Nepal Hotel Industry Faces Rs 25 Billion Loss Amid Gen Z–Led Protests

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Nepal’s hotel sector, a cornerstone of its tourism-driven economy, has reported losses of more than 25 billion Nepalese rupees following a wave of student-led anti-government protests, according to a statement from the Hotel Association Nepal (HAN).

Nearly two dozen hotels across the country were vandalised, looted, or set on fire, severely disrupting operations in a sector that is a key foreign exchange earner.

The Hilton Hotel in Kathmandu has emerged as one of the worst affected, with damages estimated at over Rs 8 billion, HAN said. Other leading domestic and international brands in Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Biratnagar, Dhangadhi, Mahottari, and Dang-Tulsipur were also hit.

Industry leaders warn that the scale of destruction could undermine Nepal’s fragile tourism recovery, which had been gathering momentum post-pandemic. Hotels are among the largest contributors to employment and service-sector revenues in the country, making the damages particularly significant for the broader economy.

Protesters at the Gen Z Demonstration in Kathmandu.
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The protests, led largely by Gen Z student groups, reflect growing frustration with governance and economic hardship. While the government has pledged security and support, hoteliers stress that restoring investor confidence and tourist sentiment will require swift policy measures and reassurance of stability.