KATHMANDU, Aug 17: Many top companies in Nepal shut down on Tuesday after Maoist rebels bombed a luxury hotel, raising fears for the health of the Himalayan kingdom's tourism-dependent economy.

No one was injured on Monday when two suspected guerillas on a motorcycle threw bombs onto the tennis court of Kathmandu's Soaltee Crowne Plaza, but the hotel said it would shut down after earlier vowing to defy a rebel deadline for 24 top firms to close by Tuesday.

"Most businesses have decided to close for the time being in light of the situation," said N M Singh, general manager of Bottlers Nepal, which distributes Coca-Cola in the kingdom.

"With the government utterly failing to protect its people, how can we run our businesses?" added Binod Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry.

Industrialists said they would closely follow developments before deciding when to reopen. Kathmandu has a 10-week stockpile of vital goods, but businesses could raise prices if the Maoist shutdown is prolonged, said the president of the Nepal Consumers Forum.

Most of the 24 firms threatened by the Maoists have connections with the royal family or multinationals. The Soaltee Crowne Plaza was inherited in 1980 by King Gyanendra, who was then a prince, although a hotel statement late Monday stressed that the monarch had converted his holdings into an autonomous company. -AFP