Encouraged by influx of tourists, leading hotels in Nepal are preparing to revise room rates upward, The Kathmandu Post reported on Wednesday.

 

According to the daily, five-star hotels have recently decided to raise the rates by 15 percent from October, the first in a series of planned increments for coming months.

 

In addition to increment, hotel rooms rate will see another 20 percent rise, which includes a 10 percent service charge from coming January. In total, hotel rooms rate will be costlier by around 36.5 percent as compared to existing rates.

 

Hoteliers said they took the decision on the ground of rising inflow of tourists. "Apart from that, over 12 percent depreciation of dollar versus Nepali unit, rise in minimum salary of laborers and imposition of 10 percent service charge in rooms from next January are the major factors that compelled us to raise the rates," said Anil Pathak, general manager of Hotel Soaltee Crowne Plaza.

 

The hotel had very good occupancy of around 72 percent in the last six months, he added.

 

The inflow of tourists grew by an impressive 37.5 percent to 167,333 in the six months of 2007.

 

"In addition, fall in rupee and need of hotels to refurnish to maintain their standard also caused them to take this step," said Pathak.

 

He said that rather than raising the rates steeply, they have decided to edge up in phase wise manner. "We feel that hefty increment in one time will affect tour operators selling packages to Nepal," he said.

 

Presently, five-star hotels are selling room in the range of US$35-45 a night. Room rates had dropped by three or four times in the past due to steep fall in tourist arrivals caused by incessant conflict.

 

The data of Hotel Association of Nepal shows that these hotels charged room rates ranging 135-185 dollars a night in 1999 when the country recorded arrival of largest number of tourists. Nepali hotels need at least 1.2 million tourists annually, if they are to run in a full occupancy.

 

With the rise in five-star room rates, the prices of other hotels will also move up, the report said.

 

 

(Xinhua News Agency July 12, 2007)