Tourism Sector

Overview

Tourism activities are considered one of the major sources of economic growth. It can be regarded as a mechanism of generating employment as well as income in both formal and informal sectors. 

Pakistan particularly has a lot of potential regarding tourism because of its diverse and well-preserved culture; from the Beaches in Baluchistan and Sindh to the Forts in Lahore and beautiful valleys of the north like Kailash and Kumrat. Every part of Pakistan has its own culture and language, which makes it even more interesting. 

Rupee devaluation has made visiting Pakistan even cheaper: 

• Traveling
• Accommodation
• Food of high standards

Global Recognition

• Forbes Listed Pakistan as one of the coolest places to visit -2019
• World Economic Forum's Travel & Tourism Competitiveness Report placed Pakistan in the top 25 percent of global destinations for its World Heritage sites 
• Telegraph stated that Pakistan's potential for growth in tourism is almost limitless- 2019
• The Broke stated that Pakistan is an adventure playground - 2019
• British Backpacker Society ranked Pakistan as the world's top travel destination- 2018
• Lonely Planet termed Pakistan as being "tourism's 'next big thing' for more years than we care to remember" -2010

STATISTICS

The World Travel and Tourism Council (WTTC) puts the total contribution of tourism to Pakistan's economy at $19.4 billion last year or 6.9% of gross domestic product and in a decade, the WTTC expects that to rise to $36.1 billion.7 As per the WTTC data for the year 2019 - the direct contribution of Travel & Tourism to GDP was USD $7.91billion, which comes around 2.87% of GDP with a growth rate of 6.2% if compared with 2018. Further, it is expected to grow by 5.8 percent per annum from 2018 to 2028 to PKR 1,727.7 billion, 3% of total GDP in 2028. 

This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). Plowever, it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourism. 

INVESTMENT OPPORTUNITY

Visitor exports are a key component of the direct contribution of Travel & Tourism. In 2016, Pakistan hosted 965,498 tourists, in 2017, 1.75 million tourists visited Pakistan and in 2018, the number raised to 1.9 million. By 2027, international tourist arrivals are expected to grow to 2.17 million, generating expenditure of PKR204.0bn approximate. 

There are currently very few luxury hotels in Pakistan. The growth in tourism will also give rise to the hoteling industry. The current number of almost 15 luxury hotels cannot cater for the expected 2 million visitors; a minimum of 20 more luxury hotels around the country can be started.