By Shahbaz Hussain
Tourism is a dynamic and multifaceted industry that plays a vital role in the economic development of many countries. Its impact on the economy is large and diverse, influencing many different sectors and generating significant revenues.
Tourism in Pakistan has great potential to boost economic growth, create jobs, and promote cultural exchange. The country’s rich history, diverse landscapes, and dynamic culture make it a popular tourist destination. However, to fully reap its economic benefits, Pakistan’s tourism sector needs to confront several challenges. Tourism is a key source of revenue for many countries. According to the World Tourism Organization, global tourism receipts totaled $1.7 trillion in 2019.
Pakistan can position itself as a top holiday destination by highlighting its natural beauty, rich history and cultural diversity. Creating a resilient and thriving tourism business will require a collaborative effort from its people, businesses and local communities.
This capital infusion will benefit national economies, especially those countries that are heavily dependent on tourism. Pakistan’s GDP has increased significantly due to tourism, which derives significant revenue from the sale of accommodation, food, travel and entertainment. Expenditure by domestic and international tourists is a significant source of income.
According to a 2019 World Travel and Tourism Council (WTTC) study, 2.9% of Pakistan’s GDP was from tourism. In Pakistan, the tourism industry, which includes opportunities in hotels, restaurants, travel agencies, tour operations, and more, is a major employer. Job prospects in tourism can help alleviate poverty and improve living conditions, especially in rural and underdeveloped areas that are popular tourist destinations. Jobs in the tourism industry can alleviate poverty and improve living standards, especially in rural and underdeveloped areas that are popular tourist destinations.
For example, the natural beauty of places like Gilgit-Baltistan and Swat has led to an increase in local employment through tourism. Jobs in the tourism industry can be found in a variety of sectors, including agriculture and handicrafts, providing goods and services to tourists, or direct work in hotels and travel agencies.
In 2017, travel and tourism directly supported 1,493,000 jobs (2.5% of total employment). This grew by 2.8% in 2018 and is expected to grow by 2.7% annually to reach 2,008,000 jobs (2.6% of total employment) by 2028. Investment in travel and tourism was INR 4,104 billion in 2017, accounting for 9.1% of total investment ($3,893.4 million). The need to boost tourism is driving investment in infrastructure such as roads, airports and utilities.
These improvements will benefit both tourists and local residents. Improved infrastructure can stimulate further economic activity and attract other types of investment. CPEC is a massive infrastructure development project that connects Pakistan with China’s western Kashgar province and Xinjiang Uyghur Autonomous Region via Gwadar. The CPEC route will connect the entire region with modern roads and transport, increasing tourism numbers in the area.
Little research has been done on tourism development in Pakistan, especially in the context of CPEC. Therefore, this study examines the relationship between CPEC road and transport developments and local support for increasing tourism in Pakistan. For example, the development of the Islamabad-Rawalpindi Metrobus service not only facilitates travel for visitors but also provides a reliable means of transportation for locals. Tourism promotes Pakistan’s diverse cultural assets and historical places, thereby stimulating preservation efforts. Events and festivals that attract tourists also help preserve and celebrate local customs and crafts. Tourism promotes Pakistan’s diverse cultural assets and historical places, thereby stimulating preservation efforts.
The surge in tourism to areas such as Mohenjo Daro, Taxila and Lahore Fort highlights the need to protect these sites. Tourism revenues are reinvested into conservation programs, ensuring these treasures are protected for centuries to come. Events and festivals that attract tourists contribute to the preservation and celebration of local traditions and crafts. For example, the annual Shandur Polo Festival attracts foreign tourists while at the same time revitalizing local culture and customs. This cultural exchange promotes increased knowledge and awareness of Pakistan’s rich history.
Tourists from other countries have traditionally refrained from visiting Pakistan due to security concerns, and despite significant recent improvements in security, tourist arrivals are still influenced by risk perceptions. The 2008 Islamabad Marriott Hotel attack and other incidents left a bad impression that has not disappeared.
Pakistan’s global image as a safe place is essential to increasing tourism. The government has taken steps to strengthen security and general public order in major tourist destinations. Positive media coverage and support from travel bloggers and influencers who have visited Pakistan have also helped to dispel negative stereotypes. Despite progress, Pakistan’s infrastructure is poor.
Tourism growth continues to be hindered in many places. Poor road conditions, limited public transport options and inadequate facilities can deter tourists from visiting the country’s tourist attractions.
For example, areas such as Skardu and Hunza are renowned for their breathtaking beauty, but the arduous treks to these places can deter many potential tourists. Continued infrastructure investment is needed to support tourism growth. Building reliable transport networks, ensuring good accommodation and providing basic amenities can significantly improve visitor experience. Public-private partnerships can help fund and execute these efforts.
An error correction model (ECM) was applied to annual time series data from 1972 to 2013. Tourism is measured by the number of foreign tourists visiting a country. The survey results show that terrorist attacks had a negative impact on tourism, while infrastructure and GDP per capita had a positive impact. It can be inferred that even if the government tries to increase foreign tourists, it will not achieve the intended results unless terrorism is eradicated.
Pakistan has made significant efforts in recent years to strengthen its tourism sector. Initiatives such as the “Emerging Pakistan” campaign and the Pakistan Tourism Summit aim to attract international tourists. In addition, the government is working to improve security and tourism facilities in the country. The opening of the Kartarpur Corridor, which allows Sikh pilgrims from India to visit holy sites in Pakistan without a visa, is an important step. This shows that Pakistan is supporting tourism and promoting peace at the same time.
Pakistan is also promoting ecotourism and adventure tourism. Regions such as Gilgit-Baltistan, Khyber Pakhtunkhwa and Azad Kashmir offer trekking, mountaineering and nature exploration. By focusing on sustainable tourism, Pakistan can preserve its natural beauty while providing unique experiences to its travelers. Tourism has great potential to boost economic growth in Pakistan; nurture cultural heritage, generate revenue and create jobs. But to fully realise this potential, Pakistan must solve its infrastructure problems, address security issues and put its marketing plans into action. A coherent legislative and policy framework is also needed to ensure sustainable tourism growth. If tourism is pursued with determination and well-considered investments are made, Pakistan’s economic growth and international reputation can be significantly boosted by tourism.
Pakistan can position itself as a top holiday destination by highlighting its natural beauty, rich history and cultural diversity. Creating a resilient and thriving tourism business will require a collaborative effort from its people, businesses and communities.
The author is a freelance columnist.
