Don’t bank on it

BANKS FACE A STEEP UPHILL TASK TO RAISE PAID UP CAPITAL BY FOUR FOLDS IN TWO YEARS

Abhilasha Rayamajhi

Kathmandu

Nepal Rastra Bank (NRB) has directed commercial banks to raise their paid- up capital four folds to Rs eight billion with the main objective to strengthen their capital for a sound and stable economy. The minimum paid-up capital that must be maintained by commercial banks until date is two billion. The Monetary Policy for the fiscal year 2015/16 requires that capital be increased four-folds within two years.

Development banks and finance companies must also in- crease their capital requirements as per the recent policy. National-level development banks will have to raise their paid-up capital to Rs 2.5 billion, while development banks that work in four to 10 districts must raise paid-up capital to Rs 1.2 billion. Likewise, development banks that have work in one to three districts will have to increase their capital base to Rs 400 million.

AIM TO CREATE FINANCIAL STABILITY

The Governor of NRB, Chiranjibi Nepal says, “This policy aims to create a stable financial sector. We envision banks and financial institutions (BFIs) with stronger capital base that can invest in big projects and infrastructure.” He further said that investors and stakeholders are content with this decision of the central bank and even Governors of other SAARC nations are positive regarding the policy. He elaborates that BFIs had mushroomed in the past. NRB introduced this policy to control the quantity BFIs in the country. He adds, “The consolidation of BFIs will also strengthen their public image and reputation. In addition there will not be liquidity risks and the management can be innovative.”

To raise the required capital, BFIs will need to go for merger and acquisitions and issuing of right shares or bonus shares. Since NRB has also introduced regulations to allow the entry of foreign banks in Nepal, this could also be an option to raise capital. Another option is the issue of Follow on Public Offer through which shares can be issued to the public.

DIFFICULT TASK AHEAD

“The explicit purpose of this policy is to strengthen the capital base of banks for financial stability. However, it is difficult for some banks to increase paid- up capital by four folds by mid July 2017,” says Upendra Poudyal, President of Nepal Banker’s Association. He adds, “There are limited options to raise capital. NRB’s direct indication is towards mergers and acquisitions.”

Anil Shah, CEO of Mega Bank Nepal Limited says, “In order to increase paid-up capital we strategise to use more than one method of raising capital in the coming two years.”

Poudyal says the Supervision Department of NRB has actively worked towards formulation and implementation of rules to create an effective and transparent banking system and he believes that NRB is a strong regulator. Similarly Shah shares that the central bank has been an effective regulator and BFIs have followed the rules set out by NRB and the banking sector has continuously improved. All BFIs have been supportive and responsive to the policies. How- ever, according to experts the success of this policy hugely depends on effectiveness mergers and acquisitions.

THE PROBLEM WITH MERGERS

According to Poudyal the major problem that comes along with mergers is human resource and value system integration. The process of a merger is complex and must be well-planned and strategised which requires time. The strategies, vision and culture of merging institutions must have common ground.

He shares, “A merger is like a marriage between two or more institutions. If it is not planned systematically it can affect the entire economy.” Every institution has its own value system and culture. It is often difficult for human resource to adapt and adjust to the integrated organisation structure. Operational risks and failure to address each customer’s need is also a setback in a merger.

“Each and every BFI has different products and approach towards its customer. An integrated bank does not ensure financial inclusion,” he says. He further says the prime focus of every financial institution is its customers. A policy cannot be successfully implemented if the customer is not satisfied. He elaborates, “For instance, a regional bank may be providing door-to-door facilities to its customers, which might be the need of customers in that area. Now, it is not possible for larger institutions to work on a local level.”

Besides, Shah also pointed out complexity in the integration of i n f o r m a t i o n t e c h n o l o g y platforms. Each institution has incorporated different software and systems which become difficult to amalgamate.

REQUIRES REVISION

Economist Bishwamber Pyakurel says, “The monetary policy to raise paid-up capital by four times must be reviewed and revised. Escalating the paid- up capital is not the solution to

reduce the present eco- nomic problems. The monetary policy cannot operate in isolation.” He explains that there must be linkage in the mone- tary policy and fiscal poli- cy for long-term healthy growth of the overall economy.

He further clarifies, “There must be a stable lending and borrowing environment in the finan- cial system of the country for collection of such huge amounts of wealth in a limited time frame.” He adds, “There are many bureaucratic hurdles that will hinder the process of raising capital.”

MERGERS CAN FAIL

Mergers and acquisitions encourage partner- ship, synergy and open doors to opportunities. However, according to re- search, the rate of failure of mergers is at least 50 per cent. Factors such as corporate culture, capacity of the management, strategies and resources must be considered before entering into a contract of merger according to experts. The evaluation of these factors requires adequate time and such decisions cannot be made forcefully.

The central bank aims to decrease the number of BFIs and enhance financial ability. By mid July 2017 it is expected that there will be 15-20 BFIs depending upon the success of these mergers and acquisitions.

STATUS OF PAID UP CAPITAL IN COMMERCIAL BANKS AS OF JULY 2015

List of commercial banks	Current Paid up	Capital Required
		Capital (in Billions)
Agriculture Development Bank Limited	9.86	-
Rastriya Banijya Bank Limited	8.58	-
Nepal Bank Limited	6.46	1.54
Global IME Bank Limited	5.01	2.99
Nepal Investment Bank Limited	4.77	3.23
Nabil Bank Limited	3.65	4.35
Himalayan Bank Limited	3.33	4.67
Prabhu Bank Limited	3.2	4.8
Prime Commercial Bank Limited	3.14	4.86
Nepal SBI Bank Limited	3.05	4.95
Civil Bank Limited	2.88	5.12
Machhapuchhre Bank Limited	2.77	5.23
NIC Asia Bank Limited	2.65	5.35
Mega Bank Nepal Limited	2.6	5.4
Sanima Bank Limited	2.55	5.45
Kumari Bank Limited	2.43	5.57
Nepal Bangladesh Bank Limited	2.43	5.57
NMB Bank Limited	2.4	5.6
Sunrise Bank Limited	2.39	5.61
Citizen Bank International Limited	2.37	5.63
Laxmi Bank Limited	2.33	5.67
Standard Chartered Bank Limited	2.24	5.76
Everest Bank Limited	2.13	5.87
Bank of Kathmandu	2.12	5.88
Century Commercial Bank Limited	2.12	5.88
Janata Bank Nepal Limited	2.06	5.94
Siddhartha Bank Limited	2.03	5.97
Lumbini Bank Limited	2	6
Grand Bank Nepal Limited	2	6
NCC Bank Limited	2	6

				Source: Compiled

 (This article was published in The Himalayan Times Perspectives on August 30, 2015)

How volunteering in a children home changed my life

When was the last time you forgot all your worries and gazed at the never ending, beautiful starry night? Do you have the memories of chasing colourful butterflies on bright afternoons? Do you recall dancing freely in the rain without any hesitations? When was the last time you laughed out loud in the real world?

We have forgotten to relish these little pockets of happiness because our best friends today are not human beings or nature but gadgets! Yes, we are so active in our virtual world that we rarely care for the people in our real lives. Moreover, we have forgotten who we really are and we don’t know how to narrate our own stories. And we don’t even realise it.

In the process of growing up I almost lost connection with my own roots. I was in my own little bubble and I did not tolerate anyone who would enter it. There was a time in my life when I did not like kids at all. I used to hide all my gadgets when they came to my place. ‘What are you doing? Why are you doing it? What is this? What is that?’ They are all full of annoying questions. And not to forget the damage that they do like spilling tea at the assignment I just completed, breaking my favourite statue my friend gifted me and what not! They got in my nerves.

At the same point of my life I had to volunteer in a Children Home. I was doing my BBA from Ace Institute of Management and we had to participate in social work week. I remember my friend telling me, “This one week can actually change lives.” I talked to myself, “What will happen in a week’s time? Nothing will change.”

Our coordinator had given us instructions before starting off. Since they were orphans we were not supposed to ask them their age, where they came from or about their family. I was taken aback by this fact. Our little brothers and sisters know how many candles are there on top of their cake. They proudly say that they are five or six years old. However, there are kids in this world who don’t know where they came from; celebrating their existence was a distant thing. These children were ignored and discarded. How would a child feel who doesn’t know the name of her father?

I was exposed to a world of little children, their faces radiated with hope but their eyes were empty, they were in deep pain.

There were 25 kids in the Children home and we had the responsibility of looking after one child. Lakpa was the child I had to look after. She was really cute, quiet and shy. Every morning I used to read stories to her, help her with her home works. She listened really carefully to me but she was not quite responsive. She did not ask questions, she just looked at my face as I read stories to her. When the kids went to school we used to clean their rooms, bathrooms and decorate their homes. The little things we did for them made them quite happy.

(-Lakpa smiles for the lens)

On the final day we organised a small programme for them. On this day I could see Lakpa who was quite shy initially mingling with other kids and even my friends. This is the day I realised that I can bring positive change in somebody’s life. Our relationship with the kids did not just end there. Every year we organised fund raising events and brought them small gifts whenever we visited them.

In my last visit to the Children home, Lakpa showed me something that melted my heart. It was the print of hers and mine palm that was done years back. She had kept it safely with her. Meeting these kids changed gradually changed my perspective towards life. I realised being a good human being with a compassionate heart and questioning spirit is above everything else. I started gradually becoming grateful for the things we possess and people we have in our lives. I love kids now. Moreover, my relationship with my parents grew better and stronger.

   

                                             (Precious smiles...)  

Laughing out loud in real life is important that typing LOL in troll photos in social media. Technology has made everything easier. Information is in the tip of our fingers but we have lost touch with nature.

Everything has a purpose; we meet people for a purpose. I realise visiting that orphanage and meeting Lakpa made me realise that touching lives of real people in the real world is more important than touch screen smart phones. 

                                         

This story was shared at the Story Yellers platform on September 14, 2016. Coincidentally it was Children's day. 

Grateful to be a part of the Story Yellers, thank you for the creating such a wonderful platform and giving a spotlight to my story. Writing my story gave me an opportunity to reflect on my life, look back and connect the dots. Delivering it in front of so many people has made me a little more confident. I delivered a presentation after ages and it felt amazing!

Listening to other speakers was a treat.

Thank you friends and family who were there to listen to our stories.

Syndicate masks organised crime

The transport syndicate risking consumers’ lives

Abhilasha Rayamajhi

Kathmandu

Poorly maintained and wrecked vehicles operate through slippery dirt roads of Kathmandu and throughout Nepal. These vehicles overload passengers and goods far beyond their capacity to make a fast buck. Daily commuters and consumers are at the receiving end of this sad state of affairs. It is evident that to ease overloading new vehicles need to be added on all routes; however, the transport syndicate creates barriers for new entrepreneurs to enter the market. 

A total of 115 people have been killed in road accidents and approximately 250 have been critically injured in the past one month alone. Every day five people on average lose their life in road accidents in Nepal. According to Metropolitan Police the total number of accidents in Kathmandu from July 17 to August 13 reached 293 and the average accident per day was 10. 

Most road accidents take place in rural roads; however, there are no traffic police to monitor these areas. Serious action against the perpetrators is yet to be taken. Further, the concerned authorities seem to be passing the buck. They do not seem to be taking preventive and punitive measures. 

Syndicate is an organised crime 

The syndicate is the root problem for all the major havoc. “Transport syndicate in Nepal is an organised crime. Transport entrepreneurs are always looking to make fast cash without competing fairly in the market,” claims Bishnu Prasad Timilsina, Secretary of the Forum for Protection of Consumer Rights Nepal. The syndicate system has killed competition and encouraged monopoly which is one of the sole reasons behind the ever increasing accidents. “If someone wants to enter the market through fair competition, they are targeted and their vehicles vandalised. There transport market is completely marred with hooliganism,” he adds.

According to him, transport syndicate is an all powerful entity. He says, “Currently, the demand for vehicles exceeds the supply. The public vehicles are always overloaded risking the lives of many. Many vehicles on the roads today are in severe need of maintenance and repair but the entrepreneurs pay heed to the warnings. They are here to solely make profit.”

According to a research by Sambriddhi, The Prosperity Foundation, the total number of taxis was 8,000 in the year 2000 when the registration of new taxis was halted in the Bagmati Zone. The ‘halt’ lasted until post earthquake period in 2015. By 2015 there were 5,500 taxis plying the roads of Bagmati (meaning 2500 had gone out of operation due to wear and tear, accidents, reaching conditions beyond operation, or for the fact that they were more than 20 years old.) After the earthquake, the regulators introduced 1500 more taxis, and also allowed the 2500 (that had been non-operational) to be replaced by new taxis — they would still carry the same number plates. Approximately 9,500 taxis ply the roads of Kathmandu which is insufficient in comparison to the increasing population of the city.

Timilsina says that there exists a syndicate even within the syndicate. When a new transport company enters the industry they are forced to be a part of the syndicate otherwise they cannot operate. According to him, to be a part of the syndicate they have to pay a large amount of money to the federation. This too does not guarantee smooth operation of their vehicles. To cover their initial investment and to make quick profit the new transport operators do maximum number of trips and load as many passengers as possible. 

It is a known fact that almost all the political parties have invested in these syndicates — monetarily and otherwise. “Political leaders and policy makers themselves protect and encourage them as they are directly or indirectly involved in it,” Timilsina mentions. “We know now that the government is not for the common people but only for those businessmen who can bribe them,” he laments. 

When private vehicles violate the traffic rules they are strictly penalised. However, public buses, micro buses et cetera that openly overload are easily let off. The traffic police claim to be helpless to take strict action against public vehicles. This itself goes to show how powerful these syndicates are and how it has the authorities in power in its grip. 

Why is there a syndicate?

“The government has not taken any measure to manage and monitor the transport system. Therefore, a body had to be formed to manage this chaos,” says Dolnath Khanal, Acting Chairperson of National Transport Entrepreneurs Associations. He adds, “There is no alternative to syndicate as there is no clear collaboration and planning between the government authorities.”

When questioned about the illegal practices like creating entry barriers for new entrepreneurs, he replies, “These are false allegations against us, we are just trying to manage the system and working for the welfare of drivers and transport entrepreneurs.”

But he has no answer when it comes to the welfare and the suffering of the general public. 

The report, ‘Regulatory reform in transportation services’ published by Sambriddhi, The Prosperity Foundation, states, “Reduction of average costs in terms of insurance, repair and maintenance and availing of parking spaces all for a minimal fee called ‘trip fee’; increase in collective bargaining power in a country whose political history is marred by revolution and turbulences; higher return on investment attributed to lowered cost are some of the motives behind joining an association.” The purpose behind the formation of the syndicate is reasonable on paper but its implementation for the benefit of the consumers is a truth waiting to be realised.

Who is responsible?

“We have penalised several vehicles that have overloaded passengers and it is in our records. However, the penalty is very low and anyone can violate the rules and get away with it by paying the fines,” says Madhav Joshi, DIGP and Spokesperson, Nepal Police. The penalty bracket is Rs 500 to Rs 1500. He adds, “We lack the human resource required to patrol/ cover necessary areas; be it in Kathmandu Valley or the other districts.” According to him, the roads have been expanded and vehicles have been added rapidly in the past decade but traffic police have not been hired in accordance to that ratio.

He mentions, “Only five per cent of the road safety issue comes under traffic police as per the law. We are directly to blame in case of any mishaps as we are seen on the road but Ministry of Physical Infrastructure and Transport, Department of transport management and all the related authorities are more accountable.”

When The Himalayan Times Perspectives tried to contact Ministry of Physical Infrastructure and Transport, Under Secretary, Sundar Bhattarai said, “The issue of transport system in Nepal is not under our ministry, it is handled by Department of Transport Management.” 

“There are 2,300,000 vehicles currently in operation out of which 1,800,000 are two wheelers and only 200,000 are public vehicles,” says Basanta Adhikari, Spokesperson, Department of Transport Management. He adds, “There are not enough investors in transportation industry and even the ones who are operating are individual operators who are under the federation and not professional companies.” 

The collaboration and coordination between Ministry of Physical Infrastructure, Department of Transport management must be strong for better management of the transport sector. 

The way forward

A new entrepreneur entering the industry means competition and also smaller pie for existing operators. There is the legitimacy that the law of the land has conferred to the anti-competitive practices of the operator, claims a researcher at Samriddhi, The Prosperity Foundation. 

According to him, “The Motor Vehicle and Transport Management Act has made a provision of seeking recommendation of a Transport Management Committee, each district has this committee before issuing new route permits.” He says, “And who are in the committee? Chief District Officer, Chief of District Police Office, one representative of Transport Entrepreneurs, One representative of transport labours and Chief of Transport Management Officer.” This clearly goes to show that the composition of this committee is flawed.

The unanswered question remains — who is responsible for the pity state of public transportation and its direct impact on the lives of consumers in Nepal?

“We know now that the government is not for the common people but only for those businessmen who can bribe them,”

Bishnu Prasad Timilsina, Secretary of the Forum for Protection of Consumer Rights Nepal

“There are not enough investors in transportation industry and even the ones who are operating are individual operators who are under the federation and not professional companies.” 

Basanta Adhikari, Spokesperson, Department of Transport Management

“We lack the human resource required to patrol/ cover necessary areas; be it in Kathmandu Valley or the other districts.”

Madhav Joshi, DIGP and Spokesperson, Nepal Police

Photos: Dawaa Milann

(The article was published on The Himalayan Times Perspectives page 1 on September 11, 2016)

Humility and persistence

“We strive to create an environment of learning, progress and sharing”

Abhilasha Rayamajhi
Kathmandu

As a child, Tseten Tsatultsang did not aim to be the CEO of a company. However, connecting the dots of his life and after working and studying in different areas of management, he now leads Hotel Shambala as the CEO. Tsatulsang has interesting stories of working as a dishwasher to managing the hotel when the tourism sector was at its lowest after the massive earthquakes last year. His experiences, struggles and values have shaped him into a man of humility and persistence.

An international business graduate from Macquarie University, Australia, he has also studied information systems and marketing from the US. After the completion of education, he chose to return and work in Nepal. “The experience of studying and working abroad has helped me understand different cultures and people. This experience comes handy in the hospitality business,” he says.
Reminiscing his humble beginning, he shares, “I did dish-washing in a canteen as my first job in the US. I share this with my employees that even if today I have to wash the dishes, I will do that as I have done it before.”

Prior to joining the hotel industry, he was also involved in carpet manufacturing. He was the Marketing Manager of GK Carpet Industries and Endless Knot Carpet Industry. Also he was the Owner and Director of Ziga Rugs.

Tsaltulsang was the Marketing Manager of Hotel Shambala and looked after the overall marketing, media relations, and brand management before he took on the role of CEO. He says, “My responsibility is to make sure that everything operates without hiccups. We make sure that our guests feel special.”

Talking about his human resource practices, he shares, “We strive to create an environment of learning, progress and sharing. We try to incorporate a bottom up approach rather than top down approach of management.” According to him, the people who work with him are the greatest assets of his organisation and they try their best to treat their employees’ right.

He adds, “We encourage all our employees to simplify things and give feedback. I ask them questions about how they are doing and listen to their feedback and comments attentively.”
Despite his success he is quite humble and down to earth. He shares, “I have not yet achieved 20 per cent of my goals. We are working on improving our services every day.”

Giving back to society is also an important part of his business and personal life. He says, “We try to give back to society and the underprivileged as much as we can as a part of our corporate social responsibility.” Even though he is mostly busy at the hotel, he makes sure that he spends quality time with his family. “Spending time with my family especially my little ones gives me immense joy. It is the ultimate stress buster for me,” he expresses.

Lastly, he says, “Being a young CEO is not an easy task. You have to be a step ahead and work harder than anyone else, further, having exposure to diverse sectors and connecting those dots has brought me where I am today.”

Tsaltulsang's management tips
1. Always make the client/guest feel special
2. Be creative and innovative in your approach
3. Strive for continuous improvement
4. Give back to society
5. Value your employees

About Hotel Shambala 
Hotel Shambala is a Tibetan themed boutique hotel in Kathmandu that offers the best modern amenities with traditional Nepali hospitality. Located along the prestigious Embassy Road, Hotel Shambala is just 10 minutes drive from the city centre, in close proximity to major embassies, businesses and within easy access to major tourist attractions.
The hotel has been designed keeping in mind the owners’ Tibetan heritage and culture. Décor items have been sourced locally to support and highlight the craftsmanship of local artisans including hand-knotted Tibetan rugs, hand-embroidered furnishings, thanka paintings and custom hand-made furniture.
With world-class facilities including a gorgeous roof-top infinity swimming pool and poolside café, a multi-cuisine restaurant, a wellness spa and a business centre, their guests can relax knowing they have the best facilities available under their roof.

(The article was published in The Himalayan Times Perspectives Page 3 on September 4, 2016)
Photo: Samir Limbu/THT

“The whole community has to get involved to bring long lasting change and economic prosperity.”

Dee Aker, is the Advisor for Strategic Peacebuilding, Joan B Kroc School of Peace Studies, University of San Diego, USA. She met The Himalayan Times Perspectives to discuss the potential for Strategic Peacebuilding for economic prosperity in the context of Nepal. Excerpts:

In 2001 you established Nepal Peacebuilding Initiative. Tell us about that and your work in Nepal.

Nepal Peacebuilding Initiative was created as a part of the leadership of Joan B Kroc Institute for Peace and Justice (IPJ). Women PeaceMakers Programme, the WorldLink Programme, which connects youth to global affairs was also created in 2000. When we assessed conflict in other countries and Nepal, we witnessed intense violence surfaced in Nepal during the decade long civil war. Thousands of people lost their lives in the conflict and the Royal massacre also took place in 2001. We were requested to visit and come back to Nepal to provide skills on negotiation and mediation.
I first visited Nepal in 1974 and I had also come just a month before the massacre in 2001. We have continued to work here since the civil war; this is my 39th visit to Nepal. The magic of Nepal is so seductive and the people are so fine. Despite the challenges people in Nepal are not frustrated and that vibe drives me. I travel a lot and I find the beauty and charm of this country very unique and this keeps us engaged.

What kind of impact has your initiatives had on the political and business environment of Nepal?

Our intention is to engage civil society with the leadership and come up with solutions. We have been here throughout the conflict and we have been quite successful in bringing the political parties together for negotiations and the peacebuilding process. We have analysed this complex process; underlying culture, histories and root causes. Further, we have also trained various groups of journalists, business people, women and organisations.
There is a glass ceiling in this country not only for women but also for young people. However, in these 15 years I have witnessed that glass ceiling breaking down. Many amazing young leaders have emerged who have infused new ideas which is a positive step.
Businesses cannot flourish in conflict. For instance, during the conflict in the country last year, almost all businesses and factories closed down in Nepal. Our role comes here, to bring people together who are working in isolation and find out what works out at the time of conflict. Peacebuilding requires capacity and relationship building at multiple levels. Peace and stability are pre-requisites for operation of any enterprise. Businesses cannot operate in isolation and there is no solution in creating a wall. The solution is in finding a common ground and reaping mutual benefits.

How challenging is it to bring influential leaders and the civil society to a single place for negotiations and discussions?

Yes it is a challenging task. However, if you have partners who are working on the ground and really care about the country and who are not just in it for self aggrandisement then it is not that difficult. I have worked in various countries and I have had access to the right people. Being a former journalist I had important contacts and that has helped me.
What are the main activities that you have been involved with in as a conflict resolution professional? What type of workshops do you conduct in Nepal?
I have worked across the globe in countries like Uganda, Colombia, Kenya, England and the US to support the inclusion of the voices of women, youth and other marginalised communities, in discussions and decisions related to conflict resolution and sustainable peace — including designing and leading participatory trainings/workshops in communications, negotiations, skills-building and leadership.
We have been invited to do workshops with various groups. In this process we have partnered with local organisations and trained former combatants and women at all levels, right from illiterate women to women at top levels. Before attending these workshops the participants would look at the senior most people at the room before speaking. Gradually, after attending the workshops they are now confident, have a sense of self and understand that everyone has the freedom of speech. Women who had never ventured out of their homes now own their transport business and are involved with various organisations.

As a psychological anthropologist and conflict resolution professional with 40 years of experience in peacebuilding and conflict transformation in international settings, what do you think is the prevailing conflict in Nepal? 

The major challenge that I see as a professional in peacebuilding and conflict transformation is that marginalised people’s voices are not heard. It is difficult to meet everybody’s needs however a point of agreement can be reached where majority of the needs can be addressed. We have listened to their issues and even if we can’t fix it, we have tried to find people who can find solutions. There is no one solution to cope up with such complex challenges of conflict. However, I believe it is absolutely essential to understand and listen to the voices that are not heard and the press has to take a proactive role in doing so. Negotiation and strategic peacebuilding it crucial to cope up with emerging challenges of conflict as it cannot take place in isolation.

What is strategic peacebuilding in the context of Nepal? 

Real strategic peace building is a process that is complex and has multiple actors in the context of Nepal. It is beyond conflict transformation, heals trauma, promotes justice and builds relationship at multiple levels. It creates spaces where people interact in new ways, expanding experience and honing new means of communication. Moreover, it requires values, goals, commitment to human rights and needs. Further it cannot ignore structural forms of injustice and violence. Founded on an ethic of interdependence, partnership and limiting violence, peacebuilding depends on relational skills.
Peacebuiling agreements cannot last if people are not involved. Peace happens from within. The whole community has to get involved to bring long lasting change and economic prosperity.

(Printed version of this article was published in The Himalayan Times Perspectives, August 28, 2016)

Photos : Sanu Raja Maharjan, THT

Can Nepal penetrate the American dream market?

Focus, preparations and homework lacking to tap the world's biggest tourism market

Abhilasha Rayamajhi
Kathmandu

American tourists have shown a consistent growth in arrivals to Nepal. However, this growth is organic and not due to marketing campaigns or promotional interventions. These tourists travel to Nepal mainly for adventure, mountaineering and trekking which is uniquely available here. Further, it is observed that tourists who are here for adventure tourism spend their entire vacation in the country. Most American tourists who visit Nepal feel so connected to the natural beauty and culture that they also keep coming back.
Even though Nepal is rich in cultural and geographical diversity that fascinates Americans, the tourism industry has not been able to really tap into this long haul and high yield market that offers huge potential. The US tourist market consistently stands in the third position after India and China, for Nepal.
Market significance
“I believe most American tourists come to Nepal to experience the astounding natural beauty of this country. They are interested in trekking and visiting places like Pokhara and the Annapurna range” says Ineka Stoneham, Spokesperson, US Embassy. She adds that once they are here, most also become fascinated with the culture and the warm, wonderful Nepali people.
There are two distinct types of American travelers to Nepal. “One type is interested in the culture of Nepal and can typically be found to bundle their trip with India or Thailand and the others are adventure tourists,” says Ashok Pokharel, President of Nepal Association of Tour Operators (NATO). American arrivals, before the onslaught of the Chinese tourists, were consistently the second highest for decades. He also says, “Long haul travellers, as a rule, spend more than short haul travellers in one place. When adventure travel is thrown into the equation then the spending is much higher per traveller.”
The majority of American travellers tend to travel close to home according to a research by Euro monitor international. The most popular destinations for Americans are Mexico, Canada and Britain and they spend the most on accommodation followed by food and shopping. “The US market includes diverse cultures, there are many Non Residential Indians in Calfornia and other states. These pocket segments who already know Nepal should be encouraged to visit Nepal,” says Upaul Majumdar, General Manager at Soaltee Crowne Plaza. “However, proper market research and planning is a must before carrying out any marketing campaigns in any destination,” he adds.
While the American market does hold great significance and potential for the Nepali tourism industry, the problem has always been that Nepal Tourism Board (NTB) and the travel trade have not been able to market and promote brand Nepal in an effective manner.

US Sales Mission
Some months back, NTB organised a US Sales Mission in Washington DC, Phoenix, Denver, Los Angeles, San Fransisco and Seattle. The Sales Mission was headed by Secretary of the Tourism Ministry Prem Kumar Rai. Deepak Raj Joshi, CEO, NTB, Sudan Subedi, Officer, NTB and Ghanashyam Upadhyaya, Joint Secretary - Tourism Ministry were the representatives from the government’s side. Some travel agencies also paid to participate in the mission. The total investment in the US sales mission was estimated to be Rs seven million by NTB.
“We share one of the best diplomatic relations with the US government. Further, American travel agencies have been promoting Nepal since the 1950s, so this market cannot be ignored,” shares Deepak Raj Joshi, CEO of NTB. “We ventured into the US market after a long break. The main objective of this mission was to convey the message that we are back in business and fully operational,” he says.
The 14 days long programme had media briefing sessions and business to business (B2B) sessions between US and Nepali travel trade. When asked about the impact of the mission he says, “This year we expect around 50,000 arrivals from the US. From 2017 we expect a growth of 5 to 15 per cent in the arrivals.” That may seem like a decent expectation but to make it a reality hard work, focused promotion, planning and follow up coordination is required. And while delegations are quick to go abroad for such programmes the follow up is often lacking.
Challenges to overcome
"Ten times more Americans visit Taiwan than Nepal. Just 50,000 Americans a year visiting Nepal is not a very big number relative to our country’s population," Stoneham says. Nepal as a destination faces stiff competition for US visitors. One way to compete with other tourism markets would be to diversify and attract more than just the young backpackers who spend very little per day. She continues, "Another challenge is uncertainty. Unless they know a reputable tour operator in advance, it can be difficult for Americans to plan and reserve hotels, treks, and internal flights before getting here. If credit cards were more widely accepted (especially without a 3.5 per cent fee), that would also help." Other challenges include transportation between cities and flights being delayed or canceled because of weather and road closures due to landslides or flooding.
“Many Americans rely on the internet when they research travel plans. Sites like TripAdvisor, Yelp and AirBNB offer a wealth of information about hotels, restaurants, and other traveller’s experiences,” mentions Stoneham. She shares, “In fact, I recently had guests who decided on their Chitwan accommodations by checking TripAdvisor for the top ranked hotel.”
In today's digital world there are many possibilities to directly connect and communicate with the consumer and convey the message that ‘Nepal is back to business’. However, NTB does not seem to active in this area. That's probably why many in the travel trade have reservations about the desire to follow the conventional method of promotions by sending officials for road shows when other methods of communication are lacking.
Further, industry experts also claim that for the revival of tourism, regional tourists especially from India and China who are also now affluent spenders should be the main focus and marketing and promotion focused on these countries.
Talking about the use of innovative marketing strategies for promotions, Shraddha Shrestha, Senior Officer of Brand Promotion and Corporate Marketing at NTB, says, “Travel associations and agencies come up with proposals and we facilitate it.” She adds, “We are also working towards improving our digital marketing and increasing our online presence.”

The way ahead

Further, improvement in air connectivity is required to attract the US market. Pokharel says, “It may be a little premature to suggest things like direct flights but, we could promote code shares, charters and better connecting times at hub airports like Singapore, Bangkok, Hong Kong, Dubai, Doha, Abu Dhabi, etcetra.”

“We also need to substantially ramp up our promotional activities to align them with our goals. If our aim is to make money from tourism then we must pursue that goal in the biggest market,” he says. Pokharel says that even today 25 per cent of all air tickets are issued in the US and the value proportion of all airline sales is higher than that. While other countries may generate more tourists, he feels it is wise to pursue markets with the highest yield.
However, what almost all stakeholders agree to is that fact that in order to brand and market destination Nepal, proper research and data is a prerequisite. The promotion authority and the tourism industry lacks research on various markets and has a vague idea of what these travelers want and need. They might be targeting the right markets; however, without enough homework the efforts may not provide the desired results.

Published on The Himalayan Times Perspectives on August 28, 2016

Wrapping it up!

From brand building knowledge, to powerful touching stories and never ending entertainment, The Himalayan Times Perspectives Brandfest Nepal 2016 had it all

Abhilasha Rayamajhi
Kathmandu

Weekends are meant for relaxation, parties and family get-togethers. However, brand geeks, enthusiasts and gurus came together on Friday and Saturday (August 5 and 6) to learn and understand brands better at Soaltee Crowne Plaza. In Nepal, the branding culture is still in its infancy; most people are not aware of branding and hesitate to invest in it. However, The Himalayan Times Perspectives 3rd Brandfest Nepal 2016 ventured to initiate a conversation on branding and celebrate the power of brands.

Participants experienced ‘Brand Qi’ where they could connect brands to the life force and find a way to balance it from the first speaker Babita Baruah, Senior Vice President, J. Walter Thompson. Describing herself as a JWT vintage she expressed her magical slides eloquently. Then there was the powerful storyteller Bharat Avalani, CEO of Connecting the Dots who shared the stories he had collected and offered some tips on how to ‘spot a story’. Alvin Teoh, Executive Creative Director, NagaDDB and his team became almost everybody’s favourite with their powerful stories about failure and how we can tap into the power of pain. Anand Tilak, Global Brand Partner at Facebook engaged audience with his spectacular talk on trends in digital media and its impact.

The second day had Carla Enslin, National Academic Head, Vega School of Brand Leadership introduced herself as a strategist at heart and illuminated some significant shifts in brand orientation. She explained how brands are connected to media, government, stakeholders and consumers. ‘Co-creating consumer tribes’ was another topic that was covered with clarity by brand guru Sumit Roy, Founder Director, Univbrands. Vino B. Sookloll enlightened the audience with the holy truth about branding with his comparisons of Brand and religion. Finally, Sridhar Sunkad, Managing Director, EON Reality talked about Virtual Reality/Augmented Reality and How It Can Change the Whole World of Travel, Tourism and Education.

Cyrus Brocha, Master of Ceremonies was witty and wicked and full of life as always. At the end of each day there were panel discussions and a Brandfest 2016 quiz where the participants actively engaged and won exciting gift hampers, cocktails, dinner and networking. The mega event lived up to its expectations, from brand building knowledge, to powerful and heart touching videos and stories to entertainment, it had it all.

(The article was published on The Himalayan Times Perspectives on August 14, 2016)

Why is the birthplace of Buddha ignored?

Lack of innovative marketing strategies and poor vision in the leadership responsible for limited tourist flow in Lumbini


Abhilasha Rayamajhi
Kathmandu

Buddhism is estimated to be practiced by 488 million people around the world. Lumbini, the birthplace of Lord Buddha is a holy place for Buddhists from all around the globe. However, only 748,294 tourists ( including Indian and domestic tourists) visited Lumbini in 2015 according to Lumbini Development Trust. Out of the total 748,294 tourists only 129,180 tourists were passport holders. Even total accounts for less than 0.00016 per cent of total global Buddhist population. When compared to 2014, the trend of tourists who visited Lumbini has dropped by 38 per cent. The trend of tourist’s visits this year is slowing picking up with the arrivals of around 600,000 of tourists till June.

Jerusalem, the place of worship for Jews, Christians and Muslim receives around 3.5 million tourists each year according to research.

Similarly, Mecca which is the holiest city for Muslims invites 6 million tourists annually. Pilgrimage and religious travel is a giant business. Every year, 300 million travellers visit for religious purpose and spend USD 18 billion.

The development of tourism in Lumbini can be a boon to the entire tourism industry. But the stakeholders do not seem to be serious in promoting Lumbini as a peaceful city.

Nonexistent government? 

The number of tourists who visit Lumbini is negligible despite the huge religious significance. Moreover, the spending pattern and days of stay is even more shocking.

The foreigners who visit Lumbini are there for one night stay. Nepali and Indian tourists spend two nights on an average says Rajan Sakya, CEO at KGH Group of Hotels, Resorts and Travel. About 90 per cent tourists who visit to Lumbini are there via India through Indian agents.

According to him, “ Even though Lumbini is the birthplace of Lord Buddha it has not been promoted well using innovative marketing strategies in the international market.” He adds, “ In Nepal everyone is frustrated with the government as it has no clear vision not only in tourism sector but everywhere.I would say the government is almost nonexistent.” Similarly, Bishwesh Shrestha, Executive Director of Shuang Qi Tours says, “ Government has done very less to promote Lumbini as a destination. When compared to Chitwan, Pokhara or Nagarkot, Lumbini has been in shadows since ages.” “ The development of hydropower and Lumbini is similar in Nepal.Despite the huge potential they are underutilised due to lack of proper planning and mismanagement,” he adds. He shares that we have not been able to capitalise such a huge market of tourists.

Will it miss the deadline? 

Air connectivity is the major hurdle in tourism industry and also in Lumbini’s tourism development.

Lumbini can attract majority of Buddhist tourists if it has direct flight connectivity from countries such as Srilanka, Thailand, China, Japan, Hong Kong, Malaysia and others where majority of Buddhists reside.

“ In the pace at which the construction work is taking place, The Gautam Buddha International Airport which is supposed to be completed by 2017 will not be complete before five years,” Sakya claims.

The construction was moving at a snail’s pace due to lack of coordination between government agencies and shortage of raw materials.

Om Sharma, Project Chief at South Asia Tourism Development Project, Gautam Buddha Airport Upgrading Component clarified that out of 25 per cent work that was supposed to be completed by this fiscal year 21 per cent has been completed.

He explains that construction is disrupted due to monsoon season, shortage of raw materials and power supply. However, he claims, “ If a supporting and cooperative environment is created we will be able to construct Gautam Buddha International Airport in the stated time frame.”

Poor coordination

Gyanin Rai, Chief Administrative Officer, Lumbini Development Trust ( LDT), says, “ The coordination among the ministry, LDT and NTB has been very weak.” He adds, “ Holistic interest in development of Lumbini is not present.Most of the officials work according to their personal interest rather than need basis.” He claims, “ Lumbini has not been in the national priority; nor is it featured in the official documents such as the passport. Campaigns and aggressive promotions have not been carried out by anyone to promote it.” According to him both NTB and the Ministry do not consult, discuss or with LDT before carrying out promotional activities in national or international sector.

Further he says that there are not many Travel agencies that has focused on promotion of Lumbini.

Private sector has also not been proactive to promote Lumbini as a tourist destination. Only a handful of travel agencies and tour operators are focused on innovative marketing strategies for the international promotion of Lumbini as the birth place of Buddha.

Follow the Buddha’s way

“ Most people in Nepal are only concerned about proving to the world that ‘ Buddha was born in Nepal’ and they are in a state of fear that someone will steal this from them,” exclaims Bikram Pandey Kaji, Chairman of Himalaya Expeditions. Rather than making claims and slogans of ‘ Buddha was born in Nepal’ the government and stakeholders should put all the energies in development of Lumbini.

He says, “ Most tourists visit Lumbini after visiting other destinations which are situated in India and stay there for a single day.” It is believed that from the even from the death bed, the Buddha recommended his disciples to first visit his birthplace (Lumbini), where he attained enlightenment ( Bodhgaya), the place where he gave his first sermons ( Saranath) and where he passed into Mahaparinirvana ( Kushinagar).

He recommends, “ There must be discussions between the Nepal Tourism Board, Airlines, Hotel Association of Nepal ( HAN), Travel agencies, Lumbini Development Trust and the Ministry of Culture, Tourism and Civil Aviation on building innovative strategies to promote Lumbini in national and international level.”

Photos: Sanu Raja Maharjan / THT

The article was published on August 7, 2016 in The Himalayan Times Perspectives.