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Published on : Friday, November 23, 2018
Overall FDI pledges have declined, but commitments in tourism have increased sharply with a booming hotel and casino industry pulling in financiers.
Figures published by the Department of Industry show that FDI commitments in the tourism industry of Nepal increased more than three and a half times to Rs3.28 billion in the initial four months of the fiscal year which started in mid-July comparison to the same period last year.
At the same time, FDI pledges dropped 28 percent to Rs6.48 billion overall in the first four months of 2018-19, according to Department of Industry data. Travel traders stated that a maximum of the investment pledges may have been made in the tourism industry with casinos topping the list.
“The investment pledges are obviously a good sign for the tourism industry at a time when the government has announced the Visit Nepal 2020 campaign with the aim of attracting 2 million visitors,” said travel trade entrepreneur Yogendra Sakya. “But the government should also implement its tall promise to ensure adequate infrastructure so that foreign investments are not ruined.”
Sakya also said that the private sector was all prepared with enough accommodation, but airports, roads and other infrastructure are still in a poor state. “The government has a big challenge to fulfill its promise.”
At present, investor eyes are on the development of the second international airport of Nepal in Bhairahawa. Even though, the government had declared that the new facility would be all set before the Visit Nepal 2020 campaign kicks off, travel traders are skeptical about the claim.