KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Hotels open but customers yet to arrive
Hotels in Sauraha, the main gateway to the Chitwan National Park, opened since the government lifted the lockdown but are yet to receive any guests.
Soon after the hotels opened, movement of people was seen but residential guests have not yet arrived. Though foreign tourists were not likely, the entrepreneurs had expected to receive domestic tourists, said outgoing chair of Regional Hotel Association, Sauraha Suman Ghimire.
“Three rooms of my hotel had been booked after we announced resumption of service, but the bookings were later cancelled,” said Ghimire who runs the Jungle Safari Lodge.
Other hotels who resumed service are also facing the same situation. Hotel entrepreneurs are now looking forward to the resumption of long distance public transportation and aviation service announced for August 17.
“We will have to shut down our businesses if guests do not turn up after August 17,” said president of Restaurant and Bar Association Chair Dipendra Khatiwada.
Export of cash crops declines
The export of the cash crops as cardamom, tee and ginger which used to be exported a lot witnessed decline in the last fiscal year.
Decreased production and problems in export resulting in the decline in products’ sale to foreign countries, according to those observing agriculture sector.
As per the data produced by the Foreign Trade Promotion Center, the cash crops export decreased in 2076/77 as compared to the previous year.
However, the export of medicinal herbs was increased slightly, thereby contributing to income. In 2076/77, Nepal exported 5.1 million kilograms of cardamom while it had exported 5.2 million kg in the previous year.
Central Secretary of Cardamom Entrepreneurs’ Federation, Matrika Ghimire, informed that the major reason behind the decline in export of the spice is unstable market and unfavorable commerce policy in addition to low products.
Similarly, 11 million kilograms of tea made foreign sale in 2076/77 BS while it was 15 million in the previous year. The decline was because of the dispute on tea quality and unreliable market in India for tea, it is said.
The income from tea export was Rs 3.782 billion in fiscal year 2075/76 and Rs 3.203 billion in fiscal 2076/77.
43 percent declination in CAAN’s income; Rs 41.1 billion allocated for current FY
The income of the Civil Aviation Authority of Nepal (CAAN) saw a massive decline of 43 percent in the last fiscal year 2019/20.
The passenger service charge (PSC), landing, parking, navigation and rent, among others, are the main regular sources of income for CAAN.
With the suspension of scheduled flights to and from the Tribhuvan International Airport (TIA), Nepal’s sole international airport, CAAN’s income has declined.
According to the annual progress report of CAAN for the fiscal year 2019/20, the authority had projected to earn Rs 10.54 billion but secured only Rs 5.96 billion in the last fiscal year.
CAAN had planned to collect Rs 8.33 billion from regular earnings and Rs 2.21 billion from airport development charge but it collected only Rs 4.61 billion and Rs 1.34 billion, respectively.
As the air service remains closed since the country went into lockdown on March 24, CAAN has been unable to collect the expected revenue from TIA. Alongside, CAAN has allocated Rs 41.1 billion for the current fiscal year 2020/21.
Businesses, industries likely to get one-third waiver on insurance premium during lockdown
Businesses and industries will probably receive one-third of waiver on the premium of insurance policies during the lockdown imposed by the government to combat the spread of coronavirus.
A meeting between the Beema Samiti, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries and Nepal Insurers Association agreed on providing a 35 percent waiver on the cost of insurance coverage of their businesses during the nearly four-month lockdown that was in place between March 24 and July 21.
However, non-life insurance companies will be providing a waiver on the insurance premium only after Beema Samiti- the insurance regulatory authority-issues a circular to this effect.
(Compiled and prepared by Nitish Lal Shrestha)
Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.
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