Nepal's hotel industry suffers losses of 25 billion due to protests, difficult to meet financial obligations

Nepal's hotel industry lost about Rs 2500 crore across the country due to Tuesday's violent protests. This is a significant blow to the tourism-dependent country's economy. Nearly two dozen hotels nationwide were vandalized, looted, or set on fire during anti-government protests. The most severely affected hotel is the Hilton Hotel in Kathmandu. It is estimated that the loss alone exceeds Rs 8 billion.

My Republica news portal reported this information, citing a statement from the Hotel Association Nepal (HAN). Other major domestic and international brand hotels in Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Biratnagar, Dhangadhi, Mahottari, and Dang-Tulsipur also suffered from the violence. HAN stated that many of these hotels would not be able to resume operations without repairs and reconstruction, impacting more than 2,000 employees' jobs.

HAN expressed concern that the destruction would make it difficult for hotels to meet their financial obligations to banks and other institutions. They called for the formation of a judicial committee to investigate the incidents, hold the culprits accountable, and provide compensation for the affected businesses. The association also urged the government to launch an economic relief package for repairs and reconstruction. Tourism accounts for about seven percent of Nepal's GDP.