Kashmir Tourism Sector Faces Economic Strain as Key Destinations Remain Closed

Nearly two dozen tourist destinations and several trekking routes in Kashmir remain closed 18 months after the Pahalgam terror attack. The ongoing closures have left vendors, guides, and other tourism-dependent workers struggling to make ends meet, resulting in lost income for a second consecutive season.

The security review and subsequent closures followed an attack on April 22, 2025, at Baisaran meadows near Pahalgam, where 26 people were shot dead. Authorities initially shut 48 tourist destinations in the region. Although 25 destinations were later reopened in phases, several prominent spots remain off-limits to visitors, prolonging the financial distress of local workers.

Among the locations that remain closed are Baisaran, Aharbal, Sinthon Top, Tosa Maidan, Apple Valley in Sirgufwara, Bangus Valley, the Great Lakes Trek, and Kousarnag. Local stakeholders note that the prolonged restrictions have affected seasonal employment across the region.

Official data indicates that while tourism has gradually recovered since the attack, overall arrivals remain below pre-attack levels. The region recorded 4,37,737 tourists in the first four months of 2026, marking a 33.2 percent decline from the 6,55,080 visitors registered during the corresponding period in 2025 prior to the incident.

Local workers report significant financial hardship due to the extended shutdowns. Bashir Ahmad, a vendor at Sinthon Top, stated that he has not earned an income for two full seasons and has resorted to doing menial jobs to support his family. Similarly, tourist guides and other service providers report that subdued arrivals and continued site closures have compounded their economic difficulties.

On February 19, Chief Minister Omar Abdullah informed the Jammu and Kashmir Assembly that all closed tourist destinations would be reopened by May 2026. However, several locations remain closed following security assessments. An official stated that most destinations have reopened following reviews by the Lieutenant Governor’s administration, while certain offbeat destinations and trekking routes remain restricted pending further security evaluations.

"The prolonged closure of key tourist destinations in Kashmir highlights the acute vulnerability of local economies that depend heavily on seasonal tourism. When micro-entrepreneurs, vendors, and guides lose consecutive business seasons, it creates a ripple effect of financial distress across the community. For regional development and small businesses to recover fully, a predictable timeline for security clearances and reopening is essential to restore economic stability and investor confidence in the local tourism sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes