TOURISM IN KASHMIR: CHALLENGES OF AND OPPORTUNITIES - Bilal Ahmad Khan

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AMERICAN RESEARCH THOUGHTS
ISSN: 2392 – 876X
Available online at: www.researchthoughts.us
http://dx.doi.org/10.6084/m9.figshare.1399078
Volume 1 │ Issue 6 │ April 2015
Impact Factor: 2.0178 (UIF)
TOURISM IN KASHMIR:
CHALLENGES OF AND OPPORTUNITIES
Dr. Bilal Ahmad Khan
School of Economics, University of Indore, NAAC Accredit “A” Grade
Abstract: Tourism is not merely an activity for entertainment. It is an enriching and energizing
activity. For growth, tourism is the right vehicle. Tourisms is an important industry in the state of
Jammu and Kashmir and is regarded as multi segmented industry because provides different types of
jobs like hotel managers, receptionists, guides, tour operators, travel agents, photographers and many
other jobs. Tourism is considered to be economic bonanza for J & K state because industrial
development is very limited to hilly terrains. Being a labor-intensive industry, the scope of
employment is very vast. Kashmir is an area with great tourisms potential and provides immense
business opportunity for Kashmir region. The state is bestowed with beauty & rich forests, natural
lakes, fresh water. With resurgence of violence in the state, the number of tourists has dwindled
considerably over last two decades. Tourism, one of the main Kashmir’s main industries has suffered
tremendously due to violence in the region. The main objective of this paper is to explore possibilities
for tourism prospects in Jammu & Kashmir state and accordingly to initiate development activities in
the state that will step towards growth and prosperity of tourists in the entire state. The paper also
examines the problems faced by tourism sector. It indicates that tourism is still in early phase of
development and is viewed that valley has great potential.
Key Words: Right vehicles, Multi-segmented industries, Tourism potential, Business
opportunity
1. INTRODUCTION
Jammu and Kashmir is the northernmost state in India. In the seventeenth century
the Mughal emperor Jahangir set his eyes on the valley of Kashmir. He said that if
paradise is anywhere on the earth, it is here, while living in a houseboat on Dal
Lake. "Gar firdaus, ruhe zamin ast, hamin asto, hamin asto, hamin ast." If there is

Bilal Ahmad Khan- TOURISM IN KASHMIR: CHALLENGES OF AND OPPORTUNITIES
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AMERICAN RESEARCH THOUGHTS- Volume 1 │ Issue 6 │2015
ever a heaven on earth, it is here, it is here, it is here. In Jammu and Kashmir the
most important tourist places are Kashmir, Srinagar, the Mughal Gardens,
Gulmarg, Pahalgam, Jammu, and Ladakh. Some areas require a special permit for
non-Indians to visit. Kashmir is popularly known as "Paradise on Earth". The state
is bestowed with beauty & rich forests, natural lakes, fresh water. The state of
Jammu & Kashmir is known all over the world for its beautiful valleys, lakes,
snowcapped peaks, invigorating climate, valleys, cool climate, opportunities for
trekking fishing, skiing & number of archaeological, historical, cultural & religious
places, cool climate & hospitable people. Among all industries, tourism is an
important industry in the state. Tourism is considered to be economic bonanza for
J & K state because industrial development is very limited to hilly terrains. Being a
labor-intensive industry, the scope of employment is very vast. Tourism is
regarded as multi-segmented industry, therefore provides different types of jobs
like hotel managers, receptionists, guides, tour operators, travel agents,
photographers & many other jobs which are required to strengthen the tourism.
For centuries Kashmir has been centre of attraction. There are various
places of tourist attractions in the state visited by tourist. However most of places
are untapped. Tourism in Kashmir depends greatly on natural resources. Aharbal
waterfall, lush vegetation & snow covered mountains have come to symbolize
what tourism industry in Kashmir can offer. At national level, our country is also
progressing well in this sector. Tourism is not merely an activity for
entertainment. It is an enriching an energizing activity. For a developing country
like India whopping is on the path of growth through structural transformation of
economy, tourism is the right vehicle. In 2005 India emerged as one among the top
40 tourism earners. With its forward & backward linkages with the host of sectors
like transport, hospitality, education, health, banking etc. India is all set to reap
full potential of this vibrant sector. Therefore, equipping efforts are made by govt.
under five-year plans. India has significant potential for becoming a major global
tourism destination. It has always attracted people from all over the globe through
supreme & sublime hospitality, viz. athithi devobhava (guest is equal to God). The
World Tourism Organization (WTO) has reckoned India as the most favored
destination among the countries of south Asia receiving more than 50% of total
foreign tourist traffic in the area. We must appreciate the fact that India's share in

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global tourist arrivals is only 3.4 % while its share in the country's GDP is 12%.It
has given employment to 120 lakh people directly & several lakh indirectly.
Tourism surely has emerged as an instrument of employment generation,
poverty alleviation & sustainable human development. The business impact of
tourism has been tremendous on travel, trade & hospitality. Indian handicrafts
particularly, jewelry, carpets, leather goods, ivory & brass work are the main
shopping items of foreign tourists. According to one estimate nearly 40% of tourist
expenditure on shipping is spent on these items. Kashmir is also known as
"Switzerland of East" and is famous for its wealth of beauty. Its snow-capped
mountains, rivers and fresh water lakes offer tourists ample opportunities for
trekking, rafting, skiing & mountaineering. The wondrous state of J & K is
bestowed with holy spots that make it an ideal pilgrim destination in India.
However Kashmir has been subject of revival claims by Pakistan & India, both of
which are nuclear powers & this problem has made the state a hot bed of hostility
for past six decades. This state attracted over million tourists in the year 1988.With
resurgence of violence in the state, the number of tourists has dwindled
considerably over last two decades. Tourism, one of the main Kashmir’s main
industries has suffered tremendously due to violence in the region. The state has
lost billions of dollars in tourism revenue. It is estimated that state lost 27 million
tourists from 1989 to 2002 leading to tourism revenue loss of us $ 3.6 billion. The
peace process was started in 2004 as an attempt to settle that question of
ownership over Kashmir. The peace process was a slow moving one but gave
some hope to tourism sector as the number of tourists visiting the state started
picked up since its initiation.
The Department of Tourism Jammu & Kashmir is a promotional and
regulatory organization in the State. In 1988, the State Government specified the
duties and functions of the Directorate of J&K Tourism as well as J&K Tourism
Development Corporation. All commercial activities such as operation and
management of accommodation in all Tourist Centers at Srinagar and Jammu
Tourist Complexes, Huts and Tourist Bungalows at various resorts were entrusted
to the JKTDC.
The Department carries out the task of overall planning, promotion
publicity marketing, and regulation of travel trade in terms of J&K Registration of
Tourist Trade Act. New life has been infused in to the initiatives for revival and

1215
promotion of Tourism in the State. The organizational structure of the Department
has undergone perceptible over the years. The major restructuring included
creation of two separate directorates one each for Jammu division and Kashmir
division besides creation of 15 New Development Authorities for major tourist
destinations.
The state has Registration of Tourist Trade Act-1978 in force which
provides for protection of the interests of the Tourists visiting the state and
regulates the trade practice in the tourism sector. The Act has been amended to
make it more effective and relevant to the present day scenario of the tourism. It
covers:
Registration of firms dealing in tourist trade its facilitation and service
Categorization of Hotels, Houseboats, Restaurants, Transport etc.
Fixation of rates of accommodation and services.
Registration of Travel Agencies and safety to the interests of the tourists.
Penalties for Malpractices.
Policing and enforcement
Hospitality courses under Broad basing scheme have been sanctioned for six ITI’s
viz Jammu, Srinagar, Baramulla, Anantnag, Kishtwar and Udhampur by Minisstry
of Tourism, GOI. The implementation of the scheme will strengthen necessary
infrastructures such as (buildings, equipments etc.) required for such courses.
2. OBJECTIVES
1. The initial objective of this paper is to find out the magnitude of tourists.
2. To examine the growth rate of tourists of state.
3. The last objective is to explore challenges of and opportunities for tourists
in Jammu and Kashmir and accordingly to initiate development activities in
the state that will step towards growth and prosperity for tourists in the
entire state.

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3. HYPOTHESIS
In order to investigate the proposed problem, following hypothesis has been
tested in the course of investigation:
1. Ho: There will be positive and significant relationship between peace and
tourist inflows
4. METHODOLOGY
It is based on both primary and secondary data. As the primary source is
concerned I collected unpublished materials from various departments. However,
most present study is based on secondary data. Secondary data has been collected
from tourism department and economic survey of Jammu and Kashmir. Author
gathered, computed & codified the data in order to find out the tourist arrivals in
valley of Kashmir and percentage change of tourists over previous years and
impact of tourism on economy and its problems and prospects.
5. STATISTICAL TOOLS AND TECHNIQUES
Appropriate statistical techniques will be applied as follows
1. Growth Rate: In order to find out the change of tourist rate from one
period to another in the state, we find out the growth rate by this formula:
PR = VPRESENT – VPAST × 100
V present
Where,
P R= Percent Rate
V Present= Present Value,
V Past= Past Value
2. Time Series Graph: The time series graph is used to find out the trend of
classified tourists in different periods of time in the state of Jammu and Kashmir.
3. Least Square Method: Fitting the line by the method of least square for the
data relating to tourist arrivals in Kashmir we use the equation:

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Y = a + b x
a = ∑y/N,
b = ∑x y/∑x2
6. DISSCUSSIONS AND FINDINGS
Surely the Kashmir Valley is a Heaven on Earth, friendly people, beautiful
gardens, vast lakes and pristine streams and stunning landscapes, it is all that
"Enjoy the Incredible Kashmir". Tourism is an instrument of employment
generation, poverty alleviation and sustainable human development. The business
impact of tourism has been tremendous on travel, trade & hospitality. Indian
handicrafts particularly, carpets, leather goods, ivory & brass work are the main
shopping items of foreign tourists. Kashmir known as "Paradise on Earth" is
famous for its wealth of beauty. Its snow-capped mountains, rivers and fresh
water lakes offer tourists ample opportunities for trekking, rafting, skiing &
mountaineering. The wondrous state of J & K is bestowed with holy spots that
make it an ideal pilgrim destination in India. However Kashmir has been subject
of revival claims by Pakistan & India, both of which are nuclear powers & this
problem has made the state a hot bed of hostility for past six decades. This state
attracted over million tourists in the year 1988.With resurgence of violence in the
state, the number of tourists has dwindled considerably over last two decades.
Tourism, one of the main Kashmir’s main industries has suffered
tremendously due to violence in the region. The state has lost billions of dollars in
tourism revenue. It is estimated that state lost 27 million tourists from 1989 to 2002
leading to tourism revenue loss of us $ 3.6 billion. The peace process was started in
2004 as an attempt to settle that question of ownership over Kashmir. The peace
process was a slow moving one but gave some hope to tourism sector as the
number of tourists visiting the state started picked up since its initiation and hence
hypothesis was accepted. However during 2006 violence spread in some main
areas of state due to which arrival of tourists declined. The fluctuated trend
continued till now. The arrivals of tourists depend on peace of state. Before
militancy intensified in 1989, tourism formed an important part of the Kashmiri
economy. The tourism economy in the Kashmir valley was worst hit. However,
the holy shrines of Jammu and the Buddhist monasteries of Ladakh continue to

1218
remain popular pilgrimage and tourism destinations. Every year, thousands of
Hindu pilgrims visit holy shrines of Vaishno Devi and Amarnath which has had
significant impact on the state's economy. The Vaishno Devi yatra alone
contributes Rs. 475 crore to the local economy annually. Tourism in the Kashmir
valley has rebounded in recent years and in 2009, the state became one of the top
tourist destinations of India. Gulmarg, one of the most popular ski resort
destinations in India, is also home to the world's highest green golf course. The
decrease in violence in the state has boosted the state economy specifically
tourism. It was reported about seven lakh tourists visited Kashmir in 2010 and
23,000 foreigners. In 2011, the number of tourist arrivals in Kashmir touched the
mark of 10 lakh. Fortunately Kashmir is an area with great tourism potential &
provides immense business opportunity for Kashmir region. The growth rate in
the tourist arrivals from 1995 to 2013 has recorded a highly fluctuated erratic
trend. In the year 2000, 2001, 2002 there was a negative growth rate of (-) 92.37, (-)
54.16, (-) 165.35% respectively & thereafter there was significant increase in
domestic as well as foreign tourists’ arrivals in Kashmir. During 2006, the increase
trend went down to a negative growth i.e. (-) 40.13%.The reason was attacks on
tourists and violence in Kashmir valley.

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Year Domestic Foreign Total Percentage Change
over previous
years
1995 322 8198 8520 --------
1996 375 9592 9967 14.51%
1997 7027 9111 16131 38.21%
1998 99636 10247 109883 85.31%
1999 200162 17130 217292 49.43%
2000 104337 7575 111912 -92.30%
2001 66732 5859 72591 -54.16%
2002 24670 2686 27356 -165.35%
2003 182205 8959 191164 58.68%
2004 358095 18234 376729 49.25%
2005 585702 19680 605382 37.77%
2006 412879 20009 432888 -39.84%
2007 417264 24576 441840 2.06%
2008 550100 22000 572100 22.76%
2009 520454 20809 541263 -5.69%
2010 698564 24376 722940 25.14%
2011 912779 50109 962888 24.92%
2012 955902 48780 1004682 4.17%
2013 998764 54476 1053240 4.62%
Table 1: Domestic & foreign tourists arrivals in Kashmir valley from 1995 to 2013

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50%
60%
70%
80%
90%
100%
Figure 1: Domestic, foreign and total tourist’s arrivals in Kashmir valley from 1995 to
2013 shown by column
0
200000
400000
600000
800000
1000000
1200000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Domestic
Foreign
Total
Figure 2: Domestic, foreign and total tourist’s arrivals in Kashmir valley from 1995 to
2013 shown by column

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7. CHALLENGES
Keeping the facts in view, there are many challenges in the state related with
study. The first problem is violence and turmoil in the state. Due to dispute and
conflict over Kashmir region, the outsiders find it endanger to move inside state.
Kashmir region is closed one due to animosity between India and Pakistan over
this region. Violence and turmoil adversely affected our industries. Tourism as the
one of the main industries in the Kashmir valley has suffered tremendously due to
violent activities. It has declined substantially since late 1980s when military
gained momentum. It is estimated that state lost 29 million tourists from 1989-2002
leading to tourism revenue loss of $ 3.6 billion. There are still some other
constraints which led to low rate of visitors’ experience. In addition to that,
tourism industry in Kashmir is facing other more problems like Inadequate
capacity, road connectivity between Srinagar and Jammu, costly travel, poor
organization i.e. fragmented market, lack of supportive infrastructure, rough
terrain and lack of infrastructure has been a constant hurdle, damage to the
physical infrastructure due to militancy and the disturbances have also eroded the
intellectual capital, lapses in security and safety, uneven progress and political
instability. Political instability set back to investment both domestic and foreign
investments which in turn lead to un exploitation of huge natural resources for
which the state of Jammu and Kashmir is known for. Political instability also
channeled the local investment into non development expenditure rather than into
productive sectors. Political instability, since 1990s has lead to huge diversion of
resources from productive sectors to the maintenance of law and order problems.
Unfortunately there is inadequate attention paid by the state government to
tourism sector of the State. It is now widely accepted fact that it is the
responsibility of the state to provide necessary infrastructure and other facilitate
for tourism development.
8. OPPORTUNITIES
The state is bestowed with beauty and rich forests, natural lakes, fresh water. The
state of Jammu and Kashmir is known all over the world for its beautiful valleys,
lakes, snowcapped peaks, invigorating climate, valleys, cool climate, opportunities

1222
for trekking fishing, skiing and number of archaeological, historical, cultural &
religious places, cool climate & hospitable people. Due to these reasons Kashmir
has been center of attraction. There are various places of tourist attractions in the
state visited by tourist. However most of places are untapped. Tourism in Kashmir
depends mostly and greatly on natural resources. Aharbal waterfall, lush
vegetation & snow covered mountains have come to symbolize what tourism
industry in Kashmir can offer. The wondrous state of Jammu and Kashmir is
bestowed with holy spots that make it an ideal pilgrim destination in India.
Tourism is regarded as multi-segmented industry, therefore provides different
types of jobs like hotel managers, receptionists, guides, tour operators, travel
agents, photographers and many other jobs which are required to strengthen the
tourism. The State of Jammu and Kashmir has certain inherent strengths that can
be utilized to improve the inflow of people and to provide employment
opportunities on sustainable basis to the locals which are of strong base. The State
has untapped natural resource. A natural environment should be very profitably
utilized and conserved by natives- environment friendly tourism industry.
In order to sustain growth and improvement in the tourism sector, the State
should focus on:
1. To improve prospects of long term growth by creating physical
infrastructure such as transport and communication services.
2. To improve the efficiency of utilization of resources invested in electricity
and transport sectors.
3. To carry out reforms in delivery of health, civic and other community
services.
4. Improving productivity and income of those engaged in tourism industry.
5. Transforming the service industry in the State, driven by tourism, from
informal and low income to modern by setting up a world class tourism
infrastructure, largely on the basis of private investment and entrepreneurship;
So, finally suggestions must be offered for overall improvement of tourism
sector in Kashmir valley:
1. Emphasis must be placed on security of interior tourism network, make
tourists feel secure & safe.
2. The second thing that we need is a tourism policy with clear cut action plan
for its sustainability. That action plan would need to address three critical areas-

1223
environmental preservation, infrastructure development and internationally-
accepted services standards.
3. Effective planning, development and marketing programs should be
resigned.
4. To address infrastructure inadequacy, state government should negotiate a
kind of “Marshall Plan” with Government of India. The kind of money on tourism
gets peanuts. A tourism “Marshall Plan” would require something Rs. 5000 crore.
5. For environmental preservation we would need to restructure Tourism
Department Authorities and introduce a full-fledged Environmental Compliance
Agency in the Tourism Department.
6. The absence of internationally-accepted services standards, our tourism is
degenerating into a highly low end and low quality economic quality. So address
would on internationally-accepted services standards.
7. Quality assurance is important to attract customers and encourage repeat
visits.
8. Eco tourism for sustainable livelihood must be encouraged.
9. Stepping up investment and boosting infrastructure activities and enriching
security should be on the top of agenda.
10. Service quality i.e. in hotels, airports, railway stations etc. needed to be
upgraded.
11. Proper market segmentation should be done on the basis of criteria like
demographic, socio economic and geographic variables.
12. Education, research and training are crucial cogs in the wheel of tourism.
10. CONCLUSION
Finally, Kashmir is an area with great tourism potential and is a leading edge of
development. Kashmir is considered as a most elite destination in the world.
Tourism is the main industry in the state. It is regarded as multi-segmented
industry therefore, provides different types of jobs like hotel managers, guides,
travel agents and others. The enchanting geographical landscape and range of
ecosystems leaves a lasting impression on the tourists in Kashmir. However, there
are many problems in the state related to this sector. The main problem is violence

1224
and political instability in the state. The state has certain inherent strengths and
prospective that can be utilized to improve the inflow of people
REFERENCES
1. Chand, Mohender & Kumar, Ravi Bhushan (2005). “Rural Tourism: A New
Approach to Sustainability", South Asian Journal of Socio-political studies
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2. Economy Watch “India’s Tourism Industry". Available at
http://www.economywatch.com/business-and-economy/tourism-industry.html
3. Gyan.P, Nyarpane, Duarte B. Moraus & Alan Graefe (2004): "Nature
Tourism constraints: A Cross Activity Comparison", Annuals of Tourism
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4. Gazetteer of Kashmir & Ladakh (1992): Compiled under the Direction of
quarter Master General of India in the Intelligence Branch, Manas Publications,
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5. Hans,V. Basil 2006."Tourism Development in India-Challenges in the New
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7. Honey (1999): "Ecotourism & sustainable development: Who owns
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8. Hans, V.Basil 2007. "Communalism and Economic Development-some
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9. Mahapetra, A.Debidatta (2007). Poonch for Peace: An Eye Witness
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10. Mohanty, Deepak Kumar (2008).,"Tourism the next driving factor of Indian
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newtrackindia. Com, news details/629
11. Motiram 2005. "Globalization & Tourism: Impact & Prospects," (Sajosps),
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12. N. Harisha, Jayasheela & Hans, V. Basil (2007). 'Tourism Industry in India:
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13. `P. Pushpa, 2006."Globalization of Tourism Trade & Business impact on Indian
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14. Rouf Tramboo (2007):"Adventure Tourism in Kashmir", Greater Kashmir,
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17. Weight, P. (2002): "Supporting the Principles of Sustainable Development in
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edition of The Hindu, dated 13 September 2007 (Chennai, India). 13 September
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March 2009 (Chennai, India). 18 March 2009. Retrieved 18 March 2009
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