External Affairs Minister S. Jaishankar described the recent terror attack in Pahalgam as a form of economic warfare, specifically targeting Kashmir’s tourism sector, which plays a crucial role in the region’s economy. He also stated that the attack was meant to fuel religious tensions, as victims were reportedly asked about their faith before being killed, according to news agency PTI.

Jaishankar made these remarks while inaugurating an exhibition titled The Human Cost of Terrorism at the United Nations headquarters during his three-day visit to the United States. He stressed that terrorism affects more than just lives—it also undermines economic stability. The Pahalgam attack, he said, demonstrates how terrorism can deliberately strike at the heart of a region’s financial well-being by crippling its tourism industry.

The attack, which resulted in 26 deaths, has dealt a serious blow to Jammu and Kashmir’s image as a peaceful tourist destination. It occurred just before the peak summer travel season, triggering a wave of booking cancellations. Tourists quickly backed out of trips, and many cancelled their flights. The situation worsened after retaliatory airstrikes by India led to temporary closures of several border airports, including Srinagar, further disrupting travel plans.

The hotel industry also suffered a major setback, with occupancy rates dropping to nearly zero. In a desperate attempt to attract visitors, hotels slashed room prices by up to 50 percent. Adding to the impact, local authorities shut down 48 out of 87 public parks and gardens in the valley, citing security concerns. Although 16 tourist spots have since reopened, the fear of further violence continues to keep visitors away.

As a result, the broader economy in Kashmir is feeling the strain. Businesses tied to tourism—such as hotels, houseboats, and transportation services—are facing major losses. Last month, airlines and hospitality groups appealed to the central government for emergency relief to support the struggling sector. With the summer season effectively lost, stakeholders in the tourism industry are now hoping for a revival in October, ahead of winter. However, recovery remains uncertain as security concerns persist.