Overview

• The Pahalgam terror attack on April 22, 2025, has caused a near-total collapse in Kashmir's tourism industry, with hotels and houseboats sitting idle and tourist arrivals plummeting.
• Approximately 70% of workers in the hospitality sector have been laid off, leaving families in financial distress and businesses struggling to stay afloat.
• The economic impact extends beyond tourism, severely affecting related sectors such as agriculture, handicrafts, and retail, which depend on tourist spending.
• Industry stakeholders are urging the government to provide financial relief, including loan restructuring and interest waivers, to prevent further economic instability.
• The upcoming Amarnath Yatra is seen as a potential opportunity to restore confidence and revive the region's tourism sector.