By Kokila Dhakal
Ilam, May 26: It has been two months since the government imposed nationwide lockdown due to increase in cases of COVID-19. However, the extension of lockdown has widely affected the hotel sector.
In Ilam, many hotels were opened targeting Visit Nepal 2020. Hoteliers had invested millions of rupees expecting increase in tourism.
But they are now worried about saving their investment as the lockdown, which begun suddenly, shows no sign of ending.
Som Sunuwar had started Dreams Hotel in Ilam Municipality since last year by taking a house on rent. Sunuwar had invested around Rs 2 million in the hotel and has to pay Rs 61,000 per month for rent.
“It was supposed to be a season of tourists. We invested hoping for tourists in large number but now the hotel has been shut due to the lockdown. It is not only about the investment but with zero income it is hard to pay the rent,” said Sunuwar.
Many hoteliers in Ilam share similar plight. They are struggling for the expenses which they need to pay despite the lockdown.
“For the past two months, our hotels have remained shut. There are no guests but the expenses – such as rent, electricity and water bill and salary of workers – still need to be paid,” said Bijaya Rai, a hotelier.
Rai has been involved in hotel business for more than a decade. The rent for the hotel operated by Rai is Rs 100,000 and the expense is much higher when workers’ salary and other bills are added.
“The recently introduced policy and programme of the government have not embraced hotel and tourism business as much as it needs to be. We are in one of the most difficult situations,” said Rai.
There are around 450 hotels in Ilam among which more than a dozen started recently expecting more tourists due to Visit Nepal 2020 campaign.
According to Hotel Association Ilam, around Rs 250 million to Rs 300 million was invested in hotel sector in the recent period.
“Every hotel was earning properly until the lockdown began. The total earning in a day by hotel sector had reached around Rs 2 million. But now, there is no chance that the investment can be recovered as the hotel and tourism sector has totally collapsed,” said Devi Poudel, chairman of Hotel Association Ilam.
As per the hoteliers, it would still take months for hotels to operate properly even if the lockdown was lifted.
“Since the lockdown seems likely to extend longer, we request the government to provide discount in tax and rent. If there is no package of relief for hoteliers, hotel sector will face a huge loss. Government needs to take some step to help us,” said Poudel.
Around 165,000 tourists had visited Ilam last year and the hoteliers had expected the number to reach 250,000 this year. The number of tourists visiting Ilam and returning within a day is far more, as per Tourism Information Centre situated on the border of Ilam and Jhapa.
Do not make expressions casting dout on election: EC
14 Apr, 2022CM Bhatta says may New Year 2079 BS inspire positive thinking
14 Apr, 2022Three new cases, 44 recoveries in 24 hours
14 Apr, 2022689 climbers of 84 teams so far acquire permits for climbing various peaks this spring season
14 Apr, 2022How the rising cost of living crisis is impacting Nepal
14 Apr, 2022US military confirms an interstellar meteor collided with Earth
14 Apr, 2022Valneva Covid vaccine approved for use in UK
14 Apr, 2022Chair Prachanda highlights need of unity among Maoist, Communist forces
14 Apr, 2022Ranbir Kapoor and Alia Bhatt: Bollywood toasts star couple on wedding
14 Apr, 2022President Bhandari confers decorations (Photo Feature)
14 Apr, 2022