Tourism sector reeling after EU's blacklisting

The tourism sector is showing direct signs of the impact of blacklisting of the Nepali aviation sector by the European Union (EU). The tourism entrepreneurs and stakeholders enthusiastic due to the advent of political improvement are now disappointed after the blacklisting.   Tourist arrival has fallen more than expected as EU has not delisted Nepal even after completing audit of the Nepali aviation sector. EU had banned Nepali airlines companies from operating flights in countries under it on December 5, 2013. The EU team that visited Nepal after that had done auditing of airlines companies like Buddha, Yeti, Tara, Sita, Nepal Airlines Corporation (NAC), and the Civil Aviation Authority of Nepal (CAAN). But an NAC Twin Otter flying to Jumla from Pokhara had crashed killing 18 persons including three crew members immediately after the team had returned back. Booking for trekking, tour, and even those going to the upper regions are being cancelled after blacklisting of Nepal while the number of tourists going to Lukla has also fallen significantly. “The tourists have now started to cancel booking for places where one has to fly, and are now booking for places one can drive to. Adverse impact will be visible more everywhere from the next year as the last year’s routine is being followed now,” Promoter of Malla Tours and Travels Subodh Rana stated.

Impact on insurance

The big insurance companies of America and Europe have stopped insuring tourists coming to Nepal, and are charging a high premium even if they do. This has a big impact on tourism sector. “The agents are blaming blacklisting for that. I feel this will destroy the Nepali tourism sector,” Vice President of the Airline Operators Association of Nepal (AOAN) and immediate past president of the Nepal Association of Travel and Tour Agents (NATTA) Pabitra Karki stated.

Efforts for insurance from Nepal fail

The efforts of tourism entrepreneurs to get the tourists insured through Nepali companies, after refusal by reinsurance companies, failed. The entrepreneurs had tried to move the process forward by holding discussions with Shikhar Insurance Company and others in Nepal through the agents. But the tourists have refused to do insurance through Nepali companies, according to Karki.

Tourists to Lukla fall  

The Lukla Airport that used to be extremely busy during this time sees hardly 20 flights a day now. While NAC, Sita, Agni, Tara and around half a dozen helicopter companies used to operate flights to Lukla in previous years, only Tara and Simrik are operating flights to Lukla this year. Tara, that used to operate 25-30 flights a day earlier, is now limited to 10-15 while Simrik is hardly operating five. “There has been a massive fall  in the flights to Lukla. We are only operating up to five flights a day,” Market Manager of Simrik Prajwal Pokharel said.  Karki, who is also promoter of Dynasty Air, stated that all helicopter companies are now focusing elsewhere in lack of tourists going to Lukla. “We used to operate dozens of flights daily but it is negligible now. Even the bookings done earlier are being cancelled,” he added.

Tourist arrival falls

There has been a massive fall in arrival of tourists coming for trekking and tour. Though there is no accurate data, the entrepreneurs claim that it has fallen by more than 50 percent. They argue that the expensive air fare and blacklisting by EU are to blame for the fall in tourist arrival. Though up to 90 percent of hotel rooms used to be booked for the current season in past years, hardly 35 percent of rooms have been booked this year, according to the Hotel Association of Nepal (HAN).

Agencies revealed that the number of tourists going to Everest, Annapurna and Mustang regions for trekking has also decreased. “Blacklisting brought black days even to trekking and tour business. The hotels used to be booked completely by now in previous years. But it is not even 50 percent this year,” General Manager of Shangrila Hotel Raju Bikram Shah said.