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Coronavirus Impact In Nepal

The persistent drumbeat of positive tests and reported deaths in other countries due to novel coronavirus (COVID-19) has created widespread concerns in Nepal also. Nepal is starting to suffer the most abrupt and widespread cessation of economic activity due to outbreak of this virus. As per the analysis by the Asian Development Bank, the outbreak of this deadly disease. The impact has already started to surface in number of sectors like tourism, trade and production linkages, supply and health. Especially the entire service industries: tourism, aviation and hospitality sector have been hit hardly by the outbreak. With the launch of visit Nepal 2020 campaign in January, the country was in hope to attract two million visitors, but due the corona pandemic the campaign got cancelled which has shattered the hospitality and tourism related business sector. With this the tourist arrival rate has declined to below 10 percent, from 70 percent before the Covid-19 outbreak. Tourism sector, being one of the largest industry has been contributing 8 percent to Nepal’ s economy. The outbreak has affected people’s lives as well as private and public sectors. Banks are suffering in loss of their investments in hospitality and aviation due to the coronavirus tourist slump. Not only this, the impact has been also visible in the manufacturing industries. As most raw materials including pharmaceutical chemicals come from China, supply of these raw materials has decreased drastically.
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