Tourists ride 'Shikara' at the Dal Lake, seen a day after the Pahalgam terror attack, in Srinagar, Wednesday, April 23, 2025. At least 26 people were killed in the terrorist attack in J&K's Pahalgam on Tuesday.
Credit: PTI Photo
Bengaluru: The deadly terror attack on tourists in Pahalgam is sure to hit Kashmir’s thriving tourism sector, which has a substantial contribution to the state’s economy. As per the latest Kashmir budget, the sector’s contribution to the gross state domestic product (GSDP) is currently 7 per cent, with a goal to increase this to 15 per cent by 2030.
An estimated real GSDP of Rs 1.45 lakh crore in 2024-25 would value Kashmir’s tourism industry at Rs 10,150 crore.
On Wednesday, panicked tourists left the valley in droves, with more expected to flee over the coming days.
Despite an advisory by the Directorate General of Civil Aviation asking airlines to waive cancellation and rescheduling fees to support tourists flying out of Srinagar, air fares for the week have gone to as high as Rs 35,512 from Srinagar to Bengaluru on SpiceJet, and Rs 25,304 on IndiGo for the same route.
Most outbound flights for Thursday across airlines were sold out, with Air India offering its last flights for Friday at rates up to Rs 58,954 (as of Wednesday). Airlines have increased the number of flights operating out of Srinagar in response to heightened demand. Following DGCA’s advisory however, airlines started cutting prices.
“Even normally in this sector, air fares are very high. We are constantly taking up these issues with the government, but they say it is a supply and demand outcome which they cannot do much about. Fares are likely to be up, depending on how many tourists move out of the valley,” said Iqbal Tramboo, a Srinagar-based hotelier.
Tourism across the region is expected to be hit for the near-term, at least, though the long term impact remains unclear.
“It is likely to have repercussions for business at least for this year. So far this year we were seeing a record number of tourists. With this being the peak season, we were expecting a 30-40 per cent footfall increase from the previous year,” explained Farooq Kuthoo, Former President, Travel Agents Association of Kashmir and Executive Committee Member, Kashmir Chamber of Commerce and Industry.
“The season had just started, with peak tourism months being from April to July,” said Tramboo. He remarked that still, some tourists have chosen to stay back which creates hope. One would have to wait to assess the full impact.
Several travel booking agencies are also seeing cancellations in high numbers.
“We have been seeing cancellations since last evening. Almost 80 per cent of people who had planned trips in the immediate future have cancelled. This season is a lost cause,” said Sanjay Dang, Managing Director of Le Travel World.
“There will naturally be very high security now, which may lead to some revival,” Dang added.
As per early observations, flight cancellations have jumped by seven times while future bookings have dropped by 40 per cent, stated Manjari Singhal, Chief Growth and Business Officer, Cleartrip. Airlines and travel agencies have offered waivers on rescheduling and cancellations for the next week.
Credit: PTI Photo
Tirunelveli: Security personnel keep vigil at the Tirunelveli Junction after security was heightened following terror attack in J&K
Credit: PTI Photo