The Office of the Auditor General has directed the Nepal Mountaineering Association (NMA) to ensure the timely deposit of mountaineering royalties into the Federal Divisible Fund and promptly inform the concerned ministry regarding the payments. The instruction comes after the latest audit report revealed delays in depositing significant royalty amounts collected from mountain climbing activities across Nepal.
According to the 63rd Annual Report published by the Office of the Auditor General, the NMA has been assigned the responsibility of collecting royalties from 27 mountain peaks below 6,000 meters throughout the country. However, the report states that the association has not deposited a large portion of the collected royalties within the required timeframe as mandated by law.
The report highlights that under Section 7 of the Intergovernmental Fiscal Management Act, 2074, all royalties collected from mountaineering activities must be deposited into the Federal Divisible Fund. The fund is designed to distribute revenue among the federal government, provincial governments, and local governments to support balanced development and resource sharing across the country.
Delay in Depositing Rs 96.3 Million
The Auditor General’s report revealed that the Nepal Mountaineering Association collected mountaineering royalty amounting to approximately Rs 122 million. Despite collecting the amount, the association was found to be delaying the transfer of the funds into the divisible fund.
According to details obtained from the Ministry of Culture, Tourism, and Civil Aviation, the NMA still has not deposited royalty worth Rs 96.3 million. The report emphasized that the association should immediately collect any remaining dues and deposit the royalties within the prescribed timeframe. The Office of the Auditor General has also instructed the association to maintain transparency and improve financial discipline while handling revenue generated from mountaineering tourism activities.
Importance of Mountaineering Royalties
Mountaineering royalties are considered one of the major sources of tourism revenue for Nepal, especially due to the country’s global reputation as a premier adventure and trekking destination. Every year, thousands of climbers and trekkers visit Nepal’s Himalayan region, generating significant income through climbing permits, trekking fees, and tourism-related services.
The royalty collected from mountain peaks below 6,000 meters falls under the jurisdiction of the Nepal Mountaineering Association, while higher peaks, including Mount Everest, are directly managed by the government. Experts say the proper management and timely distribution of such royalties are crucial for supporting infrastructure development, environmental conservation, tourism promotion, and local community welfare in mountain regions.
Concerns Over Financial Accountability
The findings of the Auditor General have once again raised concerns regarding financial accountability and governance within institutions connected to Nepal’s tourism sector. Financial experts argue that delayed deposits can affect revenue distribution mechanisms and reduce the efficiency of government planning at provincial and local levels.
The Federal Divisible Fund plays an important role in Nepal’s fiscal structure, particularly after the implementation of federalism. Revenue collected through natural resources, tourism, and mountaineering activities is expected to benefit local communities that directly contribute to preserving tourism destinations and supporting visitors. The Auditor General’s office has therefore stressed the need for strict compliance with existing laws and timely reporting to the concerned ministry.
Tourism Sector Under Greater Financial Scrutiny
The latest audit observations come at a time when Nepal’s tourism industry is witnessing a gradual recovery and increasing international arrivals. Authorities are focusing more on improving transparency, strengthening governance, and ensuring proper utilization of tourism revenue.
Stakeholders believe that the timely collection and distribution of mountaineering royalties can help improve tourism infrastructure in remote Himalayan regions, support local livelihoods, and strengthen sustainable mountain tourism practices.
The Auditor General’s report has urged the Nepal Mountaineering Association to immediately address the pending dues and ensure that future royalty collections are deposited without delay in accordance with legal provisions.
