The targeted killings of tourists in Pahalgam, Jammu and Kashmir, have dealt a significant blow to the region's economy and tourism sector. The attack occurred during a period of tourism boom, with visitor numbers at a 15-year high. Over 80% of upcoming bookings have since been canceled due to safety concerns.
Tourist arrivals had been steadily increasing since 2010, correlating with a decrease in terrorism-related incidents. A peak of 3.5 million tourists was recorded in 2024, before the attack. The attack has reversed this positive trend.
The Union Territory's revenue generation had also shown improvement in recent years. However, the dependence on central grants and borrowings remains substantial. The attack is expected to negatively impact both tourism revenue and the UT's ability to generate its own revenue.
The share of civilians in militancy-related deaths in Jammu and Kashmir reached its highest in nearly two decades in 2024. The Pahalgam attack further increased this concerning trend, with civilians accounting for 56% of militancy-related deaths in 2025 (data up to April 30th).
Anantnag district, home to Pahalgam, has consistently ranked among the worst-affected districts regarding civilian deaths in militancy-related incidents over the past decade. Other districts like Baramulla, Kulgam, Pulwama, Shopian, and Srinagar have also experienced high civilian casualty rates.