Tuesday, November 18th, 2025

Tourism industry faces Rs 25 billion loss, but experts see quick recovery ahead



KATHMANDU: Nepal’s tourism sector has been hit hard by the recent Gen-Z protests, suffering damages estimated at more than Rs 25 billion, with dozens of hotels and tourism infrastructure affected.

Yet, experts and industry leaders remain optimistic that the sector will recover swiftly, drawing confidence from Nepal’s resilience in past crises.

The protests of September 8 and 9, sparked by governance and accountability demands, led to widespread disruption. While human casualties and injuries were reported, state institutions, including the executive, legislature, judiciary, and the press, also came under attack. Several private properties were damaged, and many injured protesters remain under medical care.

Tourism, which had just begun regaining momentum after the COVID-19 pandemic, was hit particularly hard. As the peak tourist season was about to begin, several bookings were cancelled and international confidence was shaken. Some trekking routes and adventure activities were spared, but high-profile hotel chains and infrastructure in Kathmandu, Pokhara, Butwal, Bhairahawa, Biratnagar, and other major cities suffered significant damage.

The Hotel Association of Nepal (HAN) reported that nearly two dozen hotels were directly targeted through vandalism, arson, and looting. The Hilton Hotel in Kathmandu alone is estimated to have incurred losses exceeding Rs 8 billion. Overall, initial assessments suggest damages amounting to over Rs 25 billion across the country.

Despite the setbacks, industry leaders believe the blow is temporary. Former finance secretary Rameshwar Khanal noted that unlike past disasters such as the 2015 earthquake or the COVID-19 pandemic, the current situation does not pose a direct threat to tourists.

“This time, the scale of cancellations is much smaller. Nepal’s key markets, India and China, remain intact. Trekking, pilgrimage, and adventure tourism are unaffected, so recovery should be relatively quick,” he said.

Economist Dr. Samir Khatri echoed similar optimism, highlighting tourism’s long-term potential. While acknowledging concerns about disruptions at Tribhuvan International Airport, he emphasized the need for strong international messaging.

“Tourism income has dipped, but experience shows Nepal bounces back quickly after crises. The protests, in fact, underline Nepal’s opportunity for course correction towards better governance,” Khatri added.

Nepal Tourism Board CEO Deepak Raj Joshi confirmed that a draft plan for tourism revival has already been prepared in consultation with stakeholders and will soon be unveiled. “Tourism will rise again. With international partnerships and past lessons, we are confident of rapid recovery,” he said. Currently, around 15,000 foreign tourists remain in Nepal, with authorities prioritizing their safety and ensuring a positive experience.

Official statistics show that 25,500 tourists visited Nepal in September 2025, down from 88,680 in August. In 2024, the country welcomed 1.14 million foreign visitors, and 1.01 million in 2023. The record remains 1.19 million in 2019, just before the pandemic.

Hotel Association president Binayak Shah stressed the urgency of sending a positive message abroad. “Tourism has always rebounded quickly after crises. This sector carries huge investments, and with proper management of airports and infrastructure, Nepal can attract even more visitors from India and China,” he said.

The Pacific Asia Travel Association (PATA) Nepal Chapter also voiced confidence in swift recovery, while mountaineering and trekking associations jointly urged for peace, order, and a tourism-friendly environment to safeguard Nepal’s global reputation.

While the recent turmoil has rattled the industry, the overwhelming consensus among economists and stakeholders is clear: Nepal’s tourism will weather this storm, as it has in the past, and bounce back stronger.

Publish Date : 13 September 2025 11:26 AM

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