AAHOA expressed solidarity with the victims and their families
India's Pahalgam town in the state of Jammu and Kashmir is gradually returning to normal seven days after a terror attack on April 22 that killed 26 people, mostly tourists, with the valley now reopened to domestic and international visitors. Kashmiri traders held a candlelight vigil to denounce the gunmen attack. Photo by Yawar Nazir/Getty Images
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
Pahalgam 2025: Terror Attack Disrupts Kashmir’s Tourism Boom
INDIA’S PAHALGAM TOWN in the state of Jammu and Kashmir is gradually returning to normal seven days after a terror attack on April 22 that killed 26 people, mostly tourists. However, the Jammu and Kashmir government will shut down about 50 tourist spots and trekking trails in the Valley over security concerns, even as tourism remains a key revenue source for the state.
A group of terrorists emerged from the dense forests around the Baisaran meadows in the upper reaches of Pahalgam, a picturesque Himalayan town in the city of Anantnag often called the "Switzerland of India," and opened fire on tourists at the site, according to the BBC.
U.S. President Donald Trump condemned the incident, stating that America stands with India against terrorism.
"Deeply disturbing news out of Kashmir. The United States stands strong with India against terrorism. We pray for the souls of those lost and for the recovery of the injured. Prime Minister Modi and the incredible people of India have our full support and deepest sympathies. Our hearts are with you all," Trump said.
U.S. vice president J.D. Vance, accompanied by Indian-origin Second Lady Usha Chilukuri and their three children — sons Ewan and Vivek, and daughter Mirabel — were on a four-day visit to India starting April 21, when the attack took place.
In a post on X, Vance, who was then in Rajasthan, expressed solidarity with the victims and their families.
"Usha and I extend our condolences to the victims of the devastating terrorist attack in Pahalgam, India,” he wrote. “Over the past few days, we have been overcome with the beauty of this country and its people. Our thoughts and prayers are with them as they mourn this horrific attack."
AAHOA also expressed solidarity with the victims and their families.
“We abhor all acts of violence, and this particular tragedy is especially heartbreaking for our community of hoteliers,” the association said. “The attack occurred in a region known for its natural beauty and tourism, impacting not only the lives of innocent travelers but also hoteliers, hospitality workers, and local businesses who rely on tourism for their livelihoods. Our hearts go out to all those affected by this heinous act. We send our deepest condolences to the victims' families and loved ones, and we hope for healing for those injured and traumatized.”
The Jammu and Kashmir government has shut 48 of the region’s 87 tourist destinations and boosted security at the rest, Reuters reported, citing a government document.
Tourism impacted, but not stopped
Tourism remains one of Kashmir’s major economic drivers, with signs of faster growth this year. The industry supports thousands of people across the region, with more than 4,000 hotels reported in the state. In the first three months of 2025, more than half a million tourists visited Jammu and Kashmir, following approximately 2.95 million visitors in 2024, up from 2.71 million in 2023 and 2.67 million in 2022, according to media reports, citing official data.
Comparing the situation to the 2019 Pulwama terror attack, which killed 40 Central Reserve Police Force personnel, domestic and international travel agents are likely to avoid Kashmir as a holiday destination in 2025, unless there are signs of a truce between India and Pakistan, as in 2019, MoneyControl reported.
Tourism in Jammu and Kashmir sharply declined in 2019 following the Pulwama attack and the abrogation of Article 370. According to the Ministry of Tourism, average monthly tourist arrivals dropped to around 7,000–8,000 in 2019, down from about 30,000 in 2018. A similar drop in 2025 is expected if military tensions persist. The Kashmir Hotel Association reported 80 percent cancellations of tourist bookings after the Pahalgam attack.
Visitors from Kolkata and Bengaluru told India Today they remain confident about the region’s safety and are proceeding with their travel plans, including visits to Pahalgam.
"Kashmir is safe now, everything is open, tourists are safe, everyone is coming, so please do come if you have plans," a tourist from Kolkata, standing beside a packed van, was quoted as saying in the report.
Mohammad Anas, a tourist from Surat, Gujarat, told ANI that business in Pahalgam is continuing as usual.
"There is nothing to worry about," he said. "The Army, government, and locals are with us and ensuring our safety. We were scared after the incident and wanted to leave immediately, but the locals and Army motivated us to continue our trip."
Foreign nationals also did not feel fearful or uncomfortable after the attack, with frequent visitors noting that hospitality remained unchanged.
"We have been here for 3–4 days and feel very safe," said a woman from Croatia, according to India Today. "Your country is beautiful, and we have had no problems. Kashmir is beautiful and safe. People are very kind. We heard about the incident a day before arriving but came anyway. We are feeling safe."
Another tourist from Croatia said incidents like the one in Pahalgam can happen anywhere.
"I felt wonderful here," he told ANI. "I made so many friends. People are very welcoming. It's not easy to hear about something like that, but I didn't feel any fear or discomfort. It's not something that happens regularly; it happens occasionally and everywhere. There is no completely safe place in the world."
Here is afull list of shuttered tourist destinations in Kashmir.
India is known for its "Atithi Devo Bhava" philosophy, meaning "The guest is God," but a Canadian man, when asked to choose between India and Pakistan for better hospitality, chose Pakistan without hesitation.
Most changes took effect Sept. 22 to ease taxes and improve cash flow.
Delhi recently dropped police-issued license requirement for hotels.
THE FEDERATION OF Hotel and Restaurant Associations of India said the country’s new goods and services tax framework on hotels with room tariffs below $84.75 would have an adverse impact. The association, representing more than 100,000 members, urged the government to reinstate input tax credit.
The 56th GST Council’s tax reduction is part of broader reforms introducing a two-slab structure: 5 percent for mid-market services and 18 percent for standard services, with a 40 percent rate for super-luxury, sin and demerit goods. Most changes took effect from Sept. 22, aiming to reduce the consumer tax burden, improve business cash flow and simplify compliance through automated refunds and registration.
Hotels with tariffs below $84.75 face a 5 percent levy without ITC under GST 2.0, which allows businesses to offset tax paid on purchases against tax collected on sales, preventing double taxation, The Tribune reported.
FHRAI said the withdrawal of ITC has raised costs on rentals, utilities, staff and capital spending. It said that hotels in tier II and III cities have been hit hardest, discouraging investment and slowing domestic tourism growth.
Surendra Kumar Jaiswal, FHRAI president, urged government intervention to protect an industry that supports over 60 million jobs and anchors India’s service economy.
“Our industry is one of the largest generators of employment and a key driver of India’s service economy,” Jaiswal said, according to The Tribune. “But the GST framework without ITC has created inequities that threaten our competitiveness.”
He also raised the issue of “copyright harassment,” where hotels and restaurants face overlapping royalty demands from multiple societies, creating legal and financial strain. He called for clearer definitions of society roles and safeguards against unjust litigation.
Jaiswal said the association seeks infrastructure and industry status for the hospitality sector to unlock low-cost credit and promote balanced regional development, especially in smaller towns.
“We are not seeking concessions, but fairness, clarity and parity,” he said. “By restoring ITC, resolving copyright ambiguities and granting infrastructure and industry status, the government can empower hospitality to support the vision of Viksit Bharat 2047.”
Delhi recently removed the requirement for police-issued licenses for hotels, motels and guest houses, a move welcomed by the Hotel Association of India.
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Airbnb contributed $1.45 billion to India’s GDP in 2024, according to Oxford Economics.
Top international sources were the U.S., UK, Canada and Australia.
Non-urban destinations accounted for 16 percent of gross booking value.
AIRBNB CONTRIBUTED $1.45 BILLION to India’s GDP in 2024, supported more than 111,000 jobs and generated $308 million in wages, according to Oxford Economics. North American guests made up nearly half of international Airbnb arrivals and 4 percent of all Airbnb guests in the country.
Oxford Economics’ report, “The Economic Impact of Airbnb in India,” found domestic travelers drove growth, making up 91 percent of Airbnb guests in 2024, up from 79 percent in 2019.
Top international sources were the U.S., UK, Canada and Australia.
Airbnb accounted for 0.5 percent of India’s travel and tourism GDP and 0.2 percent of tourism employment, about one in every 417 jobs, with guest spending of $1.45 billion, the report found. Non-urban destinations made up 16 percent of gross booking value, tripling since 2019, reflecting rising interest in rural and lesser-known locations.
Employment benefits included 38,000 jobs in transport and storage, 19,600 in food and beverage, 16,800 in wholesale and retail and 10,700 in manufacturing, it said.
IHCL and Cemtac are developing a 64-key Gateway hotel in Pahalgam.
An April terror attack in Pahalgam killed 26 people, mostly tourists.
This will be IHCL’s seventh hotel in the state, including the one under development.
TATA’S INDIAN HOTELS Co. Ltd. and Cemtac Cements are developing a 64-key Gateway hotel in Pahalgam, Jammu and Kashmir. This is IHCL’s seventh hotel in statement, including the one under development.
The hotel will include a heated pool, health club and 2,000 square feet of banqueting facilities, the companies said in a statement.
“Pahalgam’s landscapes and cultural heritage make it a compelling destination across leisure, spiritual, adventure and eco-tourism segments,” said Suma Venkatesh, IHCL’s executive vice president for real estate and development. “This signing aligns with our strategy to invest in destinations with scenic appeal and a strong tourism ecosystem.”
A major terror attack in Pahalgam on April 22 killed 26 people, mostly tourists.
“We are thrilled to collaborate with IHCL to bring the Gateway brand to Pahalgam,” said Riaz Ahmad Panjra, Cemtac Cements’ managing director. “This partnership reflects our shared vision to enhance hospitality in the region while showcasing its natural and cultural richness.”
Cemtac Cements, founded in 2008, is a brand in Jammu and Kashmir. Beyond cement, Panjra owns multiple hotels in Srinagar and Pahalgam and has investments in agriculture, diversifying his business portfolio.
Trump’s 50 percent tariff on Indian goods took effect on Aug. 27.
Hospitality businesses in both countries could be hit.
U.S. treasury secretary calls the India-U.S. relationship “very complicated” but expects resolution.
PRESIDENT DONALD TRUMP’S 50 percent tariff on Indian goods took effect Wednesday, while Prime Minister Narendra Modi urged citizens to follow the “Vocal for Local” policy and Swadeshi mantra in his Aug. 15 Independence Day address. Beyond exports such as textiles, the U.S. measure is likely to affect travel, tourism and hospitality in both countries.
The Global Trade Research Initiative told the Financial Times that Indian exports to the U.S. could fall from $86.5 billion this year to about $50 billion in 2026. Textiles, gems, jewelry, shrimp and carpets are expected to be most affected, with exports in these sectors projected to drop 70 percent, “endangering hundreds of thousands of jobs.”
Meanwhile, India also began outreach programs in 40 markets, including the UK, Japan and South Korea, to increase textile exports, Economic Times reported. Officials said 40 select markets, including the UK, Japan, South Korea, Germany, France and Australia, “hold the real key to diversification.” These countries import more than $590 billion in textiles and apparel annually, while India’s current share is around 5 to 6 percent.
‘Trade embargo’
The duties, 16 percentage points higher than China, 31 points higher than most Southeast Asian countries and 35 points above South Korea, have raised U.S. tariffs on Indian goods to levels Nomura described as a “trade embargo,” the Guardian reported.
However, the U.S. hotel associations, including the AAHOA and the American Hotel & Lodging Association, have not commented, though the tariffs raise costs for imported furniture, textiles and kitchen supplies. Higher costs may also increase guest prices, delay renovations and reduce profitability.
The tariff increase may also affect U.S. companies operating in India, including Hilton Hotels & Resorts, Marriott International, Wyndham Hotels & Resorts and Choice Hotels International, all of which have announced expansion plans. Tesla recently opened an outlet in Mumbai.
‘Vocal for Local’
Prime Minister Narendra Modi urged traders and shopkeepers to follow the “Vocal for Local” mantra and buy Indian products, saying this will keep money within India, The Hindu reported.
“Have faith in Indian goods. If you are Indian, buy only goods made in India. Choose items made in India, by Indians,” he said at an event in Delhi. “I want to appeal to my fellow traders and shopkeepers: support me in following the mantra of ‘Vocal for Local’. This will benefit the country and the money spent on the goods you sell will stay within India.”
Modi also highlighted India’s progress in manufacturing, saying 11 years ago the country imported most phones.
“Today, the majority of Indians use Made in India phones,” he said. “Each year we produce 30–35 crore mobile phones and we are also exporting them.”
On Independence Day, Modi emphasised self-reliance under Atmanirbhar Bharat across defence and energy, with initiatives in solar, hydrogen and nuclear power. He announced a Reform Task Force to boost economic growth, reduce red tape, modernise governance and prepare India for a $10 trillion economy by 2047.
Howdy Modi backfires
Congress MP Manickam Tagore criticised Modi over the “Howdy Modi” event, saying India has suffered export losses after the U.S. imposed the double tariff.
“Modiji, remember your slogan ‘Abki Baar, Trump Sarkar’?” he wrote on X. “Today, that ‘friendship’ has cost India Rs 2.17 lakh crore in export losses as the U.S. imposes a 50 percent tariff. Your PR politics = India’s economic disaster.”
Tagore said farmers, MSMEs and exporters are bearing the brunt.
“Farmers, MSMEs and exporters are affected: textile exports from Tiruppur, Surat, and Noida face 5 lakh job losses; the gems and jewellery sector is losing 2 lakh jobs; 3 million livelihoods of Andhra Pradesh shrimp farmers are at risk,” he said. “All due to Modi’s failed diplomacy and slogans abroad.”
‘U.S.-India will unite’
U.S. Treasury Secretary Scott Bessent described the India-U.S. relationship as “very complicated” but expressed hope that “at the end of the day, we will come together.”
“President Trump and Prime Minister Modi have good relationships at that level,” he said in an interview with Fox Business. “And it’s not just over Russian oil. India is the world’s largest democracy, and the U.S. is the world’s largest economy. I think at the end of the day, we will come together.”
The former Marriott executive received the Bharat Gaurav award.
The appointment follows the Accor-InterGlobe joint venture formed earlier this year.
Ranju Alex is Accor Ltd.’s new CEO for South Asia, which includes India, Bangladesh, Pakistan and Sri Lanka. She will lead the company’s business and growth strategy in the subcontinent.
Alex, who joined Marriott International in 2010, served as regional vice president for South Asia, overseeing 170 hotels. The appointment follows the formation of the Accor-InterGlobe joint venture earlier this year, led by Chairman Gaurav Bhushan, to open 300 Accor hotels in India by 2030.
“We are pleased to welcome Ranju to the Accor and InterGlobe family,” said Bhushan. “She brings deep experience, skills, and relationships to our business, and we look forward to building a leading hospitality platform in the region under her leadership.”
Alex began her career with The Oberoi Group in 1993 and held leadership roles at Marriott for more than three decades. She received the Bharat Gaurav award for her contributions to the industry.
“I am delighted to be joining Accor, a company with a comprehensive portfolio of brands in the region,” she said. “It is an honor to take on this role and deliver the Group’s vision in South Asia.”
Accor operates more than 70 hotels in the region and has more than 30 in the pipeline.
Meanwhile, the Accor/Interglobe JV is the exclusive growth platform for the brand’s portfolio in India, focusing on expansion and services for Indian travelers. InterGlobe, parent of IndiGo, is led by Group Managing Director Rahul Bhatia.
City councilman criticized for anti-Indian comments