Page 70 - Connect 2024-25

The Brunt of Kashmir’s

Status Change on Tourism

Isha Gajbhiye, PGDM II

On August 5, 2019, the Government of India revoked
the special status of Jammu and Kashmir under Article
370 of the Indian Constitution. This move effectively
abolished the state’s separate constitution and
reorganized it into two union territories: Jammu and
Kashmir, and Ladakh. This noteworthy political change
has had sweeping consequences, including notable
impacts on the region’s tourism industry.

Pre - 2019 Tourism potential tourists cited security concerns
Before the status change, Kashmir was often referred as the primary reason for postponing or
to as “Paradise on Earth” due to its breathtaking canceling their trips to Kashmir.
landscapes, including the famous Dal Lake, snow-
capped mountains, and lush valleys. According to the Infrastructure Changes
Jammu and Kashmir Tourism Department, the region The reorganization of the region has led to
welcomed approximately 1.7 million tourists in 2018, new infrastructure development plans. The central
including both domestic and international visitors. The government announced a ₹80,000 crore development
tourism sector contributed significantly to the local package for Jammu and Kashmir in 2020, with a
economy, accounting for about 7% of the state’s GDP. significant portion allocated to improving tourism
infrastructure. This includes the development of new
Immediate Effects tourist circuits, the upgrade of existing facilities, and the
The immediate repercussion of the status change was enhancement of transportation networks.
a sharp decline in tourist arrivals. According to a report Economic Impact
by the Kashmir Chamber of Commerce and Industry, The tourism downturn has had a cascading effect on the
the region suffered an estimated loss of ₹15,000 crore local economy. A report by the Centre for Monitoring
in the first three months following August 2019. The the Indian Economy (CMIE) estimated that about
tourism sector was one of the hardest hit, with hotels 144,500 jobs were lost in the tourism and handicrafts
reporting occupancy rates dropping to near zero. sectors between August 2019 and December 2020.
The houseboat industry, a symbol of Kashmiri tourism,
Security Concerns reported a 90% decline in business during the same
The status change was accompanied by amplified period.
security measures, including restrictions on movement
and communication blackouts. These actions, while Domestic vs. International Tourism
temporary, considerably impacted tourists’ perceptions The impact on domestic and international tourism
of safety in the region. A survey conducted by a has been different. While global tourism saw a sharp
leading travel agency in late 2019 found that 84% of decline, domestic tourism has shown signs of recovery,
particularly after the easing of COVID-19 restrictions.

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