When tourism build bridges between people terrorism erect walls of hatred between people. Terrorism demoralizes and demobilizes population and disintegrates societies (Ahuja,R. 2004). Terror attacks cripple tourism industry at any destination globally. Undaunting spirit, strong commitment and dogged determination on the part of tourism stakeholders are required to mitigate the challenges created by terrorism on tourism at any destination. Though the ripples created by economic slowdown and terror attack on tourism shake the confidence, grand strategy is the need of the hour to develop tourism as a vital tool to counter economic slowdown and terrorism. Our dream of achieving world largest tourism receiver will become true, only when we explore possibilities of designing new tourism strategies to mitigate impact of terrorism on tourism.