Nepal's ailing tourism industry has suffered yet another setback after recent Maoist rebel attacks, in which 167 people died.

The attacks came just days before the mountain-climbing season opens.

The season usually brings thousands of climbers to Nepal's peaks, including the world's highest, Mount Everest.

Tourism is the third largest source of income for the cash-strapped Kingdom.

But the number of visitors has been falling for a variety of reasons including the Maoist insurgency, the massacre of the county's royal family last year and the general global travel downturn.

Suman Pandey, president of the Trekking Agents Association of Nepal, told the BBC's World Business Report that things had just starting to look up for the industry

"The last incident of the wicked has come as another setback to our recovering state," he said.

Caution advised

The attacks are principally directed at the government and its installations and take part mainly in the western part of the country.

No attacks have occurred against tourists, who are considered safe.

The United States is currently advising Americans to "exercise caution" when visiting Nepal.

It urges US nationals planning to go outside the Kathmandu valley to check security conditions with the embassy before travelling.

Mr Pandey said the volume of tourism visiting the mountainous country, "depends on the existing situation of law and order."

"I am fully confident that there is no problem for the tourists to come and enjoy their holiday in Nepal," he added.