Tourism bodies in Ladakh are seeking financial relief to mitigate the crisis arising from recent unrest in Leh. The tourism sector, a crucial economic driver for the region, has been severely impacted by violent incidents that disrupted normal life, prompting stakeholders to call for urgent financial assistance.
Following protests supporting statehood and Sixth Schedule status for Ladakh, Leh witnessed violent clashes on September 24, 2025, resulting in fatalities, injuries, and the imposition of a curfew along with the suspension of mobile internet services. While restrictions have eased, the events have significantly damaged the tourism industry, already weakened by a poor tourist season.
The All Ladakh Hotel and Guest House Association, All Ladakh Tour Operators Association, Leh Cooperative Taxi Ltd, and tempo and biker unions have jointly appealed to the chairman of the Union Territory level bankers committee (UTLBC) for immediate intervention. They are requesting special measures such as interest subvention on the moratorium period and comprehensive loan restructuring to help businesses recover from mounting losses.
The recent violence is not the first setback for Ladakh tourism this year. The industry was previously hit by cancellations following a terror attack in Pahalgam in April and unprecedented rains and snowfall in August. Rigzin Wangmo Lachic, President of the All Ladakh Hotels and Guest House Association (ALHAGHA), described the September 24 incident as a turning point, stating that it shattered the peace and left a wound on the collective soul.
Despite the economic impact, many in the tourism sector are prioritizing safeguards for the region over commercial interests, backing demands by the Leh Apex Body and Kargil Democratic Alliance for statehood, the Sixth Schedule, job reservations, parliamentary seats, and a separate Public Service Commission. Lachic emphasized that economic concerns cannot come at the cost of justice.
The prevailing unrest has led to booking cancellations and has left tourists stranded, impacting local businesses that heavily rely on seasonal tourism. Hotel owners, tour operators, and transporters face financial strain due to the uncertainty. Naseeb Singh, a hotel manager in Leh, noted the ongoing cancellation of advance bookings and merchandise shortages due to the town's closure.
Although the end of September usually marks the close of Ladakh's peak tourism season, the recent disruptions have affected overall tourism sentiment and Ladakh's reputation as a safe destination. Some tourists were unable to exchange currency, buy food, or secure permits due to the curfew.
Ladakh's tourism sector is grappling with challenges that demand immediate attention. Stakeholders are urging authorities to address the situation, restore stability, and provide support to those whose livelihoods are affected. Financial aid, including loan restructuring and moratorium extensions, is crucial for the survival and recovery of tourism-dependent businesses in the region.
