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It is reported that around two dozen hotels have suffered major damage during the GenZ agitation. According to preliminary information from the Hotel Association Nepal (HAN), the industry has incurred losses exceeding Rs 25bn. The Hilton Hotel in Kathmandu alone has sustained damage worth more than Rs 8bn.

The affected hotels include both domestic and international brands operating in the Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Morang, Biratnagar, Dhangadhi, Mahottari, Dang Tulsipur, and other areas. Protesters reportedly vandalized, set fire to, and looted several hotel establishments.

As many of these hotels cannot resume operations without repairs and reconstruction, more than 2,000 workers have lost their jobs during the festive season. In addition, the disruptions have hindered hotels from meeting their financial obligations to banks and other financial institutions.

“In light of such large-scale investments and the damage to private-sector properties, including public limited companies, the matter must be investigated by a powerful and independent judicial committee at the earliest. To sustain investor confidence, it is essential to ensure proper compensation from the culprits and to provide a state-backed financial package for repairs and reconstruction,” HAN said in a statement. The association further emphasized the need to collectively move forward in tourism development to usher in a transformative new era of economic stability and prosperity.

Meanwhile, 202 tourists who were unable to return home due to the protests—and whose visas had expired—have now departed with extended visas. According to Immigration Department spokesperson Tikaram Dhakal, arrangements were made on Thursday at Tribhuvan International Airport to allow tourists whose visas expired after Sept 8 to leave the country with extended visas at no additional cost.

In addition, 248 tourists obtained emergency passports or transferred their visas to travel documents. Tourists who lost their passports for various reasons were able to return home after transferring their visas to travel documents issued by their respective embassies. The visa transfer fee is set at $2.

Nepal’s private sector has called on the government to create a safe and conducive environment for conducting business and economic activities, citing recent targeted attacks on businesses that have spread fear among investors.

In separate statements, two of Nepal’s largest private sector umbrella organizations—the Confederation of Nepalese Industries (CNI) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI)—expressed serious concern over increasing attacks on industries and businesspersons. They reported widespread vandalism, looting, and destruction of property, which have displaced workers and jeopardized investor confidence.

The CNI warned that continued insecurity could lead to increased unemployment and a sharp decline in foreign direct investment (FDI). "The private sector should be allowed to operate without fear. If investors feel unsafe, it will severely affect economic stability and job creation," the statement read.

CNI also emphasized that rebuilding the public and private properties damaged in the attacks will require billions of rupees—resources that the government cannot provide alone. "The private sector is a major source of income for the government, and its support is crucial for reconstruction efforts," it added.

The FNCCI echoed similar concerns, highlighting that the aspirations of the younger generation—such as dignified employment, self-employment opportunities, and effective use of tax revenues—should be addressed urgently. The organization called on the government, political parties, and stakeholders to exercise restraint and engage in dialogue to revive economic momentum.

“In this peak tourism season, we must send a positive message to the international community,” FNCCI stated.

The statements follow the September 9 attacks on several private businesses, including luxury hotels, car showrooms, and departmental stores. Over two dozen hotels were vandalized, with total damages reportedly exceeding Rs 25 billion.

International tourism continued its post-pandemic recovery in the first six months of 2025 with a five percent growth. According to the latest World Tourism Barometer from the UN World Tourism Organization (UNWTO), international tourist arrivals grew five percent to 690m in the first six months of 2025 compared to the same period of 2024. This is about four percent above pre-pandemic levels.

Africa posted the sharpest rise in arrivals, up 12 percent compared to the same period in 2024, with North Africa (14 percent) and Sub-Saharan Africa (11 percent) both recording double-digit growth. Asia-Pacific followed closely with an 11 percent increase, driven by a 20 percent surge in North-East Asia. However, international tourist arrivals in the region still remain eight percent below 2019 levels.

Europe, the world’s largest tourism market, welcomed nearly 340m visitors between January and June. Tourist arrivals to Europe grew four percent compared to 2024 and seven percent compared to the pre-pandemic levels, according to the report. While Central and Eastern Europe rebounded strongly (nine percent), the region still trails the pre-pandemic levels by 11 percent. 

The Americas recorded a modest three percent growth. South America (14 percent) recorded the highest gain, while North America and the Caribbean posted flat results, partly due to weaker demand from the United States. The Middle East saw a four percent year-on-year decline in arrivals in the review period. Despite the decline, international tourist arrivals in the region were 29 percent higher than the pre-pandemic levels.

According to the report, several destinations posted standout results in the review period. Japan and Vietnam (21 percent each), South Korea (15 percent), Morocco (19 percent), Mexico and the Netherlands (seven percent). France and Spain, the world’s top two tourist destinations, both reported five percent growth. The UNWTO said in its periodic report that the rebound was supported by rising air connectivity. Citing IATA, it said international passenger traffic and capacity rose seven percent year-on-year in the first half of 2025. Hotel occupancy reached 69 percent in June, slightly below last year, but matched 71 percent in July, it added.

Tourism receipts also recorded strong gains in the review period. According to the report, Japan (18 percent), the UK (13 percent), France (nine percent), Spain (eight percent) and Türkiye (eight percent) all reported robust earnings. Outbound spending from major markets such as China (16 percent), Spain (16 percent) and the UK (15 percent) also fueled demand, it added. UNWTO expects international tourist arrivals to grow by three percent to five percent in 2025.

The Nepal Rastra Bank (NRB) has urged banks and financial institutions to operate essential banking and digital payment services through limited staff.

The central bank has instructed all licensed commercial banks, development banks, finance companies, and payment-related entities for business continuity.

The NRB stated in a notice it made public here today that this directive has been given to the BFIs in consideration of the provisions regarding the prohibitory order issued by Nepali Army on September 10.

The bank and financial institutions must provide essential banking and digital payment services by operating their sensitive systems through limited staff. For other systems, arrangements must be made to operate through remote access based on risk," stated the NRB.

Similarly, all BFIs have been urged to inform the public about their branches, ATMs, and available services that have been operationalized in the necessary services through their websites and social media.