Nepal’s Game-Changing Fee Reforms for Upper Mustang Set to Unlock Global Tourism and Transform Local Economies

Published on December 1, 2025

Nepal is set to open one of its last untouched frontiers to foreign travelers by significantly reducing the costly permit fees to access Upper Mustang, a rugged and remote plateau known for its striking landscapes and centuries-old Buddhist heritage. The government has announced that it will replace the existing US$500 flat fee for a 10-day stay with a more affordable US$50 daily rate. Tourism experts believe this move will enhance the destination’s accessibility and provide a much-needed boost to the local economy.

Tourism entrepreneurs, who have long advocated for a reduction in the permit fee, see this change as a positive step forward. Previously, Upper Mustang required a challenging 10-day trek, but improvements in infrastructure have made the region more accessible by road, reducing the need for such lengthy journeys. With the new fee structure, more visitors are expected to visit, helping stimulate the local economy.

The new regulations, however, will only take effect after necessary amendments are made to immigration laws. The Department of Immigration is awaiting official confirmation from the government before moving forward.

Upper Mustang’s Rich Cultural and Natural Heritage

Upper Mustang, once the ancient kingdom of Lo, lies in the trans-Himalayan region of northern Nepal, bordering Tibet. The area is known for its Tibetan culture, dramatic landscapes, monasteries, and preserved cave paintings. Although Lower Mustang, including towns like Jomsom and Kagbeni, opened to tourists in 1992, Upper Mustang remained largely restricted due to its remote location and geopolitical concerns. It wasn’t until a few decades later that access to Upper Mustang began to open up.

While Nepal’s tourism sector contributes significantly to the economy, with the World Travel and Tourism Council reporting a 6.6% contribution to the GDP in 2023, there are concerns among some locals about the impact of increased tourism. According to estimates, around 3,000 to 3,500 foreigners visit Upper Mustang each year, but the reduced permit fee is expected to increase that number.

Local Concerns Over Short-Term Tourism

Despite the promise of more tourists, not everyone is happy with the new permit structure. Some locals believe that the focus on short-term tourism will not translate into economic benefits for communities beyond the more accessible areas of Upper Mustang, like Lo Manthang, the walled capital. With better roads, tourists can now easily make the journey from Jomsom to Lo Manthang in a single day, bypassing smaller, historically significant villages such as Tangbe, Chhusang, and Tsele. These villages rely on longer stays, where visitors have more time to explore and interact with local communities, providing a more direct economic benefit.

Some tourism entrepreneurs argue that the previous 10-day stay allowed visitors to gain a deeper understanding of the region’s history, culture, and religion. This longer stay benefited local businesses and helped sustain smaller settlements. Concerns about the potential loss of this deeper engagement with the region are widespread among local stakeholders.

Balancing Growth and Ecological Sensitivity

Upper Mustang is not only culturally rich but also ecologically fragile. Experts warn that overtourism could lead to significant environmental damage, especially as the region faces challenges like the increasing risk of floods and landslides due to climate change. The rising number of domestic tourists has already begun to strain local resources, with traffic congestion and waste becoming issues during peak seasons.

Anu Kumari Lama, a tourism specialist, acknowledges the economic benefits of reduced permit fees but cautions that the region’s growth must be managed carefully. The influx of tourists could exacerbate issues like water scarcity, waste management, and carbon emissions. Furthermore, the expansion of infrastructure to support tourism must be done in alignment with environmental and ecological considerations, especially as climate change poses increasing threats to the region’s delicate ecosystem.

Long-Term Sustainability and Future Prospects

While the government’s decision to reduce permit fees for Upper Mustang is a step toward making the region more accessible, there are calls for broader reforms to the tourism sector. Some entrepreneurs suggest that reducing high fees for other trekking routes, such as Upper Dolpa, Manang, Mugu, Bajhang, and Darchula, could promote more diverse tourism destinations, easing the pressure on the most popular routes like Everest and Annapurna base camps.

Nepal’s tourism sector now faces the challenge of striking a balance between stimulating economic growth and preserving the unique cultural and environmental assets that make the country so appealing to visitors. As once-restricted regions open up to foreign tourists, Nepal must ensure that its tourism-driven growth does not come at the expense of its invaluable natural and cultural heritage.