India accused Islamabad of supporting "cross-border terrorism." Pakistan has denied the accusation and a previously unknown militant group calling itself Kashmir Resistance has claimed responsibility for the attack.

The fear of more terror attacks targeting tourists is likely to keep away many people from visiting Kashmir for some time, as only 30 percent of those surveyed are likely to take a trip to the Valley.

The spray of gunfire at tourists Tuesday in a scenic, mountain-ringed valley was the worst assault in years targeting civilians in the restive region.