MC EXCLUSIVE Kashmir tourism begins to rebound after Pahalgam attack, boosted by affordable travel, improved connectivity

Tourism is the mainstay of the economy of Jammu and Kashmir and the recent recent terrorist attack targeting of tourists has sent shock-waves throughout India.

Just a couple of months after new hotel openings in Jammu and Kashmir had taken a hit due to the terror attack in Pahalgam, the picturesque valley, often called 'Paradise on Earth,' is beginning to see the first signs of a tourism revival.

Even Jammu and Kashmir's Chief Minister Omar Abdullah, on June 22 expressed satisfaction over the revival of tourism in Kashmir through a post of social media, saying that "The last time I was in Pahalgam I cycled through a market that was all but deserted."

"Today I came back to a Pahalgam that was bustling with activity. Tourists from various parts of the country competed for space with local picnickers who were enjoying the cool climate & rainy weather," Abdullah said on June 22.

Signs of revival 

Last year, the government said 23.6 million tourists visited Jammu and Kashmir, with 3.49 million visiting the valley. While officials from the Department of Tourism said that it would be too early to come out with an estimate for tourist footfalls for 2025, they do expect the decline in visitors to taper significantly when compared to a month ago.

The region is on a slow path to recovery, with pockets of interest, but travellers are still weighing their options carefully," noted Manjari Singhal, Chief Growth and Business Officer, Cleartrip.

"We’re seeing a mixed travel sentiment around Kashmir this June. Compared to April, airfares have dropped by almost 40 percent, and bookings are down by 30 percent. Versus mid-May, fares have gone up by 4 percent, but bookings continue to remain 30 percent lower," she said.

After April expectations were that tourism for the current summer season in Kashmir was over and people should start waiting for next year, however, we now see that sentiment changing very quickly," a senior government official said.

Tourism is the mainstay of the economy of Jammu and Kashmir and the recent terrorist attack targeting tourists has sent shock-waves throughout India. The government had shut down 48 tourist destinations in the valley and two-thirds of them still remain shut. However, officials are optimistic that many more destinations will be opened up in the next few weeks.

The optimism of Kashmir's tourism revival was not only limited to its political leaders and government officials, domestic travel  operators, airlines, hotel owners and shikara owners' Moneycontrol also expressed optimism for tourists coming to Kashmir for the remaining summer season in 2025.

"We are seeing a significant surge in both domestic and international inquiries. In contrast, during the India-Pakistan tensions, there was a sharp decline in bookings, with many travellers postponing or cancelling trips due to safety concerns. Tour operators saw a 40–60 percent dip in inquiries during that time. Fortunately, recovery was quick once the situation normalised," said Sandeep Arora, director, Brightsun Travel.

Govind Gaur, CEO, WanderOn is also witnessing interest from some domestic travellers to visit the valley and is expecting the numbers to increase in the next few months. “During the India -Pakistan tensions, the valley witnessed mass cancellations by tourists, there was hardly any travel query or interest for the valley, we are witnessing some movement now,” he added.

Similarly, executives from domestic airlines also told Moneycontrol that footfalls to Srinagar and Jammu have risen significantly in the last few weeks. He added that while May 2025 had seen a 70 percent decline in passenger footfalls to Kashmir when compared to April 2025, the numbers for June 2025 suggest a 30 percent rise when compared to May 2025.

"As demand grows the number of flights to Kashmir will also pick up in the next few months. We are optimistic of at least another 10 percent rise in passenger footfalls to Kashmir in July and August," the executive said.

More affordable and accessible

Travel agents are optimistic that going forward travel will be much more accessible and will also help restart tourism thoughtfully and sustainably, as flight fares continue to remain modest and so do hotel rates.

"Airfares to Srinagar are relatively moderate at the moment, with return fares from Delhi costing around Rs 9,000 per person. Summer is the peak tourist season in Kashmir, so a slight uptick in fares especially for last-minute bookings is typical. However, this year fares have remained fairly stable as tourists return back to the valley." Arora told Moneycontrol.

He noted that during the India-Pakistan tensions, he saw a lot of cancellations, and many travellers were hesitant to plan holidays in Kashmir. "While flight operations continued uninterrupted, demand dropped sharply due to safety concerns, leading to lower hotel occupancy and fewer bookings overall. This year, summer tourism has been comparatively low."

With stability now restored, we’re seeing renewed interest, and a rebound in tourism is expected as traveller confidence gradually returns, he added.

For domestic routes, ticket prices are ranging around Rs 4,500–7,000, noted Gaur. "This is a decline from previous months when fares had touched Rs 22,000. International travellers are seeing round-trip deals at around Rs 66,000."

He pointed out that flights to Srinagar dropped from 50 to just 15 per day with fares plummeting from Rs 22,000 to as low as Rs 3,500 due to mass cancellations and fear among tourists during the India-Pakistan tensions. "Several airports during that time were temporarily shut down, the air connectivity to Kashmir was also disrupted. However, the situation improved over the last month and we assume things will normalize even further, by the end of this quarter."

He added that hotel prices are varying significantly across different locations, influenced by the demand in travel. “The rates have dropped by 50 percent; many hotels are also promoting offers, making it convenient for the travellers to find competitive deals. At this moment, the occupancies are low; the good part is that there is at least some movement now, Gaur said.

It's currently more affordable than ever to visit Srinagar, Arora noted.

“Many hotels are offering discounts and exclusive deals to attract tourists back to the valley. Mid-range hotels are priced between Rs 3,000 and Rs 6,500 per night, while luxury resorts typically range from Rs 7,000 to Rs 15,000 or more per night. Budget accommodations are also widely available, making it accessible for all types of travellers," he said.

Hotel rates across Srinagar, Gulmarg, and Sonamarg have eased, with premium stays now offering flexible pricing, Hari Ganapathy, Co-Founder, Pickyourtrail said.

The current average hotel booking value per person is Rs 4,758, with room rates averaging around Rs 4,442, noted Singhal. "However, occupancy remains muted across Srinagar, Sonamarg, Hajan Valley, and Gulmarg."

She added that while both flights and hotels are seeing lower volumes, hotels seem to be holding up slightly better. "Average hotel rates are up 9 percent, and bookings have seen moderate increase, indicating that travellers who are choosing to go may be staying longer or opting for more premium experiences."

Infra ungrade

Fueling the recovery in the Valley’s tourism are the opening of Zojila Tunnel and the launch of Vande Bharat to Jammu, Katra and onward to Srinagar.

"The opening of the Zojila Tunnel has significantly improved accessibility between Ladakh and Kashmir, reducing travel time and making multi-destination trips more appealing.
Plus, the launch of Vande Bharat has made travel faster and more comfortable, encouraging tourists from northern states to choose Kashmir as a convenient getaway. These infrastructure developments have positively influenced both interest and actual bookings," Arora said.

Gaur noted that these infrastructure developments have certainly made an impact, though modest, to start with. “Enhanced connectivity through the Vande Bharat trains, especially the scenic route over the Chenab Bridge and improved road access via the Zojila Tunnel have made travel more convenient and are being widely promoted. However, a significant rise in tourist footfall is yet to be seen, largely due to lingering safety concerns. That said, as the situation stabilizes, these infrastructure developments will play a pivotal role in attracting more visitors to the region.”

He also highlighted the state of houseboats where occupancy remains low currently. “Srinagar and Sonamarg are well below typical summer season levels of 70–80 percent; in Gulmarg and Hajan Valley too, steep discounts are offered to pull in consumers.

Sharing similar sentiments, Ganapathy said that occupancies in houseboats are averaging around 30–40 percent in Srinagar and dropping further in Sonamarg and Hajan. "That said, there’s steady movement in segments like houseboats and curated family stays, and we’re seeing weekend travel and last-minute interest begin to pick up."

Arora is counting on the upcoming Amarnath Yatra.

"With the Amarnath Yatra set to begin on July 3, we’ve already seen an increase in bookings, as many pilgrims prefer to arrive early to acclimatise and prepare for their journey. Srinagar, in particular, is seeing strong demand for houseboats and hotels, while Sonamarg and Gulmarg are also experiencing steady occupancy, boosted by both leisure tourists and pilgrims," he said.

Impact of the Pahalgam attacks on Kashmir tourism 

After the deadly terrorist attack at Baisaran Valley in Pahalgam on April 22, 2025, which killed 25 tourists and a local pony operator, visitor numbers plummeting by 95 percent.

The dramatic decline had left the region's tourism infrastructure virtually empty, with all registered hotels across Kashmir currently vacant except for just 200-250 tourists remaining in the entire Kashmir Valley, according to senior officials from the Department of Tourism.

Official data by the Airports Authority of India shows that both air traffic and passenger footfall to Srinagar International Airport have plunged by a near 50 percent, as concerns over safety continue to deter potential visitors.

On April 21, Srinagar the airport managed 104 flights (52 coming in and 52 going out) and serving 19,641 passengers. Out of those, 9,640 people arrived in Srinagar while 10,001 passengers left the Valley. However, by June 11, the number of flights dropped to just 50 (25 arrivals and 25 departures), with only 7,762 passengers processed that day—over 60 percent lower than before the attack. There were 4,438 arrivals and 3,328 departures.

In April, president of the shikara owners' association Haji Wali Mohammad Bhat had said, the Dal Lake boulevard was packed with thousands of tourists, there were daily traffic jams and many complained they were finding it hard to get accommodation, but after the deadly terrorist attack visitor numbers plummeting by 95 percent.