OTAN - Outbound Tour Association of Nepal represents Outbund tour and travel operators in Nepal
05/07/2023
Facts on outbound tourism from Nepal
“As per the current fiscal year budget, the government is considering implementing a 5% additional tax on expenses incurred by Nepali travelers going abroad for holidays. This decision is influenced by unauthorized news spread by certain social media sites and news outlets with misleading headlines such as 'Nepalis spend more money abroad than foreigners visiting Nepal.' However, nobody has provided accurate figures or news regarding the purpose of this outbound expenditure. All blame falls on hardworking Nepalis who reside and work within Nepal, seeking to explore and learn by visiting other countries with their families."
Here is the corrected version:
As per the data, Monthly around 60,000 Nepalis go abroad on working visas, and around 10,000 go for studying purposes, while 5,000 go for holidays and business purposes. However, all the dollars exchanged by workers and students are categorized as Nepali travelers for holidays, which is not fair.
The average dollar exchange by each worker is USD 250 x 60,000 = USD 15,000,000, and 10,000 x USD1000 = USD 10,000,000 for students. On the other hand, the average dollar exchange by outbound holiday travelers is USD 750 x 5,000 = USD 3,750,000, which includes shopping for day-to-day goods like clothes, electronics, phones, laptops for their families. The average package cost for holidays is USD 350 x 5,000 = USD 1,500,000.
This totals USD 6,300,000 x 132 = NPR 831,600,000 (8 Arabs 31 crores). The news is making headlines with 97.32 billion (which is 97 Arabs), which is ten times higher than the actual spending by Nepalis. Most of the USD exchange done by students and workers is covered by remittances, and expenses during tours are focused on livelihood goods.
Hence, it is unjust to blame and impose extra taxes on Nepali travelers who work hard and want to explore and experience new things in life. We request the government to withdraw these new rules and support the growing outbound travel industry that provides over 1,500 direct jobs in Nepal.
