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5 tourism sector_mr deepak raj joshi

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Presentation by Mr. Deepak Raj Joshi, CEO, NTB

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5 tourism sector_mr deepak raj joshi

  1. 1. DEVELOPING DESTINATIONS FOR RECREATION AND PILGRIMAGE Investment Opportunities Deepak Raj Joshi CEO, Nepal Tourism Board
  2. 2. PRESENTATION OUTLINE 1 1. BRAND NEPAL 2. DESTINATION NEPAL: WHY NEPAL? 3. COUNTRY OVERVIEW 4. FOREIGN INVESTMENT IN TOURISM SECTOR 5. RECENT DEVELOPMENTS 6. POLICY AND INCENTIVES IN TOURISM SECTOR 7. POTENTIAL PROJECTS FOR INVESTMENT
  3. 3. BRAND NEPAL: A PROMISING INVESTMENT DESTINATION  World’s iconic destinations: Lumbini, the birth place of Lord Buddha, Pashupatinath and the Mt. Everest  The most diverse country: cultural diversity and natural diversity within a small area  People: Friendly, welcoming and supportive communities  Gateways to the Himalayas and the Buddhist Circuit  Tourism capital of South Asia  World capital for mountaineering and trekking  UNESCO has listed 4 World Heritage Sites in Nepal  12 National Parks, 3 Wildlife Reserves, 6 Conservation Areas, 1 Hunting Reserve
  4. 4. DESTINATION NEPAL: WHY NEPAL? Between two huge markets of India and China; and close to South East Asia and Middle East Asia COUNTRY OUTBOUND TOURISM (NUMBER OF DEPARTURES ‘000) (2017) GDP GROWTH (ANNUAL %) (2017) POPULATION ‘000 (2017) India 23,943.00 6.7% 1,339,180.13 China 143,035.00 6.9% 1,386,395.00 East Asia & Pacific 397,924.82 4.6% 2,314,364.99 LOCATION AND MARKET
  5. 5. DESTINATION NEPAL: WHY NEPAL? Priority: Tourism envisioned as the second most important driver of the economy Timing and environment: Political stability, labour laws and labour relations, willingness for economic development, guaranteed repatriation, ones-stop service, government making further investment friendly laws and fixing bottlenecks Weather: Pleasant climate and fantastic weather round the year Brand: Ethnic (125 ethnic groups) and linguistic diversity (123 languages), young and vibrant population, best ‘value for money’ destination, and emotionally rewarding travel and tourism experience Nepal at the heart of the ‘mountain economy’ declared by the Fourth BIMSTEC Summit Declaration
  6. 6. COUNTRY OVERVIEW Nepal welcomed nearly 1.2 million tourists in 2018 (excluding Indian tourists traveling by land). A recent survey by NTB shows that Nepal welcomed an additional 1.5 million tourists who travelled by land. Proportion of tourism industries registered out of the total industries Growth rate of tourist arrivals has been consistently high: 40% (2016), 25% (2017), 25% (2018) The sector accounted for 32% of industries registered in Nepal and is one of the most attractive sectors among potential investors The World Travel and Tourism Council estimates that investment in the travel and tourism sector in Nepal was USD 170.7 million in 2017 Consistent increase in investment in tourism. Investment is expected to rise by 7.6% in 2018 and maintain steady growth of 4.7% per year over the next decade to USD 289.5 million 159 out of 496 in FY 2017/18 1615 out of 7529 up to FY 2017/18
  7. 7. FOREIGN INVESTMENT IN TOURISM SECTOR Major MNC’s Investment in Nepal (Hotel Industry) YEAR NUMBER OF INDUSTRY FOREIGN INVESTMENT (NRS MILLION) 2012/13 103 7,151.19 2013/14 84 5,832.77 2014/15 147 27,215.37 2015/16 112 11,124.95 2016/17 154 14,999.72 2017/18 159 23,855.50
  8. 8. RECENT DEVELOPMENTS  Upgradation and plans for further expansion of Tribhuvan International Airport  Completion of Gautam Buddha International Airport (within a year) and Pokhara Regional International Airport (within two years)  Upgradation of highways (east to west as well as north to south) aiming to facilitate the movement of people and enhance internal tourism  Multiple cross-border railway links are being built with China and India which will directly impact tourist inflow from these countries  Development of Ramayan Circuit and Asian Buddhist Circuit Pilgrimage sites connecting India and Nepal is bound to increase tourist inflow in Nepal
  9. 9. TOURISM POLICY POLICIES  Tourism Policy, 2065 (2008)  Civil Aviation Policy, 2063 (2006) RULES/REGULATIONS  Casino Regulation, 2070 (2013)  Rafting Rules, 2063 (2006)  Travel and Trekking Agency Rules, 2062 (2005)  Mountaineering Rules, 2059 (2002)  Hotel, Lodge, Restaurant, Bar and Tourist Guide Rules, 2038 (1981) ACTS  Nepal Tourism Board Act, 2053 (1997)  Immigration Act, 2049 (1992)  Tourism Act, 2035 (1978) DIRECTIVES AND WORKING PROCEDURES  Hotel Standard, 2074 (2017)  Tourism Industry Service Delivery Directives, 2070 (2013)  Tourism Transport Service Business Registration and Operating Work Procedures  Homestay Working Procedures, 2067 (2010)
  10. 10. INCENTIVES  Visa on arrival for almost all countries (except 9)  Indian nationals do not need a visa to enter Nepal  No tourist visa fee applicable to Chinese nationals  No visa fee applicable to the passport holder of member states of the South Asian Association for Regional Cooperation (SAARC) for 30 days  Non-tourist visa of 6 months for study, research & survey for potential foreign investors  Business visa to foreign investor or their representative and their family members until the prescribed minimum foreign investment is retained in Nepal VISA
  11. 11. INCENTIVES  100% exemption for first five years from the date of operation of business and 50% concession for next 3 years for special industry with capital of more than NRS 1 Billion (Around USD 9 million) and providing direct employment to more than 500 persons for a whole year  Subsidy in income tax for industries providing direct employment to more than 100 Nepali nationals  15% tax rebate to tourism companies listed with Security Exchange Board  Exemption on dividend tax of all tourism industries for capacity expansion by capitalization of profit  Further exemptions can be made and facilities and concessions given on the recommendation of and decision of the Council of Ministers on a case by case basis TAX
  12. 12. INCENTIVES  Only 1% custom duty applicable for import of standard promotional materials printed outside Nepal for promotion of tourism business  Rebate of 50% custom duty on the import of any two units of luxury coach, micro-bus and mini-bus allowed for travel agents, trekking agencies, rafting agencies, starred hotels and resorts having permanent license  Only 5% customs duty shall applicable on the prescribed goods imported once by the star hotels or resorts as per approved scheme for hotel construction  Only 1% custom tax on aircraft, engines, and aircraft spare parts CUSTOM DUTY
  13. 13. TOURISM PROJECTS FOR INVESTMENT SPIRITUAL/ RELIGIOUS DESTINATION DEVELOPMENTS RECREATION TOURISM EDUCATION, SPORTS AND HEALTH TOURISM CIVIL AVIATION MICE TOURISM
  14. 14. DESTINATION DEVELOPMENTS BASED ON SPIRITUAL/ RELIGIOUS HERITAGE KHAPTAD HIGH-END LUXURY TOURISM PROJECT Sudurpaschim Province, Khaptad National Park Cable car, development of luxury high-end resort/hotel, sports and wellness activities, supporting infrastructure, regeneration, conservation and development. Estimated Project Cost: USD 187 million JANAKI HERITAGE HOTEL WITH CULTURAL VILLAGE PROJECT Province No. 2, Dhanusadham Municipality World-class luxury destination wedding heritage hotel, regeneration, conservation and development of religious area, and supporting infrastructure Estimated Project Cost: USD 19.92 million
  15. 15. DESTINATION DEVELOPMENTS BASED ON NATURAL HERITAGE (RECREATION TOURISM) SHEY PHOKSUNDO LUXURY RESORT Karnali Province, Shey Phoksundo A fully integrated and comprehensive 5-star resort Estimated Project Cost: USD 100 million TAL TALAIYA TOURISM PROJECT Province 1, Itahari Sub-metropolitan City Theme park with sports paradise, hotel with casino, museum, zoo, ethnic village, food court and supporting infrastructure, regeneration, conservation and development Estimated Project Cost: USD 41 million DREAMLAND DHULIKHEL PROJECT Province 3, Dhulikhel Municipality Theme park with sports paradise, hotel with casino, museum, zoo, ethnic village, food court and supporting infrastructure, regeneration, conservation and development Estimated Project Cost: USD 43 million DAMAULI MULTIPURPOSE PROJECT Gandaki Province Artificial lake and river management, spiritual and cultural themed amusement park, ethnic village / resort, convention and exhibition centre, integrated agriculture and allied industries, prime residential development Estimated Project Cost: USD 55 million FILM CITY PROJECT Province 3, Dolakha, Bhimeshwor Municipality (Area: 189 to 314 acres) Film shooting spaces, production and post- production services, tourism facilities, supporting facilities and further development Estimated Project Cost: USD 25 million
  16. 16. EDUCATION, SPORTS AND HEALTH TOURISM GAUTAM BUDDHA INTERNATIONAL MATERNITY HOSPITAL Province 5, Lumbini Sanskritik Municipality Hospital focused on maternity and wellness services Estimated Project Cost: USD 39 million DHULIKHEL MEDI-CITY PROJECT Province 3, Dhulikhel Municipality Education, health, sports and wellness, research and development, residence facilities, commercial centre and supporting infrastructure Estimated Project Cost: USD 25 million GANDAKI TECHNICAL UNIVERSITY Gandaki Province School of medical sciences, school of engineering and applied sciences, school of tourism and hospitality management, school of fashion designing and management, technical and vocational training institute, University research centre Estimated Project Cost: USD 61 million
  17. 17. EDUCATION, SPORTS AND HEALTH TOURISM DOLAKHA MOUNTAIN ACADEMY Province 3, Gaurishankar Rural Municipality or Sailung Mountain academy, development of hotels and residence facilities, mountain museum, cultural village, regeneration, and conservation, and supporting infrastructure Estimated Project Cost: USD 45 million SKI RESORT IN MANANG Gandaki Province, Manang Luxury resort, ski tow system (ski club), snow making system, and hiking and trekking trail Estimated Project Cost: USD 100 million
  18. 18. CIVIL AVIATION BIRATNAGAR REGIONAL INTERNATIONAL AIRPORT Province 1, Biratnagar Air transportation project with retail and business components Estimated Project Cost: USD 373 million DHANGADHI REGIONAL INTERNATIONAL AIRPORT Sudurpaschim Province, Kailali Air transportation project with retail and business components Estimated Project Cost: USD 258 million NIJGADH INTERNATIONAL AIRPORT Province 2, Bara Air transportation project with retail and business components Estimated Project Cost: USD 545 million (first phase)
  19. 19. MICE TOURISM NEPAL INTERNATIONAL CONVENTION AND EXPO CENTRE PROJECT Province 3, Madhyapur Thimi Municipality, Bhaktapur Convention hall, exhibition hall, business hotel, meeting spaces and business centre, supporting infrastructure and services Estimated Project Cost: USD 16 million
  20. 20. THANK YOU

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