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West Asia conflict casts shadow over Kashmir tourism, businesses fear losses
West Asia conflict casts shadow over Kashmir tourism, businesses fear fresh losses
Rising global oil prices due to the war have also caused a surge in commercial LPG and fuel costs, along with concerns over supply availability, further worsening the situation.
The Kashmir tourism industry is once again grappling with a crisis as the escalating Middle East conflict in March 2026 triggers a new wave of cancellations, just when the sector had begun recovering from a devastating 2025 following the Pahalgam terror attack. The conflict in West Asia—particularly the tensions between Iran and Israel—is casting a direct shadow over Kashmir’s spring tourism season. Safety concerns linked to the regional conflict have already led to significant booking cancellations, raising fears of a weak response during the peak spring period.
Rising global oil prices due to the war have also caused a surge in commercial LPG and fuel costs, along with concerns over supply availability, further worsening the situation.
The tourism industry, already weakened by the Pahalgam attack, now finds itself facing renewed uncertainty. The timing coincides with the opening of Srinagar’s Tulip Garden, which was expected to attract nearly 20 lakh visitors this year but is now witnessing a sluggish start.
In 2025, tourist arrivals dropped sharply to just 11.16 lakh visitors, a stark contrast to the record-breaking 2.36 crore arrivals in 2024. Tourism stakeholders, including hotel owners and transporters, have expressed deep concern.
Sahil, a hotelier, said, “Our industry has already been under severe stress since last year. We suffered heavy losses in 2025, and this year we were finally hoping for some revival. Unfortunately, with this latest situation, we have already started receiving cancellations. The LPG crisis will lead to further losses as it directly affects our day-to-day operations. While we do keep some LPG stock as backup, it usually lasts only about a week. Beyond that, it becomes extremely difficult to continue operations, and prolonged disruption could result in massive losses for businesses like ours.”
The ripple effects of the escalating tensions involving Iran, the United States, and Israel are now being felt in the Kashmir Valley, where disruptions in LPG supply have triggered serious concerns among businesses, particularly those linked to tourism.
According to local dealers, the move follows government directions to prioritize essential institutions. As per current instructions, LPG cylinders are being supplied only to hospitals and schools, leaving commercial users without fuel.
Harmilan Kour, Managing Director of Kashmir Gas Agency, said, “The Ministry issued a circular directing us to temporarily stop supplying LPG to commercial establishments. As per the advisory implemented this week, we have been instructed to prioritize supply only for essential institutions such as hospitals and schools. We understand that this decision will impact key sectors in the valley, particularly tourism, restaurants, hotels and dhabas. However, we are receiving full support from the company, and we also have 5-kg LPG cylinders available, which can be used especially during the upcoming Eid. We are doing our best to ensure that people do not face difficulties during the festival. At the same time, I urge the public to use LPG judiciously so that the available supply can benefit everyone.”
The development has dealt another blow to the tourism sector, which had only recently begun recovering from last year’s crisis following the Pahalgam terror attack in April 2025.
Industry stakeholders say this year had initially brought hope for revival. Good snowfall during winter had begun attracting visitors again, and the sector was gradually returning to normalcy just as the tourism season was beginning.
However, with the commercial LPG supply crisis now affecting businesses across the valley, hotel owners and restaurant operators say they are once again staring at massive losses.
Source: ZeeNews
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