Tourism Sector Battles Silent Crisis In Kashmir As Debt Threat Looms After Pahalgam Terror Attack

Srinagar: As tourists fled Kashmir following the April 22 Pahalgam attack that brought India and Pakistan on the brink of full-blown war, the tourism sector almost collapsed overnight. But behind the empty hotels and houseboats is a silent mental crisis that has started to unfold in Kashmir.

Psychiatrists say they have seen a noticeable uptick in the footfall of patients with multiple symptoms whose livelihood was dependent on tourism. Over the last two weeks, about 20 per cent of the patients visiting Kashmir’s Institute of Mental Health and Neurosciences (IMHANS) under the government’s Psychiatric Diseases Hospital in Srinagar have been people who are tied to tourism, and they expect their number to grow, according to three senior doctors.

Dr Yuman Kawoos, assistant professor at IMHANS, confirmed to ETV Bharat that the economic collapse following the attack has left many emotionally depressed. “Financial issues usually impact mental health, but when the losses are heavy, many are not able to cope,” she said. “We see people from the tourism sector complain of varied symptoms like depression, anxiety, panic attacks and behavioural issues, even bouts of anger and aggression within their families,” she said.

She noted that some patients have returned to their clinic after more than a decade following the abrupt collapse of tourism in the region. The shutdown has devastated thousands of people since the Pahalgam terror attack that killed 25 tourists and a local pony operator, followed by Operation Sindoor in retaliation by India targeting terror hubs in Pakistan. In its wake, more than 90 per cent of tourist bookings have been cancelled, and tourism, which contributes 6 per cent to the gross domestic product, is now closed.

Pahalgam market (ETV Bharat)

Dr Kawoos said that some patients expressed their feelings of hopelessness, self-blame or even self-harm. “They feel frustrated and don’t know how to react to the situation they are going through,” she added. In addition to medication, doctors recommend psychotherapy sessions for restoring emotional balance and confidence.

But the crisis is likely to deepen as many couldn’t reach to hospital due to limited ground and air battle between India and Pakistan, prompting people to stay indoors. “Many were not able to reach the hospital,” said Dr Junaid Nabi, another senior psychiatrist at IMHANS, who has treated a few patients from the tourism sector.

“Only one patient expressed suicidal thoughts after losing all bookings from tourists. Others had become aggressive or anxious. For many, their families too suffer due to the situation,” he added. Jammu and Kashmir has been brimming with tourists for the past four years due to a decline in militancy after the abrogation of Article 370 in 2019. Official data showed the region saw a record arrival of 34.98 lakh tourists in 2024, up from just 6,65777 in 2021. Over 43,600 were foreigners, corresponding to 1614 in 2021.

This surge encouraged many to take out loans from lending institutions to invest in tourism infrastructure like hotels and vehicles. Imad Ahmad, a hotelier and a young investor in Srinagar, is among those now struggling. He had invested over Rs 5 crore in three hotel properties, including newly renovated huts and a hotel in Pahalgam.

“The group never arrived. I had spent six months on the renovations after taking the hotel on lease,” he said. The rug now lies untouched, and the hotel shuttered. “I could not sleep for a week. I had to take antidepressants to stay calm.”

Ahmad says he has to consult a doctor for a stress-related nerve issue, but has not told his family. He is not alone. More than 27000 commercial vehicles had been purchased in Kashmir in these years, according to Kashmir Chamber of Commerce and Industry (KCCI), with over 90 per cent of them financed through bank loans.

“We are aware of the large-scale loan of people affiliated with tourism,” said KCCI president Javid Ahmad Tenga. He, alongside his colleagues, met the key lender J&K Bank chairman, to find a way out to avoid loan default. “The despair is affecting not just transporters but hoteliers and allied sectors like handicrafts and general trade as well.”

Before the attack, over 10000 tourists were arriving in Kashmir by air and road with hoteliers and travel operators expecting a record tourist season as the bookings were stretched through June. The Jammu and Kashmir Tourism Policy 2021 had set ambitious targets, including Rs 2000 crore annual investments and creation of 50000 jobs per year.

Abdul Rashid Teli, a hotel operator from Anantnag, borrowed Rs 17.5 lakh from a bank and Rs 5 lakh from relatives to lease a hotel in Pahalgam. The property was fully booked for two months starting in April.

But for him, it is more about the promise that worries him as he feels it can dent his credibility among relatives whom he promised to return money by June. “Now I don’t know how I will manage. I stay up at night thinking about it,” he said, leaving not only an economic but psychological void.“The hotel was the only source of my income. Now I have nothing. I don’t know how to run my family of four, including my two college-going daughters and a son”