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Challenges and charms

By Engr. Hussain Ahmad Siddiqui
15 January, 2024

“Tourism brings progress. As one of the biggest sectors in the global economy, it has great power to bridge cultures, generate new opportunities, and promote sustainable development." - Antonio Guterres, UN Secretary-General

Challenges and charms

“Tourism brings progress. As one of the biggest sectors in the global economy, it has great power to bridge cultures, generate new opportunities, and promote sustainable development." - Antonio Guterres, UN Secretary-General

In the face of adversities like the Covid-19 pandemic, climate disasters, and regional conflicts, the tourism and travel sector remains resilient, emerging as the fastest-growing industry worldwide. Valued at $1.5 trillion globally, it contributes approximately 9.2 percent to the total global economy, employing around 300 million individuals, which constitutes 10.3 percent of global jobs.

In the context of Pakistan, the tourism and travel sector contributed 6.0 percent to the national Gross Domestic Product (GDP) in 2023, providing jobs for 4.19 million people, almost 6.0 percent of the total employment, excluding indirect and induced jobs. Projections for 2033 anticipate an increase in GDP contribution to 6.5 percent, generating jobs for 5.86 million individuals, including 1.7 million new jobs within the next decade.

Despite recent challenges such as the Covid-19 pandemic, floods, and inflation, tourism spending in Pakistan is on the rise. International travelers' spending has reached $1.3 billion, approximately 3.6% of total exports. In comparison, the sector earned $1.0 billion in 2019 and $1.1 billion in 2022. Domestic travelers spent an equivalent of $14.7 billion in 2023, compared to $12.2 billion in 2019. Projections for 2033 estimate international travelers' spending to increase to $1.7 billion and domestic travelers' spending to reach an equivalent of $28.7 billion.

The majority of international travelers to Pakistan hail from the UK, USA, India, China, and Canada. Overseas Pakistanis, particularly from the USA, the UK, and European countries, frequently visit their homeland, contributing to the tourism sector. Similarly, individuals working in Saudi Arabia and Gulf States often return during vacations, while visitors from India come to reconnect with relatives.

Despite the promising potential, Pakistan faces challenges in accurately measuring tourism statistics. The lack of separate data for international and domestic tourism raises concerns about the reliability of information provided by the Pakistan Bureau of Statistics, making it difficult to assess the country's global standing in tourism. The United Nations World Tourism Organization (UNWTO) reports a lack of available tourism data for Pakistan in any given year.

Globally, tourism has experienced remarkable growth, with a 62 percent recovery in the Asia-Pacific region in 2023. However, Pakistan is notably absent from the top ten destinations in the region, trailing behind countries like Vietnam and Indonesia. Despite being designated a premier tourist destination by the UNWTO in 2023, Pakistan's performance remains modest in international and domestic tourism.

Khyber Pakhtunkhwa (KP) province stands out as a potential tourist haven, attracting 4,554 foreign tourists in 2023 to scenic locations such as Naran-Kaghan valley, Shogran, Babusar pass, Deosai national park, Swat-Kalam valley, Malam Jabba skiing resort, upper and lower Dir, and the Galyat region. Religious sites, including Sikh pilgrimage sites and Buddhist monasteries in Taxila and Takht-i-Bahi, have also witnessed increased foreign visitors. Millions of domestic tourists throng Murree and the Galyat in both the summer and winter seasons.

Ancient civilizations like Mohenjo-Daro and Gandhara continue to captivate foreigners, besides the Lahore Fort and Badshahi Mosque of Mughal era. Azad Jammu & Kashmir is famous for its surreal and enchanting Neelum valley. The magnificent Himalayas and Karakoram ranges are home to many highest peaks in the world that include K-2 and Nanga Parbat, where last year's summer season witnessed an influx of some 2,050 foreign climbers and trekkers. The total number of foreign tourists visiting Gilgit-Baltistan in 2023 was about 9,000, which marked the highest number of foreign tourists in the region in the past two decades.

Despite these opportunities, Pakistan's tourism sector requires positive exposure, both domestically and internationally. The country's image, especially concerning safety and security, remains a significant concern. Inadequate tourism information distribution, coupled with the improper development and maintenance of tourist sites, adds to the challenge. Local tourism facilities lack consistent quality, highlighting the need for strategic marketing.

To tap into tourism's potential as a game-changer for Pakistan's struggling economy, the government must initiate sustainable tourism development projects. Public-private partnerships are crucial for promoting national tourism, with a focus on the simultaneous development of micro- and small-to-medium enterprises (SMEs) within the tourism sector. Most of the motels and restaurants across the country that are still owned by the Pakistan Tourism Development Corporation (PTDC) and are closed since long due to financial constraints, should be re-opened or handed over to the private sector on lease on priority. Adequate infrastructure facilities and connectivity should be provided to the hotels and restaurants currently under construction or at the planning stage in Hunza, Skardu and other places of Gilgit-Baltistan.

In conclusion, while challenges persist, Pakistan holds immense potential to attract millions of foreign and domestic tourists annually. Strategic marketing, improved infrastructure, removing complexities for grant of visa, particularly for mountaineering/trekking, and a concerted effort to address safety concerns can position Pakistan as a prominent player in the global tourism industry, contributing significantly to the nation's progress and development.


The writer is retired chairman of the State Engineering Corporation