--By Eliza Tuladhar
All is not well with the country’s only tourism promoting body Nepal Tourism Board (NTB), recognised as the best institution under Public Private Partnership (PPP) model. The ongoing conflict between tourism entrepreneurs and NTB has questioned the NTB’s reputation as an exemplary PPP model. The NTB is a statutory body instituted through parliamentary Act to function as model agency for the development, branding and promotion of Nepali tourism in national and international market by adopting
PPP approach.
NTB was considered an example even in South Asia for its strong PPP model. However since the beginning of May it is suffering with a number of negative issues raised by tourism entrepreneurs. Joint Tourism Coordination Committee (JTCC), a common forum of tourism related Nepali associations, took over the issue regarding financial irregularities within the NTB and its ineffective management. JTCC has announced series of protest programme demanding formal investigations. Under this, it recently organized a six-day long relay hunger strike within the NTBB premises.
Relations between NTB and tourism entrepreneurs turned sour after NTB announced the three-day 6th National Tourism Fair without consulting the private sector stakeholders. The event, slated to start from May 2, was vehemently opposed and subsequently cancelled. But this did not stop there.
The private sector actors took the case to the root and came up with plans that they think will troubleshoot problems within the Board. "We have put forward three demands. The government should scrap the appointment of Subash Nirola as the acting chief executive officer of the board, private sector should be involved during NTB’s financial audit and changes must be made in the NTB structure and its PPP model,” a JTCC member said on condition of anonymity. Tourism entrepreneurs accuse NTB of continuously ignoring the role of the private sector in tourism development. Tourism industry related 25 associations are backing the JTCC campaign.
NTB’s executive committee had appointed Subash Nirola, one of the 12 applicants for the post, as the acting CEO in July last year after the appointment process got mired in legal hassles and conflicting interests and kept the Board headless for nearly 21 months.
Tenure of Prachanda Man Shrestha, the erstwhile CEO of NTB, had expired on October 31, 2011. Nearly a month later, the tenure of the board members also expired. But a selection committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) instated an executive board later.
Now private sector stakeholders through JTCC have opposed Nirola’s appointment to the post. However, Nirola claims that the ongoing protest has only created nuisance and questioned the NTB’s reputation as an example of PPP model. He slammed the private sector protests claiming it to be “Height of unprofessionalism, which is quite unexpected.” He opined that, “People can make queries, if needed. But they should come through formal channels, not through agitation. It will tarnish our status in the world market.”
MoCTCA has shown willingness to address JTCC’s demands but has its own riders for that. “JTCC has asked us to make institutional appointments and we are positive towards it. We can arrange meeting and can make mutual agreements,” said Mohan Krishna Sapkota, joint secretary at MoCTCA. He says that the Ministry is ready to make arrangements if the five private sector representatives in NTB’s executive committee are ready to resign and to revise the executive committee member selection from their institutional appointments.
The issue was taken to the Prime Minister’s attention. JTCC while submitting its memorandum to Prime Minister Sushil Koirala, has requested formal investigations into the said irregularities within NTB and revoking Nirola’s rights and authorities.
JTCC recently closed down NTB’s Trekking Information Management System (TIMS) card counter and issued a white paper on anomalies allegedly perpetrated by Nirola. Trekking Agencies Association of Nepal (TAAN) claims that the white paper pointed the contradiction between NTB’s amended Financial Bylaws and the Public Procurement Act (PPA) 2007. The Bylaws allows the CEO to spend up to Rs 10 million at a time for tourism promotion activities inside the country and four million US$ at a time outside the country without following the procedures prescribed by the Public Procurement Act.
Secondly, it allows NTB to procure goods and services worth up to Rs 2.5 million without inviting tender. This contradicts PPA’s directive for offices to ask for quotation while purchasing any goods worth more than Rs 1 million. Thirdly, the Bylaws restrict auditors from working independently and empower the CEO to direct them. Prior to this, auditors could audit independently and submit report to the executive committee. Besides, Nirola is also accused for freezing NTB’s bank accounts maintained at Nepal Investment Bank and Nabil Bank and operated by NTB Director Nandini Lahe Thapa.
This rift between the NTB and private sector, while pointing out to the need of making serious revisions in the existing PPP model, has exposed the anomalies within the existing PPP model. Unless necessary changes bridge the gap between the public and private organisations, the PPP model will remain in papers, opine tourism entrepreneurs.
Joint Tourism Coordination Committee Members
• Ramesh Dhamala – president - Trekking Agencies Association of Nepal (TAAN)
• C.N Pandey – vice president – Nepal Association of Tour and Travel Agents (NATTA)
• B.K Shrestha – president – Hotel Association Nepal (HAN)
• Ang Tshering Sherpa – president – Nepal Mountaineering Association (NMA)
• Chandra Dahal – president – Nepal Association of Rafting Agencies (NARA)
• Suman Pandey – president – Pacific Asia Travel Association – Nepal Chapter (PATA)
• Ashok Pokharel – president -- Nepal Association of Tour Operators (NATO)
• Shanta Kumar Subba – president – Himalayan Rescue Association (HRA)
• Damber Parajuli – president – Expedition Operators’ Association of Nepal (EOAN)
• Shiva Lamichhane – president – Village Tourism Promotion Forum(VIT OF) Nepal
• Ram Sharan Thapaliya –president – Thamel Tourism Development Committee
• Dal Bahadur Adhikari – president – Tourism Service Committee
• Surya Bhujel –president – Pokhara Tourism Development Council
• R.K Pradhan – president -- Association of Kailash Tour Operator
• Rajan Bhujel – president – Nepal Tourist Bus Association
• Ram Saran Karki –president -- Nepal Tourist Vehicle Association
• Deepak Mahat – president – Nepal National Tourism Entrepreneurs’ Association (NEAT) - Nepal
• Pasang Sherpa – general secretary – Nepal National Mountain Guide Association
Source: TAAN