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Thomas Prinz, who has served as the German Ambassador to Nepal since September 2021, is nearing the end of his tenure. He embarked on his diplomatic career in 1998 by participating in EU election observation missions. Over the years, he has held various roles within the German Federal Foreign Office and served in German embassies across several countries, with a particular focus on Asia.

Prinz emphasizes that Germany and Nepal will continue to strengthen their partnership, rooted in shared values such as democracy, individual freedom and a commitment to building a just and equitable society that prioritizes environmental conservation and climate action. The two nations have fostered a robust relationship over the past 67 years since the establishment of diplomatic ties in 1958. Development cooperation began in 1961, and Germany has since become one of Nepal’s key trading partners. In this context, Kamal Dev Bhattarai and Pratik Ghimire of ApEx sat down with Ambassador Prinz for an interview. Excerpts: 

Can you share your overall impression of Nepal?

Nepal is a great country with wonderful people—very welcoming, very open and very friendly. It has always been a great pleasure for me to work with Nepal and Nepali counterparts. Nepal has such a diverse culture, with many different ethnic groups, including the Newari culture, as well as indigenous and tribal cultures in the valley and up in the mountains. It’s a fantastic place.

What is the one thing you will miss most about Nepal?

It’s indeed the friendliness of the people. Recently, I had a guest from Germany here, and she has traveled to various countries in this region. She said it’s so nice coming to Nepal—such a friendly and welcoming culture. People are always smiling on the streets, in taxis and at the airport. That is really something that touches me, and I will always keep that in my mind and remember it.

How do you see the current state of Nepal-Germany relations?

We have a very friendly bilateral relationship. We do not have any problem whatsoever. We are very good partners in many international matters, and we coordinate well. The way we conduct our development cooperation in Nepal is very much appreciated by the Nepali government. So, all in all, I would say we have extremely friendly relations. And that’s one reason I always feel pleasure working here in Nepal.

Do you think Nepal-Germany relations could have expanded further, considering past political engagements?

There is a problem on both sides. For Nepali politicians and decision-makers, Europe and Germany are far away. And the same is true for the German side. Nepal is, hence, not always in focus. It is up to us, the diplomats, to bring these countries into the focus of our decision-makers and try to engage top-level politicians in personal meetings. It happened last year when the President of Nepal Ramchandra Paudel made an official visit to Berlin and was received by the Federal President of the Federal Republic of Germany. But of course, we would like to see more of these developments. As I said, the problem is on both sides. During Covid, there was no travel, then we had Russia attacking Ukraine, Brexit and all these issues were consuming politicians in Europe. So, in a way, it's understandable that Nepal was not in focus.  

Another problem that hinders progress is the high fluctuation of political decision-makers in Nepal. Since I have been in Nepal, I have met three Prime Ministers, six Foreign Ministers and five Home Ministers. This rapid turnover of political personnel makes it difficult to build long-term relationships. I am sure that if Nepal had more stability, it would also be easier to establish more personal contacts.

Is there a one-way dynamic in Nepal-Germany relations, where Germany has been providing assistance for seven decades while Nepal has not engaged in proper negotiations?

Indeed, I sometimes discuss with my European colleagues how we could make decision-makers in Nepal more aware of the opportunities they could find for closer cooperation with Europe. We do not have this strategic view in the region, like, for instance, the direct neighbors have or maybe also outside big powers have. We are more interested in long-term business-making, civil contacts and so on. That is why I think they could take a closer look at Europe in some areas. 

We offer some business opportunities that others don’t. Even if others do offer the same, why not go with the Europeans? When you choose European partners, you are not in this, let’s say, political competition between northern and southern neighbors and so on. Therefore, sometimes I think Nepali decision-makers could take a closer look at what Europeans have to offer.

What is Germany’s Indo-Pacific outlook, and how does it view South Asia? How is Germany engaging with the region, and where does Nepal stand?

We have an Indo-Pacific guideline—or strategy, you could say—which was adopted by the German government about five years ago, and it clearly states that we want to strengthen our relations with democratic states and governments in the region. And Nepal is definitely one of those countries. So basically, the decision is to have a stronger footprint in the area and to closely cooperate with democratic countries. The fact that we revoked our decision to end our bilateral development cooperation is part of those guidelines. The fact that we are still very active here with our development cooperation is based on our commitment to strengthening democratic countries in this region.  

Regarding Germany’s outlook on South Asia, I have to say it is very much dominated by Germany-India bilateral relations, as India is the dominant country in the region. We have very strong trade relations with India, with cooperation in universities, research and so on. That largely shapes the perspective of German decision-makers, and I have always been busy trying to convince politicians, who visit South Asia and go to India to also look across the border and see what is happening in Nepal. When we have trade fairs in India, I try to convince our Chamber of Commerce in Mumbai to encourage German participants to take a look at Nepal. That will take some time, but I am quite optimistic that with India's growth, we will see some positive effects in Nepal too.

The Nepali government claims that the current environment is favorable for investment. How do you view Nepal’s overall investment climate from a German perspective?

The investment climate for foreign investment in Nepal is actually not very good or welcoming. We see minor improvements, and there is willingness on the part of the government to improve things, but we have to see how it plays out on the ground. The announcements we have heard so far are okay, but we need to see how they translate into action. How difficult it is to get a work permit or transfer money—these factors hinder foreign investment here.  

The fact that when you open a business here, you are always a minor partner in a joint venture. This is very difficult for European companies because they have their own compliance practices, and when they can’t guarantee these compliance practices, it becomes very difficult for them to invest. So, all in all, I would not consider Nepal a foreign investment-friendly country. I hope that will change, and I trust the government’s intention to improve the situation, but to convince investors that real change is happening, we need to see concrete improvements on the ground.

Germany is experiencing a labor shortage and has eased visa regulations to attract workers from countries like Nepal. What are the latest developments on that front?

We have changed our immigration laws recently and have become much more open to receiving foreign labor. Last year, we had a change in immigration law, and we are now openly welcoming skilled labor from abroad. It has become very easy to immigrate to Germany if the candidate brings any kind of skills with them. If you have a master's degree from Nepal or have already been studying in Germany and obtained a degree from a German university—whether in engineering, IT or any other field—you can easily apply for a job in Germany. If you find a job, we will issue the visa. We even accept people who come to Germany without having a job, as long as they have a degree and want to search for a job in Germany. In such cases, we can also issue a visa.  

We also have one way to migrate to Germany for unskilled labor, which is through the Nepal Secretariat for Skills and Training, an institute in Kathmandu. Through this program, we offer a one-year German language training course. Once they pass the course, they can go to Germany for vocational training, which is paid from the very first day. They are treated equally to Germans who undergo vocational training in Germany, receiving the same health insurance and social security benefits. Currently, we have about 130 Nepalis in this program already in Germany, and about 500 in the preparatory course in Kathmandu.  

So, besides skilled work, this is another way to go to Germany. When they complete this three-year vocational training, they graduate with a diploma and can then stay in Germany and work. These are the immigration pathways we have opened, and as we can see, many Nepalis are already following them. We are optimistic that we can increase the number over time.

Have you identified any potential areas where Nepal and Germany can expand further?

There are some traditional areas of cooperation, and we should continue working on them in the future. I am happy that we have now reached pre-covid numbers of German tourists coming to Nepal, and in this area, we will see further development. I could imagine, for instance, adding other groups of tourists, such as bicycle tourists or female trekking groups—these are areas where I see potential. Cultural groups also present opportunities.  

But beyond these traditional areas of cooperation, I see huge potential for Nepal in the field of IT services. Nepal already has a very vibrant IT sector, and I can only encourage decision-makers to put more effort into further developing it. There is tremendous demand for IT services, including programming, AI and algorithms essential for modern society. We have successful programmers here in Nepal, and those in Europe who are already working with Nepali programmers have had very positive experiences. So, I hope that in the future, this cooperation will create even more opportunities.

How do you see Nepal’s recent engagement with China?

China is one of Nepal’s two major partners, and whoever is in government in Nepal must engage with both. That will never be easy. Nepal has a major partner to the north and another to the south, and geography cannot be changed. For every Nepali politician, decision-maker and foreign minister, it is absolutely necessary to maintain good relations with both. The key is to balance these relationships—to cooperate with both without losing the ability to make independent decisions. It is crucial for Nepal to remain in a position where it cannot be blackmailed or forced into actions against its interests by either side.  

My recommendation would always be to follow the policies that various governments have adopted to avoid falling into a debt trap from any side. Nepal is a sovereign country and can engage with both neighbors. Several governments have demonstrated the ability to find an equilibrium and manage these relationships effectively. Moreover, both of Nepal’s neighbors have an interest in the region’s smooth development—nobody wants instability. Nepali politicians have experience in managing these dynamics and understand how to deal with two powerful neighbors.

What are your suggestions to our politicians on Nepal’s development?

I would say Nepal should focus on its strengths. Tourism, for instance, could be an area to build on. Currently, foreign tourists spend around $20 per day in Nepal, and efforts should be made to increase this figure, positioning Nepal as a more high-end destination. Another area where Nepal is strong is in IT services. The government should do whatever it can to support institutions that train IT engineers and make it easier for the sector to develop. It should also facilitate foreign companies to set up shop in Nepal to take advantage of the potential offered by these young engineers. Those would be my recommendations.

Upendra Prasad Poudyal is the chairperson of Nabil Bank with over three decades of experience. He previously worked at Standard Chartered Bank Limited (1986–2000) and NMB Bank Limited (2000–2017). His expertise spans project finance, international banking, and leadership roles, including his tenure as President of the Nepal Bankers’ Association (2014–2016) and the Confederation of Banks and Financial Institutions Nepal (CBFIN). Poudyal is also the immediate past President of the Management Association of Nepal (MAN) and represents the Asia-Pacific chapter of the Global Alliance for Banking on Values. A staunch advocate for sustainability, he emphasizes the importance of resilience and values-driven banking.

In an interview with Kamal Dev Bhattarai and Pratik Ghimire of ApEx, Poudyal shared his insights on Nepal’s economy, challenges, and the need for sustainable banking.

As a senior banker, having worked in the banking sector for such a long time, how much do you think our country’s economy has improved overall, what are its challenges?

Nepal’s economy has faced recurring crises, from the Maoist movement to the 2015 earthquake and the Covid-19 pandemic. Each event caused economic contraction, paralyzing industries, and creating uncertainty in the banking sector. The 2015 earthquake, for instance, halted activities for a year, while the pandemic further eroded economic momentum. During this time, a pivotal regulatory change required banks to increase their capital from Rs 2bn to Rs 8bn. This bolstered their ability to finance larger projects but also intensified competition, pushing banks to adopt more business-oriented models. However, these changes were necessary for resilience and growth.

What are the current challenges faced by our economy?

Currently, our economy faces multifaceted challenges. Youth migration has depleted the workforce, business activities are shrinking, and default rates are climbing. Government capital expenditure, which should stimulate demand, remains underutilized, while liquidity and foreign exchange issues persist. Despite these setbacks, the remittance sector continues to stabilize the economy, offering a silver lining.

Confidence is critical for economic growth. How would you describe the current state of confidence in Nepal?

Confidence is alarmingly low across all sectors—from businesses to financial institutions. Reviving this confidence is crucial. The central bank could ease monetary policies to encourage investment and growth. Our GDP-to-credit ratio is high, highlighting our reliance on credit for economic activities. To address this, stakeholders—banks, businesses, and the government—must collaborate, understanding each other’s challenges and perspectives. Solutions should prioritize the economy’s long-term stability rather than short-term gains.

Is it time for banks and businesses to move beyond profit-oriented thinking?

Absolutely. We can’t see everything from one perspective. Banking and business models must adopt long-term, sustainable approaches. Banks grow with their customers, and the private sector—contributing 80 percent to the economy—grows with support from banks and the government. The country should also think that if the private sector flourishes, the government, too, flourishes. At the same time, the private sector should be aware of its dependency on the government and the banking system.

The interconnectedness of sectors is often overlooked. For instance, rising interest rates are a result of broader liquidity and cost factors but are often viewed as solely the bank's responsibility. People tend to view it as the bank’s doing solely. While banks’ assets have grown, profits have plateaued over the last five years. This demonstrates the need for a balanced, holistic approach where all stakeholders support each other for mutual benefit.

How do you see the changing perceptions towards the banking sector?

Traditionally, the banking sector is a business, and therefore profit-focused. But simultaneously, the banking sector can and should be defined in an alternate way, which I only realized eight years later. When I attended a banking conference, called the Global Alliance for Banking on Values Annual Meeting, there were different bankers with different mindsets. They always thought of a banking system aimed at delivering sustainable development with social, environmental, and economic considerations. These sets of banks work with a triple bottom-line approach to their banking model. Social and environmental impact should be considered in banking, they believed. Profit is a pillar, but there is a triple bottom line: people, planet, and profit. In this model, they are grounded in communities and focused on real economies, meaning they are based on the generation of goods and services and employment-generating ventures. The impact of banking should be positive, according to this philosophy. I want to connect this to the alternative definition of the banking sector. When resources are deployed, employment is generated, and so are goods and services. Another philosophy within the banking sector dictates that a bank should clearly understand a client’s business as well as the associated risks, and the customers’ well-being.

A bank is an institution based on trust. A bank should be resilient to outside disruptions. With that being said, banks should be able to absorb outside shocks, for example, during the covid pandemic. Risks are often compromised, and parameters could be altered in order to maintain the stability and resiliency of banks. Transparency is also a major concern in the banking sector. We need a high level of transparency in a way that is government-inclusive. No group should be able to exert undue influence on the bank’s decisions and governing system. All levels of the bank should cooperate to maintain transparency. After the global financial crisis of 2007-2008, the profit-driven concept of banking was proven wrong. Society and environment-driven banks drove the Global Alliance for Banking on Values in 2009. This value-based banking principle is entirely based on sustainability.

How aware are Nepali banks and policymakers about sustainable banking?

Awareness is growing. In 2016, I attended the Global Alliance for Banking on Values conference and was inspired to bring this philosophy to Nepal. By 2017, Nepal hosted the Alliance’s annual meeting, inaugurated by the Prime Minister. Since then, initiatives such as the Nepal Rastra Bank’s Environmental Risk Management System and green finance taxonomy have gained traction. Many banks now have sustainability managers, and academic institutions like Tribhuvan University are introducing Environmental Social Governance courses.

How will value-based banking contribute to sustainable development goals (SDGs)?

The banking sector directly impacts the seven goals of the SDGs. To safeguard the targets of the SDGs, environmentally conscious investments are essential, and value-based banking is already doing this. IFC performance standards look at social issues as well. For example, if a hydropower project requires the destruction of a religious site, we need to ensure that this can be avoided as far as possible, with reasonable compensation for the land. Banks, during project analysis, now consider social factors such as these under the value-based model. Value-based banking has all several impacts. Biodiversity and nature conservation is one significant area of impact. For example, in villages, if a Rs 15,000-20,000 investment is given for the use of induction cookers, the use of wood for cooking reduces, making an impact on nature. Another area is women’s empowerment. Wage disparity is still a prevalent issue that we need to fight. Additionally, clean energy is another aspect. We aim to replace fossil fuels. Financial inclusion is another area of concern that value-based banking addresses. Finally, peace and justice are also promoted through value-based banking. 

Dusit Thani Himalayan Resort, situated near the renowned Buddhist pilgrimage site Namobuddha, opened its doors to guests on July 24. As part of Dusit International, one of Thailand’s leading hotel and property development companies, the resort seamlessly blends Dusit’s signature Thai-inspired gracious hospitality with the richness of local culture and traditions.

In an exclusive interview, Kamal Dev Bhattarai and Pratik Ghimire from ApEx sat down with the Group CEO of Dusit International, Suphajee Suthumpun, to discuss Nepal’s tourism landscape and the unique offerings that Dusit can bring to the country. Excerpts:

What is the current status of global tourism? Are we heading towards a pre-pandemic level?

According to data from the United Nations World Tourism Organization, global travel recovery this year is expected to reach 80 percent compared with the pre-pandemic year 2019. However, a closer examination of the industry reveals that the Asia Pacific region has experienced the slowest recovery compared with other parts of the world, with the Middle East leading the way. The study indicates that the Middle East is on track to achieving a better recovery rate than that of 2019 and earlier. Europe follows closely behind, with the Americas coming next.

This year, the Asia Pacific region is projected to recover at a rate of approximately 54 percent. As we are based in this region, it is essential to understand the travel landscape in China, as it greatly influences overall recovery. Due to significant travel restrictions still in place in China, the region has not witnessed the same level of recovery seen in other regions.

Do you think the big countries like China should take some specific majors to ensure fast recovery of tourism in this region?

Each country indeed has its own specific policies when it comes to tourism. While I cannot elaborate on the policies of every country here, it is evident that organizations within the tourism industry hope for each country to recognize the multiple benefits that tourism can bring. Apart from boosting the hospitality sector, tourism also plays a crucial role in generating foreign currency and contributing to the national economy, including its impact on the GDP.

Before the covid pandemic, Nepal had around 1.19m international travelers annually. This year, I have learned that the Nepal Tourism Board anticipates 1m international visitors. We should understand that this 1m will benefit not only hotels and restaurants, but also the local economy.

What are your current projects in Nepal?

We have opened two hotels at the same time in Nepal. We did a soft opening for the Dusit Princess in Kathmandu a few days ago, and we are really honored to inaugurate another one in Dhulikhel on July 24. We also intend to open one in Lumbini, which will happen later this year. I believe that if we connect all of these locations, we will have a solid representation of what a country can offer. 

What will these projects offer here?

What we want to bring in Nepal besides hotels is a global footprint of Dusit Group. From a hotel standpoint, currently we cover 18 countries and Nepal is our 18th country. But if you go into our other businesses too, we are covering 19 countries. We have our business in Asia, Middle East, Africa, Europe and America, pretty much covering the global landscape.

What we bring to Nepal is a commitment to standards, competency, skill, and talent. The hospitality industry’s services are inherently international, necessitating adherence to global standards. This is precisely what we aim to bring here—support for local skilled labor to deliver services at the highest international standards.

As a company, we are celebrating our 75th anniversary this year. In our early days, Thailand, our country of origin, was not a popular tourist destination. Despite this, our founder recognized the need to build hotels of international standards to attract travelers from around the world. I share the same vision for Nepal. Our objective is to introduce luxury, high standards, and exceptional quality to Nepal, in turn, garnering attention and attracting international travelers to this beautiful country.

What does Dusit Group have besides hotels?

Dusit has four business units—hotels, education (hotel related education including culinary), food and property or real estate development. These are our four pillars. 

I am exploring right now but we also intend to bring education here. Our education business has a legacy of 30 years. As the global market has a shortage of skilled labor, our education will help produce skilled human resources and fill the gap, specifically with the hotel related education. This will help Nepalis not only in Nepal but also in the global market. 

Another area we are focusing on is the food industry. While it doesn’t necessarily have to be Dusit-branded food, our aim is to make a significant contribution to this sector. We prioritize maintaining high standards and ensuring quality food products. Health, organic practices, and sustainability are at the core of our food principles. As we expand in the future, we aspire to introduce these values to Nepal, promoting better health and sustainable practices in the local food industry.

How will Dusit contribute to bringing high quality tourism to Nepal?

We evolve over time. A few decades ago, our primary focus was on providing gracious services beyond expectations, and we diligently trained our staff accordingly. However, as new trends emerge, we recognize the importance of evolving and adapting to stay relevant.

One of the trends we have embraced in our offerings is wellness and wellbeing. Nepal, with its richness in spirituality, diverse religions, and vibrant cultural atmosphere, is well-suited for the luxury segment. Therefore, we believe incorporating wellness as a second pillar alongside our services in this hotel is essential.

Furthermore, promoting locality is a significant aspect of our business philosophy. We are committed not only to our own growth but also to the development of the community we operate in. Our resort is situated around the community of Namobuddha, a spiritual tourism spot, and we aim to support the locals by promoting the temple, local stories, environment, and nature to attract more tourists.

I bring along four media with me—National Geographic and Bangkok Post among others—and that is where I want to promote Nepal as a whole. I also took them to different places in Kathmandu and Bhaktapur to promote those places. I feel that there are many untold stories and facts about how Nepal recovered after the 2015 earthquake. People might now know that Nepal has fully recovered. These are our plans to promote locality. 

And we integrate sustainability in all of our business. We train our staff to understand what it means by sustainability.

What are your suggestions to the Nepal government and people to promote tourism in Nepal?

I believe there are rooms for improvement in Nepal’s infrastructure, particularly in the areas of roads, telecommunications, and electricity. For the country to attract quality tourism, these aspects need to be visibly improved and stabilized.

One positive development I have noticed is the progress made at the airport, which is a step in the right direction to welcome more tourists. However, it is crucial to promote the fact that Nepal is fully prepared to host a growing number of tourists, having successfully recovered from the earthquake and pandemic. Additionally, the rich cultural and environmental aspects of Nepal should be well-promoted to entice visitors.

To achieve these goals, the government should actively collaborate with private and multilateral sectors to attract investments. Education and skill development are equally important, as there are still people in Nepal who could earn more if they acquire relevant skills. This can also help bridge the global shortage of skilled human resources and boost the national economy.

For the tourism industry, incorporating a sense of purpose in traveling could set Nepal apart as the preferred choice, rather than just one among many options. While other countries offer various attractions, Nepal can differentiate itself by offering a purpose-driven experience. There are countless captivating stories from Nepal that can add purpose and meaning to the trip for international tourists