New Delhi, September 20
Tourism and apple production will be badly hit in Jammu and Kashmir in the aftermath of floods, suggest industry estimates.

The PHD Chamber of Commerce and Industry has estimated that the state will lose earnings of around Rs 3,000 crore from its tourism sector in the current financial year on account of torrential rains.

Saurabh Sanyal, executive director, PHD Chamber, said with increased flow of tourists, the state was expected to generate employment opportunity for around 2 lakh people. Around 60 per cent of the population is directly or indirectly dependent on the tourism sector.

The loss to the apple industry of the state is pegged at Rs 1,000 crore, says an Assocham estimate.

The PHD study suggests the share of tourism in the GSDP of Jammu and Kashmir is estimated at around 15 per cent in the recent years, boosted by the recent developments in the tourism infrastructure of the state.

The size of tourism earnings was estimated around Rs 14,000 crores for 2014-15.

Of this, around 20 per cent has been washed away.

Apart from the losses in tourism earnings, the infrastructure loss in terms of reconstruction of damaged roads, rejuvenation of communication services and rebuilding of tourist destinations is expected to put a huge burden on the state government, says Sanyal.

Since tourism sector is badly impacted, it will have its contagion effect on other associated segments of tourism sector such as hotels, restaurants, shopping centres, pilgrimage associations, gardens, house boats, etc.

The Assocham study says the floods have washed away Kashmir apple’s crop worth Rs 1,000 crore, leaving a devastating impact on growers as also consumers in rest of the country who should be prepared to pay high prices in the coming festival and the winter season.

“Horticultural production comprises half of state’s Rs 2,000 crore agricultural output involving 30 lakh people. Apple production accounts for 86% by value of the state’s horticultural output,” the study points out. “With the supply line closed from Kashmir, the price of apple has already started shooting up,” says DS Rawat, secretary general, Assocham.