Kashmir tourism revival brings jobs back after Pahalgam attack

Months after the April 22 Pahalgam terror attack shuttered hotels, guest houses and eateries across Kashmir, a slow revival of tourism is offering a lifeline to thousands of workers who lost jobs and livelihoods.

For hotel staff, cooks, drivers and shopkeepers, first signs of revival occurred from the middle of December after months of uncertainty. “We had no work for eight months,” said a former hotel waiter in Pahalgam. “Now the bookings are coming in, and my manager told me I will be recalled next week. It feels like a small miracle after such a long time.”

Many hotel employees who had been laid off, including housekeeping staff and guides, are now being asked to return, at least for peak winter weekends and the upcoming spring season.

The economic ripple of tourism closures was severe. Small business owners and employees faced mounting debts, while banks reported a spike in non-performing assets (NPAs) for tourism-related loans.

Some proprietors were forced into distress sales of hotels, shops and guest houses to meet financial obligations. “Families dependent on tourism felt the harshest impact,” said a hotel manager in Pahalgam. “Peace has always boosted tourism, creating jobs and income, while violence strikes a heavy blow, leaving livelihoods shattered.”

Tariq Ahmad Khan, President of the Travel Agents Association of North Kashmir, highlighted the cascading effect: “When hotels shut down, the drivers, guides, and restaurant staff are the first to feel the pain. Many families faced financial stress, loans went bad. The sector’s revival means livelihoods are slowly being restored.”

Dildar Ahmad Khan, President of the Pahalgam Hotel and Restaurant Owners Association, said the last week of December offered a glimmer of hope. “Nearly all open hotels and homestays were booked,” he said. “We are recalling staff in phases, starting with those who were most affected.”

Tourism officials note that while perceptions of security continue to influence visitor decisions, administrative efforts and local resilience are slowly reviving the sector.

Syed Qamar Sajad, Director Tourism Kashmir said that despite 2025 being a difficult year for tourism, the sector witnessed a noticeable recovery towards the end of the year

As winter peaks, the gradual recovery of tourism is translating directly into restored jobs, renewed incomes and a sense of stability for those whose livelihoods depend on Kashmir’s natural beauty. The lesson, industry leaders say, is clear: sustained peace translates into sustained employment and economic growth, while incidents of violence cause widespread disruption across the sector.