Devastation To Hit 2 Lakh Employment Opportunities In J&K: PHD Chamber

State May Face Rs.3,000 Crore Losses In Tourism Earnings In 2014-15 Due To Floods, Says PHD Chamber

The PHD Chamber of Commerce and Industry estimates that the state of Jammu & Kashmir will lose earnings of about Rs.3,000 crore from its tourism sector in the current financial year on account of torrential rains that devastated the state in September 2014, said Mr. Saurabh Sanyal, Executive Director, PHD Chamber in a press statement issued here today.

With the increased flow of tourists, the state was expected to generate around two lakh employment opportunities directly and indirectly. Around 60% of the total population of Jammu & Kashmir is dependent on tourism sector directly or indirectly. It is one of the most preferred locations in India for pilgrimage and adventure tourism.

 

The share of tourism in the GSDP of Jammu & Kashmir is estimated at around 15% in the recent years boosted by the recent developments in the tourism infrastructure of the state.

The size of the tourism earnings was estimated at around Rs.14,000 crores for the current year 2014-15 of which around 20% has been washed away, points out the assessment of the PHD Research Bureau, the research arm of PHD Chamber of Commerce and Industry.

Apart from the losses in tourism earnings, the infrastructure loss in terms of the reconstruction of damaged roads, rejuvenation of communication services and rebuilding of tourist destinations is expected to burden the state government with huge amount, said Mr. Sanyal.

Since tourism sector is badly impacted, it will have its contagion effect on other associated segments of tourism sector like hotels, restaurants, shopping centres, pilgrimage associations, gardens, house boats, pony riders etc, said Mr. Sanyal.

To offset the loss in employment generation, skill development amongst the local youth would be critical to engage them in other promising sectors of the economy such as food processing, horticulture, handlooms & handicrafts, floriculture & sericulture etc, going forward, he said.

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