Kashmir hoteliers split as Govt issues directive for cancellation refunds to tourists

By: Nazir Aslam – Ziraat Times

Srinagar: Following the tragic terror attack in Pahalgam, which triggered a wave of tourist cancellations across Kashmir, the Jammu & Kashmir administration has issued a directive asking all tourism stakeholders to refund advance bookings to affected tourists. However, the hotelier and tour operator communities of Kashmir are divided on the feasibility of the move.

In a circular issued by the Office of the Divisional Commissioner Kashmir to various tourism bodies — including the Kashmir Chambers of Commerce and Industry (KCCI), Kashmir Hotel and Restaurant Associations, and Travel Agents Associations — it was requested that all service providers refund the booking amounts in the wake of present circumstances to tourists and affected stakeholders.

While some prominent voices in the hospitality industry have pledged support for the government’s appeal, others have expressed concerns over the financial viability of immediate refunds.

Chairman of the JK Hoteliers Club, Mushtaq Ahmad Chaya, said the well-being of tourists must take precedence. “This is not the time to focus on revenue. We have to maintain Kashmir’s image as a caring and responsible destination. Tourists come here in trus and we must honor that.”

Echoing this sentiment, Tariq Rashid Bedaba, a reputed hotelier, stated, “We are committed to ensuring tourists don’t feel abandoned. Business can recover, but a broken trust is harder to rebuild.”

However, not all stakeholders are on the same page. Syed Niaz Shah, owner of Alpine Ridge in Gulmarg, in a strongly worded social media post titled “Important Advisory Required for Proactive Steps to Safeguard the Backbone of Kashmir’s Economy”, warned of unintended consequences.

“This incident was deliberately timed to hurt Kashmir’s tourism peak season. Blanket cancellations will only benefit large national tour operators who can redirect traffic elsewhere, while local businesses will collapse,” he wrote.

He urged the government to issue advisories promoting rescheduling instead of cancellations, and recommended a cooling-off period of 10–20 days during which stakeholders can negotiate credit notes or alternate dates.

However, some tour operators do not agree with this line. “There are small and newly developed hotels who have huge bank loans and who would really struggle with blanket refunds. However, well established and large hotels do not have any justification to deny refunds and issue credit notes”, said Mukhtar Ahmad, a Srinagar-based tour operator, adding “such hoteliers invest and divert bookings amounts to other business ventures and that it was their moral responsibility to make refunds.”

Another hotelier, Maqsood Shahdad, added a legal dimension to the ongoing debate. “The refund policy is not under any government’s jurisdiction. These are contractual obligations between service providers and clients. However, as a goodwill gesture, credit notes valid for future bookings could be issued with deadline clauses.”

With over 40 popular destinations temporarily closed for security reasons — including Yousmarg, Doodhpather, Bangus Valley, Sinthan Top, etc — many tourists are left uncertain about their travel plans.

As the tourism season stands at a crossroads, most stakeholders are calling for a nuanced, flexible, and collaborative approach to make sure that while economic interests of small and new hoteliers and tour agents are taken care of, trust is maintained with tourists seeking refund of their money.

“The coming days will be critical for Kashmir’s tourism sector. Whether the government, tour operators, and local hoteliers can align their responses to balance empathy with economic sustainability remains to be seen”, added Nazir Ahmad Sheikh, another hotelier.