Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Hotel Association Nepal (HAN) has revealed that nearly two dozen hotels across the country suffered extensive damage during this week’s “transformational movement,” with preliminary estimates placing the economic loss at around Rs 250 billion (approx. USD 1.9 billion).
According to the association’s press release, prominent domestic and international hotel brands operating in Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Morang-Biratnagar, Dhangadhi, Mahottari, and Dang-Tulsipur were directly affected by vandalism, arson, and looting.
The most severe damage was reported at Hilton Hotel in Kathmandu, which alone incurred losses exceeding Rs 80 billion, making it one of the biggest single-property damages in Nepal’s hospitality sector to date.
Impact on Employment and Festive Season
HAN expressed grave concerns over the socio-economic fallout of the destruction, warning that nearly 2,000 workers and staff will directly lose their jobs or income opportunities, particularly during the upcoming festival season.
The association noted that most of the damaged hotels cannot resume operations without major repairs and reconstruction. As a result, many hotel operators are struggling to meet their banking and financial obligations, raising the risk of defaults across the industry.
Call for Justice and State Relief
HAN further stated that the damage inflicted upon the hotel sector — which includes publicly listed companies with ordinary citizens as shareholders — represents a devastating blow to private investment in Nepal.
The association demanded the formation of a powerful judicial committee to immediately investigate the incidents, hold perpetrators accountable, and ensure compensation for losses. It also urged the government to introduce a special financial relief package to support hotel restoration, rebuild investor confidence, and stabilize Nepal’s tourism-driven economy.
“To uphold economic stability and move together toward prosperity in this new transformative era, the government must provide financial support for repair, reconstruction, and revival of the tourism sector,” the HAN statement read.
Tourism at Crossroads
The hotel industry, one of the biggest contributors to Nepal’s tourism revenue, is now facing a severe crisis. With confidence in the sector shaken, HAN warned that the recent destruction could slow down Nepal’s path to becoming a competitive global tourism destination, unless urgent state intervention is introduced.
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