The terror attack in Pahalgam on April 22 last month, which claimed the lives of 26 civilians, has cast a long shadow over the Kashmir Valley. Beyond the immediate human loss of 25 tourists and one local, the incident threatens to unravel the fragile economic progress the region had begun to achieve after years of instability. Tourism, a vital component of Jammu & Kashmir’s economy, now faces an uncertain future. Official estimates suggest the sector contributes between 7% and 8% to the Union Territory’s gross state domestic product (GSDP). With a nominal GSDP of Rs. 2.65 lakh crore, this translates to annual tourism revenues of approximately Rs. 18,500–21,200 crore. Prior to the attack, authorities had aimed to double tourism’s economic contribution to 15% of GSDP within five years, signalling optimism for sustained growth. The assault occurred during the busiest travel period, from April to October, when visitor numbers typically surge. The timing amplified its economic repercussions, sparking widespread cancellations and casting doubt on short-term recovery. This reversal comes after years of gradual revival: tourist arrivals rose from 340,000 in 2020 to a historic 23.6 million in 2024, with foreign visitors exceeding 65,000. Early 2025 had also shown promise, with over 814,000 people visiting Srinagar’s Tulip Garden in less than a month. Now, local businesses confront the urgent task of rebuilding trust. That momentum is now at risk. Travel agents report cancellation rates as high as 90% in certain segments—especially from eastern India, where states like West Bengal contribute around 30% of annual tourist arrivals. Daily bookings of nearly 300 tourists from Bengal are now uncertain. Kashmir’s tourism sector is expansive and besides it’s hotels and houseboats supports a wide network of taxi drivers, tour guides, pony handlers, and handicraft sellers. Many of these stakeholders have taken out loans or sold property to capitalise on the sector’s growth. Now, the recent attack has turned these investments into potential losses. In response, Kashmir’s hospitality industry has issued a collective appeal for solidarity. Representatives from major hotel associations held a press conference in Srinagar, emphasising upgraded facilities and heightened safety measures. “The Valley remains safe, and we are prepared to welcome guests with the warmth Kashmir is known for,” stated the chairman of the Jammu & Kashmir Hoteliers Club. Industry leaders acknowledged backing from Prime Minister Narendra Modi, Lieutenant Governor Manoj Sinha, and former Chief Minister Omar Abdullah, whose public endorsements aim to counter perceptions of instability exacerbated by recent security challenges and adverse weather. Tourism professionals argue that visitor engagement holds deeper significance beyond financial metrics. They describe it as a bridge fostering mutual understanding between Kashmir and other parts of India, emphasising how travel nurtures interpersonal bonds and shared experiences. “Every guest who arrives reinforces hope and strengthens ties,” remarked a spokesperson from the Nigeen Lake Tourist Trade Association. Efforts to revive the sector now hinge on coordinated outreach, with stakeholders urging travel agencies, airlines, and media outlets to highlight Kashmir’s enduring appeal, and improved security framework.
Trust Rebuilding
