Suphajee Suthumpun: Nepal can add purpose for the international travelers
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
Around 492 MW added to the national grid last year
The country has added less electricity to the national grid in the fiscal year 2022/23 compared to the fiscal year 2021/22. Around 492 MW of electricity has been added to the national grid in the last fiscal year. A total of 735 MW of electricity was added to the national grid in FY 2021/22.
With electricity generated from more than 27 power projects being connected to the national transmission system in the last fiscal, the total installed capacity of hydropower plants operational in the country has reached 2,759 MW by mid-July 2023. However, it is less than the government target. The government had set a target of adding 717 MW of electricity to the national grid in FY 2022/23. According to Nepal Electricity Authority (NEA), a total of 21 hydropower projects and six solar power projects began their commercial production in the last fiscal year.
The construction of the Solukhola (Dudhkoshi) Hydroelectricity Project, the largest hydropower project developed by the Nepali private sector, was completed in the last fiscal year. Developed by Sahas Urja, the 86 MW project commenced its commercial production on 1 March 2023.
The Nepal Electricity Authority (NEA) has earlier projected an additional 811 MW of electricity will be added to the national grid in FY 2022/23. The state-owned power utility had expected the 111 MW Rasuwagadhi, 42.5 MW Sanjen, 14.8 MW Upper Sanjen, and 102 MW Madhya Bhotekoshi to come online by the end of the current fiscal year. However, these projects failed to complete their construction within the last fiscal year.
The 54 MW Super Dordi ‘B’ in Lamjung and the 2 MW Solar Power Project in Nawalparasi, the 6.8 MW Solar Power Project in Morang, and the 10 MW in Banke have been already connected to the national grid. The 10 MW Makarigad Project also started commercial production in the last fiscal year.
The government has targeted to add approximately 900 MW of electricity to the national transmission system in the current fiscal year. According to the federal budget 2023/24, the completion of projects promoted by the Nepal Electricity Authority such as the 111 MW Rasuwagadhi, 102 MW Madhya Bhotekoshi, and 42.5 MW Sanjen hydropower projects, as well as hydropower and solar projects initiated by the private sector will help the country’s total installed capacity to reach 3,600 MW by the end of FY 2023/24.
Currently, projects with an accumulative capacity of 3,280 MW are under development and once they are completed, the national grid will have around 7,000 MW of electricity.
On the transmission line part, the process of constructing the New Butwal-Gorakhpur 400 kV transmission line has moved ahead.
The government in the federal budget has announced that project development agreements (PDAs) for strategically important projects like the West Seti Hydropower Project, Seti River 6 Project, and Lower Arun Project will be signed, and development work will be commenced.
Similarly, the government also plans to determine the investment modality for reservoir-based hydro projects such as the 1200 MW Budhigandaki Hydropower Project and 635 MW Dudhakoshi Hydropower Project and begin their construction.
As for the hydropower projects such as Upper Arun (1061 MW), Chainpur Seti (210 MW), Jagdulla (106 MW), Tamakoshi-5 (99.9 MW), Simbua River (70.3 MW), and Ghunsa River (77.5 MW), the government is planning to take ahead these projects under the co-financing modality of all three tiers of government.
Room for improvement in monetary policy
Before the unveiling of the new monetary policy, I had, through the media, advised the government to exercise caution while addressing some of the demands of the private sector. Thanks to the government for incorporating my suggestions.
The policy has pledged to boost small and medium-sized enterprises, but it has not said how Nepal Rastra Bank will do it.
The policy has also promised to review risk weightage on margin lending, housing loans, and hire purchase loans. Last year, the external sector was in a tight position. Before that, the Covid-19 pandemic had hampered the economy. Now, we have enough foreign reserves to trade for nearly 10 months, which is a better situation. Banks and financial institutions too have extra Rs 400bn for investment. But the industrial sector has not recovered and the policy has not much to offer. All in all, there is room for improvement in the policy.
The author is an economist
Triple whammy of lumpy skin disease
The spread of lumpy skin diseases in cattle has hit farmers across the country. They are facing a triple whammy as the dairy production has decreased, fields remain unploughed and paddy transplantation has not taken place due to widespread infection.
Lumpy skin disease is caused by the lumpy skin disease virus, which belongs to the genus capripoxvirus, a part of the poxviridae family (smallpox and monkeypox viruses are also part of the same family). It is a contagious vector-borne disease spread by mosquitoes, flies, and ticks.
According to the United Nations Food and Agriculture Organisation (FAO), infected animals shed the virus through oral and nasal secretions which may contaminate common feeding and water troughs. Thus, the disease can either spread through direct contact with the vectors or through contaminated fodder and water.
The incubation period or the time between infection and symptoms is about 28 days, per the FAO. Per some other estimates, the incubation period is 4 to 14 days.
Some of the symptoms of the disease are nasal and ocular discharge, discharge of mucopurulent (containing mucus and pus) with progression of the disease, fever, swelling of joints, swollen superficial lymph nodes, sharp reduction in milk production and formation of skin nodules all over the body. Damaged skin and hides, fertility problems and death are some of the impacts of the disease along with increased treatment costs.
Morbidity rate of the infection is usually 5–45 percent and mortality rate is usually less than 10 percent, according to the Central Veterinary Laboratory.
Many farmers have complained that the government has not taken effective measures to control the disease.
“I have just returned after burying an ox from one of my relatives because one of my oxen is sick and struggling for life. There is no vaccine at the municipal veterinary,” says Surya Thapa Magar, a farmer from Aiselukharka, Khotang.
It is a distressing situation for farmers like Magar. At Aiselukharka, there is no household where the cattle infection has not spread. In fact, the disease has reached all 77 districts of the country, infecting around 555,000 and killing at least 21,000 cattle so far, according to the Animal Service Department.
The infection is particularly high in mid-hill and hill regions of Karnali, Lumbini and Koshi provinces.
The spread of the disease can lead to substantial and severe economic losses, particularly in the dairy industry. The disease leads to reduced milk production as animals become weak as they lose appetite due to mouth ulceration.
The annual total milk production in Nepal is 2,301,000 metric tonnes. About 40 percent of milk production is contributed by cows and the remaining 60 percent by buffalo. There are about more than 500,000 dairy farmers and 1,700 dairy cooperatives involved in the dairy sector in the country.
A risk assessment study conducted by the United Nations’ Food and Agriculture Organization (FAO) based on information available from 2019 to October 2020 revealed that the economic impact of the disease for South, East and Southeast Asian countries “was estimated to be up to $1.45bn in direct losses of livestock and production”.
According to Nepal Veterinary Council, the mortality rate of the infections in animals is 3.8 percent and there is a loss of Rs 49,135 per animal in the country. Animal deaths resulting from this disease have already caused a loss of NRs 27.22bn.
In the absence of timely treatment, the disease could spread in over 2.5m animals, resulting in the death of 100,000 cows and buffalos, causing a total loss of Rs 1.26trn, per the council. There are over 7.4m cows and more than 5m buffalos in the country.
“It’s a huge economic loss for us. We haven’t been able to plough the field as tractor costs Rs 2,000 per hour, which we cannot afford. On top of that, the production of milk has also decreased,” says Chiranjibi Poudel, a farmer from Halesi, Khotang.
While the government has expressed its commitment to providing all resources required for the prevention and control of the disease, many farmers say the help has not arrived. In Baitadi district, for instance, vaccines are not available so far. Farmers say they feel helpless watching their cattle die a slow, painful death.
“The cases of lumpy skin infection are increasing by the day but the district lacks vaccines. We have written to the federal and provincial governments requesting vaccines,” Dr Bishal Pathak, livestock development officer at the Veterinary Hospital and Livestock Service Center.
Officials, however, claim that the government has imported 737,000 doses of vaccine and supplied them to all seven provinces. The government has allowed importers to import Neethling strains vaccine, which can be administered to pregnant cows and buffaloes.
Veterinarians say as the disease can easily transmit from one animal to the other, the infected animal should be kept separate from healthy animals. They suggest vector population control, hygienic measures in the farms, awareness campaigns and vaccination as preventive and control measures.
The vaccines are not produced in Nepal; they are imported. The government has allowed importers to import Neethling strains vaccine. The vaccine can also be administered to pregnant cows and buffaloes. The calves born will be resistant to the virus for three months.
The infected animals should not be administered vaccines. They should only be given vaccines a year after they have been infected with the disease. As the anti-virus resistance is formed in the cattle it is not necessary to vaccinate them immediately after their recovery.
The farmers demand the vaccines be made easily available to prevent infection spread in the healthy cattle.
It is safe to consume milk from cattle infected by Lumpy Skin Disease, as it is a non-zoonotic disease.
FAO says that a large portion of the milk in Asia is processed after collection and is either pasteurized or boiled or dried in order to make powdered milk. It ensures that the virus is inactivated or destroyed.
“It is safe to consume milk from the infected cattle but it will be beneficial to drink milk after boiling. However, if the cattle is given antibiotics then the milk should not be consumed from the day when the antibiotic was started and after a week from the day when the antibiotic was stopped in the animal,” the Department of Livestock Services said.
Symptoms
- Nasal and ocular discharge
- Discharge of mucus and pus with progression of the disease
- Fever
- Swollen joints and superficial lymph nodes
- Sharp reduction in milk production
- Formation of skin nodules all over the body