INP-WealthPk

Pakistan’s Tourism Sector Likely to Generate Rs1 Trillion Revenue by 2025

October 29, 2021

By Hamid Mahmood ISLAMABAD, October 29 (INP-WealthPK): Pakistan's government estimates that tourism will bring in Rs1 trillion by 2025. The government has been dynamically promoting the country's tourist regions and striving to attract tourism investment as a priority so that it may fully integrate into the global community and revitalise its economy. Tourism has the potential to be a multibillion-dollar industry in Pakistan, a country of 220 million people recognised for its hospitality across the world, if stakeholders are aware of it and have policies in place to encourage tourism culture. Conde Nast Traveller Magazine named Pakistan as one of the top holiday destinations for 2020. The British Backpackers Society declared the country the world's third best adventure destination. Aside from that, the sector has been witnessing and is forecasting record year-over-year growth. Tourism is classified as an industry by the United Nations World Tourism Organisation (UNWTO) because of its contribution to major economic sectors such as hotels and lodging, food and beverage, transportation and transportation equipment rental, travel and tour agencies, cultural events and activities, sports and recreational activities, and the trade of tourism goods and activities. The tourist sector in Pakistan has always had enormous untapped potential, but the last decade has been devoted to identifying that potential. For a long time, there has been an increase in worldwide interest in Pakistan, with the number of foreign tourists increasing between 2010 and 2020. According to the World Travel and Tourism Council (WTTC), Pakistan's tourism income was USD 19.4 billion  in 2017, accounting for 6.9 percent of the country's GDP. Tourism accounted for 5.9 percent of the country's GDP in 2019, resulting in the creation of approximately 4 million jobs, which is about 6.2 percent of the overall jobs within the country. In the first quarter of 2020, tourism was poised to break all previous records, but the world was struck by the coronavirus pandemic. This big change has been shown in the figure below, with the number of tourists declining rapidly in the subsequent year. Source: UNWTO The government has taken the Brand Pakistan initiative to promote tourist destinations globally and to evolve Pakistan Tourism Development Corporation (PTDC) to develop a comprehensive plan for holistic promotion of the country's tourism, which includes leisure, religious, adventure, coastal, and other types of tourism, at international level by capturing the digital market. In addition, the government announced a visa on arrival programme for 48 countries, as well as an e-Visa service for 175 nations. The Pakistan Tourism Summit was conducted by the government in 2019. Government officials, international influencers and bloggers, travel operators, airline executives, and hotel owners attended the conference. The summit was organised in order to improve Pakistan's tourist sector. In terms of tourist promotion in Pakistan, the World Bank has pledged 70 million dollars to Khyber Pakhtunkhwa for an integrated tourism development project, and USD 55 million to the Punjab government for a similar initiative. The tourist industry started regaining strength after COVID-19. Through the PTDC, the government takes a variety of steps to help this business grow. A tourist brand campaign for Pakistan will be launched very shortly. This Pakistan tourism brand campaign includes a unique tourism platform that uses virtual galleries, films, and documentaries to promote the country's tourist attractions throughout the world. It would show tourism spots in Pakistan with a single click. In August 2021, Skardu International Airport inaugurated a new transport corridor for inbound and outbound tourists to boost tourism and trade in Gilgit-Baltistan.  In September 2021, Pakistan and China hosted a workshop to develop B2B connections in order to increase bilateral commerce and tourism. To boost this sector, such seminars, conferences, and capacity-building programmes should be organised regularly in conjunction with other nations. According to a PTDC representative, the National Tourism Strategy (2020-2030) is in the final stages of development. This plan includes four critical areas: strong government, job creation, development, and tourist demand and supply. Undoubtedly, these efforts will not only benefit tourism and related businesses, but also help alleviate poverty and unemployment to some extent. Pakistan is undeniably a popular tourism destination. Pakistan's natural beauty, as well as its historic and cultural heritage, will be crucial in the country's future. The Central Asia Regional Economic Cooperation (CAREC) should offer technical and financial support to the Pakistani government in order for tourism to become a key industry for economic growth and job creation.