Reviving tourism in the aftermath of terror, the economic impact of the Pahalgam attack

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Srinagar: A tragic terror attack in Baisaran, Pahalgam has shaken Jammu and Kashmir to its core. Beyond the sorrow, it has paralyzed the valley’s tourism-driven economy, affecting thousands of livelihoods. Yet amid fear and loss, signs of resilience and hope are beginning to emerge across the valley

The terror attack that took place on April 22 in Baisaran, Pahalgam, Jammu and Kashmir, took the lives of 26 innocent civilians and has deeply shaken the valley—not just emotionally, but economically as well. This heart-breaking incident has left families devastated and the entire valley in mourning.

But beyond the grief and sorrow, the attack has dealt a serious blow to the valley’s economy, particularly its tourism sector, which is the lifeblood for many local residents. The timing couldn’t have been worse—it struck just at the start of the tourist season, a time when hotels, taxi drivers, shopkeepers, and tour guides were beginning to hope for a good year.’

Now, fear has replaced hope, and uncertainty hangs heavy over the thousands of livelihoods that depend on the flow of visitors to this beautiful place. 

Local businesses—including hotel owners, cab drivers, and market vendors—say everything has come to a standstill. Tourism has long been a cornerstone of Jammu & Kashmir’s (J&K) economy, contributing a significant 8.47% to its Gross Domestic Product (GDP).

In recent years, the sector has seen a strong revival, with non-tax revenue from tourism rising to 0.5% by December 2024, up from 0.3% in 2023–24 and just 0.2% in the years prior. Despite the setback, 2024 marked a record year for tourism in the Union Territory, with over 30 lakh tourists visiting J&K, up from 27 lakh in 2023.

The Tulip Garden in Srinagar alone attracted over 8 lakh visitors in just 26 days following its opening in late March. With such growth trends, 2025 was expected to surpass all previous records—until the tragedy struck. For J&K, tourism is not just an economic driver—it is a symbol of hope, resilience, and revival. Preserving and strengthening this sector is crucial for the future of the J&K and its people.

Thousands of families directly or indirectly depend on it for survival. In the wake of the attack, the sudden and sharp decline in tourist numbers has deeply impacted the local economy. It’s not just hotels and travel agencies that are suffering—the ripple effect extends to artisans selling handicrafts, transport service providers, food vendors, and small shopkeepers in every corner of the valley.

Yet, despite the tragedy, signs of resilience and hope are slowly emerging. Just a week after the incident, tourists have cautiously started to return. Some visitors were even spotted taking selfies near the site of the attack—perhaps a mix of curiosity and quiet defiance. Local business owners, hoteliers, and tour operators are working tirelessly to restore confidence and send out a clear message – Kashmir valley is still open for visitors.

Security forces have been highly active in the aftermath, working around the clock to ensure the safety of both residents and tourists. Their swift response and increased presence have been critical in maintaining stability and offering reassurance to those still interested in visiting. Though the checkpoints and patrols may remind people of the prevailing tensions, they also provide a much-needed sense of safety that is essential for rebuilding public trust.

Still, the atmosphere remains tense. The shadow of fear has not entirely lifted. Popular tourist spots like Sinthan Top remain off-limits, and many travellers have either postponed or cancelled their trips. For those who rely on tourism for their income—from pony ride operators to local artisans and drivers—this lull is more than just a pause; it’s a crisis.

The challenge now lies in striking the right balance between maintaining strict security and reviving tourism and economic activity. Jammu and Kashmir has always held a special place in the hearts of travellers for its breath-taking beauty, serene landscapes, and rich culture. 

Authorities must also make efforts to promote lesser-known but equally stunning destinations across Jammu and Kashmir. Diversifying the tourist map can help distribute footfall, reduce risk concentration, and bring development to underexplored areas. Moreover, this attack is not just a temporary setback for tourism—it threatens the broader economic progress of Jammu and Kashmir.

Over the past few years, the region has been witnessing a steady path to peace and development. A booming tourism sector had begun to bring hope, jobs, and a sense of normalcy. In conclusion, while the early return of some tourists to Pahalgam brings a faint but vital glimmer of hope, the road to full recovery is long and complicated.

Restoring security, rebuilding public and investor confidence, and broadening the region’s economic base are all crucial steps. With sustained effort, compassion, and collaboration between the government, local communities, and the private sector, Jammu and Kashmir can once again emerge as a symbol of peace, beauty, and resilience.

The journey ahead is undoubtedly challenging. Healing takes time—both for visible wounds and for those we cannot see. But if there is one thing that Jammu and Kashmir has always shown, it is its strength, its spirit, and its ability to endure.

With the right support, a shared vision, and unwavering commitment, the valley can not only reclaim its place on the global tourism map but also move toward a more secure, diversified, and prosperous future. In the end, the message must be loud and clear – Jammu and Kashmir is not just a place on the map—it is a feeling, a heartbeat, and a home. And no act of terror can ever erase that truth.

About the Author – Sheikh Nazir can be reached at 

Shykhnazir580@gmail.com