Election anxiety might affect room occupancy, say hoteliers

Though most of the five-star hotels in the capital have received more than 90 percent of bookings for November and December, they fear political scenario during the Constituent Assembly (CA) election might affect actual occupancy during the months. The election is scheduled for November 19. “It´s good to note that most of the rooms at five-start hotels have been booked. However, there are chances that the bookings might be cancelled if political situation turned unfavorable,” Kausal Kumar Singh, director-sales and marketing at The Everest Hotel, said. “At present, we can only hope that the election is held in a peaceful manner.” Singh further said the hotel has received good booking from MICE segment for December even though the month is regarded as off-season for tourism business. Sagar Chandra Bantawa Rai, revenue manager of Soaltee Crowne Plaza, echoed Singh and said the market is slowly contracting as arrivals from Europe have started declining. “As Nepal is holding CA election in November, many tourists are in a wait and watch mood,” Rai said, adding, “Arrivals from Europe is already declining due to economic slowdown in many European countries.” Though Europe is regarded as the primary market for Nepali five-star hotels, hoteliers say the trend is slowly shifting toward Chinese market. They say loss from the European segment is being compensated by the rise in arrivals from China in recent years. Soaltee Crowne Plaza has received 95 percent bookings for the month of November -- 10 percent higher than that of October, according to Rai. “Occupancy during these months is always higher as this period is the peak season for tourism business in Nepal,” Rai said, adding that the booking for December stands at 85 percent. Hotel Yak and Yeti - another five-start hotel in the town - has received 90 percent booking for November even though renovation works are undergoing at the hotel. “Most of the available rooms have been booking for November and December. However, whether or not the booking will translate into occupancy will depend on the situation during election,” Dinesh Benjankar, reservation manager of Hotel Yak and Yeti, told Republica. According to Hotel Association of Nepal (HAN), there are eight five-star hotels in the country.