Kashmir (National Times): The recent terrorist attack in Pahalgam, Jammu and Kashmir, which claimed 26 lives, mostly tourists, has shattered the region’s hard-won gains in tourism, a sector that underpins much of its local economy.
Immediate Fallout
- Local Business Strike: Restaurants, guesthouses, tour operators, and handicraft vendors in Pahalgam and neighboring destinations like Gulmarg and Sonamarg are already seeing revenues fall by nearly half, imperiling thousands of livelihoods.
- Plummeting Bookings: In the days following the attack, airlines flying into Srinagar report a 60-65% fall in ticket sales from Mumbai, Delhi, and Chennai. Hotel occupancy rates have dropped from an average 75% to below 30% as families cancel summer getaway plans.
Long-Term Risks
- Global Travel Advisories: Several governments, including the U.S. and the UK, have updated advisories urging citizens to avoid Jammu and Kashmir. Such warnings tend to linger long after incidents fade from headlines, eroding international arrivals.
- Investor Wariness: After attracting over three million visitors in 2024, Kashmir was poised for further tourism-led growth. Now, prospective hoteliers and tour operators are reassessing expansion plans amid heightened security fears.
Government Countermeasures
Security Tightening: New Delhi has closed the Attari–Wagah border crossing, suspended the Indus Waters Treaty, and deployed additional Central Armed Police Forces across key tourist hubs to reassure visitors.
Economic Relief: The Union and Jammu & Kashmir administrations are reportedly crafting a relief package, ranging from soft loans for small tourism enterprises to tax breaks for hoteliers, to soften the economic blow.
Despite these efforts, analysts caution that rebuilding traveler confidence will require sustained security and public relations campaigns. For a region where up to 40% of economic activity hinges on tourism, the Pahalgam massacre represents both a human tragedy and a serious test of Kashmir’s economic resilience.
