Kathmandu, 17 Oct: The Genz Movement, which erupted on September 8 and 9 (Bhadra 23 and 24), has dealt a major blow to Nepal’s tourism industry — just as the country was entering its peak tourist season. The unrest has caused a sharp decline in hotel occupancy rates across major destinations, worrying hoteliers and tourism officials.
According to the Nepal Tourism Board, tourist arrivals in September 2025 fell by 18.3% compared to the same month last year. Kathmandu’s star hotels, which typically maintain over 70% occupancy during this period, are now operating at only 50% capacity, while occupancy in Chitwan and other tourist hubs has dropped below 40%.
Industry leaders say the drop in bookings directly reflects the destruction and arson of prominent chain hotels such as Hilton, Barunbas, and Hyatt during the movement. The Hotel Association Nepal (HAN) estimates the total physical and economic damage to the hotel sector at Rs 25 billion.
Travel Warnings and Fading Tourist Confidence
HAN President Binayak Shah says the aftermath of the protests continues to hurt the hospitality sector. Although mountaineering and trekking seasons have begun, the momentum remains weak. A major obstacle, he explains, is the continued travel advisories issued by countries such as the United States and Canada, which urge their citizens to exercise caution while visiting Nepal.
Shah reports that Kathmandu’s current average hotel occupancy is around 50%, down 20% from the usual seasonal rate. While this decline is significant, he maintains a cautiously optimistic outlook, noting that the government and private sector can still restore confidence if they act swiftly.
He urges the government to work closely with foreign embassies and airlines to spread the message that “Nepal is a safe destination.” If timely action is not taken, he warns, the tourism industry could face long-term consequences.
Regional Impact and Business Uncertainty
The effects of the Genz Movement have been most visible in urban hotels, but the disruption has also reached major tourism hubs from Kathmandu to Chitwan. Many hotels report mass booking cancellations, leaving rooms empty even during what should be Nepal’s busiest months.
In Chitwan’s Sauraha, Hotel Association official Madhav Dawadi says about 60% of rooms remain vacant, partly due to the protests and also because of poor road conditions caused by monsoon damage. Bookings for upcoming weeks have slowed, with travelers hesitant amid political uncertainty.
Kathmandu Marriott’s executive Shashikant Agrawal adds that many foreign travel agencies have placed bookings on “hold” rather than outright canceling them, suggesting hope for a rebound. He notes some improvement in trekking and mountaineering tourism, as these areas are less affected by urban unrest.
Agrawal stresses that swift government communication is essential to reassure partners in India and China, two of Nepal’s biggest tourism markets. “The embassies must actively promote the message that Nepal is safe for travel,” he said.
Tourism Decline Threatens Nepal’s Economy
Tourism experts warn that the ongoing decline poses a serious threat to Nepal’s economy, where tourism plays a major role in foreign exchange earnings and employment.
From January to September 2025, Nepal welcomed 815,273 international visitors, slightly down from 816,633 in the same period last year. However, the sharp 18.3% drop in September alone — from 96,302 to 78,711 visitors — has alarmed the industry.
Hoteliers point out that the September-November quarter generates the highest revenue of the year, helping sustain operations during the remaining nine months. The decline during this crucial window, they say, could lead to financial strain across the sector.
Industry leaders are now calling for national-level recovery campaigns and international reassurance efforts to revive confidence among travelers. Unless decisive action is taken soon, they warn, the Genz Movement’s shadow could have long-lasting repercussions for Nepal’s tourism and overall economy.
