Monarchy has remained a stimulus in the touristic representation of Nepal. Recent political changes in Nepal abolished the traditional monarchy and declared Nepal a Federal Democratic Republic. Since Nepal's national identity was closely intertwined with the Hindu religion and monarchy, their absence indicates a reason sound enough to bring about a change in the traditional representation of Nepal in tourism. This paper first contextualises the role of monarchy in Nepalese tourism. It then looks into the challenges perceived by the tourism industry arising from the absence of the institution of monarchy. Data collected through interviews and questionnaires from the industry representatives and other library-based resources show that the biggest challenge ahead would be to the future of Nepal's existing tourism imagery. This is because, first, monarchy has a role in projecting Nepal as an exotic and mystic destination. Second, because the urge to diversify Nepal's tourism activities due to the increased quest for newly emerging regionalism means the traditional representations in tourism would not remain uncontested. These results lead us to a conclusion that the stereotypical image of tourism tends to be challenged in a new cultural climate brought about by a major change in the political regime.