Kashmir Tourism Revival Crushed by Single Terror Attack

In a desperate bid to draw visitors, tour operators, hotel owners, cafe managers, boat operators, and pony handlers are now providing discounts exceeding 70%.

Just a little over two months after a catastrophic terror attack that sparked an unparalleled military escalation between India and Pakistan, the previously vibrant valleys of Kashmir are empty and silent now.

In spite of thousands of Hindu pilgrims arriving in Kashmir this week for the annual Amarnath Yatra pilgrimage – traveling in distinct convoys under beefed-up security to the revered Amarnath Cave Shrine located in the Himalayas – the overall tourism sector, which depends on visitors from all over India seeking scenic landscapes and varied climates, remains dim.

Kashmir’s tourism industry faces significant challenges after the horrific terrorist attack in Pahalgam on April 22 that resulted in 26 fatalities. Twenty-five tourists and one local resident were shot dead, igniting a four-day military confrontation between India and Pakistan. This incident echoed through Kashmir’s tourism framework, where such blunt assaults on tourists have been sparse despite decades of insurgency.

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“Everything changed after Pahalgam,” one Kashmir tourism shareholder said. “The tourists stopped coming, and with them, our livelihoods disappeared overnight.”

The latest statistics demostrate a grim reality of the crisis affecting the tourism industry in Kashmir. As reported by the Pahalgam Hotels and Owners Association (PHOA), the occupancy rates in the region’s over 1,500 hotels have plunged 90%. Many hotels are experiencing complete zero occupancy, compelling owners to send their staff home indefinitely.

“There are many large hotels with no guests at all. Some hotels have instructed their employees to remain at home until tourists return,” the president of the PHOA said. “This situation has been both horrific and alarming. Currently, the outlook for tourism is quite dismal.”

The wider economic consequences are enormous. Tourism accounts for roughly 7-9% of Kashmir’s economy, rendering it an essential component of the region’s economic well-being. In a desperate bid to draw visitors, tour operators, hotel owners, cafe managers, boat operators, and pony handlers are now providing discounts exceeding 70%.

The timing of the the terror attack was particularly devastating, happening right when Kashmir seemed to be starting to make economic progress. The Union Territory of Jammu and Kashmir’s real Gross State Domestic Product (GSDP) for the fiscal year 2024-25 was expected to increase by 7.06%, with nominal GSDP projected at 2.6 trillion rupees (approximately $30 billion), indicating sustained economic momentum.

From 2019 to 2025, the Union Territory recorded a compound annual growth rate of 4.89%. It was forecasted that per capita income would reach about 155,000 rupees ($1,814) in the current financial year, marking a 10.6% increase compared to the previous year. These statistics pointed to a region undergoing a significant economic transformation following years of violence and turmoil.

A significant portion of this growth was supported by what economists refer to as the “peace dividend.” The number of terrorist incidents had significantly decreased from 228 in 2018 to merely 46 in 2023. This relative stability had stimulated investment, boosted tourism, and created an opportunity for a revitalized economic narrative regarding Kashmir’s potential for unrest.

The official tourism statistics have been quite promising. In 2024, Jammu and Kashmir welcomed 23.5 million tourists, an increase from 21.1 million in the prior year. These figures are interpreted as a sign of increasing confidence and stability within the region. The Indian government has actively marketed Kashmir as a secure and appealing destination, even organizing the G20 Tourism Working Group meeting in Srinagar in May 2023.

In 2019, the central government undertook a significant political action by revoking Article 370 of the Indian constitution, which permitted non-residents to acquire property in Kashmir. This decision has had a considerable impact on the tourism sector, drawing visitors from various regions. Enhancements in infrastructure, such as improved roads, expanded airports, and better transportation networks, have facilitated greater connectivity and accessibility for travelers from both India and overseas.

Indian officials have often asserted that Kashmir experienced unparalleled tranquility following the revocation of the region’s autonomous status by Prime Minister Narendra Modi’s administration in 2019. As India approaches its 2024 general elections, Modi has lauded the ‘freedom’ that has been granted to the region, contending that Kashmir is achieving new levels of development as it is now ‘breathing freely.’

Government representatives have cited high tourism figures – around 23 million visitors last year and millions more in previous years – as evidence of a substantial resurgence following years of turmoil. Nevertheless, the recent attacks in Pahalgam have once again called into question any belief in enduring peace within the troubled valley.

Although violence has intermittently flared in Kashmir since the onset of the insurgency in 1989, with militants generally targeting security personnel and civilians, the bold assassination of tourists has been an uncommon occurrence. This rarity rendered the Pahalgam incident especially shocking for local enterprises and prospective tourists alike.