Nepal’s hotels and restaurants making slow recovery

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According to a research released by the central bank on Wednesday, Nepal’s hotels and restaurants are still struggling to get back on their feet following the coronavirus crisis, despite the fact that the majority of the country’s business have entered full recovery mode.

 

 

After three months, the Nepal Rastra Bank conducted a third follow-up survey, which revealed that transactions in the hotel and restaurant industry have increased to a little more than half of their pre-Covid levels, hitting 57.2 percent in October, compared to the national average of 74.7 percent.

The following year, after Nepal enforced a complete lockdown on March 24, the country’s hotels and restaurants experienced a 7 percent drop in turnover by June. Following the lifting of the lockdown in July and the resumption of flights in September, transactions increased by 18 percent in November.

According to a poll conducted by the national bank, the turnover of hotels and restaurants had increased to 40.8 percent as of April 29, 2021, when the country enforced the second lockdown, which lasted until September of that year.

After scrapping the seven-day quarantine restriction, Nepal resumed providing on-arrival visas to all international visitors who had received the required vaccinations on September 23 in an effort to revive the country’s virus-ravaged tourism economy.

According to observers, the severity of the devastation in the country’s tourism sector will undoubtedly leave long-lasting scars.

According to Binayak Shah, senior vice president of the Hotel Association Nepal, it could take years for the hotel industry to fully recover from the disaster. Given the severity of this outbreak, it is apparent that restaurants and hotels will continue to suffer for significantly longer periods of time than had been anticipated,” Shah said in a statement.

Hotels reported that occupancy rates were at an all-time low during the peak season of November. According to industry experts, occupancy rates are still much below the 20 percent mark.

The of October marked the highest number of post-Covid monthly arrivals, bringing the total number of who have arrived in Nepal since the beginning of the year above the 100,000 mark.

While the Nepal Tourism Board reported a respectable 23,284 international visitors by plane in October, the number is still 90 percent lower than it was before to the outbreak.

The third follow-up poll was performed over the phone from October 24 to November 3, and the results were released on November 3.

The findings are based on answers from 546 businesses located around the country.

According to the central bank, the wholesale and retail received the greatest number of responses (30 percent), followed by manufacturing and production (17 percent), and the hotel and restaurant industry (16.3%).

According to the findings of the study, the average production and transactions of several economic โ€”including agriculture, industry, and services, among othersโ€”remain at 74.7 percent of their pre-pandemic levels on an annual basis.

Nepal Rastra Bank executive director Nara Bahadur Thapa stated that the average national production and transactions of various achieving 75 percent or more of their pre-Covid levels was undoubtedly a sign of progress.

Though recovery has not occurred at a faster rate, the numbers indicate that it will not take more than one year for the economy to reach full recovery. Whether Nepal will be hit by a third wave of the Covid-19 pandemic, which is already wreaking havoc on European countries, will be determined by the outcome of the election.”

Nepal recorded 305 new coronavirus cases in the last 24 hours on Wednesday, bringing the total number of coronavirus infections in the country to 820,004.

According to the central bank, the transportation industry experienced the weakest recovery, trailing only the hotels and restaurants in terms of growth. Transactions in the transportation and storage industry were 69.5 percent of what they had been in more prosperous times.

The minerals and exploration sector has experienced the greatest recovery, with output and transactions returning to levels that were 93.3 percent higher than they were prior to Covid-19.

Trade and output in the agriculture, forestry, and fisheries have a level that is 79.3 percent higher than the year before.

In the survey, it was found that 87.2 percent of firms and industries had resumed full operations, which indicates that Nepal’s industries and enterprises are on the road to a speedier recovery.

The mines and exploration sector, as well as the electricity, gas, and water sectors, have experienced the most rapid recovery, with businesses in these areas currently operating at full capacity. According to the results of the poll, 78.7 percent of hotels and restaurants are completely operational, while 21.3 percent are just partially operational.

According to the poll, the construction sector is fully open at 88.9 percent, while the manufacturing sector is fully open at 87.1 percent, both of which are higher than pre-Covid levels.

According to the results of the poll, large industries are almost completely open.

According to data from the central bank, 90.9 percent of industries with a capital of more than Rs500 million are fully operational, compared to 88.4 percent of cottage industries that are fully operational.

According to the World Bank’s most recent assessment, the first wave of the pandemic and concomitant lockdowns resulted in contractions in economic activity, which resulted in job losses in Nepal during the first wave. Workers who lost their jobs or were absent from work for an extended period of time constituted more than two out of every five. Approximately one-quarter of these employment had not been restored by the end of the year 2020.

Despite the fact that men and women faced similar job losses, more female workers (30 percent) reported permanently losing their jobs than male workers (23 percent).

More than any other age group, younger workers have suffered the most, with 59 percent of those between the ages of 15 and 25 years old reporting job losses.

According to the international financial organization, manufacturing and service have been impacted harder than agricultural jobs, while the number of employed laborers in agriculture has decreased by more than half. Despite the fact that the agricultural industry was the least affected by the recession, one in every three farm workers lost their jobs.

“The recovery appears to be proving challenging, particularly in the tourism industry. The absence of an uniform national strategic policy for recovery is a major shortcoming. “We’ve all gone our separate ways,” Shah explained. “If we don’t work together, the road to recovery will be long and arduous.”

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