Here's how Pahalgam terrorist attack will affect Kashmir's Rs 12,000 crore tourism

The recent terrorist attack on tourists in Pahalgam, Jammu and Kashmir, is not just an act of violence—it’s a major blow to the local economy and the livelihood of around 2.5 lakh Kashmiris who depend on tourism. This incident has shaken the confidence of visitors and thrown Kashmir’s tourism-driven economy into a deep crisis. Every shot fired at innocent tourists has pushed the region’s economic progress several years back.

Here’s a look at how serious the damage could be.

Wave of Cancellations Begins

Following Tuesday’s attack, tourists have started cancelling their travel plans to Kashmir. Hotel and taxi bookings are being withdrawn on a large scale, indicating immediate fallout on the ground.

Rs 12,000 Crore Tourism Industry at Risk

Tourism is the main livelihood for thousands in Kashmir, often called "Heaven on Earth." The region’s tourism industry is currently valued at Rs 12,000 crores and was expected to grow to Rs 25,000–30,000 crores by 2030. It contributes nearly 7–8% to Jammu and Kashmir’s GDP. The timing of the attack—right at the start of the vacation season—has come as a devastating blow, especially for Pahalgam, often referred to as India’s Switzerland.

Dal Lake alone supports over 1,500 houseboats, and there are more than 3,000 hotel rooms available across the valley—many of which now lie vacant.

Tourist Numbers Had Been Soaring

Tourism in Kashmir had been on a steady rise since it became a Union Territory. In 2020, the valley welcomed 34 lakh visitors. This number jumped to 1.13 crore in 2021, 1.88 crore in 2022, 2.11 crore in 2023, and peaked at 2.36 crore in 2024—including over 65,000 foreign tourists. Top attractions include Gulmarg, Sonamarg, Pahalgam, and Dal Lake. Gulmarg alone generated Rs 103 crore in tourism revenue in 2024.

Government's Push for Tourism

The central government had been actively promoting tourism in Kashmir. With a Rs 1,000 crore budget, the plan included improved infrastructure, direct air connectivity, visas on arrival for international tourists, and development of 75 new tourist spots, cultural sites, and Sufi shrines. Rail links are also being developed to connect Kashmir more seamlessly with the rest of India, including the introduction of the Vande Bharat Express.

Kashmir is also a favorite for Bollywood shoots and destination weddings, which now face uncertainty due to the security concerns raised by the attack.

Rising Vehicle Registrations Show Growth

Another sign of growing tourism in Kashmir is the surge in vehicle registrations. In 2017, the number of registered vehicles stood at 14.88 lakh. By 2024, this number had nearly doubled to 27.29 lakh, reflecting both public and private vehicles used to support the expanding tourism sector.