Rahul Chaudhary is a fourth generation entrepreneur, heading CG Hospitality as MD, managing a portfolio of over 200 hotels across 12 countries. Here, in conversation with Navin Berry, he talks of the change in government in Nepal, the aspirations and expectations of its people, the strong foundations of tourism, and the road ahead.
Navin Berry: After the big sudden wave of protest, that shook Nepal and also its keen well wishers here in India and elsewhere, like literally a bolt from nowhere, protests, acts of arson, looting and burning down buildings that the protestors identified with corruption and nepotism, what was it like for the Chaudhary Group?
Rahul Chaudhary: We had already relocated our operations but it’s a question of restarting the business. Well, we were insured, but it’s a question of trying to get what we are due? It takes time in the system, but it is happening.
Navin Berry: And how is Binod ji’s politics doing with the new dispensation?
Rahul Chaudhary: Well, new politics was a tsunami wave of the Gen-Z parties which won two-thirds majority. So all the top leaders who were there, everyone lost. It was a crazy, crazy situation but it’s very easy to say and it’s very difficult to do. I always say that a strong, a good democracy is one where you have a very strong opposition. And what scares me the most is that when you have a very, very strong controlling party and there is no opposition.
Navin Berry: And also what I was reading that all the 10 constituencies in Kathmandu; all have gone to the new party.
Rahul Chaudhary: Not only that, they have won close to 60-70 seats in the parliament through the polling. Sorry, have won close to 125 seats in the parliament. They have won through the voting.
Navin Berry: Any statements this new dispensation has made with regard to tourism?
Rahul Chaudhary: ‘Abhi toh nahi sir’. It’s too early for anything to happen. First, they will have to form the cabinet. Everyone is saying priority will be tourism. But let us see how they are going to make tourism a priority – that game plan is yet to be shared, and frankly, it is too early to expect. There have been statements to the effect that Nepal Airlines will be prioritized, that 49% will be given to someone else, we will explore airports to be run by private sector, and will engage new entities. Nepal has three international airports – Kathmandu, Lumbini and Pokhara.
But all this is very easy to say. Both these airports – Lumbini and Pokhara – have been built by the Chinese. If they are given to any Indian operator, it will amount to be taken away from China. And in these geopolitics, you know, it will be not be easy to do.
Navin Berry: Mostly these are young and unknown faces, totally alien to governance. How will they manage? They will need advisors if not more experienced people to join them?
Rahul Chaudhary: There are almost 40 people who have won the election who are below 25? They will need experience going forward, mere exuberance may not succeed in implementing many of their goals. People didn’t even know who they were voting for. They were voting for change. ‘Bas ghanti ko vote kar rahe hain’.
Navin Berry: One gathers that even supporters of the traditional parties went out of their way to vote for the new party? Such was the disenchantment or the cry for change?
Rahul Chaudhary: This time everyone has. People did not know who they were voting for. In all these seats, apart from Balen Shah and Rabi Lamichhane, a few of the other leaders who were the face of that party. But these other people, unknown people. They were pretty much voting for the party symbol, you see. So that was the kind of frustration within people in terms of asking for change. But like I said, wisdom in these political situations, wisdom and experience will count, and the nation is yearning for change and delivery.
Navin Berry: Tell me Rahul, just a serious question. Does it give an opportunity for young people like you also to join politics?
Rahul Chaudhary: See, we have to wait and watch how the system gets re-engineered. It is not about one person or two. There is abundant enthusiasm among the party cadre, and my sense is that the government will need serious advice givers in various departments and sectors like tourism, industry, commerce, economics. They should take advice from them because all our objectives are aligned to a common cause of nation building.
Navin Berry: But I visualize that as they get little more settled in their seats, they will automatically need to reach out to people with experience, people like Binod ji, for instance?
Rahul Chaudhary: We are always available. It’s not a question of losing or winning here. Here, the question is nation first. That’s why I said that right now, it is too early to say anything, sir. This government, having this bahumat of two-thirds is a big opportunity. But it’s a big risk also.
Promises from election campaigns, in our part of the world, many of them remain unfulfilled, some do, we will have to watch over the next three to six months as to what gets priority in the government’s scheme of things. Their objective is to stay for full five years of their term. And, for the present, specifically for tourism, Nepal has a mature tourism product, but will that be taken to the next level, we will have to wait and see.
I presume in the next 10-15 days, there will be a little more clarity. Who will come into the cabinet, who will head the tourism portfolio? What is their agenda? Who will drive tourism?
Navin Berry: Let us go back to September last year, when tourism took a big beating, all of a sudden. From then to March, how has the trajectory been overall for tourism into Nepal?
Rahul Chaudhary: Actually, tourism only took a little bit of a hit in September itself. Tourists were not really attacked directly by anyone. It was more of a politically driven movement. Obviously, tourists in the valley, present at that time, were scared and it is only natural that they would be. There is no doubt about it. But keep in mind, this is Nepal for you. Two days, two to three days, they destroyed everything. On the third day, everyone was busy re-building, cleaning up all the devastated sites.
See, their targets were the institutions that they looked upon as symbols of corruption and nepotism, So, the political people’s houses, the Supreme Court, Parliament House, and some such were burnt down. And yes, they burnt a hotel, Hilton, because they saw that there was an affiliation with one family whom they associated with corruption. It was NOT an attack on tourism, per se, have no doubt in your mind on that.
Navin Berry: And the tourist inflows?
Rahul Chaudhary: All our inbound tourism, or let us say mostly, is high-end and this segment always plan a year or two in advance. If the traditional tourist season starts around September onwards, we did see a little dip in that month, which continued in part into October but thereon, by and large, our numbers have held on. Some cancellations were here and there, 10-15% you might have noticed, but from October to February it was okay. And then again, from around the middle of February to March, during the election time, there was a slight decrease, no doubt, which is again typical of our region. But do notice that our elections were conducted most professionally and peacefully.
Navin Berry: Okay, so what has the Indian traffic been like?
Rahul Chaudhary: Indian traffic is still coming. ‘Unko toh kya farak padta hai, India aur Nepal toh is immune to such issues’. I don’t think there was any visible impact or negative impact on numbers from India.
‘Jaise aaj kal bolte hai na’ sir, that Dubai is the closest domestic city to India. Nepal bhi toh wo hi hai, Nepal toh you can even come with a voter ID.
Navin Berry: So, tell me about your other projects, say for instance Dubai right now, what is the scene in Dubai as you understand?
Rahul Chaudhary: Dubai, in terms of the tourism traffic and real estate traffic, will take a hit for the short run for sure. It is yet to see how it plays out in the next few months. But for now, there will be some issues.
Navin Berry: But how bad is bad right there?
Rahul Chaudhary: There is uncertainty and we hope that we get over this mess earliest. However, I must mention, the government of UAE has done brilliantly in terms of protecting people who are stranded. They said we will pay for all your bills, if you are stranded and could not leave the country, as planned. All airlines are not charging cancellation, giving 100% cancellation refund wherever asked for. We are talking about close to 25,000 tourists a day. And all hotels are stepping up to give people who are stranded, subsidized room rates and discounts. This just shows the solidity of the economy.
Now in our hotel, we have high occupancy. But we have an issue in terms of the rate. But that is normal, in such circumstances.
Navin Berry: Absolutely, how do you see tourism opening up in Nepal? We’ll confine ourselves to tourism prospects. And what is new happening to the tourism product in Nepal?
Rahul Chaudhary: New tourism product means there are new brands coming on board. You have The Oberoi which is coming here. You have JW Marriott, a Marriott Luxury Collection and other properties as well, which is a good sign. Which is a good sign for development of tourism and growth. But I always like I always say sir, all this is well and good until and unless the infrastructure is built, it doesn’t matter.
Navin Berry: So how is the infrastructure opening up?
Rahul Chaudhary: ‘Abhi toh same hi hai na sir’. To see the next level, we will have to wait and watch. Will see what their focus will be in the new dispensation. Our hope is that we are able to up the game, and make tourism even more sustainable.
Navin Berry: But I am very optimistic that the young generation will…
Rahul Chaudhary: Of course, sir. Because keep in mind that tourism I think will be a centre stage for this government because tourism is Nepal’s backbone of the economy. One of the backbones is tourism.
Navin Berry: One of my concerns always about Nepal has been the importance of dispersing tourism beyond Kathmandu, into let’s say 15-20 other smaller destinations. Is that playing out now at all? Because it’s not just that I want to go for a trek or I want to go for adventure.
Rahul Chaudhary: Like I said, it all relates to infrastructure. That’s what I mean.
Navin Berry: No, not for the new government but even in the last government, was this talk a feature?
Rahul Chaudhary: Whatever the last government did is completely redundant, no sir. It has become null and void. It didn’t go any further, that’s why there was so much change. We have three international airports. Pokhara, Lumbini and Kathmandu. Pokhara and Lumbini are closed.
Navin Berry: In fact, the Pokhara airport was the one that got built with Chinese help. Am I right?
Rahul Chaudhary: Both Lumbini and Pokhara. Just imagine the tourism, how tourism in terms of spiritual tourism can take off. Lumbini is like ‘Bodhgaya mein aapka direct flight jaata hai Thai Airways ka’.
Navin Berry: Sri Lankan is also flying.
Rahul Chaudhary: Thai Airways can also go to Lumbini?
Navin Berry: In fact, they could make a circuit. No, but the economics of the airport have also to be determined. One or two flights alone can’t make an airport function.
Rahul Chaudhary: There are political issues. No one person can just take a decision and say, I will start the airport from tomorrow. How will you do it?
Navin Berry: Anything else you want to comment?
Rahul Chaudhary: I am very optimistic, see, with the new Gen Z coming in. I am optimistic that their focus will be on tourism. But I hope that they are going to tap into immediately all these things like the airport, road infrastructure, infrastructure in the remote places all across Nepal.
Navin Berry: What about an improved taxi service or a transport system?
Rahul Chaudhary: All when I say infrastructure I mean all of these. Why is India thriving, you tell me? Its connectivity, its highway, another issue is your vehicles. Here, 300% tax is charged on vehicles.
Navin Berry: It is time you made Maruti come and invest into Nepal and put up a factory.
Rahul Chaudhary: All this is possible….
Navin Berry: Let us hope ho jayega in the years to come.
Rahul Chaudhary: We are very hopeful. We are very hopeful and we as a Group are always aligned towards the greater good of the country. It’s not about a political affiliation. If we want this government to succeed, we as a sector, whether it is business, it is industry, it is manufacturing, it is tourism, we are always here to play a proactive role from a business point of view, not political point of view. From a business point of view to see how all these objectives can be met and we are more than happy.
When I say we meaning who? Our generation, that is Nirwan, Varun and myself. To play a proactive role with the government.
Navin Berry: No, but let me also say Rahul that Binod ji from what I know, for all the politics that he may be in, beyond that, he is always thinking of Nepal.
Rahul Chaudhary: We are all at the end of the day, why are we entering into politics? It’s not about a position; it’s about taking the country to a level that we can.
Navin Berry: Yes, yes, yes, absolutely. What are your plans for Nepal itself in terms of more hotels or things like that?
Rahul Chaudhary: We already have 5 hotels here, we want to do much more but you see, the system and the infrastructure have to support to do more.
