The Pahalgam terror assault is anticipated to considerably impression tourism and the financial system of Jammu and Kashmir, in line with Madan Sabnavis, chief economist at Financial institution of Baroda. “It should take quite a lot of work to rebuild the belief, which individuals must have earlier than going to Kashmir,” he informed NDTV Revenue.
The assault in Pahalgam, which claimed the lives of 26 individuals, has triggered a wave of cancellations of tour bookings within the Kashmir Valley. Lots of of tourists presently within the area have begun leaving, with authorities facilitating their secure return to residence states.
Official knowledge exhibits Jammu & Kashmir witnessed a historic footfall of two.35 crore vacationers in 2024—up from 2.11 crore in 2023 and 1.88 crore in 2022. This included home vacationers, pilgrims to the Amarnath Yatra and Vaishno Devi, and round 65,000 international vacationers, information company PTI reported, citing the info.
Tourism Sector Hit Arduous
The regular progress in vacationer numbers had been hailed by financial surveys as an indication of normalcy returning to the area, pushed by higher infrastructure, improved connectivity, and aggressive promotion by the federal government. However the Pahalgam assault threatens to reverse these beneficial properties.
“The entire of Kashmir is in mourning since yesterday after listening to of this grotesque incident,” stated Rauf Tramboo, president of the Journey Brokers Affiliation of Kashmir. “We had a peaceable surroundings prior to now few years, which helped us to develop our tourism business.”
Tramboo famous that in 2024, tourism was at its peak. “In Kashmir, we’ve solely two viable choices of revenue—horticulture and tourism. In the previous couple of years, as a consequence of tourism progress, many individuals moved away from horticulture and constructed lodges close to their orchards.”
Concern Psychosis To Hit Progress
Put up abrogation of Article 370, there was peace in Kashmir, stated Ayjaz Wani, a fellow within the Strategic Research Programme at ORF. Nevertheless, the assault in Pahalgam might derail the tempo of financial progress, he identified.
“The assault aimed to sabotage Kashmir’s 7.8% GDP progress,” Wani stated.
Sabnavis, echoing this concern, stated, “The concern psychosis is coming. It stays to be seen whether or not this assault could have a deep-rooted psychological impact or if folks will really feel reassured by the federal government’s actions.”
. Learn extra on Trending by NDTV Revenue.
