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The recent terror attack in Pahalgam, Kashmir, has delivered a severe blow to the region's burgeoning tourism industry, resulting in the cancellation of approximately 1.3 million bookings. This devastating event has not only caused immediate financial losses for hotels, restaurants, and related businesses but also casts a long shadow over the future prospects of tourism in the region, a sector that significantly contributes to Jammu and Kashmir's economy. The attack, which tragically claimed the lives of 26 people, predominantly tourists, represents a watershed moment in Kashmir's history of violence, as it marks the highest number of tourist fatalities in a single incident. The immediate aftermath of the attack witnessed a surge in booking cancellations, signaling a significant decline in tourist confidence. Babar Chaudhary, president of the Jammu and Kashmir Hotels and Restaurants Association, highlighted the severity of the situation, stating that at least 1.3 million bookings scheduled for August had been canceled across the valley. This represents a substantial loss, particularly considering that the period from April to August typically attracts over 2.5 million tourists to Kashmir. The association, representing approximately 240 hotels and restaurants, anticipates a significant drop in tourist arrivals, with projections indicating that up to 90% of expected visitors may not materialize due to safety concerns. The impact extends beyond hotels and restaurants, affecting various stakeholders within the tourism ecosystem, including shikara owners on Dal Lake, taxi drivers, artisans, and event managers. Fayaz Ahmad, a shikara owner, lamented the sharp decline in business, noting that the lake, usually bustling with tourists during this time of year, is now deserted. The cancellation of a high-profile wedding event scheduled to take place in Srinagar, costing around ₹1.5 crore, further underscores the depth of the crisis. Prime Minister Narendra Modi addressed the issue during his Mann Ki Baat radio show, condemning the attack and emphasizing the terrorists' intent to disrupt the peace and progress that Kashmir had been experiencing. He highlighted the positive developments in the region, including the revitalization of schools and colleges, the strengthening of democracy, and the growth of tourism, all of which were threatened by the act of terror. The attack comes at a time when Kashmir's tourism industry was witnessing a resurgence, driven by a perceived decrease in terror-related incidents and a surge in tourist footfall, particularly after the abrogation of Article 370 in August 2019. Official figures from the Jammu and Kashmir Department of Tourism indicate a steady increase in tourist arrivals, with approximately 3.5 million visitors in 2024, up from 2.7 million in 2023 and 2.6 million in 2022. The first three months of 2025 alone saw around 500,000 tourists visiting the region, demonstrating the growing appeal of Kashmir as a tourist destination. However, the Pahalgam terror attack has effectively halted this progress, leaving the industry grappling with uncertainty and fear. Local businesses express a sense of despair, with many echoing the sentiment that 'tourism is finished' in Kashmir. The impact on the region's economy is expected to be significant. While estimates of tourism's contribution to Jammu and Kashmir's GDP vary, economists agree that the sector plays a crucial role in the Union Territory's economy. Some reports suggest that tourism accounts for at least 8% of the GDP, while others place the figure lower, around 5%. Ejaz Ayoub, a Srinagar-based economist, estimates that the hotel industry alone contributes approximately ₹2,700 crore to Kashmir's economy annually, and that tourism, through its multiplier effect, contributes around ₹10,000 crore, representing about 5% of the total GSDP. The attack is also expected to have a cascading effect on other sectors, including investment and tax collection. The Union Territory government had set ambitious targets for the tourism sector, aiming to generate employment for 50,000 people each year and attract an average investment of ₹2,000 crore per year for the next five years. These targets, however, now appear increasingly challenging to achieve. Despite the current challenges, there is a glimmer of hope for a future recovery. Javed Ahmad, a hotel owner in Pahalgam, welcomed a group of 10 foreign tourists to his hotel shortly after the attack, signaling a potential return of confidence among some travelers. However, rebuilding trust and restoring the region's image as a safe and desirable tourist destination will require sustained efforts, including enhanced security measures, effective communication strategies, and a concerted focus on promoting peace and stability. The road to recovery will be long and arduous, but the resilience of the Kashmiri people and the inherent beauty of the region offer a foundation for a brighter future.
The Pahalgam terror attack has brought the issue of security in Kashmir back into sharp focus. The region has a long history of conflict and instability, and while there have been periods of relative calm, the threat of violence remains a constant concern. The attack highlights the vulnerability of tourists to terrorist attacks and raises questions about the effectiveness of security measures in place to protect them. While it is impossible to eliminate all risks, there is a need for a comprehensive review of security protocols and a strengthening of intelligence gathering to prevent future incidents. This includes increasing the presence of security forces in tourist areas, improving surveillance technology, and enhancing coordination between different security agencies. It is also important to engage with local communities to foster trust and cooperation in identifying and reporting potential threats. Furthermore, the government needs to address the underlying causes of conflict and instability in Kashmir, including poverty, unemployment, and political grievances. By addressing these issues, it can create a more stable and secure environment that is conducive to tourism and economic development. The economic impact of the Pahalgam terror attack extends beyond the immediate losses incurred by the tourism industry. It also affects related sectors, such as agriculture, transportation, and handicrafts. These sectors rely heavily on tourism for their survival, and a decline in tourist arrivals can have a ripple effect throughout the economy. For example, farmers who supply fresh produce to hotels and restaurants may see a drop in demand, while artisans who sell their products to tourists may struggle to make a living. The government needs to provide support to these affected sectors to help them cope with the economic fallout of the attack. This could include providing financial assistance, offering training and skills development programs, and promoting alternative sources of income. It is also important to diversify the economy to reduce its reliance on tourism. This could involve investing in other sectors, such as manufacturing, technology, and renewable energy. By diversifying the economy, Kashmir can become less vulnerable to shocks and create a more sustainable path to economic development.
The Pahalgam terror attack also underscores the importance of promoting responsible tourism in Kashmir. Responsible tourism is a type of tourism that minimizes negative impacts on the environment and local communities while maximizing the benefits for both. It involves engaging with local cultures and traditions in a respectful manner, supporting local businesses, and promoting sustainable practices. By promoting responsible tourism, Kashmir can attract visitors who are interested in experiencing the region's unique culture and natural beauty while also contributing to its long-term sustainability. This could involve promoting eco-tourism, cultural tourism, and community-based tourism. It is also important to educate tourists about the local culture and customs and to encourage them to respect the environment. In addition to promoting responsible tourism, it is also important to manage tourism in a sustainable manner. This could involve limiting the number of visitors to certain areas, regulating the development of tourist infrastructure, and implementing environmental protection measures. By managing tourism in a sustainable manner, Kashmir can ensure that it remains a desirable tourist destination for future generations. The Pahalgam terror attack serves as a stark reminder of the challenges facing Kashmir and the need for a comprehensive and coordinated approach to address them. It is not enough to simply focus on security; it is also necessary to address the underlying causes of conflict and instability, to promote responsible tourism, and to diversify the economy. By taking these steps, Kashmir can create a more stable, prosperous, and sustainable future for itself. The road ahead will be long and difficult, but with determination and resilience, Kashmir can overcome these challenges and emerge stronger than ever before. The incident highlights the fragility of peace and the constant need for vigilance in regions susceptible to terrorism. It also underscores the importance of international cooperation in combating terrorism and promoting stability in conflict-affected areas. The global community must stand in solidarity with the people of Kashmir and support their efforts to build a more peaceful and prosperous future.
Source: 13 lakh bookings cancelled: How Pahalgam terror attack grounded Kashmir’s rising tourism tide