The once-promising tourist economy in Kashmir, revived after years of uneasy calm, has collapsed almost overnight. The sharp decline in visitor numbers follows the 22 April 2025 massacre of 26 tourists at a popular mountain resort, and a dramatic military escalation shortly after.
The disputed region, straddling the Line of Control (LoC) between India and Pakistan, had benefited from a fragile ceasefire over the past four years. Roughly 4.5 million visitors were recorded in 2024—two-thirds to the Indian-administered side, the rest to Pakistan-administered Kashmir—attracted by the Himalayan scenery, glacial rivers, and Mughal-era gardens.
Horrific news from #Kashmir. A terror attack in Pahalgam has targeted innocent tourists, leaving several dead and injured. Prayers for the victims and their families. Violence against civilians is indefensible.pic.twitter.com/iDbpNM4uM4
— Asif Khan (@_asif) April 22, 2025
“The ends of the earth”
Tourism operators are now reporting a wave of cancellations, driven by the re-emergence of militant violence and political hostility. Although Pakistan denied any involvement in the 22 April attack, Indian Prime Minister Narendra Modi quickly blamed Islamabad and vowed to pursue the perpetrators “to the ends of the earth”.
I strongly condemn the terror attack in Pahalgam, Jammu and Kashmir. Condolences to those who have lost their loved ones. I pray that the injured recover at the earliest. All possible assistance is being provided to those affected.
— Narendra Modi (@narendramodi) April 22, 2025
Those behind this heinous act will be brought…
That pledge materialised on 6 May 2025, when India launched Operation Sindoor, a coordinated strike on nine sites in Pakistan and Pakistan-administered Kashmir. Indian officials stated that the strikes were aimed at dismantling terrorist infrastructure linked to groups such as Lashkar-e-Taiba and Jaish-e-Mohammed, whom they believe were involved in the Pahalgam resort killings.
The government in New Delhi described the operation as “targeted and non-escalatory,” insisting that no Pakistani military assets were struck. Pakistan, however, reported at least 26 civilian deaths and more than 40 injuries, with significant damage to homes and a mosque in Muzaffarabad.
“It’s going to hurt badly”
In Pakistan’s Neelum Valley, the local economy is in crisis. Industry representative Abrar Ahmad Butt said about 16,000 people are employed in tourism there, but the region is now effectively closed. Around 370 hotels and guesthouses have emptied out completely. “It’s going to hurt badly this season,” Butt warned.
Similarly, in Indian-administered Srinagar, houseboat owners, hoteliers and taxi drivers are also suffering due to the lack of incoming guests. Yaseen Tuman, manager of a travel agency that has survived over a century, told Reuters “nearly all” bookings had been cancelled and there are “no guests.”
Hotels and houseboats in Indian Kashmir are offering discounts of up to 70% after travelers fled following a deadly attack. On the Pakistani side, a tourist hotspot just on the border was sealed off as war cries between the foes grow louder https://t.co/HQsjDkCQJl pic.twitter.com/adMBEZOVat
— Reuters (@Reuters) May 6, 2025
Borders sealed, lives disrupted
Beyond tourism, wider regional stability is rapidly deteriorating. Cross-border artillery fire has intensified since the strikes. Pakistan claims to have shot down five Indian fighter jets, with three reportedly crashing in Indian-administered territory.
Farmers near the border areas say the flare-up has prevented them from moving their livestock to new pastures. Civilian evacuations are under way in several districts, and schools remain shut.
The United Nations, along with major powers including the United States, the United Kingdom, and China, have issued urgent calls for de-escalation. Analysts warn that without diplomatic engagement, the situation could spiral further.
