Nepal hotel industry
18th September 2025, Kathmandu
A preliminary report from the Hotel Association Nepal (HAN) reveals a devastating impact on the nation’s hospitality sector.
Nepal hotel industry
The Nepal hotel industry has suffered an estimated ₹25 billion loss due to the widespread damage inflicted during the recent Gen-Z movement.
The report highlights that nearly two dozen hotels across the country, including both domestic and international brands, were directly affected by vandalism and arson.
The Hilton Hotel Kathmandu alone sustained damages exceeding ₹8 billion, a significant portion of the total estimated loss.
The association has released a statement detailing the severe financial consequences. The affected hotels, spanning key tourist and business hubs like Kathmandu Valley, Pokhara, Butwal, Bhairahawa, and Biratnagar, cannot resume operations without extensive repair and reconstruction.
This widespread destruction has not only crippled businesses but has also directly affected more than 2,000 workers and employees who have lost their jobs.
Livelihoods and Economic Stability at Risk
The disruption to business operations has created a ripple effect, impacting the livelihoods of thousands. With the festive season approaching, many workers now face financial uncertainty.
Moreover, the damaged hotels are struggling to fulfill their loan obligations and other financial commitments to banks and various financial institutions. This precarious situation could threaten the overall economic stability of the country.
HAN’s statement highlights the gravity of the situation, noting that this massive damage to both public and private investments during a transitional period warrants an immediate and thorough investigation.
They argue that while the youth made sacrifices for good governance and fundamental change, the acts of destruction against the hotel sector must be addressed.
Demands for Judicial Investigation and Government Support
In response to the crisis, the Hotel Association has issued a clear set of demands to the government. They are pushing for the formation of an effective judicial committee to conduct an urgent investigation. The committee’s purpose would be to identify and punish those responsible for the destruction.
Additionally, HAN is requesting a special economic package from the state to assist with the repair and reconstruction of the affected hotels.
The association believes that government support is essential to restore investor confidence and safeguard the nation’s economic progress. They emphasize that collaboration is necessary to move forward with tourism development in this new era of change.
A Call to Protect Nepal’s Tourism Sector
The tourism sector is a vital component of Nepal’s economy, contributing significantly to its GDP. The damage to the hotel industry is a major setback, especially as the country was still recovering from previous crises like the 2015 earthquake and the COVID-19 pandemic.
The association’s appeal for government cooperation underscores the need for a collective effort to rebuild and ensure the long-term sustainability of the tourism sector.
By providing a secure and stable environment for investors and businesses, Nepal can show its resilience and commitment to economic recovery.
The current challenge is not just about financial losses, but about protecting the future of an industry that supports countless families and drives the nation’s economy.
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