As flood waters recede, tourism in J&K staring at Rs 500 cr loss

Demand for local travel rises in the face of last moment changes in tour plans

While the flood waters might have receded, the tourism industry in Kashmir are staring at a huge loss of around Rs 500 crore during this Dussehra season, claim industry insiders. What's more Kashmir's loss might turn out to be a gain for local tourism in other states.

Khaliq Wangnoo, chairman of the Jammu & Kashmir (J&K) chapter of the Indian Association of Tour Operators (IATO) says that the state has seen around 95 per cent cancellations in tourist bookings for September and October. "People are fearing a disease outbreak apart from lack of infrastructure and hence are wary of travelling to the valley this season." He also estimated that overall loss to the people connected with the tourism industry in the valley including hoteliers, taxi drivers, houseboat owners, tour operators, could be to the tune of Rs 500 crore during this season.

Around 900,000 domestic tourists visit J&K during the year, apart from around 200,000 foreign tourists and around 450,000 Amarnath Yatris, claimed Wangnoo, adding that the overall size of the tourism industry in the state could be to the tune of Rs 5,000 crore. "This being the wedding season, lot of honeymooners come to the valley, however, this year, there is no rush. Unfortunately, tourism is the major industry of the state, and the slowdown in tourist arrival can seriously impact the state's economy," he explained.

On the other hand, tour operators in different states across the country have witnessed a trend of demand for local travel rising in case of last moment changes in travel plans. Bhaskar Rao of Radheshyam Travels in Ahmedabad, who handles the majority of the J&K-bound tourists from Gujarat said, "We have seen 90-95 per cent cancellations. Around 10,000 tourists had booked to travel to J&K this season, and in terms of re-funds the business lost could be to the tune of Rs 20-25 crore." Many, according to Rao are opting for short-haul tours now to nearby destinations as getting bookings elsewhere in peak travel season is difficult.

"People wouldn't want to call off their travel plans altogether, and opt for an alternate destination instead. However, it is difficult to get desired booking for other locations in short notice, plus there are budgetary concerns as well as tariff peaks during the season. Most had planned their holidays months in advance," he explained. As a result, weekend destinations in Gujarat have seen a boost in demand, a trend confirmed by the Tourism Corporation of Gujarat Ltd (TCGL). K Sasikumar, general manager, TCGL said that "Due to the J&K floods, the state has seen an influx of tourists to different popular spots, including those from other states, as well as people travelling within the state." He, however, added that numbers are yet to be collated.

Tour operators across India, however, point out that local destinations would easily see an increase in demand of 20-25 per cent during the season. Jyoti Kapur, president, Association of Domestic Tour Operators of India (ADTOI) said, "Apart from J&K and Assam, all other tourist destinations are choc-a-bloc. People who have cancelled Kashmir plans are either looking at neighbouring states of Himachal and Uttaranchal, or are travelling to nearby locations in their homestates," he said.

Rajeev Kale, president, chief operating officer - MICE, domestic & sports tourism, Thomas Cook India pointed out that, "Customers, who booked with us in October -November during the immediate Diwali season, are choosing alternate tours to places such as Himachal Pradesh, Rajasthan, North East, Shimla, Mussorie." Travel portal Cleartrip, which saw big jump in cancellations to J&K for the long weekend starting October 2, 2014, has also seen demand for other locations rising.

"We have seen a jump in cancellations in the last 2-3 days - triple or possibly quadruple (compared to last fortnight). People were scared enough to cancel bookings till the long weekend starting October 2, for which Srinagar was one of the top five popular destinations this year," said Samyukth Sridharan, president and chief operating officer, Cleartrip.

The J&K-based tour operators and allied industry people are now planning to hold roadshows to bring back the tourist's confidence to travel to the valley. Wangnoo informed that the IATO along with other organisations is planning to hold a roadshow in Delhi soon to inform travellers about the situation in J&K.