Pahalgam Terror Attack: Local Tour Operators And Hotels In Kashmir Hit Hard

Every year, April, May, and June—traditionally Jammu & Kashmir’s peak tourist months, coinciding with school vacations and major pilgrimages like the Amarnath Yatra—are expected to be especially busy. However, the recent terrorist attack in Pahalgam on April 22 has cast a shadow over Kashmir’s hospitality industry, triggering widespread cancellations, and refund requests because of uncertainty.

Speaking to Outlook Traveller, Sheikh Yameen, a local from Srinagar said, “Tourist flow continues in the Valley. People are exploring Dal Lake and visiting Pahalgam.” However, Yameen noted that most visitors in Kashmir had arrived before the incident. “There have not been any fresh arrivals so far.” Those who have chosen to stay back, though, are seeing tightened security across the Valley.

Fresh Hotel Bookings In Kashmir Dry Up

The situation has been particularly challenging for local hoteliers. In line with government guidelines advising hotels to waive cancellation charges, Altaf Chapri, who runs Qayaam Gah in the Zabarwan Hills, says, "We have issued multiple refunds post the attack. Our tariffs have decreased, and we’re offering tourist discounts." He further shared that about 80 per cent of their bookings for April and May have been withdrawn. “Even for May, the business looks weak. While there are some fresh arrivals, those bookings were made before the incident. As of now, we have not received any new bookings," he said, adding, "There have been some enquiries for June, but no confirmations yet."

Echoing similar concerns, GM Dug of Hotel Pine Grove in Srinagar said that fresh bookings have dried up. "May and June usually contribute to about 60 per cent of our yearly tourism," he said. "People from Maharashtra, Madhya Pradesh, and Gujarat usually flock to the Valley, but things are different now—it’s a bit difficult for hoteliers."

Acknowledging the financial hit, Chapri said they have started issuing credit notes to visitors, allowing them to adjust their payments if they choose to visit within the next six to seven months.

Dug added that while the situation remains tense, many tourists already in Kashmir chose to continue their plans despite families urging them to return. "More than the tourists themselves, their families were concerned. Some returned immediately after the incident, while others stayed on," he said. Chapri predicts a long road ahead, saying, "It will take at least two months for the Valley to get back to its normal state.”

Tour Operators Grapple With Cancellations

The ripple effects can be felt by local operators based in Kashmir, too. Shahid Rah, who runs Experience India Tours & Travel Limited in Srinagar, noted that the attack led to immediate cancellations. "Business was finally picking up with April, May, and June as the peak seasons," he said. "Now, we are seeing cancellations. Tourist footfall is there, but not at the expected scale."

Rah added that around 80–85 per cent of bookings for April and May have been cancelled. However, the numbers seem hopeful for June, with cancellations limited to 10–15 per cent. Many, he notes, have been calling to check if the hotels are operational and are enquiring whether the situation has stabilised. 

While the domestic footfall has been severely impacted, inbound international tourism has remained relatively unaffected. "Most international tourists are from Germany. They usually visit Srinagar or Sonamarg, and often head towards Ladakh. They typically avoid South Kashmir, so we haven't seen many cancellations from them," Rah said, adding that the inbound season is expected to take off properly by mid-June.

Tour Operators Outside Kashmir Remain Hopeful

While Kashmir-based operators face the worst brunt, travel agencies operating from outside the Valley are faring better. Ved Khanna, President of the Association of Domestic Tour Operators of India (ADTOI), acknowledged that the situation is challenging. "Local tour operators from the Valley are certainly the worst hit. However, those operating from outside still have clients willing to go to other destinations," he said.

Govind Gaur, founder and CEO of WanderOn, a Gurugram-based travel agency, shared that guided tours continue in Pahalgam, albeit with lower footfall. "So far, we have not received a single cancellation request. Around 80 to 100 tours to Jammu and Kashmir are planned over the next two months," he said, assuring that safety measures are in place for their groups.

While earnings will undoubtedly be affected, Khanna hopes that the upcoming Amarnath Yatra might improve the situation. "As an association, we extend full support to the tour operators. Though we can't provide financial assistance right now, we are backing them in every other way," he added.

Notably, Civil Aviation Ministry has directed airlines to maintain regular fare levels and refrain from surge pricing. Secretary of the Travel Agents Federation of India, Dinesh Kumar, said, "Passenger footfall has reduced in Kashmir. We have requested that airlines waive cancellation fees." At the time of publishing, the fares remain reasonable—about INR 11,000 for a round-trip, which is standard for regular days.

Kumar emphasised the need for patience. "This is an unforeseen situation. Earnings will be affected, but we need to wait for things to settle down," he said.