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Landslide, mass cancellations paralyze Nepal’s economy

Published : Tuesday, 29 September, 2026 at 1:45 PM

Observer Online Report

Collected Photo

Nepal's vital tourism sector and national economy are facing severe disruption following widespread flooding and landslides triggered by climate change.

The latest natural disaster comes on the heels of a catastrophic glacial collapse near the northern border that claimed over 1,500 lives.

Heavy seasonal downpours since August have severely damaged key arterial highways and rural transit corridors, bringing internal transport and trade to a near standstill.

With the peak tourism season running from September through November, safety concerns have prompted a wave of trip cancellations by foreign travelers.

Travel advisories issued by foreign governments, including the UK, have led to booking cancellations reaching up to 80 per cent in popular destinations such as Chitwan.

The sharp decline threatens over 10 lakh jobs directly supported by tourism, a sector that contributes nearly 8 per cent to Nepal's overall Gross Domestic Product (GDP).

Analysts warn that the severe infrastructure damage and declining visitor numbers could plunge Nepal's economy into a post-pandemic crisis, creating deep economic uncertainty across the Himalayan nation.

-SA

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Editor : Iqbal Sobhan Chowdhury

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