Subrata Banerjee is the general manager of Radisson Hotel, Kathmandu. He has been associated with the Radisson Hotels Group for more than a decade. Banerjee has been leading the Radisson Hotel, Kathmandu as general manager since 2017. He has a total experience of 36 years in the hospitality industry. In an email interview with the Post, Banerjee explains how the industry is recovering gradually. Excerpts:

How is Nepal’s tourism industry performing?

Nepal’s tourism industry is bouncing back. Tourists are returning. To keep up this momentum, stakeholders have to be serious about developing infrastructure and promoting destinations at the international level, simultaneously. No one can deny that Nepal is an amazing destination yet to be fully discovered.

Nepal’s hospitality sector is seeing a mass exodus of skilled manpower. How has it affected your hotel?

Yes, a lot of skilled employees are going abroad. This is positive news and an indication that the demand for Nepalis is increasing globally. And we are proud that we trained them so well that they are there today. We are again on our feet, preparing a fresh lot.

There are several luxury hotel chains now in Nepal. There has been fierce competition between the established old hotels and newcomers. What are your strategies for competing with them?

Yes, several luxury hotel chains have entered the Nepali market. We are also a global brand. Competition is in our blood. Also, competition makes all the brands more professional. Tourists and corporates enjoy the benefits of it. So, it is healthy too. Competition in the industry drives teams and individuals to give their best. Competition is always good and healthy. On one hand, it forces the stakeholders to look at new demand drivers and on the other, more hotels and better infrastructures attract more tourists and high-end businesses to the country. So, the pie will increase. We are positive. If the government is serious about improving air and surface transport, promoting the destination in the right way, and encouraging tourism-related activities, I am sure even the present number of hotels will fall short to accommodate the tourists.

How has inflation affected the hospitality industry?

Inflation has a negative effect and should be in check at all times to keep the economy steady. Hotels are directly affected by inflation. But we have no choice. We have to increase our rates to sustain. That makes Nepal fall back in competition with other destinations in Asia which are cheaper and more attractive. So, in the hospitality industry, low inflation is always a key component in attracting tourists.

Has domestic tourism bailed out hotels at difficult times? How has the current liquidity crisis and economic slowdown affected the hotel industry?

Well, the number of domestic tourists has been increasing. It’s a very good sign. We keep introducing various incentive packages in rooms as well as in food and beverages to attract domestic travellers. At present, resort destinations are benefitting from this surge. Well, the new and the old players are affected as the banks are either charging high-interest rates or failing to offer loans for various projects. This will ultimately cause delays and lead to cost overruns. Moreover, the slowdown means the general public will reduce their spending, fearing a Sri Lanka-like situation may hit them.