The government is set to implement a new Tourism Act that will require mandatory environmental studies for the construction of four-star and higher-rated hotels and resorts. A bill to this effect has been introduced in the National Assembly by Minister of Culture, Tourism, and Civil Aviation, Badri Pandey. The proposed legislation aims to reform and consolidate existing tourism laws, with a focus on promoting tourism activities, regulating the industry, and enhancing tourist safety, welfare, and service standards.
Under the new bill, all four-star and above hotels must obtain an operating license, and even currently operating establishments will be required to comply within two years of the law’s enactment. Additionally, hotels and resorts providing tourist transportation services must display designated tourist number plates on their vehicles.
The bill also seeks to strengthen coordination among federal, provincial, and municipal governments to ensure the long-term development of the tourism sector and boost its contribution to the national economy. Licensing for three-star or lower hotels, lodges, restaurants, dance bars, and bars will be handled at the provincial level.
To improve transparency, licensed hospitality businesses must publish their pricing lists in both Nepali and English, allowing tourists to easily access service information. Furthermore, the bill prohibits foreign currency transactions without prior approval from the relevant authority. Minister Pandey emphasized that this legislation is a strategic step toward professionalizing Nepal’s tourism industry and aligning it with global standards.
