Police has identified the victim as 24-year-old Sara Elizabeth from UK. Police officials told journalists that the victim was found in a pool of blood inside her room in the houseboat. Police suspect she was raped before being murdered.
Police are currently questioning a Dutch man in this regard.
"A 24-year-old British national was found murdered in a local houseboat this morning. A Dutch national has been detained for investigations in this connection," said Inspector General of Police (IGP) Kashmir Abdul Ghani Mir.
"While preliminary investigation has confirmed that the 24-year-old woman was murdered, we are investigating other angles. Forensic evidence is being collected," Mir added.
Police sources said the Dutch man was held at Qazigund of south Kashmirs' Anantnag district.
A Dutch tourist Davit Rechord (43), who was staying in another room of the houseboat, has been arrested when he tried to flee the Valley at Qazigund, 75 kms from here, on Srinagar-Jammu national highway, they said.
A team of FSL experts is at the spot and the body of the woman was sent for postmortem, the sources said.
"The Dutch national had fled from the houseboat in the night, leaving behind his belongings. He was trying to flee from the Valley, carrying only his passport. We flashed an alert for his arrest," the police chief said.