Nepal hotel industry suffers Rs 25 billion loss in Gen Z protest

Kathmandu, Sep 12: Nepal's hotel industry, a vital revenue earner of its tourism-driven economy, has suffered a total loss of over Rs 25 billion after nearly two dozen hotels across the country were vandalised, looted or torched during the recent student-led anti-government protests, according to a media report on Friday.

Among the worst hit is the Hilton Hotel in Kathmandu, which alone reported damages exceeding Rs 8 billion, My Republica news portal reported, quoting a statement issued by the Hotel Association Nepal (HAN).

Other leading domestic and international brand hotels in Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Biratnagar, Dhangadhi, Mahottari and Dang-Tulsipur also bore the brunt of the violence, it said.

Many affected hotels will not be able to resume operations without repair and reconstruction, affecting the jobs of more than 2,000 workers, the HAN added.

The association expressed concern that the destruction would make it difficult for hotels to meet financial obligations to banks and other institutions. It demanded a judicial committee to investigate the incidents, bring the perpetrators to justice and announce compensation for the affected businesses.

It also urged the government to roll out an economic relief package to support repair and reconstruction, stressing that restoring investor confidence is vital for tourism development and the country's economic stability.

Tourism accounts for nearly 7 per cent of Nepal's GDP and is a major source of foreign exchange. Recovering from the Covid-19 pandemic, the Himalayan nation faces fresh political turbulence.

- PTI