Kathmandu: After years of persistent lobbying, star hotels and tourism resorts in Nepal have been officially recognized as industries under a recent amendment to the Industrial Enterprises Act 2076. The government has reclassified these establishments into the national priority and productive industries category through an ordinance passed by the Cabinet, pending final approval from the President’s Office.
This amendment, based on recommendations from the law reform task force, brings star hotels under the manufacturing industry umbrella, granting them access to industry-specific benefits. These include concessional rates and tax exemptions, particularly for electricity consumption, significantly reducing operational costs.
The recognition underscores the vital role of hotels in Nepal’s economy. As major contributors to employment and foreign exchange earnings, the sector’s new status is expected to facilitate greater access to government services, promote investment, and bolster the country’s tourism industry. The decision is seen as a milestone for the hospitality sector, offering opportunities for further growth and development.