Ministry of Commerce And Supplies - Enhanced Integrated ...
Ministry of Commerce And Supplies - Enhanced Integrated ... Ministry of Commerce And Supplies - Enhanced Integrated ...
N T I S2010Constraints in the tourism sector exist in the form of immigration laws, documentation requirements,restriction on currency movement, lack of transparency, and policies that work as a disincentive for specificdestinations. The section below describes the barriers to export of tourism services.Barriers to Tourism ServicesRegulatory Barriers: Nepal opened travel agency and tour operator services for foreign investment up to 51 per cent foreignequity under its WTO Schedule of Commitments. This has yet to be put in practice owing to the lack ofa domestic regulation to abide by the WTO commitments; The lack of capital account convertibility is a constraint. Tourism promotion abroad requires largeexpenditures and people with international linkages, which are made difficult possibly due to the lackof capital account convertibility. Also, Nepalese traveling abroad are allowed to exit the country withonly US$2000; The Hotels and Restaurants Act 2038 (1981), formulated 30 years ago, remains in place and needsrevisions. For instance, the Act does not include provisions for opening hours of bars, dance clubs, andrestaurants; TIA, Nepal’s only international airport, closes at 12.30pm, putting pressure on daytime air traffic;International Market Access Barriers: Though China approved Nepal as a tourist destination in 2001, only three agencies in China providetravel services to Chinese wishing to visit Nepal, hindering the free flow of Chinese tourists;Domestic Barriers to Market Development Pokhara, the second city for foreign visitors, is to be strengthened as a tourism destination. However,the development of a regional international airport cannot materialize without support from donoragencies; The high ground handling charges and high fuel cost at TIA force large airlines to refuel outside Nepal; The lack of sufficient airport infrastructure and associated facilities at TIA needs to be addressed byinvolving the private sector; Though Nepal has 54 local airports, which is a good number for such a small country, quality of manyof the facilities is a problem; The very high mountaineering royalty charged by the GoN for climbing Mt Everest, (US$50,000) ispushing parties to climb Mt Everest from the Chinese side. Also, if one goal is to diversify and lowerthe pressure on Mt Everest, the Government needs to lower the royalties for climbing other Nepalesepeaks; Nepal has failed, thus far, to mobilize and involve foreign missions, Nepaliesenon-residents anddiaspora for more aggressive marketing of Nepalese tourism.Institutional Barrier: The Service Enquiry Point established under the WTO Division of the MoCS is acting as the coordinatingbody of the services sector in Nepal, which is being represented by 17 ministries or agencies at present.However, the enquiry point is not functioning effectively for lack of necessary human resources,equipment, and proper mandate and work plan;NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT217
N T I S2010Human Resource Barriers: Though there are various institutions and training centres producing tourism manpower in Nepal, thesector still shows a shortage of qualified professionals. Part of the problem has to do with the braindrain of qualified manpower. However, more training institutions are needed to meet this gap; Labour relations in the sector are an issue from time to timeIT and BPO ServicesThe importance and potential of IT and BPO services is understood in Nepal by now, especially in a countrythat shares borders with two ICT giants. Technology transfer, innovation/incubation, offshore destination forBPO are among the few avenues where Nepal can prove its competence.Regulatory FrameworkThe Telecommunication Act 1997, which led to the creation of the Nepal Telecommunication Authority, theIT Policy of 2000 (revised 2004), the Electronic Transaction Act 2006, the establishment of the High LevelCommission of Information Technology (HLCIT), and the liberalization of the telecommunication sector havecreated the foundations for the growth of this sector.The liberalization measures taken by the Nepal Telecom Authority in 1998 and the enactment of the TelecomPolicy of 1999 have facilitated entry of new businesses into the telecom sector, increasing the number ofmobile service providers, internet service providers, and email service providers for instance.Developments in this sector include the optical fibre backbone that has been laid across the East-Westhighways of Nepal, licence fee-free Wi-Fi connectivity, and the ability to leverage its optical fiber connectivityto establish a transit communication route between China and India. And yet, despite these developments,Nepal ranks 132nd out of 133 nations surveyed by the World Economic Forum in 2009 for its technologicalreadiness index. This shows the progress Nepal has yet to make if it is to achieve its goal of becoming a worldclass IT services provider.The GoN has shown its commitment for the growth of this sector also by taking on liberal commitments underGATS, as shown in Table 10.2.218NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT
- Page 180: N T I S2010improve efficiency. Few
- Page 183 and 184: N T I S2010Figure 7.1Future Organog
- Page 185 and 186: N T I S2010EU countries, special pr
- Page 187 and 188: N T I S2010Act 1980. So far, 130 fi
- Page 189 and 190: N T I S2010The current projects inc
- Page 191 and 192: N T I S2010The NBSM as a secretaria
- Page 193 and 194: N T I S2010Many more organizations
- Page 195 and 196: N T I S2010Table 7.8Existing Nepal
- Page 197 and 198: Table 7.9Standards Issues for Ten E
- Page 199 and 200: N T I S20107.14 Priority Actions an
- Page 201 and 202: N T I S2010It is not clear what amo
- Page 203 and 204: N T I S2010GeneralNepal’s general
- Page 205 and 206: N T I S2010a crucial part of the PR
- Page 207 and 208: N T I S2010residue limits (MRLs) ar
- Page 209 and 210: N T I S2010The viral diseases chirk
- Page 211 and 212: N T I S2010SPS issues Affecting Tra
- Page 213 and 214: N T I S2010Indian phytosanitary sta
- Page 215 and 216: N T I S20108.5 Conclusions and Reco
- Page 217 and 218: N T I S2010Simpler requirements suc
- Page 219 and 220: Table 8.4Summary of Export Environm
- Page 221 and 222: N T I S2010To register a patent, a
- Page 223 and 224: N T I S2010breaches of law. The Nep
- Page 225 and 226: N T I S2010Intellectual Property is
- Page 228 and 229: Chapter 10Barriers to Service Trade
- Page 232 and 233: N T I S2010Table 10.2Nepal GATS Com
- Page 234 and 235: N T I S2010locations favourable for
- Page 236 and 237: N T I S2010Barriers to Exports of H
- Page 238: N T I S2010Institutional IssueThe s
- Page 241 and 242: N T I S2010 Strengthening sub-natio
- Page 243 and 244: N T I S2010Observations from enterp
- Page 245 and 246: N T I S2010Nepal Ginger Producers a
- Page 247 and 248: N T I S2010 Helping paper manufactu
- Page 249 and 250: N T I S2010Computer Association of
- Page 251 and 252: N T I S20105. Also related to the a
- Page 253 and 254: N T I S2010The key principles inclu
- Page 255 and 256: N T I S2010That being said, Nepal h
- Page 257 and 258: N T I S2010Nepal Business ForumOn M
- Page 259 and 260: N T I S2010Third, capacity developm
- Page 261 and 262: N T I S2010expected to emerge from
- Page 263 and 264: N T I S201012.7 Possible Options fo
- Page 265 and 266: N T I S201012.8 RecommendationsThe
- Page 267 and 268: N T I S2010GoN / MoF (2009), Econom
- Page 269 and 270: N T I S2010Thapa, Ajit N.S. (2006).
- Page 272 and 273: N T I S2010NEPAL TRADE INTEGRATION
- Page 274 and 275: N T I S2010MainOutcomes Recommended
- Page 276 and 277: N T I S2010MainOutcomes Recommended
- Page 278 and 279: N T I S2010MainOutcomes Recommended
N T I S2010Human Resource Barriers: Though there are various institutions and training centres producing tourism manpower in Nepal, thesector still shows a shortage <strong>of</strong> qualified pr<strong>of</strong>essionals. Part <strong>of</strong> the problem has to do with the braindrain <strong>of</strong> qualified manpower. However, more training institutions are needed to meet this gap; Labour relations in the sector are an issue from time to timeIT and BPO ServicesThe importance and potential <strong>of</strong> IT and BPO services is understood in Nepal by now, especially in a countrythat shares borders with two ICT giants. Technology transfer, innovation/incubation, <strong>of</strong>fshore destination forBPO are among the few avenues where Nepal can prove its competence.Regulatory FrameworkThe Telecommunication Act 1997, which led to the creation <strong>of</strong> the Nepal Telecommunication Authority, theIT Policy <strong>of</strong> 2000 (revised 2004), the Electronic Transaction Act 2006, the establishment <strong>of</strong> the High LevelCommission <strong>of</strong> Information Technology (HLCIT), and the liberalization <strong>of</strong> the telecommunication sector havecreated the foundations for the growth <strong>of</strong> this sector.The liberalization measures taken by the Nepal Telecom Authority in 1998 and the enactment <strong>of</strong> the TelecomPolicy <strong>of</strong> 1999 have facilitated entry <strong>of</strong> new businesses into the telecom sector, increasing the number <strong>of</strong>mobile service providers, internet service providers, and email service providers for instance.Developments in this sector include the optical fibre backbone that has been laid across the East-Westhighways <strong>of</strong> Nepal, licence fee-free Wi-Fi connectivity, and the ability to leverage its optical fiber connectivityto establish a transit communication route between China and India. <strong>And</strong> yet, despite these developments,Nepal ranks 132nd out <strong>of</strong> 133 nations surveyed by the World Economic Forum in 2009 for its technologicalreadiness index. This shows the progress Nepal has yet to make if it is to achieve its goal <strong>of</strong> becoming a worldclass IT services provider.The GoN has shown its commitment for the growth <strong>of</strong> this sector also by taking on liberal commitments underGATS, as shown in Table 10.2.218NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT
Change language