Tourism Info Nepal

Nepal’s Top Hotels Face Penalties for Unpaid Casino Royalties

Nepal’s Top Hotels Face Penalties for Unpaid Casino Royalties

Several prominent five-star hotels in Nepal have been found non-compliant with mandatory renewals and payment of casino royalties, according to the Department of Tourism. The hotels in question include Hotel Everest, Radisson Kathmandu, and Yak & Yeti Hotel, which collectively owe nearly NPR 1 billion in outstanding dues.

The issue pertains to the casino royalty payments that these hotels have failed to settle. The Department of Tourism’s spokesperson, Kali Bahadur Bhujel, revealed that these hotels have not renewed their ‘star’ status due to unpaid dues. Despite repeated reminders from the department, these establishments have not cleared their outstanding amounts.

Specifically, Radisson Kathmandu owes NPR 402.75 million, Hotel Everest owes NPR 169.56 million, and Yak & Yeti Hotel owes NPR 133.42 million. The lack of renewal has led the hotels to pursue legal action. Radisson Kathmandu, for instance, had its renewal canceled on November 1, 2017, and subsequently went to court. Although the Supreme Court issued an interim order preventing the government’s decision from being enforced, Radisson’s requests for renewal have been repeatedly denied due to outstanding payments.

Currently, out of 24 five-star hotels in Nepal, only 18 remain operational, as some, like Hotel Annapurna in Durbar Marg, have been suspended, and others, like Fulbari Resort in Pokhara, have been closed for an extended period. The Shangri-La Hotel in Lazimpat is undergoing reconstruction. The Department of Tourism has stated that hotels cannot undergo star rating renewal until they clear their outstanding dues. While hotels can continue operations without a star rating, their business and reputation, especially for chain hotels, may suffer.

Additionally, the Department has highlighted ongoing disputes and legal issues surrounding Hotel Annapurna, which was closed due to management failures after the 2015 earthquake. Despite its closure, the casino operated illegally for two years before finally shutting down due to a lack of services and amenities.

The casino sector in Nepal has faced significant turmoil since its inception, with issues exacerbated by the violent Maoist insurgency and subsequent mismanagement. The challenges faced by casinos have had ripple effects on the hotels that host them, impacting their operations and financial stability.

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