Kashmir Tourism Crisis: How One Attack and Soaring Tensions Triggered a Remarkable Collapse in the Region’s Travel Economy

Sunday, May 25, 2025

Until recently, Kashmir hummed with activity. Domestic travelers from throughout India, along with foreign travelers, thronged this Himalayan jewel, attracted by Kashmir’s white-shrouded peaks, shimmering lakes, yellow-flowered saffron fields, and deluxe houseboats drifting upon Dal Lake’s calm waters. In 2024 alone, a government-reported almost 3 million travelers visited, a significant jump from 2.71 million in 2023 and 2.67 million in 2022.

Business was flourishing in towns such as Gulmarg, Pahalgam, and Srinagar. Locals, who had suffered decades of political uncertainty and armed conflict, were at last beginning to reap benefits from the growing interest in the valley’s natural attractions and cultural diversity. Family guesthouses, five-star hotels, handicraft vendors, and shikara boatmen flourished now as the world rediscovered Kashmir.

But this booming economy was brought crashing down on April 22, 2025.

Gunmen raided a meadow in Pahalgam one day, brutally murdering 26 tourists, a large majority of them being Hindu pilgrims and travelers. The rare and savage attack caused panic, political indignation, and a global crisis. Within a few hours, India had accused Pakistan-supported militants for perpetrating the attack, a charge Islamabad denied. Throughout the coming days, missile and drone strikes hurled back and forth across the Line of Control brought nuclear-armed nations to the edge of outright war.

The aftermath was instant and catastrophic. Tourism disintegrated. Hotels were vacant. Flights were canceled. Entire families reliant upon tourism had their livelihoods taken away. The once-bustling resorts stood eerily quiet. What followed is not just a tourism slump—it’s a humanitarian and economic crisis. This feature explores how Kashmir’s tourism industry unraveled, the stories of those affected, and what experts believe must happen for the region to recover.

From Boom to Bust: Kashmir’s Tourism Wiped Out Overnight

A Tourism Renaissance Cut Short

Before the April 22 massacre, Kashmir was experiencing a historic tourism surge. Government campaigns painted a rosy picture: improved law and order, bustling attractions, and an increasingly vibrant hospitality scene.

Tourism accounted for roughly 7% of Kashmir’s economy, and officials like former Chief Minister Omar Abdullah aimed to raise that to 15% by 2030.

• 2.67 million tourists in 2022
• 2.71 million in 2023
• Nearly 3 million in 2024

The uptick led to a wave of local investment:

• Families opened guesthouses and homestays
• Entrepreneurs launched travel agencies
• New hotels and adventure tours sprung up across the valley

But all of that progress hinged on a fragile peace. The April attack shattered it instantly.

April 22: The Attack That Triggered a Crisis

On what should have been an ordinary spring day, militants opened fire on a group of vacationers in the picturesque resort town of Pahalgam. The massacre, carried out in broad daylight, left 26 tourists dead.

Graphic images circulated on social media and news networks within minutes, showing blood-soaked meadows and wailing survivors. The horror shocked the nation.

The Indian government squarely blamed Pakistan. Pakistan denied involvement. But the damage was done. Within 72 hours, tens of thousands of tourists evacuated Kashmir.

Military Escalation and Global Alarm

India launched precision strikes across the border. Pakistan retaliated. Drones and short-range missiles flew between the two nuclear-armed neighbors. For several days, the world watched anxiously, fearing the worst.

Although a U.S.-brokered ceasefire was reached by May 10, the psychological blow to the travel industry was severe. Tourist bookings vanished, and mass cancellations spread across hotels, airlines, and travel agencies.

Economic Freefall: The Domino Effect of a Tourism Collapse

Hotel and Hospitality Sector

Luxury resorts, budget guesthouses, and family-run bed-and-breakfasts alike are now empty. Staff have been laid off. Housekeepers, receptionists, chefs, and managers face weeks—if not months—of unemployment.

Transport and Tours

The roads in Srinagar are lined with idle tourist taxis. Once buzzing with travelers heading to ski in Gulmarg or photograph the tulips of Siraj Bagh, hundreds of vehicles now sit unused.

Tour guides, photographers, and mountain porters are in the same boat—no tourists means no income.

Local Traders and Artisans

Kashmir’s economy is intricately linked to tourism. The decline has hit:

• Handicraft sellers (pashmina, carpets, wood carvings)
• Street food vendors
• Boatmen
• Flower sellers and souvenir shops

The historic floating markets of Dal Lake, typically full of eager tourists bargaining for souvenirs, are silent.

Ground Realities: A Region in Despair

Empty Resorts and Deserted Lakes

The silence in once-bustling destinations is deafening. In Gulmarg, once alive with skiers and hikers, the ski lifts are stopped. In Pahalgam, the meadow where the massacre took place is now heavily guarded, empty but for soldiers.

Dal Lake, the crown jewel of Kashmir tourism, is a shadow of its former self. Rows of shikaras, the hand-carved wooden boats famous worldwide, remain tied to the shore.

Sporadic Visitors, But No Momentum

A few brave tourists remain, mostly domestic travelers, trying to salvage their vacations. But they are rare exceptions. Their selfies, taken in deserted Mughal gardens, offer a stark contrast to the bustling crowds of previous years.

Why the Stakes Are Higher Than Ever

Kashmir has always been a sensitive geopolitical region, claimed by both India and Pakistan since 1947. Armed insurgency began in 1989, leading to decades of conflict that devastated its tourism economy.

Tourism made a comeback only in the last five years. This revival was heavily promoted by Prime Minister Narendra Modi’s government, especially after it revoked Article 370 in August 2019, removing the region’s special status.

The government argued that scrapping autonomy would integrate Kashmir more fully into India and bring development, peace, and prosperity. But experts warned that using tourism as a barometer of peace was risky.

Expert Opinions: How to Rebuild Kashmir’s Tourism

1. Establish Lasting Peace

Everyone agrees: No peace, no tourism.

2. Transparent Communication and Reputation Management

The government must:

• Issue frequent safety advisories
• Launch targeted PR campaigns
• Collaborate with influencers, travel writers, and platforms to reshape perception

Right now, fear dominates the narrative, fueled by viral videos and media speculation.

3. Economic Relief for Stakeholders

To protect the sector from permanent collapse:

• Emergency funds for tourism workers
• Tax breaks for struggling hotels
• Subsidized loans to keep small operators afloat

4. Diversify the Economy

Kashmir must develop other industries—IT, education, sustainable agriculture—to prevent overreliance on tourism.

Looking Ahead: Can Kashmir Recover in 2025?

Recovery is possible—but it won’t be quick or easy. Tuman believes it may take six months, at minimum, assuming peace holds and new bookings begin.

In the meantime, a region built on dreams of mountain tranquility and cultural warmth waits quietly—its houseboats empty, its cabs idle, its hopes bruised.

Kashmir’s fate as a global travel destination now hangs in the balance. And so does the future of hundreds of thousands who depend on it.