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Nepal's tourism industry, already reeling from Maoist violence and the assassination of most of its royal family, will be one of the worst-hit in Asia in the wake of the attack on the US. A worldwide fear of flying sparked by the hijackings and the likelihood of a protracted battle in Afghanistan against terrorism will compound its problems.

Ironically, as major airlines lay off tens of thousands, Dragonair plans to introduce direct flights from Hong Kong to Kathmandu. Flights will depart and return to Hong Kong every Thursday and Sunday from October 28 until March 30. Dragonair says the booking status on the route is 'satisfactory'.

The main trekking season starts in October, but the attacks on the World Trade Centre and Pentagon are expected to deepen the shadow over Shangri-La.

Since the assassinations of royal family members in June, tourism has been in steady decline in the Himalayan kingdom. The problem has been exacerbated by Maoist violence in rural areas (though tourists have not been targeted). And memories of the hijacking of an Indian Airlines plane out of Kathmandu in 1999 don't help jangling nerves.

The Kathmandu Post reports that hundreds of tourists are cancelling trips to Nepal, and cancellations of rooms in major hotels are expected to be as high as 50-60 per cent.

Even though recovery teams are working night and day to find bodies and remove the mountain of twisted metal and concrete at the site of the World Trade Centre, the Big Apple has set the wheels in motion to draw tourists back.

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