Ladakh only opened to tourists in 1974, before which it was almost completely isolated from outside influences. After the Sino-Indian war of 1962, large numbers of Indian troops were stationed in the region and efforts to develop Ladakh began. But it was when large numbers of tourists began arriving that the changes became dramatic — in the environmental, social and economic. spheres.
Tourism certainly is not the only factor contributing to this process of change, but it is the most important. The tourist industry has made some of the local in-habitants affluent, but the benefits have not been shared equally and a significant part of the revenue does not stay in Ladakh. The souvenir trade, for example, is almost completely monopolised by Kashmiris and Tibetan refugees.
Between 1974 and 1980, the number of visitors coming to Leh went up from about 500 to 14,000. During this initial period of expansion, many Ladakhis opened guest-houses and were able to earn well. However, the number has leveled off at the 1980 mark , but new restaurants and guest-houses continue to be added. Consequently, occupancy has gone down drastically and competition has increased. Since the tourist season is limited to four months per year, with up to 70 percent travelers arriving during July and August, the possibilities of attracting more tourists are limited.
Development in general and tourism in particular have disrupted the traditional subsistence economy and made Ladakh more dependent upon imports from other parts of India. The population of Leh, the capital, has risen from 5,500 in 1971 to 15,000 today. Leh can no longer provide for its own needs and the Leh-Srinagar road has become a lifeline whose frequent closure leads to severe shortages. Another side effect of tourism has been rocketing inflation – a day's rental for a horse or donkey used to be IRs.30, today it is IRs120-150. Leh now depends upon large supplies of fossil fuels trucked in from Kashmir. Tourists demand imported foods and a constant supply of hot water.