Dalhousie:
Dalhousie, once a jewel of British colonial India, named after Lord Dalhousie, was among Himachal Pradesh’s first two hill stations along with Shimla. Later, destinations like Manali, Dharamshala, Atal Tunnel and Lahaul-Spiti emerged on the tourism map, gradually overshadowing Dalhousie.
However, despite its historical charm and scenic beauty, Dalhousie is witnessing a sharp decline in tourist inflow. Over the past five years, the region’s tourism industry has suffered multiple setbacks. The first two years saw a near halt due to the COVID-19 pandemic and the subsequent three years were marred by recurring natural disasters across Himachal — though notably, Dalhousie itself remained largely unaffected.
In 2025, hopes were high for a strong tourist season. But May saw the initiation of Operation Sindoor, which led to a further decline in the number of tourists. Even though Dalhousie remained safe and accessible during natural disasters that hit other regions, the perception of Himachal being unsafe deterred many travellers.
Another key concern is infrastructure. Dalhousie lacks a local airport, has no railway connectivity from Pathankot and is still awaiting proposed ropeway projects. Poor road conditions, limited parking and underwhelming picnic spots have further contributed to its diminished tourist appeal.
Locals say that without rapid development of basic infrastructure, Dalhousie’s tourism legacy is at risk of being lost entirely. The town’s small population is heavily dependent on tourism for livelihood. With declining footfall, hotel owners are struggling, many being forced to lay off staff.
Successive governments — both Congress and BJP — have failed to make significant investments in Dalhousie’s tourism development. Interestingly, most of the growth here has been driven by private efforts. Elite boarding schools like Sacred Heart School, Dalhousie Public School and Guru Nanak Public School have played a significant role. These institutions draw students from across India, with many families visiting regularly, giving a boost to local hospitality businesses.
The hotel industry too was largely developed by local entrepreneurs and investors from outside Himachal, especially after 1989 when the Kashmir conflict led tourists to shift focus to Himachal Pradesh. Today, Dalhousie and nearby Banikhet together host nearly 200 hotels. But while accommodation capacity has grown, tourist numbers have not. With lower tourist turnout, Banikhet’s rise has ironically led to reduced business for Dalhousie hotels as the few tourists that do arrive are now split between the two towns.
When contacted, Rajeev Mishra, District Tourism Officer, stated that proposals have been submitted for a heliport near Bagdhar and ropeways linking Banikhet to Dalhousie and Dalhousie to Khajjiar. Under the PRASAD scheme (Pilgrimage Rejuvenation and Spiritual Augmentation Drive), the Dalhousie Municipal Council has been asked to submit development plans to the central government.
Mishra expressed optimism that these steps would help rejuvenate Dalhousie’s tourism. However, local hotel owners and residents are urging the government to fast-track these projects and also reduce the GST rate on hotels from 12% to 5% to provide immediate relief to the ailing hospitality sector.
Dalhousie may be struggling, but with strategic planning and government support, locals believe it can reclaim its place as a crown jewel of Himachal Pradesh tourism.
