Tourism crumbles, economy trembles
Srinagar, May 25: The terrorist attack in Pahalgam on April 22, which claimed 26 lives, has unleashed an economic tsunami across Kashmirís tourism sector, with the hospitality industry witnessing unprecedented job losses as 70 percent of workers face immediate termination amid a complete collapse in tourist arrivals.
Hotels that once buzzed with activity during Kashmirís peak tourist season now stand as ghostly reminders of better times, their empty corridors echoing with the absence of both guests and the thousands of workers who have been sent home without pay.
I have laid off approximately 70 percent of my staff,î revealed a prominent hotelier who requested anonymity. ìThe hospitality sector is service-oriented; without guests, thereís no need for such a large workforce. With little hope for immediate improvement, we had no choice.î
The brutal arithmetic of survival has forced hotel owners across Kashmir to make impossible choices, with seasonal workers bearing the brunt of the crisis.
These employees, typically hired during peak tourist seasons to handle the influx of visitors, were the first casualties as occupancy rates plummeted to near zero.
The human stories emerging from this crisis paint a picture of families thrust into uncertainty overnight. Manzoor Ahmad, who worked at a hotel in Pahalgam, represents thousands facing similar ordeals.ìI was asked to leave without notice,î Ahmad recounted, his voice heavy with concern. ìTourists stopped coming, and the hotel couldnít afford to keep us. I have a family to support, and now I donít know how we will manage.î
The crisis has spared no one, regardless of experience or expertise.
A veteran chef with over three decades of service in Pahalgam expressed his despair at witnessing the industryís darkest hour.
ìI have never witnessed such a situation,î the chef said. ìMy livelihood depends entirely on tourists. Now, with the hotels empty, I have no income and no idea what to do next.î
The devastation extends far beyond hotel walls, creating a domino effect that has crippled the entire tourism ecosystem.
Transporters who once shuttled eager tourists between destinations now park their vehicles indefinitely.
Tour guides who share Kashmirís beauty and history with visitors from around the world find themselves without purpose.
Local artisans who depended on tourist purchases for their handcrafted goods face dwindling sales.
The Jammu and Kashmir Hotel and Restaurant Association (KHARA) reports a sector-wide crisis that threatens to undo years of progress in building Kashmirís reputation as a premier tourist destination.
ìWe were all prepared for a bustling tourist season,î President of KHARA. Babar Chowdhary said. ìMany of us had taken loans for expansion and upgrades. Now, with the sudden halt, we are burdened with debts and no income.î
The stakes could not be higher for Jammu and Kashmirís economy.
Tourism contributes approximately 7 to 8 percent to the regionís Gross State Domestic Product (GSDP), representing an annual economic value between Rs 18,500 crore and Rs 21,200 crore.
The Pahalgam attack has placed this entire economic pillar in jeopardy.
The ripple effects are already manifesting across multiple sectors.
Retail businesses that depend on tourist footfall report dramatic drops in sales.
The renowned handicrafts industry, which showcases Kashmirís rich cultural heritage to visitors, faces an existential crisis.
Even agriculture, which supplies fresh produce to hotels and restaurants, is experiencing reduced demand.
Financial institutions are bracing for a wave of loan defaults among tourism-linked businesses, creating additional pressure on the regionís banking sector and threatening to amplify the economic crisis.
As the crisis deepens, industry stakeholders are making urgent appeals for government intervention to prevent complete economic collapse.
Their demands centre on immediate financial relief measures including loan restructuring, interest waivers, and temporary repayment moratoriums.
ìWithout swift action, the economic gains of recent years could be wiped out,î warned Chowdhary, his words carrying the weight of an industry teetering on the brink. ìWe need support to survive this crisis.î
The proposals reflect the severity of the situation: businesses that invested heavily in infrastructure and capacity expansion based on Kashmirís improving security situation now find themselves overleveraged and vulnerable in the face of sudden market collapse.
Despite the overwhelming challenges, pockets of resilience and hope persist within the industry.
Some stakeholders are working on initiatives to restore confidence among potential tourists and investors, though they acknowledge that recovery will require sustained effort and coordination between government and private sector entities.
