Before militancy intensified in 1989, tourism formed an important part of the Kashmiri economy and Kashmir was the favorite destination for Bollywood. Kashmir had 19 cinema halls which were closed due to rising Islamic Terrorism. The tourism economy in the Kashmir valley was worst hit. However, the holy shrines of Jammu and the Buddhist monasteries of Ladakh continue to remain popular pilgrimage and tourism destinations. Every year, thousands of Hindu pilgrims visit holy shrines of Vaishno Devi and Amarnath which has had significant impact on the state's economy.
Tourism in the Kashmir valley has rebounded in recent years and in 2009, the state became one of the top tourist destinations of India. Gulmarg, one of the most popular ski resort destinations in India, is also home to the world's highest green golf course. The decrease in violence in the state has boosted the states economy specifically tourism. It was reported that 7.36 lakh tourists visited Kashmir in 2010 including 23,000 foreigners. In 2011, the number of tourist arrivals in Kashmir touched the mark of 10 lakh.