The immediate fallout of the terror attack in Pahalgam that claimed the lives of 26 tourists on Tuesday, has been devastating for the region’s tourism industry.

In Delhi, Kolkata, and across India, travel agencies are reporting a wave of cancellations, with nearly 90 per cent of bookings for the upcoming summer season now void.

In Delhi, a gateway for domestic and international travel to Jammu and Kashmir, agencies are grappling with the aftermath.

Gaurav Rathi of Swan Travellers reported that around 25 clients had already cancelled their tours. “Most of these were family vacations planned for next month. They were excited just days ago, now they’re scared,” he said.

Kartik Verma from Good Guide Tours said, “People are asking for full refunds. They’re saying they can’t risk taking their families to a place where they might not return.”

The impact is not confined to the Valley alone, pilgrimages to the Vaishno Devi shrine in Katra have also seen mass cancellations.

Swastik Travels confirmed that they were seeing cancellations even for pilgrims traveling to Vaishno Devi. “It’s peak summer. Hotel tariffs are at their highest. And still, people are cancelling without a second thought,” the owner said.

Dev from Kusha Travels confirmed that the moment news of the attack broke, his phones began ringing non-stop. “Bus, flights, hotels, everything was booked. Now it’s all being undone.”

On Wednesday, the ministry of civil aviation issued an urgent advisory to airlines, urging them to ramp up return flights from Srinagar and halt surge pricing.

“The spike in demand for return flights is massive,” said a government official. “We’ve asked carriers to respond swiftly and responsibly.”

The tourism sector in Kashmir had been riding a historic high. Over 3 million tourists visited the valley in 2023, up from fewer than 831,000 in 2018, fuelling optimism about the region.

Infrastructure investments, new tunnels, and aggressive promotions had positioned Kashmir as a shining example of recovery.

But the attack has brought tourism to a screeching halt.

“In summer, every day here used to feel like a wedding,” said Shakir Ahmed, manager of a tourist taxi union in Pahalgam. “Today, our cars are idle, the roads are empty, and we are staring at a ruined season.”

Travel operators across eastern India also sounded the alarm.

In Kolkata, Bilolaksha Das of the Travel Agents Federation of India described the situation as “madness.” “This isn’t just a dip, it’s a collapse. Seven out of ten summer bookings used to be for Kashmir. Most of that is gone overnight.”

What has particularly unsettled the industry is that this attack specifically targeted tourists, something unprecedented in recent years.

“This changes everything,” Das said. “It’s not just Kashmir. Even Jammu-bound tours are getting cancelled. Fear has spread.”

Kolkata’s AJ Tours and Travels revealed that the Travel Association of Srinagar has asked members to halt all transportation and bookings. “We’re not accepting anything new for Kashmir. We don’t know when it will be safe again,” they said.

Tourism forms the backbone of Kashmir’s economy. Countless livelihoods depend on seasonal visitors, from hotel staff to guides, pony-wallahs to houseboat operators.

"It's heartbreaking to see the exodus of our guests from the valley after yesterday's tragic terror attack in Pahalgam but at the same time we totally understand why people would want to leave," said Jammu and Kashmir chief minister Omar Abdullah.

Sajjad Lone, a local politician, summed up the heartbreak: “People involved in tourism had just begun to dream again. This attack was designed to disempower us economically, to crush hope.”

Industry leaders fear a prolonged slump. The main tourist season, running from February-end to mid-October, including the vital Durga Puja holidays, may now pass in near silence. If cancellations continue at this scale, the ripple effect will hit every related sector, hospitality, transport, retail, even agriculture.

Kashmir, hailed as India’s one of the most promising tourism story, now stands at a crossroads, its breathtaking beauty overshadowed by fresh wounds of fear. While security forces hunt down the perpetrators, it’s clear the scars of this attack will linger.