Following the government’s decision to recognize hotels as productive industries in the budget for Fiscal Year 2025/26, the Hotel Association Nepal (HAN) has urged Nepal Rastra Bank (NRB) to bring a monetary policy that offers incentives to support the sector.
As part of ongoing preparations for the upcoming monetary policy, a HAN delegation led by its President, Binayak Shah, met NRB Governor Dr. Bishwanath Paudel on Monday and recommended measures aimed at promoting the hotel and broader tourism industry.
The government has already announced plans to offer hotels the same benefits and exemptions as industries. Building on this, HAN has requested that the central bank classify loans to hotels as a special priority category and cap interest rates on such loans to no more than one percentage point above the base rate.
Shah stressed that appropriate policies in the upcoming monetary policy could significantly aid the growth and expansion of the hotel and tourism sector. He noted that hotels are currently operating at only one-third of their capacity, and many are struggling to service their debt. He urged the governor to allow hotels to repay principal and interest on loans under terms similar to those offered to special industries, based on their current financial condition.
HAN also called for the introduction of prepaid dollar cards or dollar credit cards, issued in the names of hotels, to facilitate easier payments according to their classification.
"Although tourists are permitted to bring up to US$5,000 into Nepal, under current rules they can only exchange up to US$300 at a time, which is insufficient for high-spending visitors," Shah said, requesting that this limit be increased.
With most hotel bookings now made through online platforms, including those used by Indian and Nepali citizens who pay in their respective currencies, HAN pointed out the challenge of paying platform commissions in US dollars. The association urged the central bank to resolve this issue.
Shah also highlighted that many Nepali companies promoting hotels through overseas branches face difficulties in foreign exchange transactions, and called on the central bank to authorize such transactions.
In addition, HAN requested low-interest loans to support the import of electric vehicles used in hotels and electric kitchen appliances, which contribute to reducing carbon emissions.
According to HAN, hotels that are not registered or renewed with the Department of Tourism are currently unable to obtain foreign exchange permits from the central bank. Some star-rated hotels have remained operational despite their registration lapsing, and as a result, they have been denied access to foreign currency facilities.
HAN also raised concerns regarding cybersecurity, noting that foreign tourists are able to fill out online visa applications but are unable to make payments in foreign currency. "We would like to draw the central bank’s attention to this issue as well," Shah said.
