Tourism has been the backbone of the Kashmir Valley in recent years, especially after the abrogation of Article 370, which brought a ray of hope with the dawn of the next day. Locals also dreamt of a decent life that would come when tourism flourished. According to available data from the J&K government, 2023 recorded the highest number of tourists, with a footfall of 21,180,011 in 2022, including 65,000 foreign tourists. The footfall was 18,884,317. Both 2021 and 2020 saw comparatively lower numbers due to the COVID-19 pandemic, with lockdowns and restrictions in place. The central government abrogated Article 370 on August 5, 2019, and tourist numbers slightly increased later that year following the move.
Pahalgam Attack On April 22, 2025
The April 22 terror attack in Pahalgam, which resulted in the deaths of 26 tourists, is sure to deal a significant setback to Kashmir. Beyond the brutality of the attack, experts expect it to negatively impact the valley, which had shown promising signs of recovery after decades of hardship. Pakistan-based controllers and infiltrators lured local individuals into terrorism, hindering this recovery.
Observers view it not only as a tragic loss of lives but also as a potentially severe setback to the region’s economy, which had recently begun to recover. The attack could harm the economic revival that was beginning to take place, especially in the tourism sector.
The attack’s aftermath will likely have widespread consequences, especially on tourism. The attack could undo or disrupt years of gradual economic improvement in Kashmir, built through strengthened security, increased investor confidence, and growing tourist footfall.
J&K Economic Survey 2024-25
Before the recent attack, Jammu & Kashmir was experiencing strong and stable economic growth. According to the economic survey, for 2024–25, the region’s real GSDP was projected to grow at 7.06%, with the nominal GSDP estimated at ₹2.65 lakh crore, showing steady progress. From 2019 to 2025, the Union Territory achieved a compound annual growth rate (CAGR) of 4.89%. It is also expected that the per capita could rise to ₹1,54,703 in FY25 with a 10.6% increase over the previous year.
Pahalgam Attack Sparks Travel And Hotel Cancellations
As the Pahalgam attack happened at the peak tourist season (April to October), which has triggered some future flights, hotel booking cancellations. Kashmir has a large tourism industry. There are more than 2000 houseboats, over 3,500 hotel rooms, and many taxi drivers, tour guides, pony handlers, and handicraft sellers who rely on tourism for their income. Many of these people have taken loans or sold their belongings to invest in their businesses, hoping tourism would keep growing. But after the attack, their hopes of growth now seem risky or harmful. Experts believe the attack poses a threat to the projected GSDP growth.
