Impact of War on Punjab Tourism

April 4, 2026

If one were to analyze our country’s Gross Domestic Product (GDP), the tourism and service sectors make a substantial contribution to it. Medical tourism, in particular, has played a significant role in boosting the nation’s economy. People from abroad visit India to access world-class healthcare services at affordable rates, as patients in countries like the UK, the US, and Canada often face long waiting periods to receive medical treatment. Furthermore, religious tourism stands as a major pillar of India’s economy. However, the ongoing conflict between the US, Israel, and Iran has now severely disrupted both leisure and religious tourism.

Statistics released in early April indicate that revenue generated from tourist arrivals has come to a virtual standstill. Amidst the prevailing tensions in West Asia, India’s hotel industry has witnessed a 30 percent decline in business. During the months of March and April, amidst alarming news regarding the war, a large number of hotel bookings were cancelled. Tourists do not visit India solely for sightseeing; they also come to attend conferences and participate in business meetings. These events, too, have been cancelled. Meanwhile, rising aviation fuel costs have led to an increase in airfares, making travel to India more expensive for tourists.

Consequently, there has been a drastic decline in the foreign exchange revenue generated through tourism. In major hotels across cities like Delhi and Mumbai, foreign nationals account for 50 to 55 percent of the guests. The war has triggered a slump in international travel, the direct impact of which is now being felt across the tourism industry. Experts point out that a distinct downturn in the tourism economy is clearly visible in cities such as Delhi-NCR, Mumbai, Bengaluru, and Hyderabad—regions that rely heavily on global corporate travel.

Now, following President Trump’s statement in early April—suggesting that the conflict could persist for another two to three weeks—the number of tourist arrivals is expected to decline even further. Meanwhile, in the state of Punjab, religious tourism constitutes a dominant segment of the sector