INP-WealthPk

Pakistan’s tourism revenue far below its potential

August 21, 2023

Faiza Tehseen

Despite the government’s big claims, Pakistan’s tourism industry is far from reaching its potential due to the lack of adequate services and facilities for tourists, said Mubarak Hussain, owner and CEO of Karakoram Explorers and Karakoram Adventures, while talking to WealthPK. “Pakistan can fetch billions of dollars through quality tourism. But this sector lags behind due to some main reasons, i.e., high traveling cost, pricey lodging, and absence of other necessities at subsidized packages for both domestic and foreign tourists,” said Mubarak. He further said, “There is too much discussion about promotion of tourism, but practically there is no implementation. For example, in many countries including India, Sri Lanka, Bangladesh, Maldives, international tourists can get visas on arrival, while in Pakistan the online visa process is too complicated and the airfare is also high. If somebody is interested in visiting the subcontinent, their preferable destination will be India because the airfare from Heathrow, London to Islamabad is higher than from the same place to Delhi.”

“In addition, there is no check and balance concerning the prices of facilities, including food and even medicines. This situation must be noticed and controlled. There should be special subsidized price offers for tourists. The licensed tour operators should also be issued special permits to get fuel, destination permits, and many other operational instruments at subsidized rates,” he emphasized. “I have been involved in the tourism business since 1984. I trekked the Western Himalaya, the Karakoram, every inch of glaciers, and almost the entire Pakistan. I also worked as a mountain guide for 12 years. Pakistan is a very beautiful country and a world of tourism in itself. It is full of tourism products and interests ranging from beaches to adventure tourism and from culture to historical tourism. Many countries are earning handsomely through tourism per annum, i.e., America earns USD210 billion, France USD68 billion, England USD52 billion, China USD33 billion, India USD31 billion, Turkey USD29 billion.

The facilities, subsidies, and ease of access that these countries are providing to tourists and the tourism industry make them strong and productive. In contrast, our tourism industry earns far below its potential,” Mubarak continued. “These days sustainable tourism practices are very important to earn a handsome income. The removal of red-tape can help tourism flourish. The world’s wealthiest industries are: the oil industry that sits at the top with US$2.4 trillion, the chemical industry with US$2.2 trillion, and tourism with US$1.7 trillion, respectively. Therefore, by seriously focusing on this sector, Pakistan’s tourism economy can get a proper head start,” added Mubarak. Talking to WealthPK, expedition leader and mountaineer Abdul Joshi said, “I have been in this field for over a decade. Now, many people are taking interest in this field. A good number of foreign visitors frequently visit Pakistan for different tourist destinations and mountaineering as well. The awareness level of tourism as an economic product has also increased.

Tour operators and people involved in the hospitality sector have to face a long list of hurdles to provide quality tourism. The government must provide special permits to the licensed operators and other stakeholders to get necessary provisions at low rates so that they may provide services and other needed products, including food, at subsidized rates. “The Government of Pakistan must provide us with ample funding to buy safety gadgets, and security systems to deal with emergency situations so that both domestic and international tourists feel safe and visit Pakistan as a regular destination for recreation,” said Joshi. According to a report by Statista, revenue generation from the global travel and tourism sector is projected to reach USD3,008 million. The market volume is expected to reach US$3,817 million by the year 2027 with a Compound Annual Growth Rate (CAGR) of 6.14%. In 2027, the average revenue generation per user is estimated to be USD133.0, while online sales only account for 63% of the total revenue generation from the travel and tourism market.

Credit: INP-WealthPk