KATHMANDU - Eight Indian tourists including four children died of suspected suffocation in a hotel in Nepal on Tuesday, police said, after trying to keep warm by using a gas heater during the night.

The victims were staying in Daman, a hill resort south of Kathmandu which is known for its panoramic views of the Himalayas.

"They had lit a gas heater to keep the room warm and probably suffocated," police official Hobindra Bogati told Reuters. Seven other tourists in the group were unharmed.

Tourism is a major source of revenue for Nepal's economy, providing hundreds of thousands of jobs. Last year just over 1 million tourists visited the country, of which the biggest contingent - around a tenth - came from India.

(Reporting by Gopal Sharma in Kathmandu, editing by Katya Golubkova) ((gopal.sharma@thomsonreuters.com; + 977 1 4372152; Reuters Messaging: gopal.sharma.reuters.com@reuters.net))