Widespread Protests Trigger Tourism Decline
Nepal's vital tourism sector experienced a significant downturn in 2025, largely due to violent political unrest that swept across the nation. Between January and October 2025, Indian tourist arrivals, a crucial market for Nepal, saw an 11% drop compared to the previous year, totaling 243,350 visitors. This decline has raised concerns about the country's stability and its impact on an industry that contributes nearly 8% to Nepal's GDP.
The 'Gen Z' Movement and Its Impact
The primary catalyst for the tourism slump was the 'Gen Z protests,' a wave of demonstrations that erupted in early September 2025. These protests were initially sparked by a government ban on 26 social media platforms, including Facebook, X, and YouTube, on September 4, 2025. However, the unrest quickly escalated, fueled by deeper public frustrations over government corruption, nepotism, and mismanagement of public funds.
The demonstrations turned violent, resulting in at least 72 deaths and over 2,000 injuries. Key government buildings, including the parliament and presidential residences, were set ablaze or vandalized. The unrest also caused significant damage to infrastructure, with reports of the Hilton Kathmandu Hotel being burned and other high-end hotels suffering extensive damage. Images of the chaos spread globally, severely damaging Nepal's reputation as a peaceful destination.
Broader Economic Repercussions
The timing of the protests was particularly detrimental, coinciding with Nepal's peak tourist season, which typically runs from September to December. While overall international tourist arrivals saw a marginal increase of 0.3%, reaching 943,716 visitors between January and October 2025, the month of September alone experienced an 18.3% drop in total tourist arrivals. Beyond Indian visitors, Chinese arrivals also saw a 5.3% decline, with 78,929 visitors during the same period. Some reports indicated an overall 30% drop in tourist arrivals during the peak season.
The political instability led to significant governmental changes, with Prime Minister K. P. Sharma Oli resigning on September 9, 2025, and Sushila Karki being appointed as interim Prime Minister on September 12, 2025. The Nepali Army was deployed, and a nationwide curfew was imposed to restore order. Several international governments, including India, issued travel advisories, further deterring potential visitors.
Path to Recovery
In response to the crisis, the Nepal Tourism Board (NTB) has initiated efforts to rebuild trust and revive the sector. Campaigns like 'Now In Nepal' aim to reassure travelers, and strategies are being developed to diversify tourism offerings and improve infrastructure. Despite the challenges, stakeholders remain hopeful that Nepal's natural beauty and cultural heritage will eventually draw tourists back, particularly from its most reliable markets like India.
5 Comments
Eugene Alta
The social media ban was a terrible decision, clearly leading to this mess.
KittyKat
It's undeniable that the protests severely damaged Nepal's tourism, yet the article also highlights the critical government failures that sparked such widespread unrest in the first place.
Katchuka
Corruption always has a price, and here it's the tourism sector paying.
Loubianka
While the article correctly points out the severe blow to the tourism sector, it's also true that a country's stability often relies on addressing its citizens' fundamental concerns, even if the process is disruptive.
Habibi
Why is the economic impact prioritized over the legitimate grievances of its citizens?