The Paper shall be analyzing in detail the role of tourist potential in the valley of Kashmir and accordingly its impact will be correlated and that way its role in the growth and development of other sectors of economy will be focused out. Since tourist resource potential from ancient times has been considered as an active variable for promoting and accelerating the growth of gross domestic product (GDP) and consequently plays an important role in maintaining economic buoyancy and at times accelerating its momentum. Since the frequency of tourism in the valley of Kashmir day-in day-out has maintained higher frequency and consequently generated income elasticity which has acted as a catalyst in creating more employment opportunities. Besides, trend in tourist growth will also be profiled out and accordingly future assessments can be formulated.