New Delhi/Srinagar, April 23 -- Travellers to Kashmir are cancelling plans, rescheduling visits and avoiding fresh bookings after Tuesday's terror attacks, throwing a blanket of gloom over its picturesque valley and snow mountains.

Travel operators, hoteliers and houseboat owners are bracing for a sharp setback in the coming weeks, after the strike killed at least 26 and injured 12. The strike and its aftermath spell debt, losses and economic uncertainty for over two million people in the region, who depend on hundreds of thousands of visitors arriving every year.

The attack has had a deep impact, acknowledged Nazir Rah, managing director of Rah Bagh by The Orchard, a boutique 41-key property with suites overlooking the serene Dal lake....