Kashmir tourism in crisis: Hotels half-empty, operators struggle to survive

Srinagar, Oct 22: The tourism sector in Jammu and Kashmir, along with its allied industries, continues to struggle nearly six months after the Pahalgam terror attack that claimed the lives of 25 tourists and a local guide. With the winter season approaching, hopes for recovery remain fragile, and businesses dependent on tourism are facing unprecedented challenges.

Hotels across the Valley are reporting occupancy rates down by 70–80 percent, tourist taxi operators remain largely idle, and shikara operators on Dal Lake are struggling to sustain their livelihoods. The ripple effects are being felt across the local economy, from handicraft sellers to restaurants, with several bank accounts of tourism-related businesses turning into non-performing assets (NPAs).

In response to the crisis, key tourism stakeholders have joined forces under the newly formed Jammu & Kashmir Tourism & Allied Business Forum (JKTABF), a collective aimed at coordinating revival strategies for the sector. The forum is led by Mushtaq Chaya, a prominent hotelier and Chairman of the Jammu & Kashmir Hotelier Club, along with heads of various tourism trade bodies.

Speaking to Greater Kashmir, Mushtaq Chaya said, “The Pahalgam attack has had a devastating impact on our industry. Hotels are empty, taxi drivers and shikara operators are struggling, and allied sectors like handicrafts and restaurants are facing severe losses. Through JKTABF, we aim to create a coordinated revival plan."

"We are thankful to the J&K government for their support, but more proactive measures are needed. We plan to seek an audience with Prime Minister Narendra Modi to discuss special interventions and promotions. Tourism is not just an industry here; it supports thousands of families and allied businesses. Reviving it is essential for the economy of the Valley.”

Javid Ahmad Tenga, President of the Kashmir Chamber of Commerce and Industry (KCC&I), emphasised collaboration between trade bodies, government, and financial institutions. “Tourism is the backbone of Kashmir’s economy. Since April, the sector has suffered badly, and coordinated efforts are critical. The government needs to be actively engaged, and financial institutions must offer support packages tailored to tourism operators. These businesses cannot survive on goodwill alone; they need concrete financial and policy support. We are committed to participating in national and international tourism promotion campaigns and will continue to advocate for the sector at every level,” he said.

"Our priority is to promote and revive the tourism sector. In my address at our 91st AGM, I highlighted how our economy has suffered post-April, and collaborative efforts are essential. The government must be actively involved, and trade bodies need to participate in promotion campaigns both nationally and internationally. Financial institutions should also provide support packages for tourism businesses; it cannot be left to individual operators alone. Only coordinated efforts can restore confidence among tourists and local stakeholders,” he said.

Babar Chowdhary, President of the Jammu & Kashmir Hotel & Restaurant Association (JKHARA), added, “Tourism is at its lowest ebb in decades. Hotels, restaurants, transport operators, and shikara owners are all struggling to make ends meet. Immediate action, financial support, and strong promotional campaigns are necessary to restore tourist confidence. Without these measures, the livelihoods of thousands of people connected to tourism will remain at risk.”

Industry experts highlight that tourism in Jammu and Kashmir not only contributes directly to GDP but also supports thousands of jobs in transport, hospitality, handicrafts, and allied sectors. The JKTABF initiative aims to strengthen collaboration, promote sustainable growth, and position the Union Territory as a world-class travel destination.

Chaya added, “Our approach is multi-pronged: promoting domestic tourism, ensuring safety and security for visitors, facilitating financial support for businesses, and working closely with the government to bring back confidence in Kashmir as a tourist-friendly destination. We need collective effort, and this forum provides the platform for it.”