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The Azadi Times > Latest > News > Kashmir’s Tourism Industry Faces Devastating Impact After Recent Tensions: Losses in Millions

Kashmir’s Tourism Industry Faces Devastating Impact After Recent Tensions: Losses in Millions

Editorial Staff
Last updated: May 22, 2025 11:38 PM
Editorial Staff
Published: May 22, 2025
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Sunrise on Dal lake, Kashmir
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Srinagar — The recent surge in cross-border tensions, particularly following the Pehalgam attack, has severely disrupted the tourism sector in Jammu and Kashmir. As tensions continue to escalate, the once-bustling tourist activities across the valley have come to a halt, leaving thousands of families reliant on tourism for their livelihood, grappling with economic devastation.

One of the most visibly impacted sectors is the iconic houseboats and shikaras, with their owners lamenting significant losses. Traditionally, Dal Lake and Nigeen Lake have been buzzing with tourists, and the houseboats—floating luxury accommodations—have long been a hallmark of Kashmir’s tourism. But the current situation paints a starkly different picture. These serene waters, which once teemed with vibrant activity, are now eerily quiet.

Widespread Cancellations and Lost Opportunities

According to industry bodies, such as the Kashmir Chamber of Commerce and Industry, the Kashmir Hotel and Restaurant Association, and the Shikara Owners Association, around 90% of tourist bookings for the upcoming season have been canceled in the wake of rising unrest. Travel agencies report that houseboat bookings for May and June have plummeted by up to 80%. This sudden drop in tourist arrivals is largely due to the deteriorating security situation, which has caused travelers to reconsider or cancel their plans to visit the region.

The ripple effect has been felt across the region. Once-bustling spots like the Boulevard Road, Dal Lake, and Nehru Park, which used to host large crowds of tourists, have now fallen silent. A month ago, Nehru Park, which had been a popular tourist destination, was teeming with visitors, but now, it stands desolate.

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Economic Fallout: Kashmir’s Tourism in Crisis

The impact of these cancellations on the local economy is profound. The Kashmir tourism industry, which contributes significantly to the region’s economy, is now facing what many are calling its worst crisis in recent memory. Many of the region’s houseboat owners and shikara operators are struggling to make ends meet. For these families, the uncertainty is unbearable. In particular, houseboat owners are reporting a drastic fall in income, with some estimating their losses at over INR 100 crore in just one month.

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Former General Secretary of the Houseboat Owners Association, Mohammad Yaqub Don, shared that his business has suffered a loss exceeding INR 50 crore, attributing it to the sudden cancellations after the Pehalgam incident. He explained, “Bookings for May and June, which were traditionally a high season, have been canceled. The administration directed us to refund advance payments, which further exacerbated the financial strain.”

Shikara owners, who typically depend on peak-season revenue to sustain their businesses throughout the year, are also facing unprecedented losses. On average, a shikara operator would earn between INR 2,500 to 3,000 per day during the peak tourist season, but the current quietness has left them struggling to support their families.

A Silent Valley: From Bustling to Abandoned

The picturesque Dal Lake, a world-renowned destination for houseboats and shikaras, has gone from being a hub of vibrant tourism activity to a silent expanse of water. Similarly, Nigeen Lake, once known for its enchanting tranquility and row upon row of houseboats, now reflects the profound impact of the ongoing tensions in the region. The businesses that once flourished on these serene waters now find themselves in disarray.

In Srinagar, the traditionally crowded airport, which once saw long lines of domestic and international tourists, now reflects a stark difference. The reduced number of incoming flights and fewer tourists has caused a noticeable dip in the economy. The airport’s security checks have become quicker due to the reduced passenger volume, underscoring the drastic changes the region is undergoing.

Long-Term Concerns for Kashmir’s Tourism Resilience

While the immediate impact is grave, there are growing concerns within the industry about the long-term implications. Travel experts fear that not only is Kashmir witnessing a sharp drop in tourists now, but the region’s overall image as a tourist destination may also be adversely affected for years to come.

The Kashmir tourism industry, already vulnerable due to the ongoing political and security situation, now faces even more severe challenges. As the violence and instability continue, the region risks losing its status as a popular destination for travelers, especially those from abroad who may see Kashmir as increasingly unsafe.

Local businesses are finding themselves on the brink of collapse. Even small vendors, selling flowers, handicrafts, and local produce around the lakes, have reported steep losses, with thousands of people left without work. Haji Wali Mohammad, president of the Kashmir Taxi and Shikara Association, explained, “Last year, during this time, we couldn’t even take a breath, but this year, the situation is entirely different. Our boats are empty, and families are finding it difficult to survive.”

Government Measures and Response

In response to the mounting crisis, the government has initiated several measures to alleviate the situation. Airline operators and hotels have been urged to show flexibility in handling cancellations and rescheduling, but many stakeholders feel these steps are insufficient. Mohammad Yaqub Don highlighted that, while the government is offering assistance, it cannot replace the lost income that businesses have suffered.

Furthermore, local organizations, including tourism and trade associations, have demanded that the government take stronger steps to restore tourist confidence and secure the region’s reputation as a safe and welcoming destination.

An Urgent Call for Stability and Peace

As Kashmir continues to endure this difficult chapter, the cry for lasting peace and stability grows louder. The valley, which has long been a beacon for nature lovers, culture seekers, and adventure tourists, now faces the daunting task of restoring not just its tourism industry, but also its socio-economic fabric.

There is a palpable sense of urgency in Kashmir’s tourism community. The silence across Dal Lake and the empty houseboats are symbolic of a deeper, ongoing struggle—a struggle for peace, for freedom, and for an end to the turmoil that has long been a part of the region’s history.

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TAGGED:India Pakistan ConflictKashmir ConflictKashmir TourismPahalgam
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