Kashmir’s business leaders weigh impact as 2nd Covid wave surges

17 April 2021

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Srinagar:The renewed lockdowns and business closures in the country, coupled with the signs of a second coronavirus wave in J&K, are posing new challenges for the nascent business revival in J&K.

In the last couple of months, industry sources say, tourism in Kashmir had witnessed a positive turnaround. Unexpectedly, hotels and houseboats have got impressive advance bookings for the summer season. However, in the last week or so trip cancellations for the summer season are gaining pace. Many tourists who had planned for longer stays during this spring time have packed up early and left.

How could the latest coronavirus wave, which experts now predict to long until the end of June 2021, impact J&K’s nascent business and tourism? Ziraat Times engaged with some of the top business leaders and this is what they have to say:

Mushtaq Chaya (CMD of Chaya Group of Hotels and Mentor of PHDCCI)

Due to the sudden surge in the coronavirus cases, business in J&K, especially tourism, has again gone into a tailspin. Although this situation has resulted in trip cancellations and business losses to tourism players, I think it is important to safeguard lives at this time.

Lives are more important, and we should do everything possible to bring this second pandemic wave under control. Once this wave subsides, I believe, tourism would again pick up, as there is a positive market sentiment towards J&K tourism, as we saw in recent few weeks.

Showkat Chaudhary (MD, Hattrick Foods Ltd)

Kashmir’s economy is based on tourism but this sector has seen a dip in the past two years. The connected industries with this sector including transportation, handicrafts, houseboats, general stores have also been affected. The second wave of Covid-19 throughout India has led to cancellation of pre-booked accommodations which is hitting the tourism industry presently. Covid-19 is not so severe in Kashmir when compared to the present scenario of India. So, if the Government in coordination with the general public is able to strictly implement the Covid protocols, tourist inflow in Kashmir can be maintained successfully.

What we also need is tourists following proper SOPs and 72-hours mandatory Covid test, prior to the visit. The testing centre at airports must test all the tourists visiting J&K and none should be left out. To the positive side of this, Director Tourism and Secretary Tourism have been successful in attracting the tourists to the valley. Reportedly, more than 130,000 tourists have visited Kashmir in the past three months (January, February and March).

On the current business climate in Kashmir

Business in Kashmir has been moving at a snail’s pace since August of 2019, with closure of schools, businesses, colleges, shops etc there has been no business eversince. Eventually, this has led to economic crisis, decrease in buying power etc in the Valley and many accounts turning to NPAs as people aren’t able to pay their EMI on time. Not only the industrial sector but the horticulture sector has also been affected from the past two years. The high-quality produce from Kashmir was not able to fetch the desired rates in the market. Further, the Government is presently giving a 5% subsidy on working capital for six months which should be extended for a period of 2 years.

Ashfaq Siddiq Dug (Prominent businessman)

We are subservient to the National Economy. Colossal disaster is on the way. Due to the recent spike in the coronavirus cases, the likelihood of the lockdown has already caused this market crash. Since harvesting is yet to come, there is a chance this would impact our horticulture-agriculture sector but immediate impact would definitely be seen on our most important sector i.e., tourism.

There is a growing concern over consumer sentiment both in the retail and wholesale sectors. The ongoing market crash would snowball slowly since there wouldn’t be enough liquidity. But, honestly, we have seen worse than this since in the aftermath of August 2019. There has only been a downfall ever since.

With inputs from Business Team – Rafiya Zargar, Tabinda Khan