Kashmir Tourism in Crisis: Empty Hotels, Silent Lakes, and a Struggling Economy

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Srinagar, October 22: The picturesque valleys of Kashmir, once filled with the vibrant bustle of tourists and the echo of shikaras gliding across Dal Lake, are now eerily quiet. Nearly six months after the Pahalgam terror attack that claimed the lives of 25 tourists and a local guide, the region’s tourism sector stands at its weakest point in recent memory. As winter draws closer — traditionally one of the busiest times for the state’s hospitality sector — hotel rooms remain vacant, taxi operators wait endlessly for customers, and the famed floating markets are facing an alarming downturn. The continuing decline in tourist arrivals has pushed Jammu and Kashmir’s tourism economy into a state of deep distress. Industry insiders describe the current situation as “economically unsustainable” and warn that without urgent government intervention, thousands of livelihoods are at stake. Across Srinagar, Gulmarg, Pahalgam, and other key tourist hubs, occupancy levels have plummeted by an estimated 70 to 80 percent compared to last year. Once-busy resorts now operate on skeleton staff, and bookings that usually surged ahead of the winter season are almost nonexistent. Hotel owners say the downturn began shortly after the Pahalgam incident, when national and international tourists started cancelling their planned trips out of safety concerns. Many who had already booked packages either deferred or cancelled their plans altogether, creating a chain reaction that has affected nearly every corner of the hospitality ecosystem.

“Our hotels are virtually empty,” said Mushtaq Chaya, a veteran hotelier and Chairman of the Jammu and Kashmir Hoteliers Club, who also heads the newly formed Jammu & Kashmir Tourism and Allied Business Forum (JKTABF). “The impact of the Pahalgam attack has been catastrophic. From big hotels to small guesthouses, occupancy has crashed. Taxi drivers, shikara owners, handicraft sellers, and restaurant operators are all struggling to make ends meet. The entire tourism value chain has been hit hard.” Chaya emphasized that while the Jammu and Kashmir government has extended support through promotions and safety assurances, these steps alone are not enough. “We need a national-level strategy and immediate intervention from the Union Government. We plan to meet Prime Minister Narendra Modi to seek a comprehensive revival package. Tourism here is not just an industry; it’s a lifeline for thousands of families,” he said. The decline in visitor numbers has gone far beyond the confines of hotels and travel operators. Kashmir’s handicraft sector, famous for its Pashmina shawls, paper mâché artefacts, and carpets, has seen sales drop drastically. Vendors who once catered to foreign buyers now struggle to find local customers. Many have turned to online platforms, but internet-based sales remain limited and unreliable. Restaurants across Srinagar’s Boulevard Road and Pahalgam’s market area, which typically witnessed long queues during the tourist season, now report empty tables and mounting debts. Several small establishments have either shut down temporarily or drastically cut back on staff to reduce operational costs. Adding to the woes, a growing number of tourism-linked businesses have seen their bank accounts classified as non-performing assets (NPAs). Many operators who took loans to expand during the tourism boom between 2018 and 2022 now find themselves unable to meet repayment obligations due to the collapse in income. Taxi operators and tour guides face an equally grim reality. With limited bookings, most drivers are forced to park their vehicles indefinitely. Shikara operators on Dal Lake, once iconic ambassadors of Kashmir’s tourism, say they now ferry more locals than tourists. “Our boats used to carry visitors from across India and abroad. Now, we wait the entire day for a single ride,” said Abdul Rashid, a shikara owner from Srinagar.

Trade Bodies Unite for Revival

Recognizing the severity of the crisis, tourism stakeholders have banded together under the newly established Jammu & Kashmir Tourism & Allied Business Forum (JKTABF) — a collective representing hoteliers, transporters, artisans, travel agents, and restaurant owners. The forum, spearheaded by Mushtaq Chaya, seeks to coordinate efforts across the fragmented industry and engage directly with government agencies to design a comprehensive recovery plan. “The idea is to move beyond individual demands and present a unified front,” said Javid Ahmad Tenga, President of the Kashmir Chamber of Commerce and Industry (KCC&I). “Tourism is the backbone of our economy. Since April, the sector has been bleeding. The government, financial institutions, and private stakeholders must collaborate to prevent total collapse. We cannot depend on goodwill alone. The situation demands financial support, loan restructuring, and aggressive national and international promotion campaigns.” Tenga added that the KCC&I is working closely with the JKTABF to prepare a detailed memorandum outlining the economic losses and the specific measures required to stabilize the industry. “We are ready to partner with the government in every possible way, but this partnership must be proactive. Unless confidence is restored among travelers, recovery will remain out of reach,” he said. Industry leaders have called on banks and financial institutions to introduce special relief measures tailored for tourism businesses. Many hoteliers and tour operators argue that existing support schemes are insufficient and fail to reflect the ground realities faced by small and medium enterprises. “The banking sector must realize that tourism is not just another business category in Kashmir — it’s an ecosystem. When one link breaks, the entire chain suffers,” said Babar Chowdhary, President of the Jammu & Kashmir Hotel and Restaurant Association (JKHARA). “We are witnessing one of the lowest points in the sector’s history. Hotels are empty, restaurants have slashed staff, transporters have no passengers, and shikara owners can barely cover fuel costs. Without immediate financial support and promotional push, thousands will lose their livelihoods.” Chowdhary urged the Union Government to introduce a special financial relief package for tourism-dependent states like Jammu and Kashmir, including loan moratoriums, tax relaxations, and targeted marketing drives. “Tourism is an image-driven industry. It takes years to build confidence but only a few weeks to lose it. The government must act now to rebuild trust and promote Kashmir as a safe and welcoming destination,” he said.

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Safety and Image Restoration — The Key Challenge

The Pahalgam attack in April sent shockwaves across India’s tourism circuits. Many domestic tour operators immediately withdrew packages that included Kashmir, citing safety concerns from clients. International travel agents, especially from Southeast Asia and Europe, followed suit. While security agencies have since strengthened surveillance and safety protocols across all major tourist destinations, the perception of risk continues to affect decision-making among travelers. Industry experts believe that restoring the region’s image as a peaceful, tourist-friendly destination is critical for revival. Mushtaq Chaya emphasized that confidence-building measures are central to JKTABF’s revival plan. “We are not just asking for aid. What we need is a sustained promotional campaign at the national and international levels that highlights Kashmir’s safety, hospitality, and beauty. When visitors feel safe, the industry will automatically recover,” he said. He added that the forum’s strategy includes collaborating with travel influencers, digital media platforms, and film producers to showcase Kashmir’s scenic landscapes and vibrant culture. “Kashmir has always been one of the most beautiful travel destinations in the world. We must remind people that despite challenges, it remains so.” Traditionally, Kashmir’s winter months bring a surge of tourists eager to witness snowfall in Gulmarg or enjoy the charm of frozen Dal Lake. However, industry players say the upcoming winter season looks uncertain. Hotel bookings for November and December remain alarmingly low, and travel agencies report minimal inquiries for packages. Local businesses worry that if the trend continues through winter, 2025 could become one of the worst years for Kashmir’s tourism revenue in a decade. “Last winter, hotels in Gulmarg were packed. This year, we’re seeing cancellations even for Christmas and New Year,” said Irfan Shah, a resort owner. “People are afraid, and until that fear is replaced by confidence, recovery will be slow.” The Kashmir Tourism Department has announced plans for a series of winter festivals, snow carnivals, and adventure sports events to attract domestic visitors. However, stakeholders caution that without large-scale marketing and government-backed safety guarantees, these initiatives may not be enough to turn the tide.

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Officials from the Jammu and Kashmir Tourism Department acknowledge the industry’s struggles but maintain that several steps are already underway to mitigate the crisis. Senior officials pointed to upcoming destination promotion campaigns, infrastructure upgrades, and collaborative programs with travel associations across India. However, local operators say what is needed now is speed and scale. “The government’s initiatives are welcome, but the problem is time,” said a senior travel operator in Srinagar. “Every passing week without action means another business shutting down. The sector doesn’t have the luxury of waiting months for results.” Tourism bodies have urged authorities to launch a dedicated “Visit Kashmir 2025” campaign, featuring celebrity endorsements, discount travel packages, and safety assurance messages. Such campaigns, they argue, could help rebuild trust among domestic travelers, especially from metropolitan cities where perceptions about security heavily influence travel decisions.

The tourism downturn has also triggered a sharp rise in unemployment across the valley. Thousands of seasonal workers who depend on tourist inflow — including hotel staff, drivers, artisans, and guides — have lost their income sources. Local unions estimate that over 60,000 people employed directly or indirectly in tourism have been affected. Many are migrating to other states in search of work, while others have shifted to low-paying jobs unrelated to their skills. “I used to earn enough during summer to sustain my family through winter,” said Bilal Ahmed, a tourist guide from Pahalgam. “This year, I barely made enough to pay rent. If things don’t improve soon, I’ll have to leave Kashmir for work.” The growing joblessness has social implications as well. Economists warn that the loss of livelihood in a region where tourism constitutes a major share of income could lead to broader economic instability. Analysts believe that the path to recovery lies in a comprehensive, multi-pronged revival strategy that combines financial relief, aggressive marketing, and on-ground confidence-building. They suggest measures such as subsidized travel packages, tax holidays for hotels, skill development for tourism workers, and new investments in adventure and eco-tourism projects. According to tourism experts, Kashmir has immense potential to diversify its offerings beyond conventional sightseeing. Adventure sports, film tourism, spiritual retreats, and rural homestays could attract new segments of visitors if promoted effectively.

Mushtaq Chaya summarized the industry’s sentiment: “The future of tourism in Kashmir depends on collaboration — between the government, trade bodies, and the people. Our mission through JKTABF is to rebuild confidence, ensure financial survival for businesses, and project Kashmir as a welcoming and safe destination. The challenges are enormous, but collective effort can bring change.” He added that the forum’s roadmap will focus on domestic tourism promotion, international outreach, financial restructuring, and safety assurance. “Kashmir’s beauty has never faded, but the fear must. We owe it to the thousands of families who depend on this industry to bring the tourists back.” The current crisis facing Kashmir’s tourism sector is not just about vacant hotel rooms or idle boats; it reflects a deeper economic strain across an entire region built around hospitality. The aftermath of the Pahalgam tragedy has exposed vulnerabilities in an industry that contributes significantly to the Union Territory’s GDP and sustains tens of thousands of families. As stakeholders rally for recovery through collective platforms like JKTABF, the coming months will test the resilience of Kashmir’s people and institutions. Whether the region can reclaim its position as one of India’s premier travel destinations will depend on the speed and sincerity of the efforts made today. For now, Kashmir waits — its valleys silent, its lakes still, and its people hopeful that the sound of tourists’ laughter will soon return.

Rishi Vakil
Rishi Vakilhttps://sampost.news
Interested in Geopolitics, Finance, and Technology.

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