J&K L-G: 90% of 5,000 new hotels in Kashmir are illegal

Jammu and Kashmir Lieutenant Governor Manoj Sinha stated on Monday that 90% of the 5,000 hotels built in Kashmir over the past six years are illegal. He made the remarks at a conference titled 'Ethical approach towards tourism' organised by the Tourist Trade Interest Guild at the Sher-i-Kashmir International Convention Centre in Srinagar.

Mr. Sinha specifically named prominent hotelier Mushtaq Ahmad Chaya, who received a notice from the Enforcement Directorate under the Prevention of Money Laundering Act in June 2026. 'During the last six years, 5,000 hotels were constructed, 90% of them illegal, including that of Mushtaq Chaya,' he said.

Despite the illegality, the L-G acknowledged that these constructions generated an investment of over Rs 80,000 crore to Rs 1 lakh crore. He noted that approximately 90% of the investment came from local residents, while the remaining 10% came from outside entities involved in the tour and travel business.

Mr. Chaya was present in the audience when his name was mentioned. Mr. Sinha added that Mr. Chaya's hotel was worth around Rs 100 crore. The L-G also criticised hoteliers who, according to him, are 'the biggest encroachers' yet raise concerns about encroachment in Kashmir. 'The encroachers are the first to complain about encroachment and seek measures to end it,' he said.

Addressing the issue of overpricing, Mr. Sinha said that hotels charging Rs 10,000 to Rs 25,000 per night were discouraging tourists from extending their stays in Kashmir. He also flagged excessive taxi charges in Srinagar, stating that such practices have tarnished the region's image.

Mr. Sinha called for equitable distribution of tourism profits, urging that benefits should not be limited to large hotels like those of Mr. Chaya. 'Profit should percolate to the community, like homestay owners in Gurez and craftsmen of Pulwama,' he said.

The L-G emphasised the need for ethical and responsible tourism, warning that bans and fines alone cannot instil ethics. He called for a social movement to conserve Kashmir's fragile ecology, involving all stakeholders. 'The entire society is a stakeholder in it,' he added.

Mr. Sinha praised the conference as a step towards redefining tourism as a moral responsibility. He noted that tourist arrivals have reached record levels, confidence has been restored, investments increased, and employment expanded. However, he stressed that profits must reach the last village, last family, and last citizen.

The Lieutenant Governor urged stakeholders to translate discussions into concrete action plans with clear goals, timelines, and evaluation mechanisms.