Why scrapping Nepal’s ‘dollar fare’ could leave locals grounded
Airline operators say lowering tourist airfares will not be ‘economically sustainable’, as the revenue helps subsidise costs for Nepalis
Under Nepal’s two-tier airfare system, foreign passengers must pay in US dollars for domestic flights, with prices usually two to three times higher than for Nepalis and sometimes more, depending on the route and season.
In April, Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel pledged to end the sky-high airfares to boost tourism and provide respite to non-resident Nepalis holding foreign citizenship who are also required to pay higher fares.
He told the Kantipur newspaper that plans to scrap the “dollar fare” would initially start with flights to the far-western Karnali and Sudurpaschim provinces – home to lesser-visited attractions such as Rara and Shey Phoksundo lakes and Khaptad National Park – before being rolled out nationally.
The plan stalled due to the fuel crisis linked to the Iran-US conflict and the tourism ministry said there were no ongoing discussions on the issue.
The proposal has since reignited a debate over its feasibility, with tourism stakeholders saying the repercussions could extend far beyond the aviation sector.