Kathmandu, Sept. 14 -- It is autumn, the time of year when Nepal's economy is usually vibrant. Hordes of tourists flock to the country, while Nepalis abroad return home to celebrate the long festive holidays. From retailers to hotels, and from airlines to transport operators, businesses typically boom.

But this week, Thamel-along with Durbar Square and other popular tourist spots like Pokhara, Bhairahawa, and Chitwan-remains much quieter than usual. Charred hotels, blackened by smoke, and burned vehicles are common sights across the country.

The recent anti-government protests have scared tourists from around the world, particularly Indians, whose numbers were expected to swell due to heavy bookings for pilgrimage tours to Kailash Manas...