Nepal’s tourism industry is struggling to pick up post-Covid, with hotels reporting low occupancy rates despite peak tourist season. The Hotel Association Nepal, which has 2,000 member hotels across the country, says about 25% of the 10,000 room nights they offer remain unsold. Tourism recovery, according to the association, has only reached 50% of pre-Covid levels. The country had seen a boom in hotel construction after announcing plans for two new international airports in Bhairahawa and Pokhara, but tourist numbers have not increased, leading to worries about the industry’s continued viability. The IMF has flagged concerns about boom-bust credit cycles in Nepal’s financial sector. An interest rate rise has also hit lending in the hotel and wider sectors, with high inflation also affecting the industry’s long-term performance.