Tourism a Panacea for Pakistan

Pakistan’s tourism sector has witnessed a revival  since 2010 mainly due to government support, enhanced security measures and the spread of social media platforms. Pakistan’s tourism industry has been receiving international acclaim from multiple global influencers including the United Nations World Tourism Organization (UNWTO), identifying Pakistan as one of the top tourist attractions for the year 2023.

This study presents an understanding of the constraints and opportunities of the tourism industry in Pakistan as well as strategies to foster progress. The results are aggregated from the near, medium, and long-term perspectives so that stakeholders can apply practical recommendations and make meaningful improvements. It is strongly believed that tourism can be a panacea for Pakistan and address its economic, socio and cultural issues.

In the year 2019 alone, tourism accounted for 10.4% of the global GDP, with 334 million jobs​ linked directly and indirectly to the industry, making it one of the most impactful industries globally (WTTC, 2024). Moreover, the multiplier effect of tourism [Direct, Indirect & Induced impacts] means that each dollar spent by a tourist has a ripple effect throughout the economy. The global travel & tourism industry is projected to cross USD 12.3 trillion by 2032 (CMI, 2023).

Tourism plays a vital role in any economy, contributing significantly to its GDP, employment, and overall economic development. Over the last few years, Pakistan has started gaining recognition as an international tourist destination. Many international travel magazines and influencers including Forbes, Conde Nast, and the British Backpacker Society have listed Pakistan in their top travel lists because of its geographical terrain, hospitable people, rich history and culture. In 2022, travel and tourism contributed approximately 5.9% to Pakistan’s GDP.

Tourism, undeniably, has the potential to drive economic growth just like other sectors, but it poses challenges that need to be carefully managed. Problems like overtourism, environmental degradation, and erosion of cultures are major threats to long-term sustainable tourism-led economies. Not only this, but the benefits of tourism need to be distributed amongst the regions and communities equitably to internalize this sector in the economy.

Pakistan does not need to target all the 63 various types of tourism, rather it needs to focus on the low hanging tourism sectors and try to increase its share in those sectors, with particular focus on tourism types like adventure, culture, religious, halal, medical, etc. This report works towards a plan to embark on a structured journey to making Pakistan a global tourism giant.

Findings & Recommendations

The detailed findings and recommendations from the report, summarized below, emphasize the areas which need focus to make Pakistan a global tourism destination.

A Centralized Tourism Authority in Pakistan:

Since the 18th amendment in 2010, tourism has become a provincial subject without a centralized authority. This is hurting Pakistan’s tourism case as the budget and efforts are divided amongst provinces. A Centralized Tourism Authority needs to be enacted by a constitutional amendment. The authority must be empowered with an appropriate budget and a well-defined time bound KPIs.

Policy Reforms and Bylaws:

There are weak policy frameworks and bylaws which hinder the development of a sustainable and structured tourism industry. There should be laws for visa regime, environment, construction, transport, waste management, tourist flows, tour operators, hotel operation, tourist complaint management amongst others.  

Country Perception:

Pakistan’s global image and perception remain poor, hurting tourism’s cause. To address this, the country must actively promote the positive improvements in security through targeted campaigns. Certifications from global safety organizations, along with endorsements from international influencers, should be leveraged to attract potential tourists. Mobilizing Pakistan’s embassies and consulates globally through exhibitions, seminars, advertising, lobbying and engaging influencers can prove to be a key strategy to promote the image of Pakistan. An initiative named “Brand Pakistan” is imperative, engaging youth positively, and making effective use of extensive social media penetration.

Branding Pakistan:

Pakistan has weak branding unlike other Asian tourism giants like Malaysia, Indonesia, Thailand, Turkey, etc. The country has yet to establish and promote “Brand Pakistan” at a global scale. Pakistan needs a strong branding campaign like “Malaysia Truly Asia”, “Wonderful Indonesia”, “Tourism Thailand”, “Go Türkiye”, etc. “Salam Pakistan” branding campaign was launched a couple of years ago; however, it was not promoted aggressively.

Usage of Digital Media:

Using social media, videos and influencer marketing will aid in the creation of an initial hype surrounding the potential of tourism in Pakistan. Hashtag campaigns, user-generated content, and targeted social media ads can quickly engage international audiences.

A Conducive Environment for Investment in tourism:

Pakistan’s evolving tourism policies are attracting domestic as well as international investors, these can unlock the country’s economic potential. However, there are no specific incentives for tourism sector investments. Enhanced investor confidence can be achieved by offering subsidized loans, government guaranteeing tourism investment [like Small Business Administration in USA], tax breaks, occupancy insurance, legal protection, contract enforceability and community alignment with investors.

Public Infrastructure:

Significant efforts have been made recently to improve tourism infrastructure and connectivity. These include road and mobile networks, electricity, air connectivity, transportation networks, and accommodation. Developing hotels and roads can cater to the growing traveler preferences.

Integrated Data Collection:

One of the major hurdles in growing Pakistan’s tourism sector is the absence of reliable, up-to-date data. Despite efforts by the Pakistan Tourism Development Corporation (PTDC) and the Pakistan Bureau of Statistics (PBS), many regions still lack systematic tourism data collection. Strengthening this system would enable more informed policymaking and investment decisions.

 Develop a Tourism Success Story:

Developing a success story gives boost to any industry. Tourism needs a big success story. A possible option is to develop a new city in the northern areas designed to premium international standards. New Skardu City on the riverbank with international airport access just minutes away, and a few hours distance from the mighty K-2 and Deosai Plains can be a great story.

Expanding Community-Led Initiatives:

There is a need to develop small-scale, community-driven tourism projects in various regions on the lines of Trophy Hunting, Clean Hunza and Home Stay Program. These projects can generate local employment, internalize tourism and offer authentic experiences to tourists while preserving cultural heritage.

Improve Tourism Offerings:

Pakistan has much to offer beyond adventure tourism. Out of the 63 categories of tourism, religious tourism has great potential. Pakistan being home to 3 religions – Buddhism, Sikhism & Hinduism – can attract millions of tourists, it is also ideal for Halal tourism, as a destination for cheap Medical Tourism, it is conducive for Music, Cultural & Food tourism, as a historic destination for Heritage tourism, and it has a rich landscape for Rural tourism, etc. These offerings need to be developed systematically.

Capacity Building and Development:

Training and capacity-building programs for the local communities, guides, and hospitality staff will improve the general services in the country. This will create a more enhanced tourist experience, leading to repeat visits and recommendations.

Public-Private Partnerships (PPPs):

By expanding PPPs for larger tourism development projects, including resort and transport infrastructure, Pakistan can build sustainable tourism assets that attract both domestic and international tourists. PPPs will also ensure that key tourism areas are managed effectively, with investments in environmental conservation.

Collaborations with International Tourism Boards:

Partnerships with global tourism boards, including cross-border campaigns with neighboring countries, will boost Pakistan’s visibility in international markets. These include joint marketing campaigns, collaborative investment forums, and participation in international tourism expos.

Sustainable and Responsible Tourism Leadership:

Pakistan should position itself as a leader in eco-tourism and wildlife conservation through long-term conservation initiatives, by building partnerships with global environmental organizations, and having in place an eco-friendly infrastructure.

Tourism industry in Pakistan cannot be developed overnight. It will take several years of sustained investment to realize its full potential, leading to a significant increase in employment especially in rural areas, and the inflow of foreign exchange, besides improving Pakistan’s soft image.

 

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk

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