News

Sales of small businesses and shops in Srinagar have taken a hit following the April 22 terror attack in Pahalgam, but the people who run these trades say that such a situation has existed earlier as well, and doesn’t pose any major financial risk to their earnings.

Between 2021 and 2023, the Kashmir Valley witnessed average annual tourist arrivals of 20.1 lakh, 80 percent higher than the 11.1 lakh seen during 2016-2018.

“Compared to April, tourists’ footfalls are down significantly, by 60-70 percent, but it seems the situation will improve soon,” said the owner of a handicrafts business at Lal Chowk, Srinagar, adding that Monday saw a slight pick-up in sales against a week earlier.

“It’s only natural that tourists will hesitate to come to Kashmir for some time following the attack, and that has a direct impact on our sales. However, it’s only a matter of time that perception changes,” Firoz Ahmad Baba, president, Central Lal Chowk Traders’ Association, told Moneycontrol. The association represents over 200 traders.

Many believe that they will get by, with some hardship, but that doesn't mean that they are taking things lying down, and in fact are vehemently opposed to the actions of the terrorists.

“We at Lal Chowk  have held many protests condemning the terrorist attack, hoping to regain the confidence of tourists that we support peace,” Ahmad added.

Lal Chowk is Srinagar's bustling commercial hub. There are over 500 shops in the area, selling Pashmina shawls, handmade carpets, jewellery, dry fruits, spices, handicrafts and the like.

On Thursday and Friday, many shopkeepers held protests in the area condemning the attack and demanding strict action against terrorists. Some also displayed black flags outside their shops, expressing their anguish over the dastardly attack.

Asfaq Hussain, the owner of a handicrafts shop at Lal Chowk, told Moneycontrol: “We’ve been witnessing higher tourism for the last three years—2022, 2023 and 2024—which has led to higher sales for us. But before that, the sales were comparatively low and we still survived.”

“I’ve been staying in Srinagar for over three decades now, and for most of my life, I’ve seen moderate tourism. So the current situation is not new,” added Hussain.

According to data from the union territory's Department of Tourism, visitor numbers in Kashmir surged to 27.10 lakh in 2023, up from 8.3 lakh in 2018. On August 5, 2019, Article 370 was abrogated by the Union government and in October, the erstwhile J&K state was divided into two union territories—Jammu and Kashmir and Ladakh.

Since then, tourism has increased significantly in J&K, especially in Kashmir, and the contribution of the tourism sector to the territoriy's gross state domestic product ( rose from 7.84 percent in 2019-20 to 8.47 percent in 2022-23.

But now there is a cloud over that booming sector. According to a recent survey by LocalCircles—an online community platform—six in 10 respondents planning to travel to Kashmir between May and December this year are likely to cancel their plans/bookings. The pan-India survey polled over 21,000 responses from 361 districts.

On April 23, Moneycontrol reported that domestic airlines in India had received requests to reschedule or cancel around 15,000 flight tickets to Srinagar in the wake of the attack. Senior executives from domestic airlines had said then that 60,000 to 70,000 passengers used to fly to Srinagar every week from across India, and that in the aftermath of the deadly terrorist attack in Pahalgam, tourist traffic to Kashmir was likely to take a hit, at least for the following fortnight.

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

${res.must_watch_article[0].headline}

Sensex Today Jammu Kashmir News Live Ather Energy IPO JNU Poll Results GIFT Nifty India Economy Apple App Store Dalai Lama TS SSC Results 2025 IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.