India’s Tourism Sector at Risk After Deadly Attack in Kashmir: Tourist Deaths and Falling Confidence

A major terrorist attack in Kashmir has shaken India’s booming tourism industry. According to The Print source, armed militants opened fire on a group of tourists in the Baisaran Valley near the resort town of Pahalgam, killing 26 people. The victims included Indian nationals and tourists from Nepal and Middle Eastern countries. Several others were injured.

Largest Civilian Attack in Years

As Reuters reports, the attack was carried out in broad daylight by men in military uniforms who ambushed tourists on a remote hiking trail. Due to the difficult terrain, rescue operations were delayed. Authorities suspect the attack aimed to damage both the region's security and its tourism economy.

The Guardian notes the attack occurred during peak season and coincided with the official visit of U.S. Vice President J.D. Vance to India. A militant group calling itself “Kashmir Resistance” claimed responsibility, framing the attack as retaliation for the Indian government’s decision to revoke Kashmir’s special autonomy in 2019, which they say led to demographic shifts.

Former Jammu and Kashmir Chief Minister Omar Abdullah described the incident as the worst attack on civilians in years. Prime Minister Narendra Modi cut short his Saudi Arabia visit and vowed swift justice. Security has since been ramped up, and a major search operation is underway.

India’s Tourism Performance

Tourism is a key pillar of India’s economy. In 2023, international arrivals reached 18.89 million, a 5.47% increase over 2019. Revenue from tourism exceeded $28 billion. By 2024, arrivals rose to 21.1 million and revenue climbed to $31.5 billion.





Top source markets included Bangladesh, the U.S., the U.K., Australia, Canada, Sri Lanka, Malaysia, Germany, Nepal, and France. India ranked 39th globally in the World Economic Forum's Travel and Tourism Development Index (TTDI) for 2024.

However, challenges remain. Moneycontrol reports that the 2025 budget for international tourism marketing was slashed by 97%, from ₹100 crore ($12M) to just ₹3 crore ($361K), prompting criticism from tourism stakeholders.

Industry Reactions & Outlook

Manjula Shetty of the Federation of Hotel and Restaurant Associations of India told Hindustan Times source:

“We cannot allow isolated attacks to undo decades of efforts to position India as a safe destination.”

Hotel operators in Jammu and Kashmir have reported booking cancellations from Delhi and Mumbai, and some properties have stopped accepting new guests.

Despite this, the World Travel & Tourism Council forecast that India’s tourism sector could grow by 7% annually in the next decade. Skift adds that international tourism could rise by 18–20% yearly, driven by short-haul travel.

Yet, current instability and budget cuts threaten these goals. Restoring trust, investing in safety, and rebooting international campaigns are now vital for India's tourism revival.