Pahalgam attack wrecks Kashmir tourism; hotels, airlines demand action

Following the Pahalgam terror attack, tourism in Kashmir collapsed, prompting airlines and hotels to urge the Centre for immediate relief to revive the sector

The tranquil slopes of Pahalgam turned deadly on April 22, when a terrorist ambush sent shockwaves through Jammu and Kashmir’s tourism industry. Since then, travel to the region has come to a halt, casting a shadow of uncertainty and fear over the tourism sector. Airlines and the hospitality players have now urged the central government to announce immediate relief measures to revive the battered economy of the region, The Economic Times reported.

 

Major airlines including IndiGo, SpiceJet and Air India have written to the government requesting a waiver on user development fees and aviation security charges at Srinagar airport for at least a year. These fees, currently amounting to ₹1,050 and ₹200 per passenger respectively, are embedded in ticket prices and are being seen as a deterrent to tourists already shaken by safety concerns.

 

 

“After the Pahalgam incident, tourists are terrified, and no one is travelling to the Kashmir region. There is no demand for air travel to and from Kashmir and hotels are empty there,” the Federation of Indian Airlines said in a letter to the government last week.

 

 

“Apart from security, financial measures are important to rebuild traffic,” the letter mentioned. 

The timing of the attack has been particularly damaging. Jammu and Kashmir was experiencing a tourism surge, with visitor numbers touching a 15-year high. The Union Territory was also beginning to see a steady rise in its own revenue generation through tourism-linked economic activity.

 

But things took a turn after the attack. On Monday, June 9, the Srinagar airport recorded just 4,061 incoming passengers—nearly half of what it saw daily before April 22. In the days following the incident, retaliatory airstrikes by India led to the temporary shutdown of multiple border airports, including Srinagar, further disrupting travel plans.

 

Airlines have since slashed their operations, now flying only around 50 daily flights to Srinagar, down from 92 before the attack.

 

The hotel industry tells a similar story. Occupancy levels are near zero, and hotels are slashing rates by as much as 50 per cent to attract whatever few tourists remain.

 

“Hotels in Kashmir are currently offering discounts of 30-50 per cent, which was never the case,” Mushtaq Reshi, president of the Domestic Tour Operators’ Association in Kashmir and managing director of Essence Holidays, told The Economic Times.

 

 

On platforms like Booking.com, steep price drops reflect the crisis. Treebo Vitasta Villa in Srinagar, for instance, is now listed at ₹6,839 per night—down from ₹16,886 before the attack.

 

Mushtaq Ahmed Chaya, president of the Jammu and Kashmir Hoteliers Association and chairman and founder of the Mushtaq Group of Hotels, said his association recently met with J&K Chief Minister Omar Abdullah to request targeted relief for hoteliers. “We have also requested relief on electricity bills and other expenses. The business is badly hit and occupancies are almost zero,” Chaya said.

 

In their meeting with the chief minister, the hoteliers also sought interest waivers on loans for at least six months—an urgent plea to prevent further distress in a sector that employs thousands and is considered central to the region’s economic recovery.

 

The stakeholders also hope that with timely support from the government, Kashmir's tourism lifeline can be revived before the upcoming tourist season is entirely lost.