The terrorist attack in Pahalgam on April 22 has severely affected Jammu and Kashmir’s tourism. The attack, in which 26 innocent civilians were killed by Pakistan-sponsored terrorists, happened at the start of the peak tourist season, destroying years of steady growth in visitor numbers.
According to official estimates, tourist footfall in 2025 has fallen by nearly 72% compared to 2024. The industry has reported direct losses of around Rs 30,000–35,000 crore, while nearly 90,000 people working across different tourism-related sectors have lost their jobs. Stakeholders say a revival may take years.
Voices from the Industry: Livelihoods at Risk
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The Jammu and Kashmir Hotels and Restaurants Association said that within a week of the April attack, at least 20 lakh bookings until June were cancelled across the Valley, forcing hotels and other accommodation providers to refund advance payments. Travel agencies also reported up to 90% cancellations for planned trips till June end, while surveys revealed that 92% of families scrapped their Kashmir travel plans due to safety fears. More than half of the Valley’s resorts, over 48 sites and trekking trails, were temporarily shut down. Despite a strong start with 5.25 lakh visitors until April 22, arrivals plunged after the attack. Iconic locations such as Dal Lake, Gulmarg and Pahalgam were left deserted.
Manzoor Pakhtoon, Secretary of the Kashmir Tourism Association and president of the houseboat industry said, “Kashmir tourism had been booming for the past few years and many youngsters invested heavily in new hotels and infrastructure. But after April 22, tourism came down to zero.”
“From shikara operators to houseboat owners and ponywalas, everyone linked to this sector is out of work. Around 90% of staff have been laid off as owners cannot afford expenses,” Pakhtoon added.
The entire ecosystem, houseboats, hotels, taxis, pony handlers, guides and handicraft sellers, has ground to a halt. Hotels that were fully booked before the attack now stand empty. Artisans and small traders, already working on thin margins, have been forced to shut down operations. “The condition is such that houseboats and hotels are closed, cab drivers are idle, and those who had taken loans from banks are struggling to repay. People are badly suffering,” Pakhtoon said.
Tourism contributes 8–10% to Jammu and Kashmir’s Gross State Domestic Product, generating about Rs 35,000–40,000 crore annually and supporting around 45 lakh families. Over the past three years, steady growth in tourist arrivals encouraged people to invest in homestays, guesthouses, hotels and luxury vehicles. More than 75 new destinations, many in border areas, were opened to attract visitors. Now, with tourist arrivals collapsing, thousands of people are struggling with loan repayments and widespread job losses.
Handicraft Sector Suffers Multi-Crore Losses
The handicraft sector, closely tied to tourism, has also taken a severe hit. Products such as Kashmiri shawls, carpets, paper-machi goods, suits, walnuts and saffron have seen demand crash, with shops across Srinagar, Pahalgam and other towns reporting sales down by nearly 95%. Estimates suggest losses of Rs 8,000–12,000 crore in 2025 alone, affecting more than 4 lakh artisans. “If this continues, people will not even be able to afford their meals. Banks are asking for EMIs and no relief has been given,” Pakhtoon said.
Stakeholders Demand Government Relief Package
Tourism stakeholders believe recovery will take time and are calling for a financial relief package from the government, including loan waivers and restructuring. “Whenever such incidents happen here, tourism is the first victim, and revival always takes time. If the government does not step in with support, this industry cannot survive,” Pakhtoon added.
Tourists themselves acknowledge the fear. “People love Kashmir and want to visit, but after the attack, many are scared. The government must take steps to rebuild trust and ensure that such incidents are not repeated,” said Aparna, a visitor from Pune.
Efforts to Rebuild Tourist Confidence in Kashmir
Both the Centre and the Union Territory government are now stepping up promotional efforts to restore Kashmir’s image as a safe destination. Campaigns such as ‘Dekho Apna Desh’ and ‘Chalo India’ are being used to highlight the region’s beauty and culture. Jammu and Kashmir Chief Minister Omar Abdullah has visited several states in collaboration with the Union Tourism Ministry to promote Kashmir. Former Chief Minister Farooq Abdullah also said that the government is doing everything possible to assure tourists that conditions are stable, including hosting events like a golf tournament in Pahalgam.
Tourism in Kashmir, which had recorded its highest-ever footfall since independence, is currently at a standstill. Yet, stakeholders remain hopeful that the upcoming winter season will mark the beginning of recovery and help bring the industry back on its feet.
