Why scrapping Nepal’s ‘dollar fare’ could leave locals grounded
A plan to make Nepal’s domestic flights cheaper for foreign visitors could end up making them more expensive for citizens, according to airline operators who warn against scrapping one of the country’s most contentious tourism pricing policies. Under Nepal’s two-tier airfare syst
AdvertisementNepalThis Week in AsiaEconomicsWhy scrapping Nepal’s ‘dollar fare’ could leave locals groundedAirline operators say lowering tourist airfares will not be ‘economically sustainable’, as the revenue helps subsidise costs for Nepalis3-MIN READ3-MIN ListenBibek BhandariPublished: 11:00am, 15 Jul 2026A plan to make Nepal’s domestic flights cheaper for foreign visitors could end up making them more expensive for citizens, according to airline operators who warn against scrapping one of the country’s most contentious tourism pricing policies.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.Nepal Airlines, the country’s flagship carrier, introduced the dollar fare in the 1970s.
Photo: ShutterstockThe proposal has since reignited a debate over its feasibility, with tourism stakeholders saying the repercussions could extend far beyond the aviation sector.AdvertisementSelect VoiceSelect Speed0.8x0.
9x1.0x1.1x1.
2x1.5x1.75x00:0000:001.
00x
Đọc thêm từ Tài chính
Labour must stop just writing a cheque for benefit claimants, says McFadden
Exclusive: Work and pensions secretary signals possible reform to welfare as ministers await key reviewsLabour must stop “simply writing a cheque” for health and disability benefit claimants and will provide more job support instead, the work and pensions secretary has said.Pat M
Troubled $20 Billion Data Center Shows UK’s Struggle in AI Race
The project in Scotland was heralded by officials. Now it looks more like a cautionary tale in the quest for ‘sovereign AI.’
