Hotel sector suffered loss of over Rs 25 billion: HAN

KATHMANDU: The Hotel Association Nepal (HAN) has said that the country’s hotel sector suffered a loss of more than Rs 25 billion due to arson and vandalism in over two dozen hotels earlier this week.

According to preliminary data collected by HAN, several hotels operated by prominent domestic and international brands in Kathmandu Valley, Pokhara, Butwal, Bhairahawa, Jhapa, Morang (Biratnagar), Dhangadhi, Mahottari, and Dang (Tulsipur) suffered severe damage due to arson and vandalism following the escalation of Gen Z protests on Monday and Tuesday. “The damage is estimated at over Rs 8 billion at the Hilton Kathmandu Hotel alone,” HAN said in a statement. “Nationwide losses exceed Rs 25 billion.”

HAN also said that these hotels were not in a position to resume operations without repair and reconstruction. “This disruption will directly impact the livelihoods of more than 2,000 employees during the festive season. Moreover, hotels will struggle to meet their regular financial obligations, including payments to banks and other financial institutions,” it added in the statement.

HAN said that while the movement was successful due to the sacrifices of dozens of young lives and the bravery of hundreds of wounded participants advocating for good governance and fundamental change, the resulting damage to large-scale private investments is deeply concerning.

The association has strongly demanded that a judicial committee immediately investigate the incidents, ensure that perpetrators are held accountable and provide proper compensation for damages.

HAN also called on the government to offer financial packages to support repair and reconstruction, restore investor confidence and enable the tourism sector to continue contributing to economic stability, prosperity and the development of a new transformative era.