Pahalgam Attack Causes Severe Tourism Slump in Kashmir, Impacting Local Economy

Pahalgam Attack Causes Severe Tourism Slump in Kashmir, Impacting Local Economy

Last Updated May - 23 - 2025, 12:39 PM | Source : Fela News

One month after the deadly Pahalgam attack that killed 26 tourists, Jammu and Kashmir’s tourism industry faces a sharp decline, with cancellations and reduced v

The day that shook the entire nation to its core occurred exactly one month ago. Innocent tourists, enjoying their vacations in the Baisaran meadow of Pahalgam in the Kashmir Valley, had no idea of the tragedy that awaited them. Relaxing with Maggi and chai or engaging in adventure sports, they never anticipated that their day would turn into one of sorrow. Suddenly, armed terrorists targeted unarmed tourists, verifying their religious identities before opening fire. The cries and prayers of the victims of the deadly Pahalgam attack went unanswered that day. By the next day, 26 bodies were returned to their families, draped in the Indian flag.

Since the attack, tourism in the Kashmir Valley, particularly in Pahalgam, has experienced a severe downturn, with many travelers canceling their trips to Jammu and Kashmir, worsening the already struggling tourism sector.

Mint quoted toll operator Nadeem Ahmed, who lamented that the once-busy toll plaza, which used to see around 4,000 cars daily, has become deserted, leaving him waiting in vain for tourists to return. A tourism group in Katra stated that the post-attack situation has effectively ruined the entire tourism season in Jammu and Kashmir.

Businesses in Srinagar and nearby areas have reported significant drops in bookings and visitor numbers, according to the Times of India. Hoteliers in Gulmarg and Sonmarg also face low occupancy rates. After the Pahalgam attack, tourists have shifted their focus to Patnitop in Udhampur, which has seen increased visits.

Some tourists who did choose to visit Kashmir expressed concerns about the emptiness and silence that now dominate the region. A visitor from Delhi told Livemint that although they went ahead with their plans, the deserted atmosphere heightened their fears.

Tourism is a critical part of Jammu and Kashmir’s economy. Experts cited by Livemint estimate that the hotel industry contributes around ₹2,700 crore annually to Kashmir’s economy, while tourism overall accounts for about ₹10,000 crore, or roughly 5% of the region’s total Gross State Domestic Product (GSDP) of ₹2.65 lakh crore.

In recent years, Kashmir’s tourism sector had been recovering steadily. In 2024, over 3 million tourists visited, marking a significant rise and contributing around 7% to the local economy. This growth had encouraged investment in hospitality and transportation, generating thousands of jobs.

However, the tragic Pahalgam attack in April 2025, which claimed 26 lives, triggered a sharp decline in tourist arrivals. Following the incident, around 60% of planned trips were canceled, severely impacting local businesses and livelihoods throughout the region.

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