People in the advertising industry have opposed the government decision to fix ceiling on educational institutions´ advertisement spending.

The ´Institutional School Standard and Operation Guideline 2013´, which the government issued in February, has put a ceiling on educational institutions´ advertisement spending.

Speaking at an interaction on ´Importance and Impact of Advertisement on Nepal´s Educational Sector´ organized by Advertising Association of Nepal (AAN) here on Wednesday, Raj Kumar Bhattarai, president of AAN, said the ceiling on advertisement spending goes against the open market policy.

“Educational sector is among the highest revenue generating sector for Nepali advertising agencies. Any attempt to fix ceiling on advertisement spending by this sector will affect the advertising as well as media industry,” Bhattarai said.

According to Bhattarai, advertisement spending by education institutions is worth Rs 450 million a year.

As per the guideline, educational institutions can erect hoarding boards with their advertisements in their premises only. Besides, it makes it mandatory for educational institutions to take permission from concerned District Education Offices before spending on advertisements.

In addition to that, the schools inside the Kathmandu Valley can spend up to Rs 500,000 a year on advertisement. Similarly, those inside sub-metropolitan city, metropolitan city and village development committee (VDC) can spend Rs 300,000, Rs 150,000 and Rs 50,000 a year respectively.

The guideline has imposed fines ranging from Rs 50,000 to Rs 500,000 to cancellation of operating license on those flouting it.On the occasion, Bhojraj Aryal, associate professor of Tribhuwan University and an advertising expert presented his findings on the impact of the guideline on educational institutions. “The guidelines have both negative as well as positive aspects, but the negative aspects are more than the positive ones,” said Aryal. “Though the guideline has tried to systematize the educational institutes, it is not practical to fix advertisement ceiling on schools that have been spending Rs 5 million to Rs 10 million a year on marketing and promotion.

Aryal also said the guidelines have not fixed advertisement ceiling for foreign educational institutions. “If the guidelines are enforced, more students will be attracted toward foreign institutions,” he added.

Advertisement expert Pradip Bhattarai said that the government´s ceiling on promotional activity is against the free market policy. “The ceiling will not allow new schools to promote and establish themselves while the old schools will enjoy monopoly,” Bhattarai said.

Som Lal Subedi, secretary at the Ministry of Education (MoE), said the government will consider pros and cons of the guidelines. He also hinted that are chances of correction in the guidelines as well.

source: republica,12 June 2013