For the first time in history, hotels across the globe have been locked down due to COVID 19 pandemic. The situation is getting worse and deeper as Corona Virus is spreading worldwide unabated. It is uncertain how long and how far the pandemic will go and how much damages mankind will suffer.
Hotel industry in Nepal are badly affected and struggling to survive the onslaught. Pandemic has hit us at a time when we are observing Visit Nepal Year 2020 and huge investment in the sector had come from home and abroad.
Experts say it may take 2 years or more to bring back the industry on a normal track and the burning question is how to survive till then.
As the revenue from Hotel business is zero and situation is expected to continue further for an unknown period, the Nepalese Hotel industry will not be in a position to pay staff salary, loans from the banks, rentals of rented properties, fees, taxes, do and do forth. As per recent study total losses suffered by the Nepalese Hotel industry is estimated at Rs 1.60 Trillion and 1.3 million jobs in the industry are at stake.
At this time if crises, we all need to maintain our strength and continue to work together with the Government and our experienced workforce. Nepal Government is expected to bring soon economic stimulus packages and our workforce is expected to contribute to coping with the alarming situation.
If the current condition is not improved soon, many Hotel properties will bleed and will collapse like Sherpa, Blue Star, Narayani and many other established Hotels in the past.
Mr Binayak Shah
First Vice President
Hotel Association of Nepal
