destinations on bot sides of border +rospect of opening new border points li3e


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Policy Recommendations 5ays %orward

ourism be made free from politics and conflict An! renewed worsening in te

political situation could again send tourist arrivals into declinee lin3ages between tourism and povert! be identified and establised asdepicted in figure '

ocus tourism on te local or communit! level and aim at increasing tourismHscontribution to povert! reduction % pa! attention to te village tourism li3e


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Re"ulatory and institutional aspects

/o#A to improve its /onitoring and $valuation s!stem

Airport be opened round te cloc3' Also need of inter%agenc! coordination for wor3ing effectiveness of different

agencies operating at te airport

ormulate domestic regulations to ma3e te countr! able to

abide b! te =O commitments' eed of strengtening

=O


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Related to 'iberali8ation:GATS etc

epal>s commitments under )AS in twelve sectors, tourism being one' eed ofa compreensive service plan in te tourism sector to

Access epal>s capabilities and resources to compete in te global tourism industr!' ind te optimum balance between local and foreign participation in tis industr! Access te abilit! and resource to figt barriers to mar3et access created b! oter

counties troug tecnical standards, subsidies, discriminator! access to informationand distribution cannels etc'

"dentif! suppl! constraints created b! te lac3 of uman resource, tecnolog!, and8ualit! standards

*evelop plans and policies to overcome suppl! constraints and barriers to mar3etaccess

ourism industr! to ave te largest monetar! turnover in te world b! te !ear2020 (rontline /agaIine', so, trade liberaliIation constraints in tourism must beac3nowledged and differences between te SAA


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Action Plan Matrix

Documents

Current State of Tourism Service Sector_Unctad Presentation 2