In solidarity with the terror victims Kashmir observed a total lockdown right after the attack

The recent terrorist attack on tourists in Pahalgam, Kashmir, has dealt a severe blow to the region’s tourism industry, raising deep concerns among tour operators and hotel owners about the future of the sector.

The attack, which resulted in the tragic loss of 26 vacationers, has led to an immediate wave of cancellations of hotel and flight bookings, with some hotels in Pahalgam reporting more than 60% cancellations within days of the incident.

This abrupt downturn comes at a time when Kashmir’s tourism sector was experiencing a remarkable resurgence, with over 525,000 visitors—both domestic and international—arriving in just the first three months and the first week of April 2025.

Tourism is the economic backbone of Kashmir, contributing approximately ₹12,000 crore annually and supporting the livelihoods of around 2.5 lakh locals. The sector had been showing strong signs of recovery and growth, with tourist arrivals reaching record highs in recent years, bolstered by improved security and significant government efforts to promote the region as a safe and attractive destination. 

The successful hosting of events like the Khelo India Winter Games and the popularity of the Tulip Garden in Srinagar had positioned 2025 as one of the best years for tourism in the Valley.

However, the Pahalgam attack has triggered an existential crisis, threatening to reverse years of economic progress and investor confidence. The timing of the incident, at the start of the peak tourist season, could not have been worse.

Travel agents are reporting up to 90% cancellations in some segments, particularly from key markets like West Bengal, which accounts for a significant share of annual tourist inflows. The cancellations are expected to severely impact not just hotels and tour operators, but also ancillary sectors such as transport, handicrafts, and retail, all of which are closely tied to tourism.

Industry leaders and associations have expressed both anxiety and resolve. Jyoti Mayal, chairperson of the Tourism and Hospitality Skill Council, described the incident as a major setback, noting that the revival of tourism post-COVID had finally brought growth and optimism back to the region. Now, the industry faces another period of uncertainty and potential financial distress.

Despite these challenges, stakeholders have vowed to continue supporting tourism in Kashmir. They are calling for enhanced security measures, swift government action, and coordinated efforts to restore confidence among travellers.

In response to the crisis, airlines and travel companies have stepped in to offer full refunds and flexible rescheduling options to affected tourists, while additional flights are being operated to help visitors leave the region safely.

The government and tourism associations are urging all stakeholders to work together to rebuild trust and ensure the safety of visitors, emphasising that the resilience of the industry and the people of Kashmir will be crucial for recovery.

The Pahalgam attack has cast a long shadow over Kashmir’s booming tourism industry, industry leaders remain determined to overcome this setback. The path to recovery will depend on restoring a sense of security, maintaining stakeholder collaboration, and reassuring tourists that Kashmir remains a welcoming destination.

Agencies