Kashmir has a greater potential to become a major tourist destination in the world. The role of tourism in the economic development of J&K state has been an area of immense interest from policy perspective. To understand the economic impact of tourism in the J&K state, study on various parameters of economic development such as tourist inflow, employment generation, State Gross Domestic Product, development of infrastructure and regional development is very important.
Tourist inflow
After three decades, Kashmir Valley is attracting lakhs of tourists which Tourism players say is the return of golden era of Kashmir tourism. The record number of tourists who visited Jammu and Kashmir this year, testify the overall development and change that has taken place in the Union territory. Tourism is the biggest source of employment in Jammu and Kashmir and since January 2022 till date, 1.62 crore tourists have visited Jammu and Kashmir, which is the highest in 75 years of independence.
Recently, a comprehensive Film Policy was launched to attract film-makers for shooting after decades and within a year of notification of this policy, as many as 140 shooting permissions for films and web-series have been issued. Soon, a film studio will be launched with state-of-art facilities.
A record-breaking 20.5 lakh tourists, including 3.65 lakh Shri Amarnathji yatris, visited Kashmir in the first eight months of year 2022, drawing visitors from all over the nation to the gorgeous and picturesque Valley. The two million tourists represent an all-time high tourist footfall for Kashmir valley. The tourist sites like Pahalgam, Gulmarg, and Sonamarg as well as all hotels and guest houses in Srinagar experienced 100 percent occupancy.
Employment Generation
Broadly tourism generated employment may be classified in to three major heads one is direct employment that sell goods and services directly e.g. hotels, restaurants, shops etc. Second one is indirect employment, which generally supplies goods, services to the tourism business and thirdly investment related employment in construction and other capital goods industries. As per World Travel and Tourism Council (WTTC) estimates, an investment of 10 lakh in travel and tourism industry generates about 90 jobs which are much higher than its competing sectors like Agriculture and Manufacturing which generate 45 & 13 jobs per 10 lakh respectively.
Tourism holds a strategic place in J&K’s economy by providing economic benefits like Employment, Foreign Exchange, Infrastructure development and development of local industries like Handicrafts and Handlooms, which has always placed J&K in the limelight at the national as well as international levels.
Tourism industry is playing a pivotal role in the state economy which is evident from the fact that tourism sector accounts for 5.92% of India’s GDP and 8% to J&K economy. There are wide prospects of tourism potential in Kashmir Valley.
Revenue Generation
The tourism industry in Jammu and Kashmir is one of the most flourishing industries in the state. This industry plays an important role in the development of all the regions of Jammu, Kashmir and Ladakh. As the industrial sector is not very much developed in the state so the activities related to tourism is considered with much seriousness by the state government. Apart from agriculture sector, tourism sector is the most popular source of income for the state.
Infrastructure Development
Tourism and development of infrastructure are interrelated sectors in the sense that better infrastructure, will provide the way for more tourism related activities. Lack of infrastructure is among the main causes of underdevelopment of tourism. Development of infrastructure includes good infrastructure facilities, better sanitary conditions and more intake capacity during peak seasons and proper human resource development. As per the recent economic survey 2013-14, there are 1508 registered hotels and restaurants in the state apart from 84 tourist bungalows and huts, generating around 8 % of GSDP. The Govt. is taking all possible steps and making all efforts to develop world class tourism infrastructure at tourist destinations and circuits. Development of national and internationally important destinations and circuits through three Mega Circuits i.e. Buddhist Circuit for Leh ii) Sufi Circuit for Kashmir and iii) Spiritual Circuit for Jammu agreed to by Ministry of Tourism, Govt. of India is a judicious mix of cultural, heritage, spiritual and eco-tourism to give tourists a holistic view about J&K
Regional Development
Tourism acts as a catalyst in the development of backward and far-flung regions of a particular area. Development of tourism will lead to the progress in rural / backward regions. It is often seen that most of the scenic & beautiful destinations of a country are located in the backward areas which have a significant contribution in the economic development of these areas through the development of local industries. Same is the case of J&K where tourists are attracted towards the areas which are located in remote regions of state like Daksum valley in Anantnag, Lolab and Bangus valley in Kupwara, Suru valley in Kargil, Gurez valley in Baramulla, which are known for their scenic beauty and charming climate and for greater tourist potential than those offered by famous destinations like Gulmarg, Pahalgam and Mughal gardens among the likewise. Tourists visiting such unexplored attractive spots can give fillip to the economic condition of the residents by promoting local art like Handicrafts, Handlooms, Cricket bat industry etc.