Chapter-4

Tourism Industry of Jammu and Kashmir: An Overview

4.1. Introduction
Tourism is an important agent in the socio-economic development in the modern times,
contributing in numerous ways and reinforce the inter-connected processes. Although frequently
depicted as panacea for several evils such as underdevelopment, unemployment, poverty
eradication, social discrimination and so on; its impact in creating a global as well as regional
socio-political peaceful situation for co-existence of the cultures and societies has been equally
documented at various levels (Singh and Durai, 2013). Practicably this realization took many
advocates to position tourism as one of the biggest ‘peace industries’, a means to battering
equilibrium of global peace process through expansion and development. As tourism practiced in
responsible and sustainable manner bring about the peace and prosperity of the people and its
stakeholders share benefits in rational manner, which is a necessary condition for the equilibrium
of allocation to sustain (Kusugal and Kusugal, 2014). Since 1950, the status of tourism has been
incredible in terms of growth, expansion and diversification. The international tourist arrivals have
grown since then from mere 25 million to grow to 940 million in 2010 (Government of India,
2011). The fast growth and spread not only resulted in the globalization of the people’s movements
as never before but also contributed in creating an exciting industry and brought opportunities for
millions of people.

United Nations Conference in 1963 emphasized the profound importance of tourism as an

economic factor. The conference noted that tourism was important not only as a source of foreign
exchange but also as a factor in the location of industry and in the development of areas poor in
natural resources. The influences of tourism as a tertiary industry, creating prosperity through the
development of communication, transportation, accommodation and other consumer services had
been also emphasized. Explosion in global tourism is the manifestation of universal acceptance of
social and economic significance of tourist industry to all types of world economies (Shafi, 1995).
Tourism has been recognized as an engine for economic development, and an important substance
key for the economic prosperity of a country, after 2nd world war (Babu, 1998). It is a phenomenon
whose incidence is fingered on almost every section and activity of the society. It had performed
1
as a limitless industry with very large growth potential throughout the world. Protagonists of
tourism have explained it as harbinger of economic growth and mollifier of social and economic
inequalities (Singh, 1998). Tourism as a social-cultural and economic phenomenon is one of the
important forms of interaction between different parts of the world. It is a phenomenon which
makes the transfer of capital or foreign exchange from one country to another which influences
the shape and speed of social and economic fluctuations particularly in the host country. Indeed,
tourism has now been recognized as a social form of industrialization (Singh, 1995).

Tourism guarantees an all-round growth through economic multiplier effect which penetrates to
various stake holding and interconnected sectors like all types of transportation, tour operators,
hotels, telecommunication etc. Tourism industry being a major employer of skilled labors and also
provides scope for unskilled and semi-skilled labors. Tourism being a labor –intensive industry
from the place of origin to destination or from destination to origin as everywhere service sector
dominates. It is very beneficial especially for developing countries as these countries have limited
potential for other economic activities (Kumar, 1955). Apart from generating direct employment,
its indirect influence safeguards inclusive growth of the local community to a great extent. From
a service sector, tourism has emerged as a prominent export industry. Therefore, importance is
rendered by both central and state governments to give a major incentives to boost the tourism
sector. A new thrust is being specified by providing and developing tourist infrastructure and
marketing of destinations of international standards. Arrangements of services such as travel,
accommodation and food with ease and comfort effective publicity by word of mouth help in
attracting repeat visitors (Christic and Crompton, 2001).

With the passage of time, the travel and tourism industry has evolved to become one of the largest
and dynamic industries of the global economy (ICC Report, 2011). The World Travel and Tourism
Council (WTTC, 2015) estimates that travel and tourism in 2014 directly and indirectly is
responsible for generating a significant 9.8 percent of world GDP and 9.4 percent of total
investment. In terms of employment, the importance of the sector as it supported 102 million jobs,
directly employed worldwide in 2013. Taking the direct and indirect employment in to account,
travel and tourism sustained 266 million jobs in the world (WTTC, 2013). According to the
UNWTO forecasts, the sector is expected to generate nearly 296 million jobs by 2019 assumed

2
that there would be sustained growth of global tourist arrivals and the major economies sustain its
momentum. Asia emerged as the fastest growing tourism destination with a growth rate of over 6
percent in tourism arrivals, and 4.4 percent in tourism receipts (UNWTO, 2012).

Tourism as a major phenomenon of the modern society has reaped as the world’s largest and fastest
growing industry over the years. The development of tourism has been observed by almost all the
countries of the world, as a powerful and effective ingredient for the economic development
strategies. It is also, reflected as a quick and easy means to economic development. Tourism is an
interaction and an encounter between two persons or two groups, one being the host and other the
visitors or tourists. In between these interactions, there exist the commercial operations in travel
and tourism which affect a wide spectrum of areas of development. Almost all the countries of the
world have accepted the huge potentialities of tourism in income generation, employment creation
and infrastructure development. Karma (2001) says; “there is hardly any other economic activity
which is capable of generating as much value, added employment and hard currency and that also
at such a low cost as tourism”.

4.2. India and Tourism

Tourism was considered a luxury a decade ago, but in the fast moving and busy world of today,
travel to different places has become a part and parcel of life. In recent years the demand for
tourism has increased manifold and industry has been equally responsive (Pawasker and Goel,
2012). The socio-economic changes in different countries are largely responsible for this
revolution. Economic development supported by industrialization and withdrawal of restrictions
across borders has been accompanied with sociological changes like dual income household,
nuclear families and consumerism. The transition to multinational organizations and resultant
changes in people and motivation management has increased the importance of travel and tourism.
The flow in demand led to the increase in accessible and popular tourist destinations Tourism
industry is the most vibrant tertiary activity and a multibillion industry in India. Tourism is the
right vehicle for a developing country like India, which is on the path of modern economic growth
through structural transformation of the economy. The value-added effect is increasing.
Sustainable tourism has vast scope in India by convergence of landscapes with finances-capes,
technoscapes, and media-capes (Patel, 2012). Tourism is a growing market and is showing

3
tremendous growth in the current scenario by spreading its arms all over the world. Tourism makes
an enormous contribution to local economies, job creation and sustainable development, and can
play a leading role in the transformation to the Green Economy, although it has not enjoyed the
recognition it deserves at the tables of policymakers and world leaders (UNWTO, 2010).

Tourism, as an invisible export-oriented service industry, can also help to boost up the innumerable
local, small and cottage industries and act as a profound advertiser to these industries. This can
reduce the regional imbalances and improve the standard of living of the local people. It can act as
a panacea for a developing country’s social and economic problems. The role of Tourism is
essential in the economic development of a country. Tourism promotes national integration and
generates foreign exchange. Tourism is considered the second largest foreign earner in India and
government has given travel and tourism ‘export house’ status (Patel, 2012). The tourism industry
employs a large number of people, both skilled and unskilled. Hotels, travel agencies, transport
including airlines exchange, promote cultural activities. Tourism also promotes the traditional
handicrafts sector and the tourist gets an insight into the rich and diverse cultural heritage of India.
India’s tourism industry has witnessed upsurge in recent years, paying rich dividends to both
consumers and producers (Das, 2012).

India is one of the popular tourist destinations in Asia and has grown in leaps and bounds over the
years, with each region of India contributing something to its majesty and enthusiasm (Nasreen
and Thang, 2011). India offers a wide range of places to see and things to do. The savoring
backwaters, hill stations and landscapes make India a beautiful country. Historical monuments,
forts, beaches, scenic beauties of revers, sea’s and mountains, places of religious interests, hill
resorts, etc. add to the glory of the country and attract tourists from all over the world (Boniface
and Fowler, 1993).

India is probably the only country that offers various categories of tourism. These include Heritage
tourism, Adventure tourism, Medical tourism, Spiritual/Pilgrimage tourism, etc. India has a
composite culture with a melodious blend of art, religion and philosophy. Religions like
Christianity, Buddhism, Islam, Hinduism, Jainism, Sikhism and Zoroastrianism etc. has co-existed
in India (Verma and Jain, 2013). India has fascinated people from all over the world with her

4
secularism and her culture. India is a land of diverse cultures with people of every faith and
religion, living together to create a unique and colorful mosaic. It is one of the promising tourist
destinations in the world with infinite variety in the richness and beauty of the environment with
its diverse cultural (Dhar, 1995).

The very essence of the rich Indian Philosophy deeply entrenched in its belief is “Vasudha
Kutumbakam” which means the whole world is one big family. Complementing this timeless
tradition are its astonishing locals that have fascinated people from all over the globe since time
immemorial. The varied contours of its enchanting landscape being reflected in the ice-capped
peaks of the clear blue Bay of Bengal, interrupted by the shades of aquamarine the arid zones of
the mirage-prore Thar Desert, occasionally dotted with Oases; and of course the “Taj Mahal” one
of the seven wonders of the world standing tall and proud as the ageless epitome of love (Gutam,
1995). India thus has tremendous tourist potential with its mountains, beaches and huge tapestry
of monuments. India has been described as a land of attraction, legends and mystery. India has
unique tourism resources that make the country a tourist paradise. The size of the country, variety
of its people, diverse cultural traditions extending over thousands of years, the natural
surroundings, architectural master-pieces, varied customs and languages, historical monuments
and artistic traditions make it a place of potential tourist interest. Great thinker Mark Twain
described India as “one country under the sun with an imperishable interest; one land that all the
men desire to see” (Bahtia, 1978).

Being a vast country, our nation has something to offer to everyone visiting the inhabitant it is an
enthralling and memorable experience to one and all. It is a Tourist Paradise and has unique
features of modernity and traditional hospitality. Nowhere else in the world do we find such
fascinating nation where each state has its own culture, glory and historical monuments to visit.
India was once called as the brightest jewel in the British crown (Bahtia, 1995, Michalkova, 2007)
There is something special and unique which this country is offering to the world such as co-
existence, co-operation, tradition, hospitality, adventure, treasure-house of monuments,
archeological remains and relics of prehistoric civilization. Additionally it is a low-cost destination
and a land of contrasts – from tropics to snows. It is vast, varied and strikingly beautiful. Jawaharlal
Nehru in the ‘Discovery of India’ states “there was something living and dynamic about this

5
heritage which showed itself in ways of living and a philosophical attitude to life and its problems.
Ancient India, such as ancient China, was a world in itself, a culture and a civilization, which gave
shape to all things” (Bhatia, 1978).

Historically, India had a strong and special fascination for rest of the world. The modern tourism
developed properly in India after World War II. The first step towards the development of tourist
industry in India initiated in the year 1945 with appointment of the Sargent Committee the
recommendations of which had far-reaching implications. This committee also recommended
setting up of tourist publicity cells in India Embassies and consulates all over the world (Bhatia,
1978). As a follow-up, an ad-hoc tourist traffic committee was appointed in the year 1948. But it
was only after the creation of a separate tourist traffic branch in the year 1949 that whole time
attention was paid to the development of tourist traffic in India. In the year 1952 for the first time,
overseas Centre was set up in New York to carry out tourist publicity by sponsoring articles in the
press, by television, radio programs, advertisement campaign and participation in exhibitions etc.
(Bhatia, 1955). Thus the committee covered almost all the major aspects of tourism such as
provision of infrastructure, publicity in India and abroad, coordination of hotels and travel agencies
at all levels. In long term, we find that these recommendations formed the guidelines for
establishment of tourist organization in India after independence (Kumar, 1996).

India being a developing country, where the level of unemployment and under-employment tend
to be high, so tourism plays an important role. In fact, besides providing employment to a large
number of people, tourism can be an instrument of regional policy aimed to achieving an equitable
balance between major industrial areas and the rest of the country/world because tourism enables
the wealth produced in one part of the country/world to be transferred partly to the another region
in shape of expenses incurred by the tourists. According to the Travel and Tourism Competitive
Report, 2009 by the World Economic Forum, “India is ranked 11th in the Asia Pacific region and
62nd overall, moving up three places on the list of the world’s attractive destinations” (Kakker and
Sapna, 2012). As per the Annual report (2010-11) given by Ministry of Tourism, Government of
“India is of the opinion that tourism is an important sector of the country and contributes
significantly in the country’s GDP as well as Foreign Exchange Earnings (FEE)”. With its
backward and forward linkages with other sectors of the economy, like Transport, Construction,

6
Handicrafts, Manufacturing, Horticulture, Agriculture etc., tourism has potential to not only be the
engine of growth, but also become an effective tool for poverty alleviation and ensuring growth
with equity. Tourism has an enormous impact on the national economy and plays a important role
in other aspects of the country’s growth and development, especially in the creation of jobs.
Similarly, international tourism plays an increasingly significant role in national and global
economies. Tourist expenditure on shopping, hotel, accommodation, food services, transport,
visitor attractions, entertainment and so forth contributes substantially to developed and
developing economies by generating gross domestic product (GDP), creating employment and
providing socio-economic development opportunities.

The Ministry of Tourism in India reported that, “tourism industry contributed 6.23 percent to
national gross domestic product (GDP) and provided 8.78 percent of the country’s total
employment in the year 2014. This translated to roughly 53 million jobs and recorded earnings of
approximately $ 10.73 billion”. India’s international tourist arrivals have increased over the period
of time.

As in 1997 table 4.1 foreign tourist arrivals were 2.37 million, which has increased to 2.96 million
in 2014. Percentage share of India in world international tourist arrivals has also increased from
0.40 percent in 1997 to 0.68 percent in 2014. The rank of the India in world international tourist
arrivals has also got better from 47th in 1998 to 39th in 2014. Similarly, the share of India in Asia
& Pacific has also increased from 2.67 in 1997 to 2.96 in 2014, and the rank has also got better
from 11th in 2000 to 9th in 2014. Figures in the table 4.1 show increasing trend in the total
international tourist arrivals. But it is indeed depressing that a country, which is world’s second
largest populous and seventh largest country in area in the world, has extremely meager share in
the tourist arrivals. As can be seen from the table that India’s share in international tourist arrivals
is less than one percent, which looks unimpressive. There may be certain factors responsible for
it, like India’s distance from the affluent tourist markets of the world such as U.S.A, Canada, Japan,
Australia and Europe etc., it costs a visitor from these countries quite a substantial amount to visit
India for a holiday. Another major cause cited for the poor performance are lack of
professionalism, unhygienic conditions, poor infrastructure, lack of easily accessible information,

7
lack of safety, poor visitors experience, restrictive air transport policy, inadequate facilitation
services, multiplicity of taxes and the low priority accorded to tourism.

Table 4.1: Share of India in International Tourist Arrivals in World, and Asia & the
Pacific Region during 1997-2014
Year International Tourist Arrivals %Share and Rank of % Share and rank of
in millions India in World India in Asia & Pacific

World Asia & the pacific % Share Rank % Share Rank

1997 593 89 0.4 ---- 2.67 ---

1998 611 88 0.39 47th 2.67 ---

1999 633.8 97.6 0.39 46th 2.54 ---

th
2000 683.3 109.3 0.39 50 2.42 11th
2001 683.4 114.5 0.37 51th 2.22 12th
2002 703.2 123.4 0.34 54th 1.93 12th
2003 691 111.9 0.39 51ist 2.44 11th
2004 762 143.4 0.45 44th 2.41 11th
2005 803.4 154.6 0.49 43th 2.53 11th
2006 846 166 0.53 44th 2.68 11th
2007 894 182 0.57 41ist 2.79 11th
2008 917 184.1 0.58 41st 2.87 11th
2009 883 181.1 0.59 41ist 2.85 11th
2010 940 204.4 0.61 42nd 2.83 11th
2011 983 217 0.64 38th 2.9 9th
2012 1028 230 0.64 38th 2.86 9th
2013 1075 245 0.65 39th 2.85 9th
2014 1124 260 0.68 39th 2.96 9th
Source: Indian Tourism Statistics, 2015 at a Glance.

8
 Fig. 4.1: International Tourist Arrivals World and Asia & Pacific

1400 300
World Asia & the pacific
1200 250

1000
Number of Tourists

Number of Tourists
200
800
150
600
100
400

200 50

0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Time

Fig. 4.2: India’s Share and Rank in World and Asia & Pacific

3.5 0.8
Share of India in Asia & Pacific Share of India in World
0.7

Share of Tourist Arrival

Share of Tourist Arrival

0.6
2.5
0.5
2
0.4
1.5
0.3

1
0.2

0.5 0.1

0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Time

9
India’s booming tourism industry benefits specific sectors. Traditional crafts are being developed
and promoted by the government because crafts are a key component of India’s tourism. Artisans,
who usually are from rural areas, get to distribute their crafts to a bigger market, hopefully fueling
growth in the rural communities to which they belong. Another aspect of India’s tourism industry
is its flora & fauna. The aim is better organization & administration of India’s nature and wildlife
reserves. This binds well for the country’s efforts at sustainable development of ecological
resources. The country’s medical and health care community is another beneficiary of tourism.

The performance of India’s tourism sector has improved due to various promotional programs and
policies undertaken and implemented during various plan periods. The international tourist
arrivals to India have recorded a substantial growth over the years. As is observed from the table
4.2 that the total arrivals during 1981 were merely 1.27 million, it grew steadily to 1.73 million in
1989, registering a 9.1 percent annual growth. There was no appreciable change in tourist arrivals
from the period 1990 to 1994 because of the rapid economic growth and new developed tourist
destinations of the countries like, China, Indonesia, South Korea, Taiwan and Japan. During the
year 1995, the foreign tourist arrivals grassed an average annual growth rate 12.9 percentage.
Whereas, for next decade from 1996 to 2006, the growth rate of tourist arrivals was about 13.5
percent and the total arrival was 4.45 million. These figures further increased continuously and
went to 6.97 million in 2014 showing a positive growth rate of 10.19 percent. In fact all these
figures show continuous increase in tourist’s arrival in India (Fig. 4.3).

Tourism industry in India has become one of the efficient and dependable earner of precious
foreign exchange. Now-a-days tourism is being recognized as a big source of employment as it is
highly labor intensive industry offering employment to thousands of persons-both skilled and
semi-skilled- therefore creating great employment opportunities. According to the Government of
India estimates, “every one crore Rupees invested in Tourism creates 475 jobs as against 126 jobs
from Manufacturing sector”.

10
Table 4.2: Foreign Tourist arrivals (FTAs) in India from the year 1981-2014 in (millions)
Year FTAs in India Percentage Change Over
the Previous Year
1981 1.27 ---
1982 1.28 0.7
1983 1.30 1.3
1984 1.19 -8.5
1985 1.25 5.5
1986 1.45 15.2
1987 1.48 2.3
1988 1.59 7.2
1989 1.73 9.1
1990 1.7 -1.7
1991 1.67 -1.7
1992 1.86 11.3
1993 1.76 -5.5
1994 1.88 6.9
1995 2.12 12.9
1996 2.28 7.7
1997 2.37 3.8
1998 2.36 -0.7
1999 2.48 5.2
2000 2.65 6.7
2001 2.54 -4.2
2002 2.38 -6
2003 2.73 14.3
2004 3.46 26.8
2005 3.92 13.3
2006 4.45 13.5
2007 5.08 14.3
2008 5.28 4
2009 5.17 -2.2
2010 5.78 11.8
2011 6.29 8.9
2012 6.58 4.61
2013 6.97 5.93
2014 7.68 10.19
Source: India Tourism Statistics, 2015 at a Glance

11
 Fig. 4.3: Foreign Tourist Arrivals to India and Percentage Annual Change
9.00 30
8.00 FTAs in India Percentage Change 25
7.00 20

Percentage Change
FTAs to India

6.00 15
5.00 10
4.00 5
3.00 0
2.00 -5
1.00 -10
0.00 -15
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Time

Table 4.3: Foreign Exchange Earnings (FEEs) from Tourism in India during 1991-2014
FEE in terms of % change over the FEE in terms of % change over the
Year Rs crore previous year US $ Million previous year
1991 4318 -- 1861 --
1992 5952 37.8 2126 14.2
1993 6611 11.1 2124 -0.1
1994 7129 7.8 2272 7
1995 8430 18.2 2583 13.7
1996 10046 19.2 2832 9.6
1997 10511 4.6 2889 2
1998 12150 15.6 2948 2
1999 12951 6.6 3009 2.1
2000 15626 20.7 3460 15
2001 15083 -3.5 3198 -7.6
2002 15064 -0.1 3103 -3
2003 20729 37.6 4463 43.8
2004 27944 34.8 6170 38.2
2005 33123 18.5 7493 21.4
2006 39025 17.8 8634 15.2
2007 44360 13.7 10729 24.3
2008 51294 15.6 11832 10.3
2009 53700 4.7 11136 -5.9
2010 64889 20.8 14193 27.5
2011 77591 19.6 16564 16.7
2012 94487 21.8 17737 7.1
2013 107671 14 18445 4
2014 123320 14.5 20236 9.7
Source: India Tourism Statistics 2015 at a Glance.

12
 Fig. 4.4: India’s Foreign Exchange Earnings from Tourism
140000 50
FEE in terms of Rs crore Percentage Change
120000
40

Percentage Change (FEE)

100000
FEE (Rs Crores)

30
80000

60000 20

40000
10
20000
0
0

-20000 -10
Time

Though the share of India in global foreign exchange earnings are minimum but it is important to
note that over the years India’s foreign exchange earnings from tourism have increased year by
year. In other words, despite its tiny share of world tourist arrivals, tourism in India has emerged
as the second largest foreign exchange earner for the country. Figures in the table 4.3 depict that
tourism has now emerged as an important contributor of foreign exchange earnings. The foreign
exchange earnings were just 1861 mm US $ in 1991 which went to 20236 mm US$ in 2014. Hence
it shows a growth in real terms and if the same trend continues there would be rapid increase in
foreign exchange earnings, which is also depicted in the diagram 4.4. There has been uninterrupted
growth in the foreign exchange receipts.

4.3. Jammu and Kashmir: An Overview

Jammu and Kashmir (J&K) is North Indian state located in North-Western Himalayas. It shares
its borders with China in the east, Pakistan in the west, Afghanistan and Russia in the north and
plains of Punjab and Himachal in the south and south-east. The state extends from 32°17´ N to
37°50´ N latitude and from 73°26´ E to 80°30´ E longitude, covering an area of 2, 22,236 square
Kilometers with population of 125.41 lakh persons as per 2011 census of which male and female
are 66.40 lakh and 59.01 lakh respectively. In 2001, total population was 101.44 lakh and total
population growth in the last decade (2001-2011) was 23.46 percent while during the previous
decade (1990-2001) it was 29.46 percent. As per the census 2011 the population of J&K forms

13
1.04 percent of the total population in India. In 2001, the figure was 2.37 percent. The density of
population per-square km. is about 56 and fairly below the national average. This is mainly due to
the presence of snow covered hills and mountain ranges in the major parts of the state. Till 1980s,
the literacy rate was very low and it was exceedingly low among small/marginal farmers and
overall literacy rate was as low as 5 percent (the female literacy rate was almost negligible).
Probably, that could be one of the principle reason for them to have inseparable attachment to
agricultural land as it is the primary source for their livelihood. However, of late, many changes
have been taking place especially in the area of education in rural areas. Literacy rate has seen an
upward trend and was 67.16 percent as per 2011 population census. Of that, male literacy stands
at 76.75 percent while female literacy is at 56.43 percent. In 2001, literacy rate in J&K stood at
55.56 percent of which relative share of male and female were 65.75 percent and 41.82 percent
respectively. However, the literacy rate is still below the national average of 72.99 percent. The
overall sex ratio has decreased from 941 in 2001 to 862 in 2011.

Lying in the northern part of the country, the state of Jammu and Kashmir was formed on 26 th
October, 1947. The state enjoys a special status on account of Article 370 of the Indian constitution
and various provisions of Acts, Laws and Regulations enforced by the Government of India after
they are ratified by the state legislature. Administratively, the state has been divided into two
divisions, the Kashmir division (which includes the Kashmir valley and Ladakh region) and the
Jammu division. The geographical area of Jammu and Kashmir State comprises of 6.93 percent of
the total Indian Territory and is the 6th largest state (area wise) of the country. Out of the total
area, Ladakh covers 70 percent, Jammu 19 percent and Kashmir 11 percent. On the basis of
topography, agro-climatic conditions, location etc., the state has been divided into three regions:
Jammu; Kashmir and Ladakh. The Jammu is a plane region with sub-tropical climate and consists
of ten districts. Kashmir valley in the middle of the state, with alpine and temperate climate is
surrounded by lofty mountains and comprises of 10 districts. The eastern part of the state is Ladakh
region with cold and arid climate and consists of two districts. The latest administrative setup of
the state consists of twenty districts, eighty two tehsils, one hundred forty two blocks, four
thousand one hundred twenty eight panchayats and seven urban agglomerations (MSME, Annual
Report Jammu and Kashmir, 2011-12).

14
The climate of the state is classified into four seasons. These are: winter (November to February),
spring (March to Mid-May); summer (Mid-May to Mid-September) and autumn (Mid-September.
to October). The Jammu and Kashmir state is basically an agrarian state. Agriculture occupies an
important place in the economy of the state. The share of agriculture and allied sector’s in the
Gross State Domestic Product (at 1999-2000 prices) for the year 2010-11 as per preliminary
estimates stands at 20.59 percent. On the other hand nearly 70 percent of the population in the state
derives its livelihood directly or indirectly from agriculture sector (nidm.gov.in/pdf/dp/Jammu.pdf).

4.3.1. Tourism Industry in Jammu and Kashmir

Tourism as a mode of economic activity holds a very important position in Jammu and Kashmir
economy. Due to the mountainous nature of its land the scope for agriculture is limited. A low
level of infrastructure development and a handicapped resource base make the climate for
industrial production miserable. Nevertheless, tourism as a viable catalyzing economic force is
playing a very significant role in the local economy although the recent trends of this industry are
not so impressive for various reasons (Chattopadhyay, 2004).

The state of Jammu and Kashmir in which nature has endowed with plentiful beauties in the shape
of its dusk green meadows, high snowcapped mountains, gushing streams and sprouting springs,
a salubrious climate, sacred places of solace and mental peace, beautiful gardens, lush-green
forests, perennial rivers, pilgrimage centers, historical places etc., which are of great attraction for
tourists, mountaineers, trackers, pilgrims etc. The state has been an unending attraction of visitors
down the ages. Unfortunately, it is one of the most economically backward part of India, having
all characteristics of an underdeveloped economy. But fortunately, state has occupied an important
place in the world. Due to the vast tourism resources in the state, the state depends heavily on the
tourism industry. According to the estimates of Tourism Department of Jammu & Kashmir, 33
percent of the state’s population is directly or indirectly connected with this activity contributing
16 percent of the state’s domestic product (Altaf, 2014). There is no doubt that tourism contribution
to Jammu and Kashmir economy is far more substantial than it is to the economy of India as a
whole.

15
Jammu and Kashmir state is unique tourist destination and offers the attractions for diverse type
of tourists as Jammu is known for Pilgrims, Kashmir is known for scenic beauty and Ladakh is
known for adventurous activities, this kind of uniqueness is seen only in case of Jammu and
Kashmir state in the country. The state has a large tourist potential as compared to the other sectors
like industrial development which has not been possible due to peculiar characteristics that posture
special developmental challenges. Another main sector of the state i.e., agriculture has its own
limitations like single crop season and small size of land to grow. With the growth of population,
there is increase in able bodied working population which need to be adjusted. In this backdrop,
the tourism offers scope in this region. Thus, better management of tourism while treating tourism
as an ‘industry’ along with agricultural and industrial development need attention of not only
policy makers but also of researchers and economists to find out ways and means to improve the
tourist flow to the state. With increased tourist facilities in terms of different socio-economic and
marketing indicators, tourism can reach the vast chunk of the population. This requires planning,
promotion, marketing and creating favorable environment, so that tourism development can play
a major role in the economic development of the state.

Kashmir is a multifaceted diamond changing its hues with the seasons always extra vagrantly
beautiful. Kashmir has been described as paradise on earth in view of its scenic beauty. The
splendid natural beauty, snow clad mountains, natural waterfalls, large natural lakes surrounded
by thick pine forests, gushing rivers, rugged terrain offer broad attraction for tourists from across
the globe. The long listed inherit belongings bestowed by nature to the state in terms of tourist
destinations. Kashmiri’s greatest historian Kalhan writes about his native land, “it is a country
where the sun shines mildly, bring the place created by Rishi Kashyap, for his glory- big and lofty
houses, learning, saffron, icy cool water and grapes rare in Heaven are plentiful here- Kailash is
the best place in the three worlds (Tri-Lok), Himalayas is the best place in the Kailash and Kashmir
is the best place in Himalayas” (Sastry, 1961).

16
Tourist Map of Jammu and Kashmir

17
The tourism industry of the state of Jammu and Kashmir, on the basis of its nature can be divided
in the following headings:

Adventure Tourism: Sir Walter Lawrence writes, “The valley is an emerald set in pearls; a land
of lakes, clear streams, green turf, magnificent trees and mighty mountains, where the air is cool,
and the water vie with the soil in fruitfulness” (Bhatt et al, 2008). He further writes that the valley
contains everything which should make life enjoyable, - There is sport varied and excellent, and
there is scenery for the artist and the layman, mountains for the mountaineers, flower for the
botanist, a vast field for the geologist and magnificent ruins for the archaeologist. So, the most
attractive aspect of Jammu and Kashmir tourism industry is its adventure prospects that can be
undertaken by the tourists all year round. Adventure tourism offers an excellent option for
undertaking a large number of activities such as, mountaineering, trekking, skiing, rafting,
canoeing, mountain biking, bag gliding, parasailing, hail seeking etc. The aspect of development
of adventure tourism destination was the main thrust in the 9th five year plan. Ladakh region offers
great scopes for undertaking adventure activities amidst landscape of breathe taking, rocky beauty.
The most popular and best established among these are trekking, mountaineering and river rafting.
The Jammu & Kashmir offers and have potential for Adventure tourism related products which
could be classified into two categories:
1. Water adventure
2. Land adventure
Water Adventure includes; rafting and boating etc., Dal Lake in Kashmir division offers a well-
known boating for the adventure tourists in the state. Boating in the traditional Shikaras gives the
heavenly feelings to the tourists. The river Lidder in Pahalgam an eminent tourist destination in
district Anantnag of Kashmir bargains water rafting to the adventure lovers.
Land Adventure includes; Mountaineering, trekking, climbing skiing, Golfing and Angling bids
in the State through several mountain ranges, such as Pir Panjal, Great Himalayas, Zanskar, Ladkh,
and Karakoran.

Winter and Sports Tourism: Winter in the Valley is a soundless blanket of snow. After the bustle
of the year the hushed silence of winter is another mood; loving and attractive as snowflakes

18
decorate the dazzling white scenery. During winters the entire world visits Kashmir for the
adventure of skiing, sleigh riding and tobogganing. Development of winter sports at Gulmarg has
become an important source of attraction for tourists across the globe. Gulmarg in view of its
natural ski slopes is the most famous ski and golf destination of the country. It is gearing up its
skiers year by year. Gulmarg remains busy round the year with tourists and sportsmen as a matter
of its inhabitant features. It is cheaper ski destination than Switzerland and other ski resorts. A
huge chunk of national and international skiers take part in winter sports held at this famous tourist
destination. The other places of attraction stimulating winter sports in the state are the high slopes
available at Yousmarg, Pahalgam.

Table No. 4.4: Year Wise Tourist Arrivals to Gulmarg from 2006-2014
Year Local National Foreign Total % change

2006 104247 390311 8101 502659 ------

2007 268968 330466 20109 619543 23.25

2008 287934 422756 12994 723681 16.8

2009 270123 308136 6003 584262 -19.25

2010 135921 319545 6773 462239 -20.8

2011 425189 990460 7282 1422931 207.8

2012 615849 1456128 7370 2079347 46.13

2013 892003 2140731 7459 3040194 46.21

2014 1291989 3147203 7549 4446741 46.27

Source: Office of the Assistant Director Tourism, Gulmarg.

Fig.4. 5: Year Wise Tourist Arrivals to Gulmarg from 2006-2014

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 6000000
Local National Foreign Total
Number of Tourists
5000000

4000000

3000000

2000000

1000000

0
2006 2007 2008 2009 2010 2011 2012 2013 2014
Time

Pilgrimage Tourism: Jammu and Kashmir is a state that is considered a holy place by people of
all the religions and gets the maximum share of tourism from pilgrimage shrines and destinations.
In the state different faiths have come to mingle together in melodious co-existence and bring out
a sole synthesis, which have established itself as a common celebration of all religions. Jammu
and Kashmir is also known as a land of full sacred shrines of all places like Amarnath Cave, Mata
Vaishno Devi, Baba Buda Shah etc., that are frequently visited for their architecture and sanctity.
These pilgrim spots generate tourist traffic from both within and outside the state. Pilgrim tourism
has multiplied grounds in the state and is measured as a very important constituent of the tourism.
Pilgrim tourism has also registered significant improvement in the last few years. The state has
won extensive gratitude in pilgrim tourism over a period of time especially since the establishment
of Shrine Boards. Jammu region is a gratified place having massive scope for promoting religious
tourism. The climate of this sub-tropical region is hot and humid. Tourists visiting the state
constitute a huge chunk of religious devotees. Jammu is famous for its temples and is called the
“City of Temples” as various temples are located like Ranbireshwar temple, Ragunath temple,
Mahamaya temple etc., in the region. In addition to these, the famous temple is in Tawi Valley.
Tawi Valley is assisted by the beautiful mountain ranges intensifying one behind other crowned
by the three towering peaks of the Trikuta range in the lap of which is located the renowned holy
Cave Shri Mata Vashno-Devi. The pilgrimage tourist traffic remain open there throughout the
year. In Kashmir division, famous shrine of Shri Amarnath ji located in South Kashmir in
Anantnag district, near famous tourist resort of Pahalgam, attracts number of yatries (pilgrims).

20
Every year pilgrims come from various parts of the country to pay homage to the holy shrine in
the month of July and August.

It is promising to note that the number of tourists visiting the state has witnessed a contentious
increase since 1983; table 4.5 shows that before the turmoil, during the period 1983 to 1989 there
was a continuous increase in the number of tourists visiting the valley, with an exception of the
year 1984. Year 1987 and 1988 showed the highest number of tourists visiting the valley before
turmoil that is 721654 and 722035 respectively. The share of foreign tourists was about 10 percent
in the total tourist flow during the years 1983 to 1989. From the year 1990 to 1996, tourist arrivals
both domestic as well as foreign started declining. The reason behind this decrease in the tourist
inflow is only the turmoil and political disorder in the valley. From the year 1997 onwards both
domestic and foreign tourists again started increasing and reached to 767313 in 2014. It should be
noted that in spite of all these fluctuations in the tourist arrivals there was a continuous increase in
tourist traffic which is depicted in the diagram 4.6.

Table 4.5: Year wise tourist Arrivals to Kashmir from 1983-2014

Year Domestic Foreign Total % change
1983 398428 41101 439529 --
1984 192684 36458 229142 -0.479
1985 465599 38015 503614 1.198
1986 536598 53118 589716 0.171
1987 664117 57537 721654 0.224
1988 662097 59938 722035 0.001
1989 490212 67762 557974 -0.227
1990 6095 4627 10722 -0.981
1991 1400 4887 6287 -0.414
1992 1175 9149 10324 0.642
1993 450 8026 8476 -0.179
1994 500 9314 9814 0.158
1995 322 8198 8520 -0.132
1996 375 9592 9967 0.17
1997 7072 9111 16183 0.624
1998 99636 10247 109883 5.79
1999 200162 17130 217292 0.977

21
 2000 104337 7575 111912 -0.485
2001 66732 5859 72591 -0.351
2002 24670 2686 27356 -0.623
2003 182205 8959 191164 5.988
2004 358095 18234 376329 0.969
2005 585702 19680 605382 0.609
2006 412879 20009 432888 -0.285
2007 417264 24576 441840 0.021
2008 551041 21588 572629 0.296
2009 577348 23904 601252 0.051
2010 604911 26468 631306 0.053
2011 633790 29308 662862 0.057
2012 664047 32452 695995 0.059
2013 695749 35934 730784 0.061
2014 728965 39789 767313 0.062
Source: Jammu and Kashmir Tourism Department

Fig. 4.6: Year Wise Tourist Arrivals to Kashmir from 1983-2014

900000
Domestic Foreign Total
800000
700000
Tourist Arrival

600000
500000
400000
300000
200000
100000
0
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

-100000
Time

Ladakh one of the divisions of the state of Jammu and Kashmir, is the largest region not only in
the state but also in the whole country covering an area of 96,701Sq.Kms. Ladakh is different from
the rest of the country. This cold arid region is rightly termed as a piece of moon on earth as scenery
resembles the moon in many phases. Ladakh is full of amazing sights. The monasteries, some of
which like Lemis Gompa, are very famous. Also strange gimps perched on roaring hilltops, barren

22
landscape splashed with small, but brilliant patches of green and ancient places clinging to sheer
rock-walls.

Ladakh “The Roof of the World” has much to offer to the tourist. Often called the rocky desert
natural phenomenon which occurs here are amazing and enigmatic, the sceneries are picturesque,
the flora and fauna are typical and the landscape is wrapped in grandeur and mystery. It is a new
destination hidden on northern frontier of India, while the valley of Kashmir offers something for
everyone; Ladakh is just for a special class of tourist, for those with a spirit of adventure and
enterprise, for those with a love of virgin nature and for adherents of Tibetology and Buddism. It
is known as Sportsman’s Paradise and offers a great scope for undertaking adventure activities
amidst landscapes of breathe-taking, rugged beauty. The most popular among these are trekking,
mountaineering and river rafting.

The figures reveal that there has been a tremendous growth in the importance of Ladakh as a tourist
destination over the period of time. As can be seen from the table 4.6, the total number of tourists
visiting Ladakh in year 1988 was 24864 which have decreased to 6738 in 1990, as there was a
Buddists agitation in the Leh district. From year 1991 the tourist inflow started increasing and
went to 19699 in year 2001, which again declined to only 548 tourist arrivals in 2002. All these
changes in tourist arrivals in Ladakh region can be attributed to some kind of political instability.
But from the year 2003 on words the tourist inflow again started increasing contentiously and has
reached to 180255 in year 2014. The diagram 4.7 depicts the same trend.

Fig. 4.7: Year Wise Tourist Arrivals to Ladakh from 1988-2014

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 200000

Domestic Foreign Total

150000
Tourist Arrival

100000

50000

-50000 Time

Fig. 4.8: Year Wise tourists Arrivals to Jammu Division from 1988-2014

25000000

20000000
Tourist Arrival

15000000

10000000

5000000

Time

Table 4.6: Tourist Arrivals from 1988 to 2014 in Jammu and Ladakh (in no’s)
Year Jammu Ladakh
Domestic Foreign Total
1988 19926965 8608 16256 24864

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 1989 2312001 6689 16079 22768
1990 2169202 396 8342 8738
1991 3151310 1041 8014 9055
1992 3527289 2438 13580 16018
1993 3527289 2000 12401 14401
1994 3705945 2080 15369 17449
1995 4032127 5594 12391 17985
1996 4335532 3537 13036 16573
1997 4434233 3991 12810 16801
1998 4622097 6792 15238 22030
1999 4667340 1905 96669 98574
2000 5109575 6217 11825 18042
2001 5056919 4260 15439 19699
2002 1053771 187 361 548
2003 1356876 1043 1387 2430
2004 6100000 1300 22000 23300
2005 6251998 13781 24665 38446
2006 6950573 17822 26078 43900
2007 7222318 22102 28477 50579
2008 6576000 39000 33000 72000
2009 7657000 48127 30446 78573
2010 8915701 59390 32551 91941
2011 10381314 73289 34802 108091
2012 12087853 90440 37208 127648
2013 14074923 111605 39781 151386
2014 16388638 137724 42531 180255
Source: Jammu and Kashmir Tourism Department

The diagram 4.8 depicts the tourist inflow to Jammu division from the year 1988 to 2009. In the
year 1988, total tourists visiting the Jammu division was 19926965. This was the highest tourist
inflow to Jammu division through the entire period i.e., 1988-2014. In the year 1990 tourist inflow

25
decreased to 2169202, but it stared increasing from the year 1991 and reached to 5056919 tourists
in the year 2001. It decreased again to 1053771 in 2002. All these upward and downward trends
in the tourist inflow in the division can be ascribed to the political instability in the state. The
instability in the state has showed a direct relation with the tourist arrivals in the state. From the
year 2003 the tourist inflow has increased and reached to 16388638 in the year 2014.

The table 4.7 shows the Jammu and Kashmir’s share in foreign tourist arrivals to India. In 2004
Jammu and Kashmir’s share was 7806 tourists out of 2537282, and the percentage share was only
0.31 percent. It has increased to 44345 tourists in 2007 and the percentage has gone up to 1.19.
From the year 2008 to 2014 the share in terms of number has increased continuously but the
percentage share has come down from 1.13 percent in 2008 to 0.99 percent in 2014.

Table 4.7: Jammu & Kashmir’s Share in Foreign Tourist Arrivals to India
Year India J&K Percentage Share
2004 2537282 7806 0.31
2005 2384364 24330 1.02
2006 3457477 41000 1.19
2007 3918160 44345 1.19
2008 4400000 46087 1.13
2009 5081504 53053 1.04
2010 5356966 55000 1.03
2011 5167699 51255 0.97
2012 5255356 52547 1.00
2013 5341351 54789 1.03
2014 5428752 53854 0.99
Source: Ministry of Tourism, Government of India

Tourism business is not a closed business; whosoever contributes to it gets his share. People
engaged in tourism business act as stakeholders of this industry. And all these stakeholders perform
different types of activities and can earn as much as they want to earn. Moreover, for the handicraft
sector of the state, tourism will act as a saturated lifelong market.

26
While reviewing the comprehensive analysis of the growth and pattern of tourism industry of the
state it can be concluded that tourism industry is a key industry in the state. Tourism in the present
scenario acts as a backbone for the state of Jammu and Kashmir. But the industry is not developed
up to that extent, that it will remove the economic backwardness, the problems of unemployment
and low per-capita income of the state.

27