Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a shocking turn for Nepal’s tourism and hospitality sector, the five-star luxury hotel Hyatt Regency Kathmandu has laid off all of its employees, citing irreparable financial damage caused by the Gen-Z uprising’s arson and vandalism incidents on September 8 and 9 (2082 Bhadra 23–24).
According to the hotel’s General Manager Ashish Kumar, a formal letter was issued to the Human Resource Department invoking Section 145 of the Labor Act, 2074, to terminate all staff positions effective December 7 (Mangsir 22). The hotel stated that ongoing discussions with the trade unions regarding possible workforce management alternatives had failed to yield any resolution, leaving the hotel with no option but to proceed with a complete workforce cut.
A total of 133 employees have been relieved of their duties, according to the management. The letter further disclosed that during the Gen-Z demonstrations, a foreign tourist leapt from the fourth floor amid the chaos and later died while receiving medical treatment, underscoring the tragic human toll of the unrest.
The management said the hotel—still recovering from the financial fallout of the COVID-19 pandemic—was hit once again by severe economic losses, operational paralysis, and reputational damage at the international level following the violent incidents. “The looting and destruction of guest property during the protest have led to serious harm to our global brand credibility,” the statement read.
Hyatt Regency clarified that the hotel is currently closed indefinitely, struggling to secure financing for repair and reconstruction, and unable to maintain its workforce due to the heavy financial burden. It estimated that tens of millions of rupees will be required for the full-scale renovation of the property and restoration of its facilities.
The sudden layoff marks one of the biggest employment shocks in Nepal’s hospitality industry since the pandemic, raising alarm among tourism stakeholders about the country’s fragile investment environment and its ability to sustain high-end hospitality ventures amidst ongoing political instability and social unrest.
Industry analysts warn that the Hyatt closure will likely have a domino effect on nearby tourism-related businesses, further undermining confidence in Nepal’s post-pandemic tourism recovery and foreign investment prospects in the hospitality sector.
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