Pahalgam attacks: Hotels and tour operators see flurry of cancellations

Travellers reschedule trips beyond peak season; hill states set to benefit

Tourism took the hardest hit in Jammu & Kashmir (J&K), with the majority of hotels and tour operators seeing their bookings cancelled in the aftermath of the terror attack in Pahalgam’s Baisaran, popularly known as ‘mini Switzerland’, where 26 people, mostly tourists, were killed.

 

The state, which had seen a record number of tourist arrivals over the past few years, with 2024 recording the highest at 23.5 million tourists, an average of more than 1.9 million a month, is currently under a hardened security cover, with many tourists stranded.

 

Pahalgam, Gulmarg, and other tourist hotspots, which usually see the highest footfall during the peak months of April and May, are now looking at a near-exodus of tourists.

 

Hotels based in Pahalgam have seen a spate of cancellations in the wake of the tragedy.

 

“We have seen over 100 cancellations for the coming weeks. With almost 50 rooms, most are vacant currently, and the few rooms that are occupied will be vacated by Wednesday night itself,” said the general manager at a five-star property in Pahalgam.

 

“Such incidents are harmful in the long run. This is the peak tourist season, and the situation was just starting to become better, but there is no reason to believe things will improve this season, as people will naturally be fearful,” the manager added.

 

At another local hotel in the town, guests have deferred reservations to mid-May. Arjun Baljee, president of Royal Orchid Hotels, said the terror attack was a body blow to the tourism industry in J&K, which was largely led by locals and had seen tourist arrivals rise 8x since 2020. He added that it would now lead to tourists choosing alternative destinations such as Himachal Pradesh or Uttarakhand.

 

“With summer here, the hills are a natural destination to head to, and neighbouring states like Himachal Pradesh should see some increase in demand from those wanting to get away from the heat,” he observed. 

 

Over 100 stranded tourists who had booked tour packages with the Indian Railway Catering and Tourism Corporation (IRCTC) — which runs multiple six-day packages covering various tourist destinations, including six ongoing tours on Tuesday when the attack took place — have to be evacuated over the next couple of days via flights from Srinagar. IRCTC is offering full refunds on cancellations or free rescheduling for those who have booked packages over the next 10 days.

 

Considering the situation, the ongoing tours are being cancelled entirely. IRCTC is trying to finish the current tours, which were originally scheduled to end on Friday and Saturday, in advance and evacuate tourists as quickly as possible, according to sources aware of the matter. One batch of tourists had already been evacuated as of Wednesday evening.

 

Tourism Minister Gajendra Singh Shekhawat said in a statement on X that tourists would be allowed refunds across hotels and airlines. “In light of Tuesday’s tragic incident in Kashmir, many tourists are understandably anxious and reconsidering their travel plans. I’ve spoken to the authorities concerned and urged airlines, hotels, and tour operators to allow full refunds without hassle.”

 

“According to the early observations, flight cancellations jumped by 7x, and there has been a drop in future bookings by nearly 40 per cent," said Manjari Singhal, chief growth and business officer at Cleartrip.

 

A spokesperson for MakeMyTrip said their teams were working round the clock with airline and hotel partners to provide flexibility and assistance with booking cancellations.

 

“To ensure flexibility, we have extended free change and cancellation waivers for all bookings made on or before April 22, applicable for travel up to April 30. We are also coordinating closely with airlines and local authorities and will share regular updates,” said Nishant Pitti, chairman and founder, EaseMyTrip.

 

The terror attack has cast a deep shadow over the state’s efforts to come up as a safe tourist destination. Just last week, J&K Chief Minister Omar Abdullah had pitched the state as a tourism destination at an event in Delhi.

 

“Increasing numbers of tourists added to our economic activity... I believe that we need to reposition J&K not just as a destination for volume tourism but also for value tourism," he had said, adding that the state government has identified nine new tourist destinations for development.

 

Indian Association of Tour Operators members said they would continue to promote and sell J&K tourism packages, as tourism is a crucial industry for the northernmost state in the country.

 

“The prospects of the industry will hinge on how quickly normalcy returns and whether the government and private sector can work together to reassure travellers and strengthen safety,” said Pradeep Shetty, vice-president at the Federation of Hotel & Restaurant Associations of India.

 

Rajiv Mehra, general-secretary of the Federation of Associations in Indian Tourism & Hospitality, said that while there may be some cancellations, with support from all stakeholders, tourism would bounce back. 

FEAR FACTOR KICKS IN

 

* Hotels see mass cancellations; over 100 at one Pahalgam property alone

 

* Royal Orchid, Cleartrip, MakeMyTrip, EaseMyTrip report sharp decline in bookings

 

* IRCTC evacuating around 120 tourists; full refunds or free rescheduling offered

 

* Flight cancellations jump 7x; forward bookings drop 40%