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Economy
Industry and Tourism
Industrial Production
Production of the most of the items under Food and Beverages group had increased in FY 2000/01. Production of leather and
leather products, wood and wooden goods, paper and stationery boards other chemicals, plastic goods, non metallic minerals
and steel utensils, electrical goods and equipment and industrial equipment did well compared to that of the last year.
Among the products that are expected to record noticeable increase are noodles (452 metric tons), biscuits
(456 metric tons), sugar (1157 metric tons), tea (887 metric tons) vegetable ghee (6653 metric tons), soap
(5459 metric tons), detergent powder (144 metric tons), cement (9263 metric tons), beer (1629 thousand liters) cigarette
(395 million units) and synthetic cloth (1334 thousand meters) There was a marginal decrease in the production of biri,
cotton textiles, jute goods, and rubber goods FY 2000/01.
In FY 2001/02, indicates production of most of the industrial goods as compared to that of last FY is estimated to decrease. Declines are expected in biscuits by 145 metric tons, beer by 554 thousand litres, liquor by 185 thousand litres, and
cigarette by 79 million units, and cotton textiles by 785 thousand meters. Products that are expected to surge are: noodles
by 727 metric tons, sugar by 3887 metric tons, tea by 488 metric tons, vegetable ghee by 3632 metric tons, soap by 810
metric tons and cement by 17902 metric tons.
Industrial Production Index
Group wise industrial production index in FY 2000/01, had increased by 6.3 percent as compared (base year 1986/87 = 100) to
the previous FY. During this FY industrial production index of food group recorded an increment of 6.7 percent. Increments
were recorded in the soft drinks by 3.4 percent, tobacco products by 5.8 percent, textiles by 2.4 percent, leather and
leather goods by 7.5 percent wood and wooden goods by 8.3 percent, paper and stationery boards by 3.0 percent, other
chemicals by 6.6 percent, plastic goods by 2.0 percent, nonmetallic minerals by 3.8 percent, iron and steel goods by 3.5
percent, electric goods and equipment and industrial equipment by 7.8 percent and dry cell battery by 8.0 percent. However,
the production index of rubber had decreased by 2 percent. In FY 2000/01, remarkable growth was recorded in the production
indices of some goods. Among them were: tea by 12.0 percent, strawboard by 14.0 percent, soap by 11.0 percent, shoes by 9.1
percent, noodles by 7.5 percent, beer by 7.5 percent and cigarette by 6.0 percent.
The total industrial production index is expected to surge by 2 percent in the current FY as compared to that in FY 2000/01
but the main industrial production Indices of major industrial outputs are, however, expected to slide this year from that
of last year e.g., index of soft drinks to decrease by 3.5 percent, of tobacco product by 1.8 percent, leather and leather
goods by 1.6 percent and paper and stationery boards by 0.6 percent. Textiles, biri liquors and beer are also expected to
follow the suit with a decline of 31.6 percent, 34.5 percent, 4.7 percent and 2.4 percent respectively. Indices expected to
increase are those of noodles by 11.2 percent, cement by 8.3 percent, tea by 5.9 percent non-metallic minerals and shoes
each by 4.9 percent. Marginal increase is estimated in overall industrial production index this year is attributable to
changes in consumption pattern, decrease in consumption propensity, changes in the structure of export trade and the
present social environment.
Industrial Estates
Industrial estates have been established with a view to contribute to industrialization by providing physical
Infrastructure and other facilities for industrial enterprises at one spot. HMG has established 11 industrial estates,
which are located at Balaju, Patan, Bhaktapur, Hetauda, Dharan, Pokhara, Butwal, Nepalgunj, Rajbiraj, Birendranagar and
Dhankuta. The industrial estate in Dhankuta is under construction stage. Out of total areas of land under these estates,
5080 ropanies of land have been fully developed and 3395 companies have been leased out to different industries. Altogether
348 industries are in operation and 89 industries have been shut down while 31 industries are under construction.
Industries operating in these industrial estates have generated direct employment to 13339 people. Feasibility studies in
more than 16 places including Nuwakot, Janakpur, Ilam, Chitwan, Jhapa, Kailali, Kanchanpur, Dang, Kavrepalanchowk, and
Tanahu have been completed.
Nepal Industrial Development Corporation (NIDC)
NIDC has contributed to industrialization of the country by providing financial resources to the on going and new
industries. The volume of loan disbursed by NIDC for establishment of new industries and their operation is in downward
trend. In FY 2000/01, the loan disbursement dropped 24.1 percent as compared that of the last year. In the current FY, out
of total loan disbursed the share of hotel and tourism, large-scale industries and miscellaneous industries turned out to
be 12.9 percent, 51.9 percent and 35.2 percent respectively.
By the review period of the current year, the loan disbursement had decreased by 28.9 percent as compared to that of last
year. During the review period, the disbursement had gone down by 11.6 percent in hotel and tourism by 57.7 percent in the
large-scale industries and by 30.7 percent in the miscellaneous industries. Project promotion, loan approval and loan
repayment have been seriously affected due to shortage of long-term investment have been seriously affected due to shortage
of long-term investment fund for the last few years as NIDC lends long-term capital the problem of shortage of long-term
investment fund will not change unless it is provided resource for long-term financing.
Industrial Enterprise Development Institute
With a view to promote entrepreneurship, quality management, promotion of technology and development of technical manpower
for industrial development Industrial Enterprise Development Institute has been operating training programs in business
creation, business management, entrepreneurship development and research and consultancy services. As of the April 2002, it
had already imparted skill development training to 284 people and 136 people were trained in institutional development of
the local institutions.
Mines and Geology
At present there are 21 seismic stations in operation to record tectonic movement of the earth all the time with a system
of public alarm within an hour of earthquake measuring more than four Richter scale. The engineering and environmental
geological map of Pokhara and Kathmandu valley, Butwal and Dharan Municipalities have been completed with the help of
Remote Sensing and Geographic Information System capability in place. Municipalities have been using these maps for their
urban planning, land use planning, infrastructure and development works, solid waste management, pollution control and
improvement in the quality of drinking water and environment protection.
Exploration works in Arghakhanchi, Baitadi, Udayapur and Syangja districts are underway to assess the availability of
cement grade limestone deposit and dolomite. In course of promoting mining industry in the country, a data package of Salyan
district has been prepared to develop cement industry and sold out and the evaluation committee has been evaluating the
proposals to set up a cement industry in Chaukune of Surkhet district based on limestone deposit there. Similarly the
activity of preparing data package for the establishment of limestone based cement industry in Nigale of Dhankuta district
is underway. The proposals submitted by the private sector for the establishment of a natural gas plant in the Kathmandu
Valley has already been evaluated and the agreement with the nominated party is being drafted.
Tourism
Analysis of tourist arrival, growth rate and duration of their stay in Nepal reveals that from December 1999 to December
2000 the tourist arrival had gone down by 5.7 percent and dropping further to 21.2 percent from December 2000 to December
2001. During this period the average number of days of tourist stay in Nepal is estimated to have decreased from 11.9 days
during the period of December 1999 to December 2000 to 11.4 days during the period of December 2000 to December 2001.
Analysis of the purpose of tourists visit to Nepal reveals that majority of tourists come to Nepal for pleasure, trekking
and mountaineering. During 2000, 56.6 percent came for pleasure, 23.2 percent for trekking and mountaineering, 5.9 percent
for trade 4.5 percent for official visit, 4.0 percent for pilgrimage, 1.2 percent for conference and seminars and 4.6
percent for other purposes.
Country-wise, analysis of total tourists arrival in 2001 reveals that 10.6 percent were from North America, 1.3 percent
from Central and South America, 34.2 percent from Western Europe, 1.5 percent from Eastern Europe, 0.4 percent from Africa,
3.6 percent from Australia and the Pacific Region and 48.4 percent from various Asian countries including India.
By the end of 2001, the country had 791 hotels out of which 97 were star hotels and 694 were non-star hotels. During this
period 3 new star and 37 non-star hotels were opened. During the review period hotel beds in star and non-star hotels
increased by 1.2 percent and 4.3 percent respectively and number of hotel beds available reached 9430 in star hotels and
26733 in non-star hotels. In the review period on the whole, the number of hotels and hotel beds increased by 4.7 percent
and 3.4 percent respectively.
Analysis of the mountaineering expeditions and summiteers in 2001 the number of expedition teams had gone down but the
summiteers increased. During the review period, 112 mountaineering teams were issued expedition permit and 836 summiteers
scaled different mountains. The collection of the revenue in the form of royalties had increased by 6.2 percent and
expenses incurred by the climbers had also increased by 10.7 percent as compared to those of the previous year.
Nepal Academy of Tourism and Hotel Management has been established with the objective of producing efficient manpower for
the tourism industry The Academy imparts training in different subjects and standards to promote investment in tourism
industry in the rural areas, fulfill demand of skilled manpower for small and big entrepreneurs of tourism industry and in
operation of tourism industry. During FY 2000/01, the Academy trained to 1128 people in different subjects and in the first
eight months of the current FY, 696 people were trained in different subjects.
Recent Activities in the Tourism Sector
- HMG has opened up additional 103 mountains (effective from 1 March 2002) for the promotion of mountain tourism
in the country. It will also help develop remote areas. The total number of mountains permitted for the climbers
now reached 263.
- The mandatory provision of deputing a liaison officer in all mountaineering expedition teams has been amended
and mountaineering expedition teams which scale the mountains peaks not higher than 6500 meters now do not require
liaison officer anymore. As per the new provision the expedition teams do not require a liaison officer for 89
peaks but it is mandatory for such teams to register their details in the Nepal Trekking Association.
- In the process of opening up protected areas in Nepal, 6 tourists destinations in Taplejung, Sankhuwasabha,
Solukhumbu, Manang, Humla and Darchula have been opened up in the initial stage.
- A Memorandum of Understanding between Nepal and China was signed on 26 November 2001 to facilitate the visit of
Chinese Citizens to Nepal. Nepal became the first nation in the South Asia to receive the Approved Destination
Status by China in process of promoting tourism in the South Asia.
- Visa system has been amended by bringing it to two types of Single Entry and Multiple Entry from the existing
three types of visa. The charges for single and multiple entry visas have been fixed at US $ 30 and US $ 50
respectively and duration of multiple entry visas has been extended to five months.
Destination Nepal 2002/03
Destination Nepal Campaign will start from December 2002 and end in December 2004 as a two-year programme. The
International Year of Mountain 2002, International Year of Eco Tourism 2002 and Visit South Asia 2003 are also integrated
under this Campaign.
Obiectives:
- To promote public awareness among people about tourism
- To promote and maintain Nepal as a reliable attractive and secured destination with wide international publicity
Target:
By the end of 2003, the total number of tourist arrival in Nepal will be 500000. And foreign exchange earnings are
estimated to be US $180 million during this period.
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