Tourism service fee doubled after 9 years

The tourism service fee (TSF), which is levied on foreign travelers in Nepal, will been doubled from Rs 500 to Rs 1000 from 1 March this year onward.

The revision has been made after nine years. The TSF is levied on the outgoing foreign travelers departing from Nepal and is implemented only from Tribhuvan International Airport. The fee is collected by Nepal Tourism Board (NTB).

“With a bigger budget, Nepal Tourism Board will now prepare and implement 5 years plan to penetrate the market that has been unexplored before,” says Subash Nirola, Acting Chief Executive of NTB. “ I now urge all members of Nepalese travel trade industry to join in hands with us in promoting, expanding and developing Nepalese tourism industry also in regional level by putting effort in increasing length of stay, tourist arrivals and average income per visitor per day.”

The fee was introduced in 1999 to fund the promotional activities of NTB, levying 2% service charge in tourism services. However, the funding mechanism was later changed in 2005 with the levy of Rs 500 to all foreign travelers exiting from Tribhuvan International Airport.

Nirola added that the increased revenue will enable the Board to concentrate more on international promotion and domestic tourism development. According to NTB, the devaluation of Nepali currency and stiff competition in international tourism has forced the Board to increase the fee.