NRB Data Shows Tourism Credit Expands 12.6% While Hotel Loans Decline by 3.9%

According to the Nepal Rastra Bank’s Sectorwise Credit Report for Mid-August 2025, the tourism sector witnessed a notable 12.6% year-on-year growth in bank credit, reaching Rs. 29.55 billion, while hotel and hospitality loans fell by 3.9% to Rs. 214.16 billion. This contrasting trend highlights a shifting credit pattern within Nepal’s service industry — where smaller tourism enterprises and adventure-based services are expanding, but large hotel projects are slowing down.

The data indicates that tourism-related loans, including trekking, mountaineering, rafting, camping, and resort services, have gained strong momentum amid Nepal’s post-pandemic tourism revival. Increased tourist arrivals during early 2025, especially from India, China, and Western countries, boosted credit demand for travel logistics, hotel renovations, and adventure tourism startups. However, hotel sector lending declined by nearly Rs. 8.7 billion compared to mid-July, suggesting that large-scale hotel investors are adopting a cautious stance amid high interest rates, rising operational costs, and slower recovery in occupancy rates.

Similarly, health services and automotive support sectors showed improvement, while educational and entertainment loans slightly declined, reflecting uneven growth across the broader service economy. Economists say this trend reflects Nepal’s gradual transition toward a more diversified service structure — where credit growth is led by smaller, flexible enterprises rather than large infrastructure-heavy investments.