KARUNA SHINSHO, CNN ANCHOR: Nepal plans to proceed with an inquiry into a palace massacre despite protests from opposition politicians. Kathmandu is calm today after two days of violent demonstrations. Police say more than 500 people were arrested when protesting in public during a noon-to-midnight curfew yesterday. The protesters want answers to last week's shootings that killed almost the entire royal family. Kasra Naji has more on the unrest, and its impact on the nation's key industry, tourism.</s>KASRA NAJI, CNN CORRESPONDENT (voice-over): The Himalayan range here has earned it the title "the roof of the world." Nepal is one of the world's most scenic tourist destinations. The relaxed lifestyle of its people attracts many. But the unrest after the killing of most of the royal family here and the curfew has dealt a blow both to tourists and the tourists industry here. In the Tammo (ph) district of the capital of the main area where Budget Hotels and souvenir shops are situated, there are fewer tourist. The U.S. and British governments have warned their citizens against traveling to Nepal. Many of those still here are planning their exit.</s>UNIDENTIFIED MALE: Now I'm in no hurry until I feel completely safe. Never at any time did the rioters throw any rocks at me and never at any time did the police say or do anything to make me feel unsafe.</s>NAJI: Tour operators and travel agents are alarmed at the rush to get out of the country. Shopkeepers wonder what might come next. Hotels and embassies are providing some tourists with vehicles which have security passes to get them to the airport. Many flights have been canceled. (on camera): In the fast few years, on average, half a million tourists visited Nepal every year, bringing with them nearly $200 million of badly needed hard currency. But the political turmoil of the past few months has meant that tourism is down about 10 percent already, and with the latest crisis, tourism industry here faces ruin. Kasra Naji, CNN, Kathmandu.
Kathmandu Calm After Two Days of Violent Demonstrations