Rising Fuel Costs and Regional Conflict Impact Nepal's Tourism and Aviation Sector

Kathmandu. The ongoing conflict in the Gulf region has directly impacted Nepal's tourism season. Foreign tourists are canceling pre-booked flight tickets, creating further challenges for the tourism and aviation sectors.

In a press release issued today, Buddha Air stated that the recent hike in aviation fuel surcharges is not only unexpected but the highest recorded to date. The release notes that the automatic fuel price increase has directly affected airfare rates. Furthermore, the company clarified that the current fare adjustment is in accordance with prevailing regulations.

Buddha Air Executive Chairman Birendra Bahadur Basnet stated that under these adverse circumstances, there was no alternative but to increase fares to the minimum possible level while exercising extreme restraint. According to him, fuel costs typically account for about 40 percent of total operational expenses, but following the recent price hike, this ratio has reached nearly 50 percent.

Additionally, the rising value of the US dollar has significantly increased costs for aircraft spare parts, maintenance, technical staff training, and other essential expenditures.

The company stated that there is no option but to wait for fuel prices to normalize. It also expressed confidence that the tourism sector will recover strongly once the situation stabilizes.

Highlighting the tourism sector's vital role in job creation, the need for collaboration between the private sector and the government to advance this industry was emphasized. Despite these challenging circumstances, Buddha Air remains committed to working with the newly elected government to promote aviation services and the tourism sector.