J&K tourism suffers as economy incurs around Rs 5,700-cr loss due to floods: ASSOCHAM The devastating floods in Jammu & Kashmir (J&K) have caused an immediate loss of Rs 5,400-5700 crore, well exceeding ten per cent of the state’s GDP with heavy damages to trade, hotels, restaurants, horticulture and handicraft, besides throwing completely out of gear basic infrastructure of power, railways and communication, estimates Associated Chambers of Commerce and Industry of India (ASSOCHAM). The total loss estimated are Rs 2,630 crore only to the hotels, trade, agriculture-horticulture, roads and bridges in the J&K regions of the state, while the Ladakh region was spared of the calamity, worst in several decades. The high-cost infrastructure like railways, power and communication in the hilly terrains would have suffered a loss of about Rs 2,700-3000 crore, ASSOCHAM estimates based on inputs from its state constituents pointed out. These are only initial estimates of the loss. The real loss to the J&K economy will be much higher since the impact of such calamities are long-drawn and it takes long time before the physical infrastructure is restored. The biggest worry is the shattering of confidence among tourists and it will take a long time and effort to win back the tourists to the state, stated D S Rawat, Secretary General, ASSOCHAM. He added that the other Himalayan state of Uttarakhand, which also witnessed unprecedented flood fury last year, is yet to recover from the shocks. It is all the more difficult in the states where the economy is heavily dependent on the tourism-related sectors like trade, hotels, eateries, transport, aviation, etc. Trade, hotels and restaurant services registered a turnover of close to Rs 3,800 crore in the year to March 2014. The tourism industry sources of J&K roughly distribute tourists among Jammu, Kashmir and Ladakh region in the ratio of 40:40:20. Thus, the total loss suffered by the state in terms of agriculture production, trade, hotels and restaurants, and roads and bridges is projected to be in the range of Rs 2,630 crore. About equal or slightly more damage is estimated to have been caused to the power network, railways, water and communications. The September-November season tourist inflow both from India and abroad is severely affected as is being witnessed by large-scale cancellations. While cancellations for airlines, hotels are 100 per cent up to October 15, those who had booked for winters are watching the situation, feedback from the ASSOCHAM travel constituents indicated. September-end-to-November is the peak season for domestic travellers to J&K.
Posted on: Mon, 15 Sep 2014 21:42:29 +0000