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Tourism

Kashmir's Tourism Sector in Crisis: A Threat to Livelihoods and Economy

Strategic Insights

— 1 min read

Kashmir, known for its breathtaking landscapes and rich cultural heritage, has been a rapidly growing tourist destination over the past three years. The valley has seen a significant increase in tourist arrivals, with 2.95 million visitors in 2024, including 43,000 foreigners. However, the recent Pahalgam attack has brought tourism to a standstill, with hotels, houseboats, and tour operators offering discounts of up to 70% amidst mass cancellations. This sudden collapse in tourism threatens the livelihoods of millions of people dependent on the sector, which contributes 6.8% to Kashmir's GDP and employs two million people.

Key Takeaways:

  • The Pahalgam attack has resulted in a sharp drop in tourist numbers, with most bookings for the immediate future cancelled.
  • The tourism sector forms 6.8% of Kashmir's GDP and employs two million people, making it a crucial source of employment and revenue.
  • Taxi drivers have reported an abrupt collapse in business, exacerbating unemployment figures in the valley.
  • Former J&K Chief Minister Mehbooba Mufti has praised the courage of tourists who continued to visit the region, but acknowledged that restoration of confidence and protection of livelihoods are necessary.
  • The southern states' continued trickle of visitors, despite fresh security concerns, has been welcomed by the government as a positive trend.
  • The situation is likely to take time to recover, with the Valley's tourism stakeholders facing significant challenges in the immediate future.

Statistics:

  • 2.95 million tourists visited Kashmir in 2024, up from 2.71 million in 2023 and 2.67 million in 2022.
  • 43,000 foreigners visited Kashmir in 2024.
  • 6.8% of Kashmir's GDP comes from the tourism sector.
  • two million people are employed in the tourism sector in Kashmir.
  • Up to 70% discounts are being offered by hotels, houseboats, and tour operators amidst mass cancellations.
  • The four-day war between India and Pakistan has put the clock back for the tourism industry in Kashmir.

Sources:

  • Kashmir Observer LLP, 2025
  • Contify.com

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