Accommodation & Food Services Wages Rise 2.03% as Tourism Rebounds

The Salary and Wage Index (SWI) shows that wages in Nepal’s accommodation and food service sector rose by 2.03% in FY 2024/25, with the index reaching 102.70 in July 2025, up from 100.66 in July 2024. This growth reflects the gradual recovery of Nepal’s tourism and hospitality industry, which is regaining momentum after years of pandemic-driven disruptions.

The wage increase highlights stronger demand for hotel staff, restaurant workers, and tourism service providers, particularly in urban centers like Kathmandu and Pokhara, as well as trekking and heritage destinations. With more domestic and international tourists returning, employers have been compelled to offer better compensation to retain skilled workers, many of whom had migrated to other sectors or abroad during the downturn.

Although the 2.03% growth is slightly below the national average of 2.63%, it is a positive signal for Nepal’s tourism-driven economy. For workers, it means more stable income opportunities in a sector known for seasonal fluctuations. For employers, however, higher wages add to cost pressures, especially when combined with rising expenses for imported food, beverages, and energy.