January 5: The Tourism and Aviation Committee of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) has requested the Minister for Law, Justice and Parliamentary Affairs Dhanaraj Gurung to classify the hotel industry as an industry of national priority.

The committee requested the minister to provide this sector with the services and facilities given to industries of high priority arguing that the hotel sector has made heavy investment and provided employment opportunities to a large number of people.

A delegation led by the Vice President of FNCCI Hemraj Dhakal and the President of the Tourism and Aviation Committee of FNCCI Desh Bandhu Basnet said that the hotel sector, which makes a special contribution to the economy, is the pride of the nation.

Such a vital sector has been classified as only tourism business in the Industrial Enterprises Act 2076, said the delegation urging the government to consider the hotel industry as an industry of national priority in the coming days.

Likewise, the delegation has also drew the government’s attention towards the downside of the Foreign Investment and Technology Transfer Act 2075 which does not allow foreign brands to take away more than 5 percent of the total sales.

The federation argued that the current provision in the Act allows foreign brands to take royalties not exceeding 5 percent of the total sales, making it difficult for international hotel resorts to operate in the country. The delegation has requested the government to facilitate this issue immediately.

Desh Bandhu Basnet, president of the Tourism and Aviation Committee of the FNCCI, had earlier prepared a report based on the suggestions from various associations and organizations related to the hotel business and submitted a memorandum to the Ministry of Industry, Commerce and Supplies.

As per the request, the Ministry of Industry had taken a ministerial-level decision in early November to amend the law in order to solve the problem of royalty. In addition, the Ministry of Industry wrote a letter to the Ministry of Finance on December 17, seeking for its opinion to include star hotels as priority industry in the Industrial Enterprises Act.