The Jammu and Kashmir deluge has cost the state exchequer a massive ₹5,700 crore. The floods have badly affected trade, vehicles, hotels, restaurants, horticulture and handicraft in the state, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) said on Sunday.
While the overall loss to hotels, trade, agriculture, roads and bridges is estimated to be around ₹2,630 crore; railways, power and communication in the hills may have incurred losses over ₹2,700-3,000 crore, ASSOCHAM said.
These are only initial estimates. The final figures could be much higher as the disaster has swept across the state.
"The biggest worry is the shattering of confidence among the tourists. It will take a long time and effort to win the tourists back to the state," ASSOCHAM secretary general Mr D S Rawat said while submitting the report.
He cited the example of Uttarakhand, which is yet to recover economically and environmentally. "It is all the more difficult in states where economy is heavily dependent on the tourism-related sectors like trade, hotels, eateries, transport, aviation etc," Rawat added.
According to media report, all airline bookings for J&K up to 15 October have been cancelled. Following the cancellation of tickets, tourists inflow from India and abroad will decline, resulting in heavy losses to state's tourism department. Tourism and restaurants recorded a turnover of about ₹3,800 crore in the last financial year.
The state's tourism is divided into three regions: Jammu, Kashmir and Ladakh in the ratio 40:40:20.
The state's economy was recorded at ₹45,399 crore in 2013-14. Agriculture and allied activities account for 20%, according to state's GDP; whereas industries and mining amounts to about 23.5%. The service sector contributes around 56.5% to state's economy.