Opening of Hilton Kathmandu: What is everyone so happy about??
The opening of this international brand in Nepal undoubtedly is a big thumbs up for Nepal's tourism brand. It will surely create positive ripple effects on investor mindsets and bring some desperately needed confidence to Nepal's tourism sector.
However, people, particularly Nepalis seem to be clapping a lot more than the occasion warrants.
While this development is a step forward, it’s important to delve deeper into the current state of #Nepal 's #tourism and #hospitalityindustry.
Here are some grassroot challenges to kill your mood:
1) Increasing Indian dominance:
Due to Nepal's criminal tourism policy, the country’s tourism industry has been gravely dependent on Indian businesses for financial services. Wickedly plotted laws severely constricts dollar trade in Nepal, and illogical tourism tax systems have led Nepali tourism SMEs, to rely heavily on Indian counterparts for smoother financial transactions.
This dependency has instigated Indian businesses with easy financial channels to colonise Nepalese tourism market. Since the pandemic, Indian businesses have not just been playing the middleman game; but they have been encroaching at an increasing rate into the vulnerable Nepali tourism market.
On paper, Nepal has strict immigration laws which doesn't even allow dual citizenships. On paper, Nepal has healthy foreign investment laws that protects Nepalese interests in the market. However, with laughable justice system and weak rule of law, immigration and changing nationality or finding loopholes around business laws are initiatory, regular and easy in Nepal.
As a result, in practice, anyone from anywhere in the world can have full access to Nepali market. Supporting examples- increasing Russian activities in KTM, bustling counterfeit/smuggling market and the Indian colonisation.
Nepal's tourism industry has long been reliant on Indian businesses for financial transactions due to restrictive laws on dollar trade and a complex tax system. This dependency has allowed Indian companies to gain substantial influence over the Nepalese tourism market, particularly in the travel sector. The expansion of Indian businesses into Nepal is reshaping the market dynamics, often at the expense of local entrepreneurs.
2) Impact of Brain Drain now visible:
Generational mass emigration of Nepali youths is beginning to show disruptive consequences. The upper echelon of management in most high-end hospitality houses in Nepal are predominantly foreigners. It is slowly getting harder for leftover Nepali talents to find a job in Nepali tourism industry and especially so in executive positions because of this foreign dominance.
The emigration of Nepali youth is beginning to show tangible impact in the local workforce, particularly in high-end hospitality management, where foreign professionals predominantly hold leadership positions. This recruitment trend limits opportunities for Nepali youth within their own country’s tourism industry.
3) Ownership and Financial Practices:
While it’s exciting to see new players like Hilton in the market, it's important to note that such international chains often have complex ownership structures. Given Nepal's weak implementation of laws and lack of evolution of business laws itself, it is questionable whether these international chains have real impact on the local economy.
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Hilton Kathmandu is owned by Sanker Group whose chairman is Shanker Lal Agrawal. In a sensitive world of political correctness, the word “racism” can be used as a weapon. I must clarify that I, Rakshit Khadka in all consciousness am not trying to implicate Shanker Lal Agrawal, Sanker Group and all its subsidiaries in anything or associate them with above viewpoints.
I did find a news article however, on the internet from May 1, 2020, about something to do with Shanker Group and money laundering.
4) Marketing Claims and Reality Check:
Hilton Kathmandu’s PR keeps highlighting that Hilton is the tallest hotel in Kathmandu, from which visitors can see the Himalayas, and that it is a very short distance away from Kathmandu’s tourist centre, Thamel and the airport.
Nobody can see the Himalayas from anywhere in Kathmandu these days. Kathmandu is the world’s most polluted city, with an orange haze covering it nine months of the year. The only time Kathmandu’s air is clear is during monsoon, at which point the Himalayas hide behind the clouds. The pollution is a direct result of India and China’s industrial irresponsibility, exporting potent industrial pollution rich in PM 2.5 particles directly linked with cancer. Kathmandu’s life expectancy has diminished by seven years in recent years, and the Terai belt’s has decreased by ten.
Thamel is a ghost town and Kathmandu airport just past week fulfilled its yearly quota for deaths and plane crashes.
Due to absence of any support from Nepal government, all SMEs in Thamel, have yet to recover from the 2015 earthquake, let alone the Covid-19 pandemic and the subsequent global economic disaster. Due to unchecked housing market in Kathmandu, contradicting available economic opportunities, Thamel is a desert of many closed shutters and many To-Let signs.
Despite repeated warnings from ICAO and the EU, Tribhuvan International Airport administration is comfortable with its subpar organizational standards, as overhauling the system would disrupt its organizational corruption mechanisms. This corruption culture results in cutting corners on safety, security, training, management and service quality. As a result, Kathmandu is in international news like clockwork every year for one aviation disaster or the other.
Conclusion:
While we Nepalese celebrate the entry of international brands like Hilton, our celebrations are empty and ironical. The painful reality is that Nepal is stagnant nation with its once enchanting tourism brand image now decaying into traffic jams in Everest, disrespecting women guests by Instagram influencers, unsafe skies, insurance frauds, incompetent customer service and pollution.
It is essential for stakeholders in Nepal's tourism sector to address these underlying challenges. Strengthening local businesses, improving financial policies, and fostering an environment that supports homegrown talent are pressing issues for a sustainable and innovating tourism industry.
Stop clapping too much and get to work.
Rakshit Khadka is a community member at Béyul.
Béyul is a destination development social enterprise. We are a group of young leaders utilizing tourism to create opportunities for the indigenous people of Nepal. If you like our ideas please support our operations at: https://www.gofundme.com/f/launch-a-revolutionary-startup-for-nepal
Sustainable - Indigenous Tourism researcher / consultant
6 个月I had this a few months earlier. The dichotomy of two, what is tourism for?
Higher Education| Research & Consultancy | Quality Assurance | Learning & Development
7 个月It is an interesting article, thanks for sharing. As someone who shares much love to Nepal and Nepali, it is sad to see some of your comments. By no means, I question them. But there is also another, much more positive perspective to what you have shared in the article. Firstly, there is nothing wrong the hotel itself. Hilton is the brand, and as such, the hotel is subject of a franchise agreement. While I share your concerns about foreign ownership and foreign influence in politics (btw, if you thin this is a problem in Nepal, you need to look at much more 'developed' Western economies and you may change your mind), any investment in principle has positive aspects, too. Secondly, I take your point about the 'brain drain'. However, in my opinion, Nepal and many hotel/tourism schools are doing a great job in training thousands of people who easily find jobs outside Nepal. The workforce is young and any international experience is only a plus. One day, those people will come back to Nepal with much more experience and expertise. And for them, it will be much easier to occupy the management positions. Stay positive! My prayers are with Nepal and Nepali people ??