LEH: In the wake of the recent violent incidents in Leh that severely disrupted normal life and crippled business operations, key stakeholders of the tourism sector in Ladakh have urged the authorities to announce special financial relief measures to help the industry recover from escalating losses.
In a joint appeal addressed to the Chairman of the Union Territory Level Bankers Committee (UTLBC), representatives of the All Ladakh Hotel and Guest House Association, All Ladakh Tour Operators Association, Leh Cooperative Taxi Ltd, and various tempo and biker unions demanded urgent economic assistance, including interest subvention on the moratorium period and comprehensive loan restructuring.
Tourism operators said the unrest — compounded by an already sluggish tourist season — has caused severe financial distress, with many businesses struggling to stay afloat. “The tragic events of September 24 have once again pushed Ladakh’s tourism and trade sectors into deep distress. With the season now effectively over, and businesses shutting down for winter, meeting even basic financial obligations has become impossible,” the stakeholders stated in their letter.
Leh witnessed violent clashes on September 24 during protests over demands for statehood and Sixth Schedule status for Ladakh. The violence left four people dead and dozens injured, prompting a curfew and suspension of mobile internet services. Climate activist Sonam Wangchuk, who had been leading the demonstrations, was among those detained.
Although restrictions were lifted after a week, the sector continues to feel the shockwaves. The stakeholders appreciated the Finance Department’s September 19 notification, which declared Ladakh as “affected by disturbances” under Chapter 7 of the RBI Relief Measures for Areas Affected by Natural Calamities, but said additional support is essential.
They urged that the moratorium extension be made interest-free or include a 12-month interest subvention, warning that accumulated interest would otherwise worsen the debt burden. They also sought mandatory restructuring of all tourism-related loans — covering hotels, guest houses, taxis, tour operators, and small traders — without reclassification as NPAs or CIBIL downgrades.
“Tourism sustains over 70 percent of Ladakh’s livelihoods,” the letter emphasized, adding that swift financial intervention is vital to prevent defaults, closures, and long-term economic fallout. The associations urged the UTLBC and financial institutions to expedite the relief package, safeguarding both livelihoods and the region’s fragile economy.
