KATHMANDU: The Hotel Association Nepal (HAN), the umbrella organization of hotel entrepreneurs in the country, has welcomed the government’s budget estimates for the fiscal year 2025/26, describing them as favorable for the tourism and hospitality sector.
HAN expressed appreciation for the government’s decision to grant income tax and electricity tariff exemptions to hotels and resorts on par with manufacturing industries.
The Association stated that this fulfills a decades-long demand and reflects long-overdue recognition of the hotel industry’s contribution to the national economy.
The Association also praised budgetary initiatives aimed at extending tourist stays and increasing their spending.
It highlighted the government’s plans to develop additional tourist destinations and promote various forms of tourism—including adventure, religious, cultural, film, health, and sports tourism—particularly in border regions, as a positive step.
Furthermore, HAN commended the inclusion of projects to establish welcome and service centers at border checkpoints, as well as the development of evening heritage trails at UNESCO-listed sites such as Swayambhunath, Hanuman Dhoka, Pashupatinath, and Boudhanath. It also welcomed the focus on building safe eco-tourism trails at key tourist locations across the country.
The Association noted that the government’s move to allow tourists entering Nepal by air or land to bring foreign currency equivalent to up to five thousand US dollars for exchange within the country would significantly enhance convenience and increase their spending capacity.
HAN further stated that the budget strengthens the foundation for developing tourism through economic diplomacy, in collaboration with the private sector and non-resident Nepalis, and supports the use of modern technology in tourism promotion.
However, it also pointed out that the continued imposition of a 2 percent luxury tax and 13 percent value-added tax on airfares has made domestic tourism services more expensive and less competitive.
While acknowledging the budget’s goal of involving the private sector in branding Nepal as a safe and reliable tourist destination, HAN emphasized the importance of expanding existing infrastructure, improving service quality, and launching effective marketing campaigns.
The Association expressed hope that the private sector would be encouraged to invest more in tourism development and take a leading role in international promotion efforts, especially targeting key markets like India and China.
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