With travel, tourism and hospitality industry in Nepal having been hit hard by the COVID crisis, one of the iconic hotels has shut down for an indefinite period due to heavy economic loss.

Hotel Annapurna, one of Nepal’s oldest five-star properties in the heart of Kathmandu,  has closed its doors for an indefinite period. It was established in 1965.

Although a formal announcement has not been made, Executive Director Sreejana Rana said the process has begun, according to The Kathmandu Post.

The closure of the hotel that had a 149-room hotel means that its 360 employees will lose their jobs.  

But it’s the same story with other prominent five-star hotels too.

The hospitality industry has been among the hardest hit by the pandemic. Nepal's five-star hotels saw their profits plunge in the fourth quarter as the pandemic lockdown wiped out tourist arrivals. With that in mind, many hotels in Nepal have launched a voluntary retirement scheme for their old employees.

In May, two months after the lockdown was imposed, hotels facing financial losses amid the coronavirus restrictions decided to continue to remain shut for another six months as they didn't expect tourists for another year.

Officials had said more than 3,000 hotels would send their staff home because they can't keep paying them salaries due to revenue loss.

Following pressure, Hotel Association Nepal, the leading representative organization in the hospitality industry, representing more than 300 hotels, resorts, and guesthouses, decided to keep the hotels open by making a significant cut in worker salaries.

In July, nearly four months after the lockdown began, it unveiled a uniform payout structure: All staff, from front office workers to general managers, would remain on salary, but they would get the same pay. The move was intended to avoid mass layoffs.

The association, trade unions, and hotel workers agreed on the uniform payout structure and signed a deal. The new pay structure was implemented from April 13 to December 31. They are now holding discussions on what steps to take after December 31. 

This is, however,  not the first hotel to shut doors. On March 23, the Silver Heritage Group, the Australian-listed gaming investor that operates two casinos in Nepal had announced the temporary closure of their two properties - Tiger Place Resort and The Millionaires’ Club & Casino in Kathmandu.