India said on Saturday it had banned the import of goods coming from or transiting via Pakistan and barred Pakistani ships as tensions rise between the nuclear-armed neighbours in the wake of a deadly attack on tourists in the disputed Kashmir region.

But the threat of war with nearby India has emptied its hotels. Gunmen last week killed 26 people in the Indian resort town of Pahalgam, fueling tensions between the nuclear-armed nations after India blamed Pakistan for the attack,

Neelum Valley in northern Pakistan attracts some 300,000 tourists each summer who marvel at its natural beauty