KATHMANDU: Nepal's trekking and tourism industry is pushing for sweeping policy changes aimed at enhancing safety, competitiveness, and revenue generation, following a high-level meeting between industry leaders and the Ministry of Finance.

According to Sagar Pandey, President of the Trekking Agencies' Association of Nepal (TAAN), industry leaders held a discussion with Finance Minister Rameswor Khanal, presenting seven urgent issues that stakeholders believe must be addressed to strengthen Nepal's position as a premier adventure tourism destination.

"Today, industry leaders raised key issues that must be addressed urgently to strengthen Nepal's trekking and tourism landscape," Pandey stated following the meeting, expressing appreciation for the Finance Minister's receptiveness. "Special thanks to the Honorable Minister for genuinely listening and committing to timely action."

Seven-point reform agenda

The comprehensive reform package presented by TAAN encompasses regulatory, infrastructure, and taxation issues across Nepal's tourism and aviation sectors:

1. Solo entry permits for restricted regions

TAAN has intensified its campaign to allow solo foreign trekkers to access restricted areas including Dolpo, Mustang, Nar Phu, Manaslu, and Kanchenjunga. Currently, regulations require foreign trekkers to travel in groups of at least two people to obtain permits for these zones.

"We sincerely request the authorities to update this rule so that even a single foreign tourist can trek in restricted areas," Sonam Gyaljen Sherpa, General Secretary of TAAN, had reiterated a longstanding industry demand in a notice issued by the TAAN few weeks ago.

2. Immediate TIMS implementation

The association is calling for swift implementation of the Trekkers' Information Management System (TIMS) across all trekking regions, citing benefits for trekker safety, revenue collection, and employment generation in the sector.

3. VAT removal on flights

Industry leaders have proposed removing Value Added Tax (VAT) on both international and domestic flights to reduce travel costs and enhance Nepal's competitiveness as a destination.

4. Infrastructure improvements

The meeting emphasized urgent repairs to tourist and trekking access roads, with particular focus on the Ramechhap route—a critical gateway for travelers heading to the Everest region and other popular trekking destinations.

5. VAT issues on trekking bills

The stakeholders also raised concerns about VAT complications affecting trekking operators, seeking clarification and potential reform of current taxation structures on trekking services.

6. NMA tax and billing concerns

Issues related to Nepal Mountaineering Association (NMA) taxes and unexempted billing that affect climbing expeditions and peak permits was also raised in the discussion.

7. Foreign management for Nepal Airlines

Perhaps most significantly, industry leaders proposed bringing Nepal Airlines under foreign management expertise to boost aviation standards and grow tourism numbers—a move that could transform the national carrier's operational efficiency and service quality.

Recent victory: Upper Mustang fee reform

The industry push comes on the heels of a significant policy win for TAAN. On November 18, the Cabinet amended Schedule 12 of the Immigration Rules 2051, revising trekking permit fees for Upper Mustang to US$50 per person per day based on actual duration of stay.

"TAAN also expresses gratitude to local bodies, Nepal Tourism Board, Department of Tourism, and the Ministry of Culture, Tourism and Civil Aviation for their role in addressing the long-standing demand to charge based on the actual number of days tourists spend in the restricted areas, particularly after improved trail conditions have shortened trekking durations in restricted regions," Sherpa said in the November 19 notice.

The new fee structure replaces the previous system and reflects the reality that improved trail conditions have reduced the time required to complete treks in restricted zones.

Upper Dolpa next on reform list

Building on the Upper Mustang success, TAAN is now urging similar revisions for Upper Dolpa, where current regulations require foreign trekkers to pay US$500 per person for a minimum 10-day permit regardless of actual stay duration.

Earlier, TAAN had expressed gratitude to the Department of Immigration and Ministry of Home Affairs for implementing the duration-based fee structure, calling it a more equitable system that benefits both tourists and local economies.

Industry optimism

Pandey characterized the meeting with Finance Minister Khanal as "a productive and hopeful step toward building a stronger, safer, and more competitive tourism industry for Nepal."

The comprehensive reform agenda addresses long-standing grievances within the trekking and tourism sector, where operators have struggled with regulatory constraints, infrastructure deficiencies, and taxation issues that they argue place Nepal at a competitive disadvantage compared to neighboring destinations.

With Nepal recording over 1 million international visitor arrivals through November 2025 and achieving a 96.4% recovery rate compared to pre-pandemic levels, industry stakeholders believe the timing is optimal for implementing reforms that could accelerate growth and enhance visitor experiences.

The Finance Minister's commitment to "timely action" on the seven-point agenda has generated optimism among tourism professionals that meaningful policy changes may be forthcoming, potentially reshaping Nepal's tourism landscape for years to come.