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 even more, depending on the route and season.
In April, Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel pledged to scrap the sky-high airfares to boost tourism and ease the burden on non-resident Nepalis holding foreign citizenship, who are also charged the higher rate.
He told the Kantipur newspaper that the removal of the “dollar fare” would begin with flights to the far-western Karnali and Sudurpaschim provinces – home to lesser-visited attractions such as the 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 has said there are no ongoing discussions on the issue.
Even so, the proposal has ignited a debate over its feasibility, with tourism stakeholders warning the fallout could extend well beyond aviation.