Kathmandu: Nepal, recently spotlighted by The New York Times as one of "52 Places to Go in 2025," with Lumbini, the birthplace of Lord Buddha, ranked ninth, experienced a severe blow to its tourism sector as violent protests coincided with the peak travel season. Yet, luxury hotels in Kathmandu report signs of recovery, signaling cautious optimism for the industry.
The UNESCO World Heritage Site of Lumbini has long drawn pilgrims and tourists alike, renowned for its Buddhist cultural landmarks, meditation centers, historical monuments, and newly built temples, including the expansive Thousand Temple. With the international recognition, tourism experts had expected a surge in both domestic and international visitors, bolstering Nepal’s reputation as a spiritual and cultural destination.
However, the onset of violent anti-corruption protests disrupted this momentum. From September onwards, demonstrations claiming 72 lives and leaving over 2,000 injured forced the resignation of former Prime Minister KP Sharma Oli. Areas typically bustling with travelers, such as Thamel in Kathmandu, saw shops, cafes, and pubs deserted. Tourism authorities reported arrivals dropping nearly 30 percent compared to the same period last year, and cancellations ranged between 8 and 10 percent. “Damage to government buildings and some hotels might send a negative message not only to visitors but also to investors,” said Deepak Raj Joshi, CEO of Nepal’s Tourism Board.
Despite the disruption, luxury hotels indicate a rebound in bookings. The Terraces Resort and Spa in Kathmandu confirmed that while some reservations were canceled during the unrest, the resort will reopen on September 17. Current room tariffs already include discounted rates: Superior Rooms at Rs 19,000 (USD 216), Deluxe Suites at Rs 23,600 (USD 269), and Presidential Suites at Rs 47,200 (USD 536), with applicable taxes. Management emphasized that no further discounts were currently being offered.
Similarly, Gokarna Forest Resort shared that standard rooms are priced at Rs 10,000 per night with breakfast, and discounted rates of Rs 9,000 are available. “Some bookings were canceled during the protests, but as conditions stabilize, reservations are resuming, and we expect momentum to continue,” a spokesperson said.
Other high-end properties, including Hilton Kathmandu, Hyatt Regency Kathmandu, and Varnabas Museum Hotel, suffered direct damage during the unrest, with some posting “temporary closure” notices online. Hilton Kathmandu was set on fire by protesters, while the Hyatt Regency and Varnabas Museum faced attacks; the latter will remain closed until December 31, 2025, for maintenance.
Tourism remains a critical pillar of Nepal’s economy, contributing nearly 8 percent of GDP and attracting around 1.2 million visitors annually. From the iconic Everest Base Camp to the rich heritage of Kathmandu Valley, the country appeals to trekkers, pilgrims, and cultural explorers alike. Industry leaders believe that stability under the interim government, combined with proactive measures by the hospitality sector, could restore visitor confidence and help the nation recover from the tumultuous events of the past month.