Ladakh Delegations Call for Urgent Relief for Tourism Sector

A series of delegations from Ladakh, including key tourism stakeholders, met with Finance Minister Nirmala Sitharaman in Leh to request urgent support following a sharp drop in tourist arrivals in the wake of the Pahalgam terror attack. The representatives urged for special relief measures to aid the tourism and allied sectors in the region.

During her four-day visit, Sitharaman attended the Leh Palace light and sound show, visited Shanti Stupa, and held discussions with local leaders, including Tashi Gyalson, Chairman-cum-Chief Executive Councillor of the Ladakh Autonomous Hill Development Council (LAHDC), Leh.

The delegations comprising members of the All Ladakh Travel and Trade Alliance, Hotel and Guest House Association, Tour Operators, Transport Associations, merchant groups, biker clubs, taxi unions, and other tourism bodies highlighted the severe impact of recent events on Ladakh’s economy, which relies heavily on tourism.

A memorandum presented by Gyalson on behalf of the LAHDC Leh called for a special relief package, including rescheduling bank loans, extending moratorium periods, and recognising tourism as a distressed sector. The memorandum also appealed for the restoration of Ladakh’s budget allocation for FY 2025–26, urging the Finance Ministry to base budget estimates on expenditure up to December, given Ladakh’s limited operational season due to its challenging climate.

The delegation expressed appreciation for the Centre’s ongoing support through various schemes like the Vibrant Villages Programme, which has played a pivotal role in developing remote border areas.

Further requests included increasing financial powers for the Chief Executive Officer and Deputy Commissioner of Leh, allowing them to approve sanctions up to Rs 10 crore. They also called for the quick division of assets and staff of J&K Grameen Bank between Jammu & Kashmir and Ladakh, and the creation of a dedicated Regional Rural Bank for Ladakh to boost financial inclusion.

Moreover, the delegation proposed establishing a Ladakh Development Finance Corporation (LDFC) to support local industries, along with setting up an RBI office in Leh to improve banking oversight, address public grievances, and promote financial literacy.

Confronted with declining tourist numbers following the April 22 attack in Pahalgam, in which 26 lives were lost, representatives from various tourism and trade sectors voiced their concern and urged immediate action. 

The Finance Minister assured the delegations that the issues raised would be examined for suitable consideration.

Another group of councillors also submitted a separate memorandum emphasising the need to restore Ladakh’s budget to enable the uninterrupted execution of vital development projects and promote sustainable progress across the region.