Clouds of Crisis Over Kashmir Tourism After Pahalgam Terror Attack – What Lies Ahead?

The terror attack on April 22, 2025 in Pahalgam, Kashmir, not only led to loss of life and property but also was the harbinger of a serious blow to the most crucial economic sector of the region—tourism. Observing the future situation, it is clear that the tourism sector of Kashmir could be confronted with serious problems in the near future.

The Pahalgam attack has made tourists fear. April-May is generally off-season when thousands of tourists throng Kashmir, but this attack has shaken their confidence severely. After National Conference MP Agha Syed Ruhullah’s controversial statement that “tourists are attacking Kashmir’s culture followed by the  terrorist attack ” more than one lakh tourists cancelled their bookings, reports claimed. Cancellations are coming in from destinations such as Srinagar, Pahalgam, and Gulmarg. If faith in security is not regained soon, the number of tourists may decline even more in the next few months.

In 2024, Kashmir had received 23.6 million tourists, of which 65,000 were foreigners. It was projected that by 2030, this would become a ₹30,000 crore tourism sector. But now, this development can slow down sharply. Hotel booking and flight demand may remain subdued for months, perhaps crippling the economy of the valley.

Over 250,000 individuals in Kashmir are either directly or indirectly linked to the tourism industry—right from taxi drivers to houseboat owners, local guides, and handicraft merchants. If tourists stop coming, these small-scale enterprises may be hit hard by financial difficulties. This could result in increasing unemployment and unrest in the valley.

In recent years, international investors like Abu Dhabi’s LuLu Group had begun investing in Kashmir. Hotel chains like ‘Taj Vivanta’ had also planned expansions. However, the recent attack may again portray Kashmir as an unstable region in the eyes of investors, potentially halting future investment plans.

Central government schemes like ₹1,000 crore tourism development schemes, the Vande Bharat train, and visa-on-arrival policies now hang in the balance. Fresh projects can stall, and ongoing projects too may suffer.

Kashmir’s largest identity is its cultural diversity and tranquil way of life. If this identity is constantly linked with security threats, international tourists might slowly turn away. This would also harm the valley’s cultural image.

Repeated terror attacks can also create a climate of fear among the local population, disrupting the operations of tourism services. If houseboats, hotels, and tourism enterprises close down, life in the valley could be brought to a standstill.

The Pahalgam terror attack is not an isolated one—it raises serious doubts about the future of Kashmir’s economy and tourism. Over the next few days, not just will the valley have to beef up its security apparatus, but the government also has to take calculated steps to rebuild tourist confidence. If that fails to materialize, the effects of this attack will not be confined to one tragic day—they could go on to shake the valley for years to come.