Ashish Kumar is the general manager of the Hyatt Regency, Kathmandu. He has more than 23 years of experience in the hospitality industry and has been associated with the Hyatt for 13 years. After starting his career as a front office manager at the Park Hyatt Goa Resort and Spa in 2009, he worked as the rooms director at the Hyatt Regency, Pune and then at the Hyatt Regency in Chandigarh. His first assignment as a General Manager was at the Hyatt Place in Hampi before he joined the Hyatt Regency, Lucknow and thereafter, the property in Kathmandu. Kumar strongly believes that investing in the right people is the key to success. The Post talked to Kumar about the current situation of Nepal’s hospitality industry, its challenges and opportunities. The excerpts.

How is Nepal’s hospitality industry performing?

The tourism industry is a mix of challenges and opportunities. There are definitely positive signs of recovery and a high potential for growth. With the travel restrictions gradually eased, there is an increasing sense of optimism within the industry. Domestic tourism has shown resilience, with locals exploring their own country and contributing to the revival of the hospitality sector. Further, as international travel gradually resumes, there is an opportunity to attract tourists who desire to explore new destinations and experience the unique cultural and natural offerings in Nepal.

How have you been promoting the Hyatt Regency, internationally?

Hyatt Hotels is a global hospitality company that operates several brands. Our marketing ethos is based on our belief in the importance of family and care. We promote ourselves through various marketing strategies such as participation in the international trade fairs, promotion of festive offers and through attractive pricing. We also use social media platforms such as Facebook, TikTok, Instagram and LinkedIn. We create a world of understanding and care and follow our purpose: We care for people, so that they can be at their best. Obviously, there is a shortage of skilled manpower. The migration of manpower from Nepal's hospitality industry has had a direct influence on the hotels and other service industries. The loss of skilled manpower can disrupt the continuity of operations and hinder the implementation of best practices. However, we have experienced and efficient employees putting in their best efforts to keep the flag flying high.

There is a cut-throat competition in the luxury hotel segment. How are you moving ahead?

One of our key commitments is to offer our guests an indigenous experience. Hyatt Regency, Kathmandu has seamlessly incorporated Nepali art, architecture, and design throughout our hotel. From the moment a guest steps into the lobby, they are immersed in the rich culture, heritage and warmth of Nepal. We also ensure that our culinary offerings are diverse and appeal to the various nationalities we serve. We invest in training and empowering our staff to anticipate and exceed guest expectations. In addition to service excellence, we lay great emphasis on sustainability and responsible practices.

What’s your view on the luxury tax?

I believe that it is essential to strike a balance between taxation and the growth of the tourism sector. The luxury tax is unlikely to adversely affect the competitiveness of Nepal's hospitality industry and deter potential investments. However, It is crucial for the government to consult with industry stakeholders to consider its impact on the tourists and assess the competitiveness of Nepal's luxury hotel market compared to neighbouring countries. The tax has come at a time when the inflation has gone through the roof. Inflation has a direct impact on the profitability of the hospitality industry in Nepal. One of the significant effects of inflation on the hospitality industry in Nepal is the increased cost of operations. It will eventually lead to higher prices of essential materials such as food and beverage supplies, energy, employee wages, and other operational expenses.

The number of hotels has been rising, but that has not matched the tourist arrivals growth. The country is facing an economic crisis too. How would you tackle these situations?

To increase tourist arrivals, it is crucial to create and implement strategic choices, by enhancing marketing efforts, improving infrastructure, diversifying tourism offerings, strengthening safety measures, facilitating visa processes, investing in training, and embracing sustainable tourism practices. There exists a great potential to unlock the country's tourism, drive demand, and showcase the rich cultural and natural heritage of Nepal. The hotel industry, like many others, has faced challenges due to the current liquidity crisis. With reduced consumer spending and corporate travel cutbacks, the hotels here have experienced a significant decline in their occupancies and tariffs. Many hotels have struggled to maintain financial stability and meet their operational expenses. Moreover, the liquidity crisis has made it difficult for the hotels to secure financing for future projects.