Tourism in Turmoil: US-Iran Conflict Grounds Flights, Derails Peak Season

Nepal's tourism industry is bracing for its second major shock in five months, as the ongoing conflict between the US and Iran leads to widespread flight cancellations and tourist trip deferrals.

The disruption strikes at the beginning of the Spring (March-May) season, one of Nepal's two peak tourist periods. This follows a significant downturn in September 2025, when arrivals dropped by 18.3 percent due to the Gen G protests that caused substantial loss of life and property.

According to the Tribhuvan International Airport (TIA) office, 14 international flights were canceled on Monday alone. Airlines including Jazeera Airways, Kuwait Airways, Air Arabia, Flydubai, Nepal Airlines, Qatar Airways, and Himalaya Airlines have suspended operations, with some aircraft now parked at the Kathmandu airport.

The impact is already being felt by tour operators. Prem Kumar Khatri, Managing Director of ACE Holidays Travel & Adventure Pvt Ltd, reported that 15 percent of bookings for the Spring season have been canceled, while another 10 percent have been postponed to next year. His company, which primarily serves tourists from North America and Europe, noted that these travelers typically transit through hubs like Turkey, Dubai, and Doha. "Those still coming via alternate routes are facing increased airfare," Khatri added.

Ramesh Thapa, immediate past president of the Nepal Association of Tour and Travel Agents (NATTA), confirmed the wave of cancellations. "With 17 to 18 daily international flights being the norm, the current lack of flights is crippling," Thapa said. "We had the agitation, and now a global conflict right at the peak of the season." He noted that some tourists are still arriving via Thailand, Malaysia, and Singapore.

Ashok Pokharel, MD of Shangri-La Tours Pvt Ltd, also reported significant booking cancellations. "Some tourists are stranded in transit hubs like Dubai and Qatar," he said. "The rising price of oil in the international market is also driving up airfares, making travelers hesitant."

The hotel sector is also being hit hard. Sajan Shakya, General Secretary of the Hotel Association of Nepal, stated that European tourists have canceled 70 to 80 percent of current and upcoming bookings. "Bookings for later dates, however, remain intact for now," he clarified.

While the number of tourists arriving directly from the Middle East is relatively small—totaling 20,504 in 2025—the region is a crucial transit point for travelers from Europe and the Americas. In 2025, Nepal welcomed 221,018 tourists from Europe and 135,503 from the Americas. The ongoing conflict and subsequent flight disruptions in this key transit region threaten to derail the recovery of Nepal's vital tourism sector.