The tourism industry in Kashmir has suffered an estimated loss of Rs 3,000 crore because of the ongoing crisis in the state, state government officials said on Friday. The officials said hotels in the public and private sector were the worst affected, with many of them struggling with zero occupancy because of the unrest, which began after Hizbul Mujahideen militant Burhan Wani was killed on July 8.

The officials said only 10,059 tourists had visited the Valley between August 1 and August 12 this year compared with 89,243 last year. They added that more than three lakh tourists had visited the region between July and September last year. Accommodations belonging to the Jammu and Kashmir Tourism Development Corporation in several towns have only between 2%-4% occupancy instead of the usual 90%-100% for the time of the year. Film crews scheduled to shoot in Kashmir have cancelled their plans because of the situation, the officials said.

Thousands of people have been affected by the violence and the disruption of normal life in the state for more than two months. The situation has also led to the deterioration of ties between India and Pakistan as India alleges Islamabad’s influence in the issue, and Pakistan has called for plebiscites in the region. Relations between the two neighbours worsened after a militant attack on an Indian Army base killed 18 soldiers on September 18 in the Uri sector of the state.