Pahalgam Terror Attack: Will Kashmir's Tourism Suffer a Major Setback?

The tragic terrorist attack in Pahalgam, Kashmir, on Tuesday, which claimed the lives of 28 people, has sent shockwaves through the region, especially affecting the tourism sector. The attack targeted tourists, and the aftermath is already being felt as panic sets in among potential travelers. Here's a breakdown of the current situation and its potential impact:

1. Immediate Effect: Cancellations on the Rise

Since the attack, there has been a significant increase in the number of tourists cancelling their bookings. Bookings for the next 4 to 5 months are being cancelled in large numbers, particularly in areas like Pahalgam, which is a popular tourist destination. This has resulted in severe losses for local businesses, particularly those in the hotel and tourism sectors.

2. Tourism Growth in Kashmir

In recent years, Kashmir has seen a significant boost in tourism, especially after the abrogation of Article 370. This has had a positive impact on the local economy:

• 2.35 crore tourists visited Kashmir in 2024, compared to 2.11 crore in 2023.
• Tourism in the region has grown rapidly, and it now forms an 8% share of Jammu and Kashmir's total economy.

3. Economic Impact

Tourism in Kashmir has become a major contributor to the local economy:

• In 2024, the tourism industry was worth around ₹12,000 crore, with projections for growth to ₹25,000-30,000 crore by 2030.
• A significant portion of revenue comes from tourist hotspots like Gulmarg, which alone contributed over ₹103 crore last year.

The cancellation of bookings is not just a short-term loss but poses a significant threat to the sustained growth of the tourism industry in Kashmir. The local businesses, especially in hospitality and tourism, are facing an uphill battle, with their future now uncertain due to the violence and its repercussions on visitor confidence.

4. Long-Term Outlook

The future of Kashmir’s tourism will largely depend on the government's ability to restore security and reassure potential tourists. The region's ability to bounce back after this attack will shape its tourism growth in the coming years. However, the immediate economic losses are undeniable, and the impact on businesses in the affected areas will be substantial.

In conclusion, while the tourism sector in Kashmir has witnessed impressive growth in recent years, the recent terrorist attack in Pahalgam has caused a major setback. Immediate cancellations and the resultant economic losses could delay or even hinder the projected growth of the industry.