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HomeExclusivePahalgam Terror Attack: Kashmir Tourism Suffers Major Blow, ₹12,000 Crore Economy Hit

Pahalgam Terror Attack: Kashmir Tourism Suffers Major Blow, ₹12,000 Crore Economy Hit

Once again, terrorism has soaked the soil of Kashmir in blood. The recent terrorist attack on tourists in Pahalgam is not just an act of violence against innocent lives, but a direct assault on the cultural soul of Kashmir, its economy, and the livelihood of lakhs of local people. Known as the paradise on earth, Kashmir thrives on tourism, which contributes significantly to the region’s growth. But now, fear and uncertainty threaten to undo years of economic revival and peace efforts.

Every year, millions of tourists from across India and around the world flock to Kashmir, especially to destinations like Srinagar, Gulmarg, Sonmarg, and Pahalgam. In 2024 alone, 2.36 crore tourists visited Kashmir, including over 65,000 foreign visitors, many of whom enjoyed the scenic beauty of Dal Lake and the snow-covered slopes of Gulmarg. But following the Pahalgam attack, the atmosphere has shifted drastically. Tourists are cancelling their trips, and there has been a wave of booking cancellations across hotels, houseboats, taxis, and flights. From luxury resorts to humble shikaras, all have suddenly fallen silent.

The Kashmir tourism industry, currently valued at approximately ₹12,000 crore, contributes around 7–8% to the region’s GDP. Prior to the attack, analysts projected that the tourism economy could grow to ₹25,000–₹30,000 crore by 2030, thanks to rising interest in destination weddings, adventure tourism, and Bollywood and OTT film shoots. However, the current situation has created a major roadblock. With more than 2.5 lakh people depending on tourism for their livelihood—including hotel staff, houseboat operators, drivers, guides, and handicraft sellers—the impact is severe. Nearly 1,500 houseboats on Dal Lake and 3,000 hotels across the valley are seeing large-scale cancellations. Gulmarg, which earned ₹103 crore in tourism revenue last year, now lies in silence.

Also Read: Tourist killed, 12 injured in attack in J&K’s Pahalgam

The attack has not only endangered the lives of tourists but also dimmed the hopes of a region rebuilding its identity. Kashmir was on the verge of a tourism-led revival. The central government had announced a ₹1,000 crore package to boost tourism, with plans to develop 75 new tourist destinations, promote cultural heritage, launch Vande Bharat trains, and introduce on-arrival visa facilities to attract foreign travellers. But all these initiatives are now under threat as international travel advisories are issued and foreign tourist safety in Kashmir comes into question.

The fear generated by such acts of terror is precisely aimed at choking Kashmir’s progress. As a result, not only are tourists reconsidering their visits, but film production teams and wedding planners have begun pulling out of the valley. The dream of making Kashmir a global destination again seems to be fading, at least for now.

The Pahalgam tourist attack is a grim reminder that despite development efforts and improved infrastructure, peace in Kashmir remains fragile. The incident has raised serious concerns about security and exposed the vulnerability of the region’s economy, which heavily relies on tourism. It is now up to the authorities to act swiftly and decisively—not just to catch the perpetrators but to reassure the world that Kashmir remains a safe, welcoming, and beautiful destination.

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