Entrepreneur fears the possibility of unhealthy competition among hotels to attract limited customers


31st Jul, 2020 | Tourism Mail Crew


KATHMANDU, July 31: The hotel and restaurant business has come into operation four months after the lockdown imposed by the government for the prevention and control of Covid-19. Entrepreneurs have said that there is a possibility of unhealthy competition among the hotels as the number of customers will be less even after the resumption of flights. 

Hoteliers have said that there is a problem in running the hotel even though the government has allowed the tourism sector to run smoothly. Entrepreneurs have said that there is no point in operating a hotel unless international flights are operated as the customers of star hotels are foreign tourists. Businessmen are worried that there will be no customers in the hotel as tourists are less likely to come even after the operation of international flights. Entrepreneurs have said that the government should spread the message in international market that the risk of Covid 19 infection in Nepal is low, to increase the number of tourists. Businesses have said that there may be competition between five-star hotels to attract tourists to their hotels as some tourists may come after the resumption of international flights. Hoteliers also say that there is a possibility of unhealthy competition among hotels to attract limited customers.

 Hotel Association Nepal President Shreejana Rana said there was a possibility of unhealthy competition among five-star hotels in terms of their charges. Rana said that unhealthy competition in hotel rates would ruin Nepal's hotel sector. She said that reducing the rates to attract customers would affect the hotel sector in the long run. She said that the quality of the hotel and the service should not be weakened. "Due to the risk of Covid 19 infection, it is not possible to run the hotel at full capacity due to which there will be increase the operating cost of the hotel. Therefore, there is a possibility of unhealthy competition among the hotels to raise the expenses," she added.

Vice President of Soaltee Hotel Sudarshan Chapagain said that there is a possibility of reduction in hotel facilities due to unhealthy competition among hotels. Chapagain said that if the government could give instructions to the hotels by setting minimum standards, there would be less unhealthy competition. Similarly, Chapagain stressed on the need for the government to make policy arrangements so that even three-star hotels can survive from domestic tourism as there are many levels of hotels. He said that there should be special discount on demand charges for electricity to reduce the operating cost of such hotels.