Following the recent terror attack in Pahalgam, where 26 people lost their lives, tourists are increasingly choosing Himachal Pradesh over Jammu and Kashmir as a safer vacation alternative. Industry insiders report that around 15–20% of domestic and international tourists, mainly from states like Maharashtra and Gujarat, have redirected their bookings to Himachal destinations such as Manali, Shimla, and Dharamshala. However, the expected surge in tourism hasn’t fully materialized, with hotel occupancy hovering at just 40%—similar to last year—because many tourists are adopting a cautious ‘wait-and-watch’ stance amid the tense India-Pakistan situation.
Ashwani Bamba of the Kangra Hotel and Restaurant Association noted that although initial inquiries were high, actual booking conversions remained low. He observed that Manali saw the highest shift in bookings (around 20%), while other areas like Shimla and Dharamshala experienced fewer changes. Dharamshala also saw early reservations due to upcoming IPL matches. Meanwhile, tourism stakeholders like Mohinder Seth echoed the sentiment that tourists are holding back until there’s more clarity on the Indian government’s response to the attack and the broader geopolitical situation.
Despite the subdued current occupancy, tourism officials remain optimistic that bookings will rise after mid-May as summer intensifies and many have already secured advance reservations. Mukesh Thakur, former president of the Manali Hotel Association, explained that the rescheduling process takes time due to cancellations and refunds from Kashmir. He added that Manali may see 80% hotel occupancy later in the season. The tourism sector remains a vital economic driver in the region, contributing 7.78% to Himachal’s GDP, with a sharp rise in both domestic and international visitors reported over recent years.
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