A deadly terror attack in Pahalgam in 2025, which killed 26 people including tourists, severely impacted Kashmir's tourism sector. This attack, occurring just before the peak season, dealt a significant blow to an industry that contributes significantly to the region's economy and livelihoods. The incident followed a period of record tourist arrivals after 2019, with the sector still struggling to recover. Escalating tensions between India and Pakistan further exacerbated the situation for the tourism industry.