Are you looking to start a tourism business – a trekking agency, a restaurant/hotel/lodge/bar/resort, mountaineering or expedition, a tourist guide, a tourism enterprise of activities like Rafting, Gliding, Ballooning, Jungle Safari, Camping, Hiking, Bird Watching, Skiing or more?
To have a broader perspective, the tourism industry requires various concepts for a businessman to understand like entity registration, obtaining licenses, star rating, association memberships, and more. Respective local and federal government departments have to be approached.
Travel or Trekking Agency
For starting a travel or trekking agency you need to follow rules under Travel and Trekking Agency Rules, 2062 (2005)
What are the requirements for starting a travel or trekking agency?
To work as a travel or trekking company, you must register your firm or company and obtain a license.
Capital requirements:
Trekking agency: At least 3 lakhs Rupees if a firm; at least 6 lakhs Rupees if a company.
Travel agency: At least 5 lakhs Rupees if a firm; at least 10 lakhs Rupees if a company.
Bank Guarantee:
When applying for a license, the travel or trekking agency must provide a bank guarantee in the name of the Ministry as security. The bank guarantee should be at least 3 lakhs (300,000) Rupees for a travel agency and 2 lakhs (200,000) Rupees for a trekking agency.
Obtain a license:
To apply for a license from the Ministry of Tourism and Civil Aviation. The application should be submitted in the specific format mentioned in schedule-1.
Upon making necessary inquiries, the government may issue the license by taking a fee of fifteen thousand rupees.
Period and Renewal of License:
The duration of the license is for a period of five years with renewal at Ten thousand Rupees prior to the end of the duration.
When can your application for a license be rejected?
(a) Someone who lacks the ability to make a legally binding contract.
(b) Someone who is declared bankrupt.
(c) Someone whose Travel or Trekking Agency license has been revoked and hasn’t been reinstated for two years.
(d) Someone who has been convicted and sentenced to prison for a morally reprehensible crime.
Opening of a branch office:
In case you want to open a branch office, a separate application has to be submitted to the Ministry.
Registration of Hotel/Bar/Lodge/Resort/Restaurant as Tourist Standard
In case you want to register your venture as a tourist standard you need to do it under the “Hotel, Lodge, Restaurant, Bar and Tourist Guide Rules, 2038 (1981)”.
Submit an application to the Department in the format mentioned in Schedule-1 including the application fee of Ten Rupees.
Hotels can be classified as:
General Tourist Standard Hotel
Tourist Resort
One star to five star as per the facilities of that Hotel.
Requirements of classification:
General Tourist Standard
- At least ten bedrooms with natural light.
- Attached bathrooms and toilets in 25% of the rooms, and other necessary facilities in a 1:4 ratio for the remaining rooms.
- Modern furniture and electricity in all rooms.
- Rooms decorated to reflect Nepalese art and culture.
- High-quality bathroom materials and adequate hot and cold water supply.
- Well-decorated reception counter with telephone facilities.
- Clean and well-equipped dining hall and kitchen.
- Adequate facilities for laundry.
- Experienced senior staff capable of speaking English.
- Neat, clean, and uniform attire for the workers.
- Fans or heaters provided according to the season.
- Availability of first aid and fire fighting equipment.
Tourist Standard Lodge
- At least five bedrooms with natural light and air ventilation in each room.
- Attached bathrooms and toilets in 25% of the rooms, and other necessary facilities in a 1:4 ratio for the remaining rooms.
- Modern furniture and electricity in all rooms.
- Rooms decorated to reflect Nepalese art and culture.
- High-quality bathroom materials and adequate hot and cold water supply.
- Well-decorated reception counter with telephone facilities.
- Good arrangement for cloth washing.
- Staff with knowledge of lodge operations and ability to speak English.
- Neat, clean, and uniform attire for the workers.
- Provision of fans and heaters according to the season.
Restaurant and Bar
Tourist standard restaurant and bar requirements:
- Food arrangements meeting international standards.
- High-quality crockery and cutlery.
- Provision of pure and hygienic drinking water.
- Restrooms with soap and towels separately for gentlemen and ladies.
- Adequate dining space for at least fifteen people at a time.
- Spacious and comfortable seating arrangements.
- Neat, clean, and standard furniture.
Are you planning to become a tour guide?
Obtain a license:
To become a tour guide, you need to apply for a license by submitting an application with the Director General of the Department of Tourism of Government of Nepal.
Qualification:
For qualifying as a tour guide, you shall get a Tourist Guide training and certificate from Hotel Management and Tourism Training Centre.
When can your application be rejected?
Tour Guide licenses will not be granted to you if:
(a) you are convicted of immoral crimes and imprisoned;
(b) you have mental or contagious diseases;
(c) you are someone whose Tour Guide licenses have been revoked previously and a period of three years hasn’t been lapsed.
License period, fees, and renewal :
A license for a tour guide is granted for a period of five years on payment of Rs. 150 and can be renewed within 35 days of expiry with a fee of Rs. 50. Late renewal will attract increased fees.
Being a tour guide, you are not allowed to:
(a) Ask for or take money or anything of value while helping tourists buy things or provide services.
(b) Force tourists to hire them as their guides.
(c) Give their license to someone else to work as a Tour Guide.
When can your license get canceled?
A license granted to you as a tour guide would be canceled if:
(a) you are convicted and sent to prison for a crime involving bad moral behavior.
(b) you are disqualified for being mentally unfit or with contagious diseases.
(c) you do any act which is not allowed as a tour guide.
You would be given an opportunity to prove your case for a period of 15 days before revoking the license.
What would happen if you do not follow the rules as provided under the law?
- If you work as a Tour Guide without getting a license you may be fined up to Rs. 4,000.
- If you work as a Tour Guide without renewing the license, you may be fined up to Rs. 2,000.
- If you do not follow the rules under the law, you may be fined up to Rs. 1,000.
