Hoteliers agree to impose 10 percent TSC

After five years of row, hoteliers and workers have agreed to impose 10 percent tourism service charge (TSC) on clients of hotels.

"The TSC will be charged on all services extended in hotels and restaurants except accommodation and package from January 1, 2007," Prakash Shrestha, president of Hotel Association of Nepal (HAN) was quoted as saying.

TSC on accommodation and package, which includes bed and breakfast, would come into effect from January 1, 2008, added Shrestha, speaking at a program organized to make the decision public.

TSC, however, would not be imposed on services provided by rental units such as shopping arcades, souvenir shops, beauty parlors, salons, massage services, health clubs, bookstores, casino and office space.

HAN officials elaborated that the decision in this regard was taken following the agreement reached between hotel and restaurant workers unions affiliated to the five major trade unions of the country on Saturday.

Unions affiliated to Nepal Trade Union Congress, General Federation of Nepalese Trade Unions, Democratic Confederation of Nepalese Trade Unions, Nepal Hotels Workers Union, and All Nepal Workers Trade Union (Revolutionary) had reached a understanding to that regard with the HAN officials on the weekend.

"We have already circulated letters to HAN members for immediate implementation of the decision," said Shrestha, adding that some 1,500 member hotels of the association spread throughout the country would initiate its execution soon.

According to trade union representatives, the TSC would benefit some 200,000 workers involved in the industry, as 68 percent of the revenue collected through TSC would go for staff welfare. Management would retain the remaining 32 percent, they told the press.

Among others, Ramesh Pant of All Nepal Hotel and Restaurant Workers Union, Netra Bahadur Thapa, Nepal Tourism and Hotels Workers Union, Madhav Neupane of Nepal Free Hotel Workers Union and Bhagawan Khadka of Decont, also shared their views on the occasion.

Hotel workers have been pushing for imposition of 10 percent service charge to tourists consuming services in hotels in order to add perks to staff and also generate fund for staff welfare since the last five years.

However, the hoteliers have been refusing the proposal, citing the downturn in tourist arrivals in the country and the impact conflict was having on the industry.