KATHMANDU, JANUARY 2 Nepal welcomed 1,158,459 international visitors in 2025, recording a modest 1% growth over the previous year and achieving 96.8% recovery compared to pre-pandemic 2019 levels, according to the Tourism Insight report released by the Nepal Tourism Board in January 2026. The annual figures show steady progress in the country's tourism recovery, though growth remained constrained by civil unrest in September and persistent connectivity challenges that have prevented the sector from reaching its targeted 1.5 million visitor milestone. December 2025 closed on a positive note with 98,190 international visitor arrivals, marking a 6.7% year-on-year increase and reaching 97.3% recovery compared to December 2019. The month reflected a steady rebound following disruptions caused by the September protests that had severely impacted arrivals and hospitality infrastructure. Seasonal peaks and disruptions The year witnessed strong performance during the spring season, with March recording 121,687 arrivals and April bringing in 116,490 visitors. October emerged as the peak month with 128,443 arrivals, capitalizing on the popular autumn trekking and mountaineering season. However, September proved to be the most challenging month, with arrivals plummeting to 78,711-an 18.3% decline attributed to the 'Gen-Z' protests that resulted in 77 deaths and caused damage to government and private property worth over Rs 84 billion. Major hospitality properties, including the newly opened Hilton and the Hyatt Regency, suffered severe damage during the unrest. Shifting source market dynamics India remained Nepal's largest source market with 292,438 arrivals, accounting for 25.2% of total visitors. However, Indian arrivals registered an 8% year-on-year decline, marking a notable shift in what has traditionally been Nepal's most reliable market. The United States emerged as the second-largest source market with 112,316 arrivals (9.7% share), showing positive growth and strengthening its position in Nepal's tourism portfolio. China, which ranked third with 95,480 arrivals (8.2% share), experienced a 6.3% decline compared to 2024. The United Kingdom contributed 58,684 visitors (5.1% share) with growth recorded, while Bangladesh rounded out the top five with 57,545 arrivals (4.9% share), also showing an upward trend. In December specifically, India led with 30,093 arrivals, followed by China (8,680), the USA (7,077), Bangladesh (6,605), and Australia (4,980). Thailand, the UK, Myanmar, Japan, and Malaysia completed the top ten source markets for the month, according to Department of Immigration data. Foreign exchange earnings show mixed results Foreign exchange earnings from tourism in Kartik (mid-October to mid-November 2025) stood at Rs 7,957.61 million, representing a 12.94% decrease compared to the same period in the previous fiscal year, according to Nepal Rastra Bank figures. However, cumulative foreign exchange earnings for the first four months of fiscal year 2082/83 (mid-July to mid-November 2025) reached Rs 27,152.55 million, showing a marginal 0.94% increase compared to the corresponding period of the previous fiscal year. Mustang region sees a significant surge The Mustang region experienced remarkable growth, welcoming 161,122 foreign tourists in 2025-an 18.71% increase over 2024. Indian tourists dominated the SAARC visitor segment to the region, comprising over 90% of arrivals, reflecting growing interest in the trans-Himalayan destination among Indian travelers. Mountaineering expeditions contribute significantly Nepal's mountaineering sector demonstrated robust performance across both major climbing seasons. The spring season saw 127 expedition teams bringing 1,168 mountaineers from 73 different nationalities, generating NPR 794 million in royalties. Indian climbers led with 167 mountaineers, followed by the USA (160), China (115), the UK (73), and Russia (72). Mount Everest remained the primary draw with 436 mountaineers attempting the world's highest peak during spring. Lhotse attracted 125 climbers, while the technically demanding Ama Dablam saw 106 attempts. Makalu and Kanchenjunga drew 79 and 78 mountaineers respectively, with Nuptse (76), Annapurna I (66), and Himlung Himal (46) also recording significant activity. The autumn season proved even more popular, with 175 expedition teams comprising 1,450 mountaineers from 83 nationalities generating NPR 255.16 million in royalties. Germany and France led with 118 and 117 mountaineers respectively, followed by China and the UK (106 each), Russia (104), and the USA (102). Ama Dablam emerged as the most popular autumn destination with 436 mountaineers, followed by Manaslu (374) and Himlung Himal (186). Other notable peaks included Baruntse (47), Chulu Far East (43), Dhaulagiri (36), and Saribung (34), according to Department of Tourism data based on royalty collection. Combined, the two climbing seasons generated over NPR 1 billion in expedition royalties, underlining the economic significance of high-altitude mountaineering to Nepal's tourism economy. Persistent connectivity barriers Industry stakeholders continue to identify high airfares and limited direct international flight options as primary barriers preventing Nepal from achieving its targeted 1.5 million annual visitor mark. The connectivity challenge remains a critical bottleneck, particularly for long-haul markets where limited airline competition keeps costs elevated. Despite finishing 2025 just 38,732 visitors short of the pre-pandemic 2019 peak, Nepal's tourism sector demonstrated resilience in recovering from both the pandemic and the September disruptions. The steady performance in December and the robust mountaineering seasons provide a foundation for optimism heading into 2026, though addressing connectivity issues and ensuring political stability will be crucial for achieving the sector's ambitious growth targets. The Nepal Tourism Board has yet to announce official targets for 2026, though industry observers anticipate renewed focus on diversifying source markets, improving air connectivity, and strengthening destination infrastructure to push arrivals beyond the 1.2 million threshold.