MUZAFFARABAD: In a major development aimed at reviving tourism and providing public relief, the hotel industry of Azad Jammu and Kashmir (AJK) on Tuesday announced a 20 per cent reduction in room rents across the region and urged the government to declare Muzaffarabad and Neelum Valley as disaster-hit areas in view of recent floods and prolonged business stagnation.

The announcement was made by Raja Mohammad Ilyas, chairman of the AJK Hotels and Guesthouses Action Committee, at a press conference held at the Central Press Club here.

He was flanked byother representatives of the hospitality sector, includingTanveer Qureshi, Abrar Butt, Maqbool Kayani, Iftikhar Ahmed andthe core members of the Jammu Kashmir Joint Awami Action Committee (JAAC), Shaukat Nawaz Mir and Anjum Zaman Awan.

Mr Ilyas said the hotel industry remained the largest source of employment in AJK, but in recent years it had been badly hit by floods, inflation, the economic downturn, and rising energy prices.

Seeks disaster-hit status for Muzaffarabad, Neelum

“Tourism activities in Muzaffarabad and Neelum have almost come to a standstill due to continuous rains, floods and lack of government support,” he said, lamenting that no financial assistance or relief had so far been provided to the affected business community.

He demanded that both districts be officially notified as calamity-hit zones so that traders, hoteliers and daily wage earners could be compensated.

Referring to the recent reduction in electricity tariffs as a “result of public struggle,” the chairman appreciated the role of the JAAC and said the benefit should reach the common man rather than remain confined to the business community.

“In the same spirit, the hotel industry has decided to reduce room rents by 20 per cent to directly benefit tourists and local customers,” he added.

Mr Ilyas clarified that despite the discount, a check-and-balance system would be maintained to ensure that no establishment inflated prices to falsely show a concession

“If a room previously cost Rs1,000, it will now be available at Rs800. This decision will be strictly implemented,” he affirmed.

Speaking on the occasion, JAAC leader Shaukat Nawaz Mir criticised the absence of a structured market system in Muzaffarabad, saying that without proper vegetable, livestock and wholesale markets, inflation could not be effectively controlled.

“The business community stands with the people, but it is primarily the government’s responsibility to regulate markets, ensure food availability and stabilise prices,” he remarked.

Mr Mir pointed out that hotel associations in all districts and tehsils had already prepared official rate lists and no hotel owner would be allowed to overcharge.

“Transparent rate lists will be displayed everywhere to facilitate tourists and prevent complaints,” he added.

Mr Ilyas said that although the hotel sector generated substantial revenue and provided thousands of jobs, it had never been treated as a priority industry by the government.

“In other countries, whenever the business community faces a crisis, the government steps in with relief packages. Unfortunately, in AJK, no such measures have ever been taken,” he regretted.

Citing the Supreme Court of Pakistan’s decision to “abolish the GST in Gilgit-Baltistan,” he urged the AJK government to adopt similar reforms to improve service delivery.

Mr Ilyas thanked JAAC for including the hotel industry’s longstanding issues in their charter of demands.

“If the government, traders and public representatives work together, AJK can once again regain its reputation as a paradise-like tourist destination,” he said.

“Our collective goal is to establish a sustainable system for prosperity, employment generation and tourism promotion, which will not only strengthen businesses but also improve public life,” he added.

Published in Dawn, October 29th, 2025