by Tahira Rafiq
SRINAGAR: Tourism contributes nearly 7 per cent to the Gross State Domestic Product (GSDP) of Jammu and Kashmir, according to the Economic Survey 2025–26. The sector provides livelihoods to around five lakh people, both directly and indirectly. Employment linked to tourism spans hospitality services, transport operations, handicrafts, adventure tourism and related informal economic activities. The Survey notes that a large proportion of the population is engaged in tourism-related work, underscoring the sector’s deep integration into the regional economy.
Tourism’s contribution is driven by its multi-dimensional nature. Jammu and Kashmir has developed a diverse tourism profile encompassing pilgrimage, leisure, adventure, heritage, eco-tourism and MICE (Meetings, Incentives, Conferences and Exhibitions). The expansion of niche segments such as golf tourism, rural tourism and border tourism has further widened the sector’s economic base.
Accommodation capacity has also grown alongside tourism activity. The Survey reports that the Union Territory has over 16,500 registered homestay beds across various districts, reflecting the increasing role of decentralised and community-based tourism models in income generation.
To sustain tourism’s economic role, significant public investment has been channelled into infrastructure development. Under the UT Sector Capex Budget for FY 2025–26, an allocation of Rs 390 crore has been made for tourism-related infrastructure works. In addition, 611 tourism infrastructure projects, including those linked to the Amarnath Yatra, have been completed across Jammu and Kashmir.
Centrally sponsored schemes such as PRASAD, SWADESH Darshan, and other sector-specific initiatives have supported the upgradation of major tourist destinations, religious sites and emerging locations. These investments are aimed at enhancing visitor experience and sustaining tourism activity across seasons.
The Survey also highlights the sector’s multiplier effect on the economy, noting its linkages with transport services, local trade, cultural industries and small businesses. Tourism’s role in employment generation and infrastructure expansion has been identified as central to inclusive and sustainable growth.
