Gen-Z protests cause Rs 25bn loss to Nepal’s tourism sector

KATHMANDU: The Gen-Z protests of September 8 and 9 have inflicted significant human losses and physical damage, and have dented Nepal’s international image, dealing a fresh blow to its recovering tourism sector.

The demonstrations coincided with the peak tourist season. The ensuing arson and violence have slowed visitor arrivals, with several key facilities—including hotels and transport hubs—damaged in the process.

As a result, a proportion of bookings by foreign visitors for the upcoming season has been cancelled. The sector, already severely hit by the earthquake, the blockade and the coronavirus pandemic, was gradually returning to its former rhythm; these latest setbacks have once again shaken the industry.

A preliminary study by Hotel Association Nepal (HAN) indicates that around two dozen hotels across Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Biratnagar, Dhangadhi, Mahottari and Dang Tulsipur suffered major damage from vandalism, arson and looting.

The Hilton Hotel in Kathmandu alone is estimated to have incurred losses exceeding Rs 8 billion. Initial assessments suggest that the tourism sector as a whole lost over Rs 25 billion during the two days of unrest linked to the Gen-Z campaign against corruption and poor governance.

According to Nepal Tourism Board (NTB) Chief Executive Officer Deepak Raj Joshi, there are currently around 15,000 foreign tourists in Nepal. Most remain at their destinations, while some are awaiting flights home after completing their tours. Priority has been given to those still in the country to prevent any negative perceptions. The NTB is also assessing damage inflicted on hotels and related services during the demonstrations, he added.

Economist Dr Samir Khatiwada said that despite damage to some tourism infrastructure, the sector remains full of potential. Although there is concern that problems at Tribhuvan International Airport—the main entry point for overseas visitors—may discourage some travellers, he urged the government to promote Nepal positively abroad.

Joshi explained that a draft plan has been prepared, following discussions with leading industry organisations, to revive tourism effectively and will be published soon. “Tourism will definitely rebound,” he said. “Based on past experience and with support from international partners, Nepal’s tourism will recover swiftly.”

Meanwhile, HAN President Binayak Shah stressed the need for all stakeholders to unite in reviving tourism. “As the season is about to begin, it is vital to project a positive image of Nepal,” he said. “In past crises, our industry has always bounced back quickly.” He called for an environment that safely welcomes incoming tourists and facilitates the departure of those leaving, adding that tourism “can bring economic prosperity to the country and must therefore be prioritised.”

General Secretary of the Pacific Asia Travel Association (PATA) Nepal Chapter, Narendra Dev Bhatta, expressed confidence in a prompt recovery. “The disruption during the season has dealt a blow, but we expect normality to return soon and tourism to recover.”

Meanwhile, Nepal Mountaineering Association (NMA) and Trekking Agencies’ Association of Nepal (TAAN) have issued a joint statement urging all efforts to revive the sector, create a tourism-friendly environment and ensure law and order.

(With inputs from RSS)