From Paradise to Panic: How One Attack Endangered Kashmir’s ₹12,000 Cr Tourism Industry

Pahalgam(The Uttam Hindu): The recent terror attack on tourists in Pahalgam, Jammu and Kashmir, was not just an assault on innocent lives — it was a direct hit on Kashmir’s cultural heritage, its identity, and the livelihoods of lakhs of locals.

Every year, millions of tourists visit Kashmir, making tourism the backbone of its economy. The attack has deeply shaken this vital industry. With an annual worth of approximately ₹12,000 crore, tourism contributes 7–8% to Jammu and Kashmir's GDP. It was projected to grow to ₹25,000–30,000 crore by 2030. Now, this terror strike threatens that trajectory. Tourism-related businesses such as hotels, houseboats, taxis, tour guides, and handicrafts employ around 2.5 lakh people directly. Over 1,500 houseboats in Dal Lake, 3,000 hotel rooms, and countless cabs now face uncertainty and cancellation.

Following the attack, mass cancellations of bookings have been reported — from flight tickets to hotel stays and local travel arrangements. The mood in the valley has shifted from bustling anticipation to grim anxiety. Kashmir's star destinations — Gulmarg, Sonmarg, Pahalgam, and Dal Lake — welcomed a record 2.36 crore tourists in 2024, including over 65,000 foreign visitors. Gulmarg alone generated ₹103 crore in tourism revenue last year. But now, these once-thriving locations are gripped by fear and uncertainty.

Kashmir had also become a hotspot for Bollywood and OTT shoots, as well as destination weddings. These sectors are now reassessing plans due to the prevailing insecurity. The central government had rolled out a ₹1,000 crore plan to boost tourism in Kashmir. Initiatives included better air connectivity, introduction of Vande Bharat trains, visa-on-arrival for foreign tourists, and the development of 75 new destinations and heritage sites. This attack has cast a shadow over all these efforts and the region's aspirations. This was not just an attack on people — it was an attack on Kashmir’s progress and economic future.Kashmir tourism, Pahalgam terror attack, economic impact, Jammu and Kashmir economy, Gulmarg tourism, Sonmarg, Dal Lake, Bollywood shooting Kashmir, destination weddings Kashmir, tourism cancellations, houseboats, hotel bookings, central government tourism plan, Vande Bharat trains Kashmir, visa-on-arrival India, heritage sites development Kashmir, Kashmir GDP, tourism jobs, Kashmir violence impact.