Hoteliers demands to cut off bank’s interest rate

Kathmandu: Hoteliers have demanded to reduce the bank’s interest rate to a single point.

On Sunday, Hotel Association of Nepal (HAN) issued a statement and said that if the bank does not reduce the interest rate to a single point, there will be a risk of many hotels being closed.

They said that although the hotel and tourism industry, which has been devastated by the Covid-19, seems to be somewhat comfortable now, it is still difficult to meet the operating expenses due to the lack of tourist traffic and activities compared to the capacity.

According to HAN, the hotels are still making daily losses. It is mentioned in the statement that the number of tourists who have come in the number of 1.2 million since 2019 is trying to increase to 5 million this year.

Businessmen say that the impact of the ongoing war between Russia and Ukraine, which has not been resolved, has also had a negative impact on tourism. Businessmen are concerned that the elections held at a time when there are more tourists will indirectly reduce tourism arrivals and activities.

The most complicated problem today is the increasing interest rate of the bank and the urgent need to pay interest within the time limit, stated the statement.

Due to the fact that some of the service facilities adopted through the monetary policy during the time of Covid are continuing, the businessmen have demanded that they should be given continuity in the present time as well.

Reminding that the hoteliers of Pokhara and Siddharthnagar have publicly declared that they are unable to pay the bank loan interest by the end of October, she said that due to the current situation, the hotels have to be closed down gradually as they are unable to pay the bank loan and interest.