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Rising Kashmir > Blog > Top Stories > Post Pahalgam terror attack: Kashmir’s Tourism industry grapples with 90% drop in bookings
Top Stories

Post Pahalgam terror attack: Kashmir’s Tourism industry grapples with 90% drop in bookings

Urges govt to implement revival plan

Aatif Qayoom
Last updated: May 3, 2025 1:25 am
Aatif Qayoom
Published: May 3, 2025
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Srinagar, May 02: The tourism industry in Kashmir has been hit hard by the aftermath of the recent terror attack in Pahalgam, with reports indicating a staggering 90 to 95 percent decline in visitor bookings across the region.
Popular tourist destinations like Gulmarg, Pahalgam, Sonamarg, and Srinagar, which once buzzed with activity, now present a deserted and forlorn landscape, leaving countless tourism-dependent businesses facing uncertainty.
“Hotels that once operated at full capacity are now nearly empty,” said Aaqib Chaya, President of the Hoteliers Association of Gulmarg. “This is the worst hit we’ve experienced in recent times. We are witnessing mass cancellations and zero new bookings.”
The decline in tourist traffic has triggered a ripple effect, severely impacting every segment of the tourism ecosystem. Shikara operators, houseboat owners, pony handlers, taxi drivers, and small vendors, all of whom rely on the influx of tourists, are now struggling to make ends meet.
“This industry feeds us,” said Bashir Ahmad, a shikara owner at Dal Lake. “Now we’re going days without customers. It’s not just a financial loss—it’s a matter of survival.”
In an effort to mitigate panic and retain tourist goodwill, the Jammu and Kashmir Tourism Department has directed all tourism service providers to offer full refunds to tourists with advance bookings. Additionally, they have been instructed to waive cancellation charges for both tourists and travel agencies.
However, despite the advisory, no officials from the department were available for comment when contacted about the situation.
While the department’s gesture is appreciated by tourists, local stakeholders argue that it further exacerbates their financial strain. “We understand the need to maintain Kashmir’s image as a hospitable destination,” said a hotelier from Pahalgam. “But we’re bearing the brunt without any compensation or support from the government.”
The downturn in tourism comes at a particularly challenging time for many hoteliers and business owners, many of whom had recently expanded their operations. “Over 500 new hotel structures were constructed over the last few years, funded by bank loans,” Chaya explained. “Now, there’s no income. How can we repay these loans?”
With the situation growing increasingly dire, employers in the sector fear they may have to start laying off workers. “We are trying to retain our staff, but we won’t be able to pay them much longer if things don’t improve,” said a hotel owner in Srinagar.
Tourism, which contributes about 7 to 8 percent to Jammu and Kashmir’s GDP directly, and significantly more indirectly, has long been a cornerstone of the region’s economy. “This was an undisputed industry,” Chaya added. “From cab drivers to handicraft sellers, everyone had a role in this ecosystem. The attack has shaken it deeply, and recovery will take time.”
With the peak tourist season slipping away, stakeholders are now urging the government to launch a comprehensive revival plan. This would include enhanced safety assurances and promotional campaigns aimed at restoring tourist confidence.
For now, however, a deep silence hangs over Kashmir’s valleys, where the usual hum of tourist activity has been replaced with anxious waiting.

 

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ByAatif Qayoom
Aatif Qayoom is a Senior Correspondent at Rising Kashmir, covering crime, tourism, sports, and various social issues across Jammu and Kashmir. Known for his accurate and ground-based reporting, he highlights stories that matter to people.
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