Due to the ongoing conflict in West Asia, the cheapest ticket from New York to Kathmandu now costs 167,000, while in February it was 100,000. Kathmandu-Dubai fares have increased from 35,000 to 78,000.
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Hotelier Yogendra Shakya was planning to go to Hong Kong for a family trip in mid-April. However, he postponed the plan at the last minute. There was no family or personal reason behind it. He postponed the trip due to the skyrocketing airfares following the ongoing conflict between the US, Israel and Iran.
Lazimpat's Hotel Ambassador and owner of Nagarkot-based Club Himalaya and chairman of Ace Hotel, Shakya said, "Airfares have increased significantly. It has panicked everyone."
The one-way ticket fare from Kathmandu to Hong Kong is now around 190,000. Whereas a month ago, the airfare on this route was only around 100,000. "We have changed our plans and now intend to visit Jomsom," he said.
This is just a representative incident. Like Shakya, according to travel agencies, many potential tourists have now postponed or canceled their trips due to the increase in ticket prices.
Airfares have risen with the increase in fuel prices. On Wednesday, the Nepal Oil Corporation increased the price of aviation turbine fuel (ATF) to the highest in history. The price of ATF for international flights in Kathmandu increased by 77.63 percent to $1,716 per kiloliter. The previous high was $1,645 in June 2022. For domestic flights, the price of fuel has increased by 97.63 percent to $251 per liter. The previous high was $190 per liter in September 2022.
The ongoing conflict in West Asia has also affected Nepal, as energy prices have increased. This has directly hit the tourism sector. ‘The tourism sector has been hit hard,’ said Shakya. ‘We were expecting tourists from countries like Japan, Malaysia, China and India, which were less affected by the West Asian conflict.’ However, the fuel price hike turned it into disappointment.’
According to ticketing agents, most passengers who have already bought tickets for the tourist season will not be affected. However, with the price hike, new bookings have decreased. ‘The price of tickets has more than doubled since Friday,’ said Sangam Lama, a ticketing agent at Oso World Travel Nepal.
The cheapest ticket from New York to Kathmandu now costs 167,000. Whereas, in February, it cost 100,000. Kathmandu-Dubai fare has increased from 35,000 to 78,000.
The fare from Kathmandu to Sydney now costs 190,000. In the past, it used to cost 80,000. It used to cost 80 thousand to go to Japan, now it costs 130 thousand.
The Bangkok-Kathmandu route has seen the highest fare increase. Earlier, it could reach 35 thousand, now it is 100,000. All tickets from Kathmandu to Kuala Lumpur have been sold. The ticket fee, which was 40 thousand in February, has reached 170 thousand. Which will greatly affect Nepali migrant workers.
However, there is no similar increase on all routes. Kathmandu-Delhi air fare, which used to cost 15 thousand, has now increased slightly to 18 thousand. The fare on the South Korea-Kathmandu route, which used to cost 70 thousand, has reached 87 thousand.
‘We have not seen many flights cancelled due to the fare hike so far,’ said ticketing agent Lama , ‘However, the real impact seems to be bigger in the coming weeks .’
Tourism professionals understand that the increase in airfares at the start of the season will have a big impact on Nepal . ‘People around the world are avoiding going to West Asia and are looking for safe destinations . Nepal should have benefited from this,’ said Shakya, ‘but when the fares increase, they are forced to postpone or postpone their trips . The situation is challenging .’
The opening day of Nepal’s tourism season was encouraging . Despite being an off-season month, arrivals increased by 15.5 percent compared to last year in January. There was an 8.8 percent increase in people compared to last year in February.
Operators were expecting a 20 percent increase in tourists compared to last year in March, the beginning of the peak season for trekking and climbing. Because at this time, political stability and bookings in Nepal had improved . However, tourists have decreased .
Compared to last year, tourists have decreased by 1 percent in March this year . According to official data, only 120,516 tourists came to Nepal that month .
Global geopolitical tensions and the decrease in the number of tourists in Nepal have coincided . On February 28, Israel-America jointly attacked Iran . After that, air routes in West Asia have been affected . West Asia is considered the main transit connecting Asia with Europe and North America .
According to the Civil Aviation Authority, more than 400 flights have been suspended in the main transit hubs of the UAE and Qatar in the past month . “We did not expect such a large number of flight cancellations in April,” said Thaneshwor Guragain, manager of Nepal’s largest climbing agency, Seven Summit Treks. “Tourists are canceling their trips. It is challenging.” He said that 60 percent of trekking bookings for April have been canceled. “It is terrible,” he said. Tourism is an important sector in Nepal’s economy. It contributes about 7 percent to the gross domestic product. In 2023, the sector generated about $2.5 billion. It also created 1.19 million jobs. According to the World Bank, this figure is 15.2 percent of Nepal’s total employment.
This is a major setback for an industry already reeling from the COVID-19 pandemic and the impact of last year's Gen-G protests. While nearly a quarter of international flights to Kathmandu used to come via these routes. Since then, there has been a continuous disruption in air connectivity. Some tourists have come from alternative hubs like Thailand, Singapore and India. However, operators say this cannot compensate for the loss.
Guragain, manager of Seven Summit Treks, said that bookings for April are very weak. Despite this, he said that the schedules of climbers aiming to climb mountains above 8,000 meters are intact.
The Everest climbing season has started from the first week of April. Efforts to reach the peak usually begin in mid-May. As of April 3, the tourism department has issued 70 climbing permits. Of these, 33 are for Everest.
‘If the Gulf War is not stopped, Nepal’s tourism sector will have to bear serious losses,’ said Guragain. ‘From guides to hotels and airlines, from restaurants to helicopter operators, everyone who depends on tourism income will be badly affected.’
Deepak Raj Joshi, CEO of the Nepal Tourism Board, said that considering the uncertain situation, Nepal is focusing on nearby markets. ‘Despite the ongoing conflict and obstacles, the arrival figures are not that bad. Even though the number of arrivals from Europe and America has decreased, the increase in tourists from neighboring countries, especially India, is a positive sign,’ he said. ‘We are certainly not in a position to be satisfied. But there is no need to panic. The crisis in West Asia may affect tourists in the coming days. We are adopting a balanced strategy of going to alternative markets.’
