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Big Nepali hotels likely to keep their staff nominally paid until mid-October

Kathmandu, May 4

The Hotel Association Nepal, an organisation of Nepali hoteliers, has decided to keep all the hotels affiliated to it shut until mid-October this year owing to the impact of coronavirus crisis on the country’s tourism industry.

A meeting of the association held on Sunday also made the decision to pay their staff only 12.5 per cent of their basic salary owing to the crisis. The decision apparently violates the government decision requiring all enterprises to pay their staff a complete salary despite the lockdown and other international labour principles.

Further, the association has decided to fire the staff if they do not agree on receiving the nominal pay.

The decision is likely to hit the staff working for big and star hotels in Kathmandu, Pokhara, and other places. The association is now led by Shreejana Rana, the Executive Director of Annapurna Hotel, one of the biggest five-star hotels in the country.

Fearing that the businesses would not pay their staff, the government had decided to let the companies borrow loans from the banks at a subsidised rate. But the hoteliers made the decision to shut the hotels for a half year.

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