Hotel industry suffers US$ 190 million loss in Gen-Z protests


Kathmandu: Hotel Association of Nepal (HAN) has reported that violent clashes, vandalism, and arson during the Gen-Z movement caused massive damage to nearly two dozen hotels across the country.

Both domestic and international hotel brands operating in major tourist hubs—including Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Morang (Biratnagar), Dhangadhi, Mahottari, and Dang (Tulsipur)—have suffered destruction. Initial estimates suggest economic losses exceeding Rs 25 billion (approximately US$ 190 million).

The affected hotels, many of which are currently out of operation, cannot resume business without extensive repairs and reconstruction. As a result, the livelihoods of more than 2,000 employees are directly at risk, particularly during Nepal’s festive season. These establishments are also struggling to meet their financial obligations, including debt repayments to banks and other financial institutions.

The protests, which gained momentum through the sacrifices of dozens of young demonstrators and hundreds of injured activists, succeeded in pushing forward demands for governance reform and systemic change. However, in the transitional aftermath, private sector properties—including those belonging to publicly listed companies—have been heavily damaged, undermining investor confidence.

HAN has called for urgent action, demanding the formation of a powerful judicial committee with authority to investigate the damages, punish perpetrators, and ensure proper compensation.

The Association further urged the government to introduce a financial recovery package to support repair and reconstruction efforts. Such measures, it stressed, are essential to restore investor morale, safeguard economic stability, and revive Nepal’s tourism industry as the country enters a transformative new era.