Nepal's deadly protests hammer tourism sector as arrivals fall 30%

Shops, pubs and restaurants lining the neatly organized alleys of places like Thamel — Kathmandu's bustling tourist hub — remained largely deserted, even after reopening in the aftermath of a violent anti-corruption protest that left 72 dead over 2,000 injured and forced former prime minister K.P. Sharma Oli to resign.

Nepal's tourism authority, hotel owners and trek organisers said arrivals had fallen by 30% from this time last year, leading to bookings being cancelled.

"I am sitting outside idle because there are no tourists ... Many groups have cancelled in September," said 49-year-old Ram Chandra Giri, who arranges trekking expeditions and owns a Japanese restaurant.

He said 35% of his guests had cancelled their bookings.

Renu Baniya, a hotel owner, said all bookings had been completely cancelled for the next month.

Countries advised against non-essential travel

Foreign tourists usually start treks from the capital, but Tuesday's dramatic images of a burning parliament and Hilton Hotel led many countries to issue advisories to avoid non-essential travel to Nepal.

The country receives 1.2 million annual tourist visits and the sector contributes almost 8% of GDP. September to December is considered the peak tourist season.

Nepal’s trekking trails include the base camp of the world's highest mountain Mount Everest, drawing adventurers to the heart of the Himalayas.

Damage to government buildings and a few hotels "might give a negative message not only to visitors but to investors as well," Deepak Raj Joshi, the CEO of Nepal's Tourism Board told Reuters.

He said tourist arrivals are down 30% from usual and in the last few days, the cancellation rate stood at 8%-10%.

Hopes for return of tourists

As calm returned in Nepal under the newly appointed interim government led by Sushila Karki , parts of Kathmandu still carry the lingering smell of smoke, with authorities continuing to clear debris from charred buildings and torched vehicles.

Nepalese authorities and business owners remain hopeful of tourists returning, even as the stability of the government remains in question with elections set for March 5, 2026.

"We have to be very honest while communicating ... if the situation is not good, the industry will never say visit us," Tourism Board's Joshi said.

Some foreign tourists, who continued to stay in Nepal, said they felt safe.

"Our family and friends asked us to come back. But we never had any insecurity," 55-year-old Franz from Germany, who was in Nepal during the protest, told Reuters.