Prime Minister Balendra Shah has urged hotel entrepreneurs to invest with confidence, stating that the government has already accelerated efforts to promote Nepal's tourism sector and is committed to creating a favorable environment for private investment.

During a meeting with office bearers of the Hotel Association Nepal (HAN) at the Office of the Prime Minister and Council of Ministers on Wednesday, Prime Minister Shah described the private sector as a strong partner in the country's economic development. Minister for Culture, Tourism and Civil Aviation Khadkaraj Paudel also attended the meeting.

Prime Minister Shah stressed the importance of complying with existing laws, encouraging small and medium-sized hotels to register formally and come under the tax system. He also called for exploring greater collaboration through Public-Private Partnership (PPP) models to strengthen Nepal's tourism infrastructure and services.

During the discussion, HAN representatives informed the Prime Minister that Nepal's hotel industry has the capacity to accommodate up to four million tourists annually, while the country currently receives around 1.2 million international visitors each year. They said increasing tourist arrivals would create more domestic employment opportunities and help reduce the outflow of Nepali youth seeking foreign employment.

The association also highlighted Nepal's significant potential in wellness tourism, destination weddings, and cross-border tourism, while presenting several policy recommendations to the government.

Among the key proposals, HAN requested the government to provide electricity tariff concessions to hotels comparable to those offered to productive industries, increase the threshold for the Initial Environmental Examination (IEE) requirement from 25 beds to 50 beds, and ensure the full operation of Pokhara and Bhairahawa international airports while improving the services of Nepal Airlines.

The association further called for amendments to the Foreign Investment and Technology Transfer Act, 2019 (2075 B.S.) by removing the existing five percent cap on trademark royalty payments and allowing royalty rates to be determined through mutual agreement. It also urged the government to simplify procedures for importing jewelry required for destination weddings and to facilitate expert support and comprehensive storytelling packages to strengthen Nepal's wellness tourism offerings.