India-Pakistan Border Tensions Cause Sharp Decline In Amritsar’s Tourist Arrivals

Published on May 9, 2025

Amritsar, a city steeped in spiritual significance and renowned for its rich history, has long been one of India’s top tourist destinations. The city, which is home to the Golden Temple, attracts millions of visitors each year, both from within India and abroad. However, the ongoing tensions between India and Pakistan have caused a severe downturn in the number of visitors, leading to widespread job losses and economic instability, particularly within the hospitality and tourism sectors.

The local tourism industry is facing a dire situation, with a significant 25% drop in the number of visitors to the city’s key spiritual sites. This decline is having a profound impact, not only on the city’s spiritual tourism but also on numerous small businesses and service providers that rely on the steady flow of tourists. The hospitality sector, a cornerstone of the local economy, has been especially hard-hit, with hotel occupancy rates plummeting by as much as 80-90%. Once a bustling hub for travelers, the city’s economy is now grappling with the consequences of this dramatic downturn.

Amritsar’s proximity to the India-Pakistan border has always presented certain risks, but the recent geopolitical unrest has amplified the city’s vulnerabilities. It’s no longer just security concerns that affect the city; the economic ramifications of the political situation are now being felt by those who depend on the flow of visitors for their livelihood. The hospitality sector, once thriving on both domestic and international tourism, is now struggling to cope with the loss of revenue.

The surge in tourism that Amritsar had experienced in recent years was a testament to the city’s growing popularity as a tourist destination. From 2015 to 2022, the number of air travelers to the city nearly doubled, with more than 20 lakh (2 million) air passengers recorded in 2022, compared to about 10 lakh in 2015. This increase was largely driven by the city’s historical and cultural attractions, including the Golden Temple, the Jallianwala Bagh memorial, and the Wagah border ceremony, which draws significant crowds. Along with this surge in air travel, Amritsar’s hotels enjoyed high occupancy rates, with many of them frequently booked months in advance, catering to both domestic travelers and international tourists.

However, the recent escalation of tensions between India and Pakistan has had a devastating impact on the city’s tourism industry. On Wednesday, the situation took a dramatic turn when the Indian military launched missile strikes on nine terrorist locations in Pakistan and Pakistan-occupied Kashmir (PoK), targeting high-profile terrorist bases such as Jaish-e-Mohammad’s stronghold in Bahawalpur and Lashkar-e-Taiba’s base in Muridke. These missile strikes were a direct retaliation for a terror attack in Pahalgam, Jammu and Kashmir, which had claimed several lives.

In the immediate aftermath of these military actions, Amritsar’s airport was closed indefinitely, grounding all flights and halting air connectivity to the city. The closure not only severed the city’s links to domestic and international destinations but also left numerous passengers stranded, further compounding the travel disruptions.

The closure of the airport is a significant blow to the city’s tourism sector, as Amritsar relies heavily on air travel for its influx of visitors. With no clear timeline for the resumption of flight operations, the uncertainty has left tourists and industry stakeholders in a state of limbo. In addition to this, another major blow to the city’s tourism industry is the suspension of the daily retreat ceremony at the Attari-Wagah border, a highly popular event that draws thousands of visitors from both India and Pakistan. The ceremony, which involves a ceremonial lowering of the flags by border guards from both countries, has long been a symbol of the cities’ shared heritage and cultural significance. Its suspension has led to further declines in tourism numbers, as many visitors who would otherwise have come for this unique experience are now deterred from visiting.

With both the airport closed and the Wagah border ceremony suspended, many in the tourism sector are struggling to survive. Local tour operators, guides, and transport service providers, who once thrived on the steady stream of visitors, now find themselves jobless and without income. Without any clear signs of recovery in the immediate future, these workers face an uncertain and difficult road ahead.

The economic repercussions of the ongoing conflict and the resulting drop in tourism are not limited to the hospitality sector. Amritsar’s broader economy, which is closely tied to the success of its tourism industry, is also feeling the strain. Small businesses, such as shops selling religious artifacts, local crafts, and souvenirs, are reporting severe losses, as fewer tourists means less foot traffic and fewer sales. The situation has left many in Amritsar wondering how long it will take for the city to recover and whether the current downturn will have lasting effects on the tourism industry.

As the tensions between India and Pakistan show no signs of easing, Amritsar’s tourism industry faces a long road to recovery. It is hoped that once the security situation stabilizes, the city will once again become a thriving hub for spiritual and cultural tourism. However, in the meantime, the people of Amritsar, particularly those who rely on tourism for their livelihoods, are left to grapple with the consequences of a rapidly changing geopolitical landscape.