January 6: The government is preparing to amend the Hotel, Bar, Lodge, Restaurant and Tourist Guide Regulation 2038 after four decades. 

The amendment has proposed renewal fee for hotels for the first time while they will also need bank guarantee for renewal of their operating license.

This provision was included following severe criticism for exempting hotels, which make income in millions, from renewal fees at a time when tourist guides who make a meager income have been paying renewal fee for their license.

The Department of Tourism has already forwarded the amendment proposed to the Ministry of Culture, Tourism and Civil Aviation. 

At present, hotels do not need to pay any renewal fee since the existing regulation was introduced to promote hotel business in Nepal.

Hotels will now mandatorily need a bank guarantee worth Rs 2.5 million and pay Rs 100,000 annually for renewal of their operating license after the amendment of the regulation.