Why Nainital Has No Tourists In Its Peak Travel Season This Year

Empty roads. No traffic. Open space parking. When you hear these phrases, several places might spring to mind - but Nainital in Uttarakhand is probably not one of them, especially during this time of year. Usually overwhelmed by tourists, Nainital and its residents are now experiencing something unusual; and for many, it's far from welcome.

This shift is the result of a significant drop in the number of tourists visiting the town. According to locals we spoke to, this decline couldn't have come at a worse time - May and June - the summer months, and traditionally the peak season for tourism.

'90 Per Cent Drop In Occupancy'

Digvijay Singh Bisht, President of the Nainital Hotel Association, informs NDTV of a massive fall in hotel and resort bookings. He says occupancy rates have plunged by as much as 90 per cent in the last month.

"Bookings were cancelled even for June. There were no walk-in guests. It's not the same as in the previous years," Bisht tells NDTV.

NDTV spoke to other hoteliers, cab service providers and local business owners in Nainital, and nearly all of them echoed the same concern - a sharp and sudden decline in the number of tourists visiting the 'lake district' of India.

Nainital is seeing a drop in tourists. Photo: Unsplash

Rana Singh* (name changed as per request), a hotelier who owns a property in Nainital and has been in the hospitality business for almost 35 years, says his property has also witnessed a 70 to 80 per cent drop in bookings. This, he points out, is despite Nainital having more pleasant weather compared to many other hill stations in Uttarakhand.

"People are choosing places like Bhimtal, Mukteshwar and others, but they are skipping Nainital," Singh tells us.

Amrit, a local taxi service provider who has catered to tourists in Nainital for more than 10 years, says he has seen a 50 per cent drop in cab bookings over this month. May and June usually contribute to nearly 80 per cent of their annual bookings. This fall has led to a significant loss for him and many others in the same line of work.

Amit, who runs a well-known local business in town, adds to Amrit's concerns, "For businesses that rely entirely on tourist footfall, a season like this has a major impact on our income."

Tourism during the peak season is crucial for Nainital. Over the years, it has not only been a key driver of economic growth but has also provided employment opportunities for a large portion of the local population.

Why

There are several factors contributing to the downturn in tourism in Nainital this summer. Let's take a closer look at what has pushed this once-popular destination into the shadows.

The Pahalgam Attack

In April 2025, a terrorist attack in Pahalgam, the popular tourist destination in Jammu and Kashmir, claimed the lives of 26 civilians; most of whom were tourists. The incident sent shockwaves across the country and heightened security concerns.

Since then, tensions along the India-Pakistan border have been high, and this has discouraged many from travelling anywhere - including peaceful hill stations like Nainital.

Bisht notes that other states have also experienced a decline in tourism.

"I got a call from our association members in Kerala. They wanted to know how things were in Uttarakhand. They told me their occupancy rate had also dropped since the conflict began," he says. This climate of uncertainty has made many Indians hesitant to travel to well-known tourist destinations.

Communal Tensions In Nainital

On May 1, communal unrest broke out in Nainital after a 12-year-old girl was allegedly assaulted by a 60-year-old man. The incident sparked protests and acts of vandalism in the town. Police arrested the accused, Osman, a contractor, and deployed security forces to prevent further violence.

As news of the girl's medical examination spread, large demonstrations erupted outside the police station. Several shops owned by members of the Muslim community were vandalised, and a mosque was targeted with stones.

Footage of the protests and violence went viral on social media, creating a sense of fear and uncertainty among potential visitors, many of whom cancelled their plans to visit the town.

"Even though Nainital is completely safe now, the headlines and social media coverage of the unrest have created fear among tourists," says hotelier Singh.

'They Are Sending Tourists Back'

Among the many reasons given by locals for the decline in tourism, one of the most common complaints is the administration's handling of tourist traffic.

"They don't allow tourists to bring their own vehicles into the town. They're asked to park at least 10 km away from Nainital, which is inconvenient for many who want to travel in their personal vehicles," Amrit explains.

This is the scene at Nainital highway road, just beside police barrier no 1
Aerocity
Illegal parking of trucks on both side of the road is creating congestion and are also dangerous for other vehicles.@Uppolice @adgzonebareilly @igrangebareilly @myyogiadityanth @bareillypolice pic.twitter.com/8UgCCsVIx7

— Kush_Kar (@kartavya_kush) May 19, 2025

He also points out that parking charges in government areas have increased from Rs 130 per day to Rs 500 per day.

This was intended to ease traffic congestion, which had been a major issue for tourists. "No one wants to spend 6 to 7 hours stuck on the road when they've come for a relaxing weekend," says a local businessman, Amit Virmani, The Pahari Store.

Amrit, the local taxi service provider, alleges that police at checkpoints have been also advising tourists to avoid coming to Nainital due to traffic concerns.

A New Toll

Another contributing factor is the sudden introduction of toll taxes. Toll collection booths at Barapather and Fanshi Ghandera were introduced under a new Environment Tax system.

Parking fees in Nainital may vary depending on the vehicle type. Photo: Facebook/Arun Kumar Shah

This move was initiated during a Nagar Palika Nainital board meeting following directions from the Uttarakhand High Court. The new tolls are aimed at regulating vehicle entry and raising funds for environmental conservation in the region.

What The Government Says

A spokesperson from the District Magistrate's office in Nainital tells NDTV that the increase in taxes and parking charges is intended to control traffic. Moreover, it is also done to ensure that not too many cars enter the town. These charges include a toll tax of Rs 110, parking charges of Rs 500 per day, and a lake bridge tax of Rs 110, which allows access to the famous Mall Road.

"Private vehicles are asked to park a few kilometres away so that we can manage the traffic load. If your hotel has parking, only then you can enter Nainital with your private vehicle," the spokesperson said.

The Hope

Despite this, locals and hoteliers remain hopeful that the season might still recover and tourists will return to the streets of Nainital.

Amit says the new laws and regulations might attract a different kind of traveller - those who are more intentional and willing to spend more within the local economy.

The locals we spoke to also mentioned that there was a noticeable return of tourists over the last weekend.

Localities are hoping the tourist numbers will increase. Photo: Unsplash

"Occupancy increased to 40 per cent last week, and tourists are starting to come back, now that the border tensions have eased," says Bisht.

Other hoteliers, like Sonu Chhabra, who owns a property in the town, believe that the upcoming Independence-Day long weekend in August might bring a surge in visitor numbers.

"We are hopeful that the tourist count will return to some level of normalcy in June. However, it's still not the same as last year," Bisht concludes.