Hotel occupancy soars as tourist arrivals rise in Nepal, Signs of a strong rebound in hospitality and tourism

KATHMANDU: Nepal’s tourism and hospitality sector is witnessing a remarkable revival, with hotel occupancy rates in Bagmati Province — home to the nation’s highest concentration of hospitality investments — reaching an average of 57% in the fiscal year 2081/82, up from 51.9% in the previous year.

According to the Nepal Rastra Bank’s Economic Activities Study 2081/82, the steady rise in both domestic and international tourist arrivals has boosted hotel, restaurant, and trekking businesses across major destinations. The report highlights a particularly strong performance during the autumn season, with the occupancy rate peaking at 67.8% in Kartik (October–November), traditionally Nepal’s busiest tourist month.

The lowest occupancy was recorded in Magh (January–February) at 44.7%, while other months such as Mangsir (63.7%), Falgun (60.5%), and Chaitra (63.6%) maintained strong booking levels. This consistent improvement underscores growing confidence in Nepal’s post-pandemic tourism rebound and the increasing allure of its natural and cultural heritage among global travelers.

Tourism Season Drives Surge in Trekking and Domestic Travel
As trekking season peaks, tourist traffic has spread beyond Kathmandu to Pokhara, Manang, Mustang, Chitwan, and Lukla, where hotels are reportedly operating near full capacity.

“In Mustang, some hotels even had to turn away guests due to full bookings,” said Binayak Shah, President of the Hotel Association Nepal (HAN). “With both domestic and international travelers exploring at the same time, higher occupancy rates during this period are natural and highly encouraging.”

Luxury Hotel Closures Shift Demand Across the Capital
The closure of two major five-star hotels — Hilton and Hyatt Regency — amid the Gen Z movement has led to what Shah calls a “business replacement effect.” Demand has spilled over to other luxury properties, significantly boosting their revenue.

“Almost all five-star hotels in Kathmandu are experiencing strong occupancy now,” Shah explained. “While some closures created temporary disruptions, the overall market adjusted, and business was redistributed effectively.”

In addition, Shangri-La and Hotel Annapurna remain temporarily closed, giving newer entrants in the high-end hospitality market an opportunity to strengthen their position.

Outside the capital, Chitwan and Pokhara hotels have reported strong weekend business, fueled by domestic tourists and a growing influx of Indian travelers, particularly during public holidays. Even hotels in the Terai region are experiencing satisfactory occupancy levels from Indian visitors seeking short-haul getaways.

Tourism Revival Boosts Economy and Confidence
The central bank projects that the ongoing fiscal year 2082/83 will see further improvement in the service sector, with continued growth in foreign arrivals and stronger domestic spending. Although the Gen Z protests temporarily affected arrivals in Bhadra (August–September), recovery began in subsequent months, signaling a rebound in tourism earnings and economic momentum.

The NRB also notes that post-crisis reconstruction activities and upcoming elections are likely to accelerate hospitality, transport, and service-related spending, contributing to broader economic growth.

Visitor Arrivals Show Promising Trend
In October 2025 alone, Nepal welcomed 128,443 tourists, a 3.3% increase compared to the same month last year. The United States and Europe contributed significantly to this rise, while India maintained its position as the top source market.

Country-wise data show that India sent 17,298 visitors, followed by the U.S. (13,286), U.K. (8,718), China (6,755), and Germany (6,366). In total, European travelers accounted for 31.6% of arrivals, representing 40,600 visitors, while South Asian (SAARC) countries, led by India and Bangladesh, contributed 22.6% of arrivals.

Nepal also saw 23,127 visitors from other Asian countries, 16,407 from the Americas, 6,814 from Oceania, 3,548 from the Middle East, and 443 from Africa, according to Nepal Tourism Board (NTB) figures.

Mountaineering and Trekking Revenues Climb
During the current autumn climbing season, 1,450 climbers from 175 teams obtained expedition permits, generating Rs 255.1 million in royalties for the government. This signals not only a rise in adventure tourism but also renewed investor and traveler confidence in Nepal’s high-value tourism products.

Nearly One Million Tourists in Ten Months
Between January and October 2025, Nepal recorded 943,716 international arrivals, up slightly from the same period last year. India topped the list with 243,350 visitors, followed by the U.S. (93,985), China (78,929), U.K. (47,261), Bangladesh (45,287), Australia (38,984), Sri Lanka (32,137), Germany (24,841), Thailand (22,261), and South Korea (19,329).

Regionally, South Asia accounted for 35.8% of arrivals, followed by other Asian countries (20.9%), Europe (19.1%), the Americas (12%), Oceania (4.4%), and Africa (0.4%).

With Nepal poised for further growth in sustainable and experience-based tourism, the industry’s steady rise in occupancy, foreign exchange earnings, and visitor numbers demonstrates that the nation’s hospitality sector is once again thriving as a pillar of economic recovery and global attraction.