Here to participate in the ongoing 2nd Tourism Expo, director-general, Jammu and Kashmir tourism, Mohammad Ashraf told UNI that the valley had notched 120,000 tourist arrivals, including 10,000 foreigners in 1998, the highest since the outbreak of militancy. "Even right now, a group of Australian tourists is in Gulmarg for skiing," he said.

With the valley expecting a big turnout of tourists this year, the government's stress was on strengthening the infrastructure. New hotels, including that of an international chain in collaboration with a local hotelier, were due for opening.

The tourism department had earmarked Rs 12 crore of its Rs 34 crore budget for giving as soft loans to those involved in the tourist trade, including houseboat owners, hoteliers, owners of shikaras, taxis and ponies, Ashraf said.