Kashmir Tourism faces major setback after terrorist attack

The news of terrorist attacks on tourists in Kashmir has caused widespread panic. Consequently, tourists who had planned to visit Kashmir have canceled their trips for the next five months. This will have a significant economic impact on the local population.

The fear from the recent attack is so intense that people are canceling their tours, stating that they will not travel for the next four or five days. As a result, the local people will be directly affected. The estimated losses could be much higher than anticipated.

Since the Modi government revoked Article 370 in Jammu and Kashmir, a significant number of tourists have been visiting the Kashmir Valley. Jammu and Kashmir CM Omar Abdullah mentioned that in 2024, 23.5 million tourists visited the Kashmir Valley, compared to around 21.1 million in 2023. In 2022, 18.9 million tourists visited Kashmir, while in 2021, the number was 11.3 million, and in 2020, it was 3.4 million.

Following the Corona period, the hotel industry struggled to recover, and now hotel bookings are being canceled after the terrorist attack. Travel agents report a rapid increase in hotel cancellations across Kashmir. Despite tourism in Kashmir being at its peak until recently, bookings are now being canceled swiftly after the attack. Consequently, the hotel business is facing another crisis.

Tourism accounts for 8 per cent of the total economy of Jammu and Kashmir. The state's GDP is growing at a rate of more than 7 percent in 2024-25, with the tourism sector achieving the fastest growth. Kashmir's tourism industry was worth Rs 12,000 crore in 2024, which is estimated to reach Rs 25,000 to 30,000 crore by 2030.