Billions lost, thousands jobless as charred hotels, burned vehicles are common sights across the country
It is autumn, the time of year when Nepal's economy is usually vibrant. Hordes of tourists flock to the country, while Nepalis abroad return home to celebrate the long festive holidays. From retailers to hotels, and from airlines to transport operators, businesses typically boom.
But this week, Thamel—along with Durbar Square and other popular tourist spots like Pokhara, Bhairahawa, and Chitwan—remains much quieter than usual. Charred hotels, blackened by smoke, and burned vehicles are common sights across the country.
The recent anti-government protests have scared tourists from around the world, particularly Indians, whose numbers were expected to swell due to heavy bookings for pilgrimage tours to Kailash Manasarovar, the revered site.
Economists estimate the collateral damage at around Rs3 trillion—nearly equal to Nepal's budget for one and a half years or half of the GDP when damages to both government and private sector infrastructure and government documents are taken into account.
"The economic growth this fiscal year will be under 1 percent, according to our rough estimates," said economist Chandra Mani Adhikari. Nepal's biggest taxpayers—Bhat-Bhateni Supermarket, Chaudhary Group, and Ncell—have all suffered heavy collateral damage.
The losses are staggering. This collateral damage comes on top of the prolonged drought that Nepal recently faced. Moreover, the upcoming elections scheduled for March—more than two years ahead of time—are expected to drain another Rs30 billion from state reserves, said Adhikari.
Estimates compiled by hoteliers, automobile dealers, and retail chain Bhat-Bhateni suggest the bloodshed has rendered nearly 10,000 Nepalis jobless overnight.
Court personnel gather under makeshift tents beside heaps of charred vehicles at the torched Supreme Court premises in Kathmandu yesterday, as judicial operations resume and legal services are provided to Nepali nationals. Photo: AFP
This week, the Hotel Association Nepal issued a statement noting that the sector had already suffered damages worth Rs25 billion. Auto dealers estimate their losses at around Rs15 billion.
Out of Bhat-Bhateni's 28 outlets nationwide, 21 sustained damages during Tuesday's Gen Z protests, with several completely destroyed.
Initial assessments indicate the insurance claim of Bhat Bhateni is more than Rs2.5 billion with IGI Prudential Insurance alone, according to Beemapost, an online news portal.
Hopes, however, are high. Yogendra Shakya, a noted hotelier, said that in the short term, quick political stability and the appointment of a new prime minister could reassure travelers, limiting the impact on tourism.
In the medium term, however, Shakya warned that if political parties return to disruptive election tactics, confidence could erode, causing deeper damage to tourism over the next six months.
