After Operation Sindoor, Indian Foreign Secretary Vikram Misri explicitly mentioned the objective of the Pahalgam attack as “undermining the normalcy returning to Jammu and Kashmir. In particular, it was designed to impact the mainstay of the economy, tourism.” He added that harming development in the Union Territory (UT) would help ensure the region remains a fertile ground for continued cross-border terrorism. Prime Minister Narendra Modi also stated that the attack took place at a “time when peace was returning to Kashmir,” specifically highlighting the rising tourism numbers.
In the last few years, Kashmir had witnessed an unprecedented tourist footfall and was bracing for another record year when terror struck on April 22. The Pahalgam attack is particularly significant as tourists were deliberately targeted at a popular destination, at the onset of the summer season.
This piece explores the significance of tourism in Kashmir’s growth trajectory and delves into the region’s troubled past, intersected between terrorism and tourism. While tourism is certainly impacted by terrorism in the region, it is neither the sole nor a consistent determinant of tourist footfall.
Tourism as the cornerstone of Kashmir’s economy and return to normalcy
Tourism contributes roughly 7-8% to Jammu and Kashmir’s economy annually, 2-3% more than its contribution to the national GDP. Although its exact contribution could vary, as it is often not included as a standalone sector in calculating GDP owing to its multiplier effect, it has a broad-ranging impact on other sectors like hospitality, transport, retail, agriculture, handicrafts, and in supporting the gig economy.
Tourism also has a symbolic and psychological value, as New Delhi has often viewed tourist figures in the UT as a test of peace and normalcy. After 2019, tourism has been a major plank of the government, showcasing the success of the abrogation of Article 370, serving as the best indicator of peace and normalcy in the region after years of turmoil. India’s Home Minister Amit Shah called the transformation a shift from a ‘terrorist hotspot’ to a ‘tourist hotspot.’