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The tourism activities at a particular place are directly related to the arrival of tourists at that place. The more the arrival, the more economic activities get generated and make impact on the related sectors accordingly. So it is imperative that while studying the impact of the tourism sector on the economy of the particular regions, trends in tourist traffic needs to be analyzed vis-a-vis spending by the tourists. Tourist expenditure generates multiple effects on the service sector such as agriculture, horticulture, poultry and handicrafts. Jammu & Kashmir is an important tourist destination and has been a place of attraction for tourists since centuries.