Ladakh is a high-altitude desert in the Indian state of Jammu and Kashmir. Covering an area of 40, 000 square miles, Tourist arrivals grew rapidly from a few hundred in the initial years to around 15, 000 by the mid-1980s. Foreign tourist arrivals have stabilized at about this level.
The last 15 years have seen a vigorous program of development in Ladakh, which has brought changes in education, health care, agriculture, energy, and transportation. Tourism is concentrated in the predominantly Buddhist settlements of the Indus Valley, of which the ancient capital and trading center of Leh (population 8, 000) is the hub. Many areas of Ladakh are still off limits to foreign visitors due to their proximity to the Chinese and Pakistani borders. A large part of southern Ladakh is accessible only by foot.Tourism, a major contributor to Ladakh's cash economy, has brought clear economic benefits to the minority involved in this trade. The tourism economy is centered around Leh, and very little of the economic benefit of tourism accrues to the more than 90 percent of Ladakhis who live outside of this area. Within Leh the handful of Ladakhis who own large hotels benefit disproportionately. Much of the money spent in Leh goes to tour operators and merchants who come to Ladakh just for the tourist season. Those who do live outside of Leh benefit somewhat from trekkers. They frequently rent out their pack animals and occasionally lodge trekkers not traveling with prearranged tour groups.