reprinted from the London Daily Telegraph

 

Nepal hit by strike threat 
Hotels may be forced to close because of pay dispute

 

By Deborah Dunn
Copyright 2000 Telegraph Group Limited
Article date:
December 09, 2000
 

Hotel workers in Nepal have threatened to strike next week, disrupting tourism throughout the country.

Negotiations involving the Nepalese government, the Hotel Association of Nepal and the Nepal Hotel Workers' Union are continuing, but if no settlement is reached, staff will stop working on Monday and hotels might be forced to close.

Workers are demanding that the hotels charge guests a mandatory service fee, which will be paid directly to employees, in addition to the 10 per cent VAT and two per cent tourist promotion tax already added to hotel bills. At present, employees receive a salary, but tipping is not obligatory.

The Kathmandu Chamber of Commerce, which says it fears violent action if negotiations dissolve, is advising all tourism-related businesses, including trekking services, to shut down.

Two British tour operators said that they were planning to continue holidays as normal.

Explore Worldwide, which is scheduled to take about 150 tourists to Nepal this month, said it would not cancel trips unless the Foreign Office deemed Nepal "inoperable". "We feel confident that the strike won't occur, but if it does, we will offer our clients a full refund," said a spokeswoman.

Exodus Travel, which plans to take about 130 people, also intended to go ahead. "The hotel workers have been this close to striking before, but the issues have always been resolved," said Mark Hanson, the company's spokesman.

"Tourism is just too critical to the whole economy and the presence of many foreign-owned hotels could complicate things."

However, George Morgan-Grenville of Abercrombie & Kent disagreed: "There have been rumblings before, but this is as close as they've ever got to having a serious strike." He said the union's demands were "unrealistic" and had caused "worry and unease" throughout Kathmandu's tourist industry. "It's everybody's hope that there will be a compromise, but even if there is, there will be no winners."

Luckily, he said, December is not the peak tourist season and A & K has no tour groups scheduled to visit the country until later this month. Because it is unclear at this point whether all hotels will be closed or if the smaller, non-union hotels will remain open, Mr. Morgan-Grenville said it is difficult for his company to design a contingency plan.
 

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