Kathmandu, Nov 3 Nepal has witnessed a significant decline in the number of Indian tourist arrivals during the first 10 months of 2025 and only a marginal increase in total foreign tourist inflows, according to the latest statistics released by the Nepal Tourism Board (NTB).
India remains the largest source market for Nepal's tourism industry, accounting for one-fourth of total international visitors to the Himalayan nation.
According to NTB data, arrivals from the southern neighbour dropped by 11 per cent year-on-year to 2,43,350 between January and October this year. Overall foreign tourist arrivals, however, grew marginally by 0.3 per cent to 9,43,716.
Likewise, arrivals from another neighbour, China, decreased by 5.3 per cent to 78,929 during the same period. China currently ranks as Nepal's third-largest source market — down from the pre-Covid period when it had emerged as the second-largest source market for Nepal's tourism industry.
Tourism entrepreneurs said the decline in Indian tourist arrivals was largely due to the impact of the Gen-Z movement, which exposed Nepal's fragile law and order situation. The Gen-Z movement, which took place in early September, left over 70 people dead and several injured, while government and private properties were destroyed on a large scale.
Foreign-branded hotels, including the Hyatt Regency and Hilton, were severely damaged during the violent protests. The Hilton was burnt to the ground, while the Hyatt remains closed for maintenance.
"Four groups of Indian tourists who were preparing to visit Nepal cancelled their trips in the wake of the protests," said Umesh Danai, Managing Director of Speedy Tourism and Travels Pvt. Ltd., a travel agency organising trips for Indian and other foreign tourists. "They were supposed to arrive in Nepal via the land route, but they cancelled their travel plans".
Khum Bahadur Subedi, Director of Unique Adventure International, which also caters to Indian tourists, told IANS that arrivals from India — both by air and land — decreased in the aftermath of the Gen-Z movement. "We are still witnessing the impact, as arrivals, particularly through the land route, have come down," he said. "They (Indian tourists) are concerned about the security situation."
According to the NTB, overall tourist arrivals in September dropped by 18.3 per cent, a decline attributed to the Gen-Z movement. During the month, arrivals from India fell by 32.3 per cent, from China by 34.9 per cent, and from the United States by four per cent — the three biggest source markets.
In response to the negative impact of the Gen-Z movement, the Nepal Tourism Board in September launched the 'Now In Nepal' campaign to rebuild Nepal's tourism image.
While the arrivals from India recovered in October - Indian tourists contributed to a positive momentum with a six per cent growth - those from the US and China, however, continued to decline.
Danai said his company did not see additional trip cancellations by Indian tourists for October and November. "It may be because normalcy returned in Nepal earlier than anticipated," he said.
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