‘They killed our season – and our hope’: Terror turns paradise into ghost town ...News

In Kashmir, an April attack shattered the fragile tourism revival – hotel bookings collapsed, and local businesses are fighting to survive

Two months after a devastating terrorist attack that shocked the world and triggered an unprecedented military escalation between India and Pakistan, the once-bustling valleys of Kashmir now echo with an eerie silence.

Despite thousands of Hindu devotees arriving in Kashmir this week for the annual pilgrimage known as Amarnath Yatra – traveling in separate convoys under tightened security to the sacred Amarnath Cave Shrine nestled in the Himalayas – the general tourism industry, which relies on travelers from across India seeking picturesque views and diverse climates, remains quiet.

The border region’s tourism industry grapples with a blow following the brutal terrorist attack in Pahalgam on April 22 that claimed 26 lives. Twenty-five tourists and one local resident were gunned down, sparking a four-day military conflict between India and Pakistan. The incident sent shockwaves through Kashmir’s tourism ecosystem, where such direct attacks on visitors have been rare despite decades of insurgency.

Showkat Dar, a 23-year-old cab operator from Tangmarg, exemplifies the human cost of this crisis. Until recently, his business ferrying tourists across Kashmir’s scenic destinations was thriving. He owned two commercial SUVs and was financially secure. Today, he struggles to make loan payments on those same vehicles that once symbolized his prosperity.

“Everything changed after Pahalgam,” Dar explains, his voice heavy with concern. “The tourists stopped coming, and with them, our livelihoods disappeared overnight.”

Economic devastation

The numbers paint a stark picture of the crisis engulfing Kashmir’s tourism sector. According to the Pahalgam Hotels and Owners Association (PHOA), occupancy rates at the region’s more than 1,500 hotels have plummeted to a mere 10%. Many establishments report zero occupancy, forcing owners to send staff home indefinitely.

“There are many big hotels with zero occupancy. Many hotels asked their staff to stay home till tourists return,” said Javed Burza, president of the PHOA. “It was a gruesome and scary incident. Tourism prospects remain bleak as of now.”

The broader economic implications are staggering. Tourism contributes approximately 7-9% to Kashmir’s economy, making it a crucial pillar of regional prosperity. Tour operators, hotel owners, cafe proprietors, boat operators, and pony handlers are now offering discounts of over 70% in desperate attempts to attract visitors.

G. Muhammad, who operates a prominent bed and breakfast facility at Ghat number 2 overlooking Srinagar’s famous Dal Lake, represents thousands of business owners caught in this economic maelstrom. This season, optimistic about growing tourist interest, he invested 3 million Indian rupees ($35 000) in hotel renovations, securing the funds through loans.

“From the start of this season I started getting many enquiries for booking. Some even paid advance and there were more than 30 bookings from European backpackers,” Muhammad recounts. “But after the attack every single booking got canceled and I really do not know how I will sustain because there is no revenue and I have staff to pay, I have a family to feed. I curse the people who did this.”

A region’s promise interrupted

The timing of the attack was particularly cruel, coming at a moment when Kashmir appeared to be turning a corner economically. The Union Territory of Jammu and Kashmir’s real Gross State Domestic Product (GSDP) for 2024-25 was projected to grow at 7.06%, with nominal GSDP estimated at 2.6 trillion rupees (around $30 billion) reflecting consistent economic momentum.

Between 2019 and 2025, the Union Territory had achieved a compound annual growth rate of 4.89%. Per capita income was expected to reach around 155,000 rupees ($1,814) this financial year, representing a 10.6% year-on-year increase. These figures suggested a region experiencing genuine economic transformation after decade of violence and unrest.

Much of this growth was underpinned by what economists term the “peace dividend.” Terror incidents had dramatically declined from 228 in 2018 to just 46 in 2023 – a nearly 99% reduction. This relative stability had fueled investment, tourism growth, and created space for a renewed economic narrative about Kashmir’s potential unrest.

Official tourism figures had been encouraging. Jammu and Kashmir recorded 23.5 million tourist arrivals in 2024, up from 21.1 million the previous year. The numbers were seen as evidence of growing confidence and stability in the region. The Indian government had aggressively promoted Kashmir as a safe and attractive destination, even hosting the G20 Tourism Working Group meeting in Srinagar in May 2023.

In 2019, the central government made a bold political move by abrogating Article 370 of the Indian constitution, which allowed non-residents to own property in Kashmir. This has played a significant role in shaping the tourism industry and attracting visitors from other regions. Investments in infrastructure, including upgraded roads, expanded airports, and enhanced transportation networks, have improved connectivity and accessibility for travelers both from India and abroad.

Indian authorities have frequently claimed that Kashmir witnessed unprecedented peace after Prime Minister Narendra Modi’s government revoked the region’s autonomous status in 2019. Ahead of India’s 2024 general elections, Modi celebrated the “freedom” that had come to the region, arguing that Kashmir was reaching new developmental heights because it was “breathing freely.”

Government officials had pointed to high tourism numbers – approximately 23 million visitors last year and millions more in preceding years – as proof of a significant boom after years of unrest. However, the Pahalgam attacks have once again challenged any notion of lasting peace in the restive valley.

While violence has periodically erupted in Kashmir since the insurgency began in 1989, with militants typically targeting security forces and civilians, the brazen killing of tourists has been relatively rare. This rarity made the Pahalgam attack particularly shocking for local businesses and potential visitors alike.

Infrastructure hopes amid crisis

Ironically, even as the tourism industry faces its current crisis, significant infrastructure developments continue to offer hope for the region’s long-term prospects. On June 6, Prime Minister Modi inaugurated the Chenab bridge, an engineering marvel that ranks among the world’s highest railway bridges.

Modi also launched the Vande Bharat Express, which now covers the 190-kilometer hilly terrain in approximately three hours. The train service witnessed remarkable initial success, with over 4,500 travelers using it in the first four days of operation.

Sameer Baktoo, chairman of the Jammu and Kashmir Travel Agents Chapter, believes the railway connection could prove transformative. “It will be a game-changer because airfares are skyrocketing, and this train journey will be affordable, boosting tourism,” he explained. “Because of the train, we will get a lot of mid-range tourists who used to come to Katra and go back from there, but now they can come and enjoy Kashmir. We are optimistic that because of the train, tourist footfall will increase.”

The path forward

The challenge facing Kashmir’s tourism industry extends beyond immediate security concerns. Rebuilding confidence among domestic and international tourists requires sustained effort, improved security measures, and consistent messaging about the region’s safety.

For business owners like Showkat Dar and G. Muhammad, the immediate concern is survival. With loans to repay, staff to compensate, and families to support, they represent thousands of Kashmiris whose economic futures hang in the balance.

As Kashmir grapples with this latest setback, the resilience of its people and the inherent appeal of its landscapes suggest that recovery, while challenging, remains possible. However, the timeline for that recovery and the measures needed to achieve it will likely determine the fate of thousands of livelihoods dependent on the tourism industry.

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