The ripple effects of the recent Pahalgam Attack, Jammu & Kashmir, are shaking the foundation of India’s tourism economy. With 26 civilians killed in a targeted assault, what was once a summer dream destination has turned into a nightmare for both travellers and travel-based startups. The incident has sparked unprecedented cancellations, grounding not just planes but livelihoods across India’s burgeoning travel-tech ecosystem.
Pahalgam Attack: Tourism Numbers in Free Fall
The numbers paint a grim picture:
- 90% of Kashmir-bound bookings have been cancelled, according to travel agencies in Delhi.
- A survey conducted by LocalCircles found that over 60% of planned visitors are scrapping their trips altogether.
- 15,000+ flight cancellations or reschedules were recorded by Indian airlines flying to Srinagar in the wake of the attack.
- By mid-week, the Indian Association of Tour Operators (IATO) reported that 35% of all Kashmir travel bookings had already been cancelled, and that number is growing by the hour.
A Nightmare for Travel Startups
For India’s thriving travel startup scene home to brands like MakeMyTrip, EaseMyTrip, Goibibo, Ixigo, and newer entrants focused on experiential or adventure tourism, this disruption couldn’t have come at a worse time.
April to July is peak season in Kashmir, and early summer bookings are usually secured months in advance. With these cancellations:
- According to industry insiders, revenue losses for travel aggregators are estimated in hundreds of crores if the trend continues through May.
- Startups that bank on customized itineraries and last-mile logistics in the region treks, homestays, guided tours are particularly hit, with as much as 80% revenue drop projected for Q2 2025.
- Refund requests have skyrocketed. Companies like Cox & Kings and MakeMyTrip have introduced no-questions-asked 100% refund policies to prevent long-term reputational damage.
Collateral Damage: Airlines, Hotels, Local Hosts
- Weekly passenger traffic to Srinagar from other Indian cities was 60,000 to 70,000. A 15,000-cancellation figure in less than 48 hours means 1 in 4 tourists have backed out already.
- Hotel occupancy rates in Srinagar, Gulmarg, and Pahalgam have plummeted to single digits, forcing many properties to waive cancellation charges as per directives from the Union Tourism Ministry.
- OTAs (Online Travel Aggregators) are now diverting resources toward customer support teams and refunds, rather than growth or innovation.
Psychological Shift: Safety vs. Scenery
While Jammu & Kashmir has endured political volatility before, this attack’s brutality and its proximity to tourist zones like Pahalgam has created deep emotional aversion among travelers.
As one tourist from Pune told ThePrint, “All I’ll think about is this is where the attack happened.”
The Road Ahead: Can Tourism Recover?
The government is attempting damage control. Union Tourism Minister Gajendra Singh Shekhawat said they are “in touch with stakeholders” and committed to minimising long-term damage. However, sentiment suggests recovery may take months, especially if security concerns persist during the Amarnath Yatra in June.
Tourism associations are urging travel startups not to exit the Kashmir market, citing long-term opportunity, but caution that new investments and ad spends will likely freeze for the next two quarters.
A Sector on the Edge
In the wake of Pahalgam, India’s tourism sector, particularly in Kashmir faces a dual crisis: economic loss and emotional distrust. Travel startups, built on agile models and digital traction, now face the classic dilemma of whether to weather the storm or reroute entirely.
For a sector that thrives on dreams, Pahalgam has become a chilling reminder of how swiftly they can be deferred.
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