Nepal’s tourism industry has shown signs of gradual recovery, as it welcomed over 1.15 million foreign tourists in 2025. According to the Nepal Tourism Board (NTB), the country saw an increase of 1.0% compared to 2024, which recorded 1,147,548 foreign arrivals. While this marks a positive trend, the growth is still modest and does not fully match the pre-pandemic levels of 2019, when Nepal hosted over 1.19 million visitors.
Tourism Boost Despite Challenges
In 2025, Nepal’s tourism sector faced a number of challenges but managed to show resilience, despite the marginal rise in foreign tourist arrivals. In addition to the lingering effects of the Covid-19 pandemic, which had sharply curtailed international travel in 2020 and 2021, the tourism industry was severely affected by the Gen-Z protests in early September. The violent protests caused substantial damage to several key hotels and other properties across the country, which temporarily slowed down the recovery process.
The NTB confirmed that the Gen-Z movement—which led to widespread destruction of hotel properties, including international brands like Hyatt Regency and Hilton—left 77 people dead and caused damages exceeding NPR 84 billion. The Hilton hotel was completely destroyed in the violence, while the Hyatt remains closed for ongoing maintenance. These protests, which added more obstacles to Nepal’s tourism industry, led the World Bank to predict a significant decline in tourist arrivals. However, despite the challenges, Nepal saw a surprising bounce back in tourist numbers by October and November, with a slight improvement compared to previous years.
India Leads Nepal’s Tourism Market
While Nepal’s tourism saw a general decline in some of its key markets, India continued to be the largest source of foreign tourists, with 292,438 Indian visitors accounting for 25.2% of all foreign arrivals. However, tourist arrivals from India declined by 8% year-on-year, according to NTB data.
Following India, the United States ranked as the second-largest market for Nepal, with 112,316 visitors, while China came in third, contributing 95,480 visitors. The United Kingdom and Bangladesh rounded out the top five, sending 58,684 and 57,545 tourists, respectively.
Despite India’s continued dominance in terms of visitor numbers, the overall trend from India and China was a slight decline in arrivals in 2025, with China experiencing a 6.3% drop. The impact of geopolitical tensions, along with the aftermath of the Gen-Z protests, may have contributed to these reductions in visitor numbers from these two significant source markets.
A Year of Mixed Results for Nepal’s Tourism Industry
Nepal’s tourism sector has faced an array of hurdles over the past few years. In 2025, while foreign tourist arrivals remained modest, the overall year was characterized by mixed results. The first half of the year saw promising numbers, but the violent September protests dampened the growth. However, the month of October showed a recovery, as tourist arrivals rose by 5% compared to the same period the previous year, with some positive trends also noted in November.
The World Bank’s forecast initially predicted a major drop in tourist numbers, but the recovery in the last quarter helped mitigate those projections, signaling that Nepal’s tourism market remains highly resilient. Despite the setbacks, Nepal’s hospitality sector continues to attract tourists with its unique blend of natural beauty, cultural experiences, and spiritual significance, especially around key destinations such as the Kathmandu Valley, Pokhara, and the Annapurna Circuit.
Foreign Direct Investment (FDI) and Nepal’s Tourism Recovery
In addition to foreign tourist arrivals, Nepal also recorded a strong showing in foreign direct investment (FDI) during the first five months of the fiscal year 2025-26. The country secured NPR 30,263 million in FDI commitments, which were spread across 476 projects. This influx of investment signals growing confidence in Nepal’s economic recovery and its potential to continue developing critical sectors, including tourism, infrastructure, and hospitality.
The tourism sector is a key area for future growth, with both international investors and local businesses showing interest in expanding the country’s tourism infrastructure. With increasing foreign investment and improvements in travel safety, Nepal is well-positioned to continue drawing visitors in the coming years.
Looking Ahead: What 2026 Holds for Nepal’s Tourism
While 2025 saw a modest recovery for Nepal’s tourism sector, 2026 holds promise for a more robust rebound. As the country moves beyond the impacts of the pandemic and protests, the NTB plans to roll out new initiatives aimed at attracting more visitors, especially from emerging markets. With efforts to improve infrastructure, boost cultural tourism, and enhance the overall guest experience, Nepal’s tourism industry is ready to continue its upward trajectory in 2026.
Furthermore, Nepal’s commitment to promoting sustainable tourism practices will play a critical role in enhancing the country’s appeal to responsible travelers. By focusing on eco-tourism, heritage conservation, and local community involvement, Nepal aims to position itself as a global leader in sustainable travel in the coming years.
Conclusion: Nepal’s Resilient Tourism Sector
In conclusion, Nepal’s tourism sector in 2025 showed resilience in the face of numerous challenges, including the Gen-Z protests and the ongoing effects of the Covid-19 pandemic. While the recovery did not meet pre-pandemic levels, the country managed to maintain a steady flow of visitors and saw encouraging signs of growth in the latter half of the year. As Nepal continues to recover, it will remain an iconic destination for travelers seeking adventure, culture, and spiritual experiences in the heart of the Himalayas.
The post Nepal’s Tourism Hits New Milestone with Over Almost Two Million Foreign Tourists in 2025—What’s Next for 2026? appeared first on Travel And Tour World.
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