Pahalgam terror attack: Kashmir's tourism sees a big dip, but locals remain hopeful for a revival

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May 2025
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This story belongs to the Fortune India Magazine May 2025 issue.

The terror attack has taken the sheen off Kashmir’s tourism business — but locals are hopeful of a revival.

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Pahalgam terror attack: Kashmir's tourism sees a big dip, but locals remain hopeful for a revival
The government has ordered the temporary closure of 48 tourist destinations. Credits: Getty Images

IN THE LUSH, pine-scented valley of Pahalgam, where tourists once queued for treks and trout fishing, silence hangs heavy. “Kashmiris [directly] bear no fault for the tragedy, yet it’s the local vendors who will shoulder the economic fallout of declining tourism,” says Shaila, a tour operator. For over a decade, she has watched Kashmir slowly reclaim its place on India’s travel map. But on April 22, a terror attack that claimed the lives of 26 tourists has dealt a blow. “Just 10–20% of flight bookings are still active,” says Sandeep Pandita, an official with Srinagar International Airport. In Srinagar, hotel lobbies are deserted, houseboats lie empty on the Dal Lake, and tourist chatter has given way to uncertainty.

Cancellations for Kashmir-bound travel have soared. “80-90% of our bookings for May and June are gone,” says Varnika Chawla, founder of Trail The Himalayas, a company that curates bespoke travel experiences in the valley.