Jaishankar calls Pahalgam attack economic warfare as J&K tourism suffers

Terror attack, cancellations, and tourist hotspots closures cripple Kashmir tourism; industry reels under economic strain and pins hopes on a winter revival amid persistent security concerns

The Pahalgam terror attack was an act of economic warfare aimed at crippling Kashmir’s tourism industry, a key pillar of the region’s economy, External Affairs Minister S Jaishankar said. He said the attack was also intended to provoke religious violence, as people were asked to identify their faith before being killed, reported news agency PTI.

 

Jaishankar, who is on a three-day visit to the US, made the remarks while inaugurating an exhibition titled ‘The Human Cost of Terrorism’ at the United Nations headquarters. As a reminder of how terror can target more than just lives, the recent Pahalgam attack underscores a deeper strategic motive. We take a look at how it was an assault on Kashmir’s economic lifeline — its tourism industry. 

 

A glimpse of today’s inauguration of exhibition on ‘The Human Cost of Terrorism’ @UN.  ???????????????? pic.twitter.com/r3WzRSIfZO

— Dr. S. Jaishankar (@DrSJaishankar) June 30, 2025

 

Pahalgam attack cripples tourism in J&K 

The terror attack in Pahalgam that claimed 26 lives has dealt a severe blow to Jammu and Kashmir’s tourism sector, shattering the region’s long-standing image as ‘paradise on Earth’. The attack triggered a wave of booking cancellations just ahead of the peak summer season. 

 

Mass cancellations of flights 

In the immediate aftermath of the attack, terrified tourists cancelled flight bookings in large numbers, while retaliatory airstrikes by India led to the temporary closure of several border airports, including Srinagar, further disrupting travel plans.

 

Hotels slash rates as occupancy collapses 

The hotel industry has also suffered. Occupancy levels plunged to near zero, forcing hoteliers to slash room rates by up to 50 per cent in a bid to attract the few remaining visitors. 

 

Security fears prompt closure of public spaces 

Adding to the blow, authorities shut access to 48 of the valley’s 87 public parks and gardens, citing security concerns. Nearly 50 parks in high-risk areas were closed as a precaution, further limiting tourism activity. Although the Jammu administration has reopened 16 tourist hotspots, footfalls continue to remain low, reflecting sustained fear and uncertainty among travellers.

 

Economic fallout continues in Kashmir 

Tourist footfalls in the valley remain low. The broader economic fallout has been severe, impacting hotel owners, houseboat operators, and transport providers. Last month, airlines and hospitality players urged the Centre to announce immediate relief measures to support the region’s battered economy.   

Industry hopes rest on October revival 

The summer season is all but lost. The J&K tourism industry is now pinning its hopes on a recovery in October, ahead of the winter season. However, the path to revival remains uncertain amid lingering security concerns.