International Tourism Faces Challenges While Government Holidays Boost Domestic Tourism in Nepal

In March 2026, the number of tourist arrivals in Nepal declined by approximately one percent compared to 2025, reaching 120,516 visitors. Despite a 21 percent increase in tourists coming from SAARC countries and India, Nepal Tourism Board indicates a decline in visitors from Western countries. Following the government’s decision to close official offices on Fridays and Saturdays, Dipak Raj Joshi, CEO of the Nepal Tourism Board, expressed optimism that domestic tourism would receive momentum.

March 22, Kathmandu – Tourist arrivals in Nepal in March 2026 decreased by one percent, defying earlier expectations of growth. While tourist visits from India and other SAARC nations rose by 21 percent, the total number of visitors remained nearly unchanged, with 120,516 tourists recorded in March 2026 compared to 121,687 in 2025.

On the other hand, the number of tourists from Western countries, especially those visiting for trekking and mountaineering, has declined significantly. Data reveals this sector has been heavily impacted. For instance, tourists from the United States dropped by 28.1 percent in March, with only 7,974 arrivals compared to the previous year. Similarly, tourist arrivals from Europe decreased; arrivals from the United Kingdom fell by 19.7 percent to 4,814 in March from 5,995 last year, contributing to an overall 18.9 percent decline from Europe. Ongoing conflicts in West Asia have adversely affected transit routes and accessibility for tourists traveling to Nepal.

CEO Dipak Raj Joshi shared his personal experience, stating, “The war has created travel uncertainties which noticeably impact countries like ours.” He recounted being stranded at Doha Airport for a week before completing training in Germany and returning to Nepal via New Delhi, India.

As spring is the prime season for trekking and mountaineering, tourists typically spend more during this period, forming a key revenue source for Nepal’s tourism sector. However, concerns over ‘fake rescue’ incidents have negatively affected the tourism market. An increase in complaints has led police to initiate crackdowns, impacting Nepal’s international tourism reputation.

Fuel supply disruptions and increases in aviation fuel prices due to the ongoing conflict have driven up tourism service costs. Nepal Oil Corporation recently raised aviation fuel prices, causing domestic and international airfares to nearly double. According to the Civil Aviation Authority of Nepal, fares on the Kathmandu-Dhangadhi route have reached NPR 23,059.

The Nepal Tourism Board CEO highlighted that “expensive air travel and difficulties reaching destinations could cause tourists to reconsider their trips, economically disadvantaging the industry.” Senior tourism entrepreneur Suman Pandey, affiliated with the National Independent Party, urged joint government and industry efforts to address the fake rescue issue. He noted, “If the Iran–America conflict persists, alternative strategies must be implemented.”

He added, “Our regions are currently more peaceful compared to other parts of the world, which should be leveraged as an opportunity.” Despite challenges, he stressed the importance of government and industry collaboration to rapidly resolve these issues.

Nepal Tourism Board is actively informing international markets about transit alternatives through various channels. CEO Joshi mentioned ongoing discussions to promote safe transit routes through Turkey, Delhi, Hong Kong, and China to minimize the impact on tourist arrivals. Efforts are also focused on increasing tourists from neighboring India and China.

Joshi stated, “ASEAN, SAARC, and China are our reliable source markets. In light of increased conflicts elsewhere, we are campaigning to position Nepal as a safe destination.” He emphasized that aside from increased fuel costs, domestic tourism remains largely unaffected, presenting opportunities to transform external challenges into advantages. Recently, the U.S. travel advisory downgraded Nepal from high-risk to a lower-risk category, positively influencing tourism.

Following the introduction of additional government holidays, enthusiasm for domestic tourism has grown. After the Cabinet approved the closure of government offices and educational institutions on Fridays and Saturdays, the Nepal Tourism Board’s CEO Joshi remarked that this decision would positively affect the promotion of internal tourism. He said, “We had been recommending this initiative to the government for some time. It will create stronger business opportunities for tourist destinations near urban areas.”

Tourism entrepreneur Suman Pandey also stated that the two-day weekend not only enhances employee productivity and provides more leisure time but will also benefit the tourism industry. He added, “Previously, Fridays were less productive; with full capacity work on the remaining five days, this two-day holiday will contribute to the economy.”