This Is How Tourism Industry Can Benefit Pakistan’s Economy

Pakistan has much to give from its natural beauty, Ancient Heritage to its cultural diversity: geographical and ethnic diversity. The mountainous areas, rivers, glaciers and deserts all are found here. Pakistan has a great potential to be a well-known tourist country and to take advantage of its social and economic impacts. Pakistan has currently been listed by the British Backpacker Society as the top destination among 20 major travel destinations for 2018.


Pakistan as a Tourist Destination

Pakistan was a tourist hotspot in the 1970's and hotels were reserved in advance until the middle of the 1990's. All this endured because of the region's instability. The government and local citizens are working hard to revive tourism in Pakistan. they are also recognizing the negative impact of political instability on tourism.

Pakistan's tourism industry has improved significantly, in partnership with security agencies and private companies. In 2017, hotel bookings rose by 80%-90%, compared to previous year's bookings, according to Jovago, Pakistan's largest hotel reservations and e-commerce website.


It ensures not only higher revenue for hotels and other local companies, but also an important contribution to the country's GDP.

In 2017, the WTTC reported that the gross tourism contribution to the economy of Pakistan was about $19.4 billion, or 6.9 percent of the GDP. It is expected to increase to $36.1 billion within a decade.

Improved tourism is perhaps one of Pakistan's most viable ways in which the country's landscape and population will be more realistic. It's got much to offer in Pakistan. It is a country with cultural treasures from Gandara to Mughal tombs. It is a country with raging rivers and long, calm wilderness of deserts. Yet, most probably, Pakistan is a country of friendly and warm people that would welcome visitors to their homes and provide them with the best possible food and comfort.


Why Pakistani Tourism Needs Development

The country is able to develop the huge economic and social gains that come from the development of this industry. The reason is because of the abundance of natural beauty and cultural heritage in Pakistan.


For the Economic Development of Country

The economic outlook for a nation is strengthened by tourism as Travel & Tourism is an export business. It attracts international tourists to spend foreign currency in state. Thus, growth in tourism ultimately give rise to foreign currency. For fact, this helps to create employment. Here are three ways of employment from tourism.

  • Direct employment
  • Indirect employment
  • Induced employment


Read More: Bhera: The Forgotten City in The Helm of River Jhelum


Direct Employment

The total expenditure of visitors in direct employment that exactly supports tourism activity leads to the creation of new jobs.


Indirect Employment

The travel service industry and supply sector create opportunities for indirect work rather than directly from tourism.


Induced Employment

This creates induced jobs as local people spend tourist money which in turn creates employment because of the spending on tourism.


Tourism is also having a positive effect on the country's economic development and can boost Pakistan's economic status and GDP. Travel & Tourism alone generated 7.6 trillion dollars (10.2 per cent of world GDP) and 292 million jobs in 2016, corresponding to 1 in 10 jobs in the global economy, according to a report by the World Travel and Tourism Council. The industry accounted for 6.6% of foreign imports and almost 30% of international exports.


Social Development

In the poor community of a country, tourism has a constructive effect. In Pakistan, poverty rate is extremely high. According to a 2016 Dawn News article, Pakistan's poverty rate indicates that approximately one third of the Pakistani population is poor. The poverty line is projected to be 6.8 million or 7.6 million poor households.

The tourism industry is very active, and it hires a large number of unqualified and semi-skilled workers and therefore unemployment is specifically minimized in the form of wages of people who are directly involved in tourism. The chain of demand for tourism frequently encompasses like food, transportation, furniture and other sectors that are related to tourism. Tourism also supports people living in poverty by playing a central role in preparing and responding to natural disasters, which have a detrimental impact on the country's poor communities.


How This Sector Can Be Improved

Pakistan needs to do long term planning to develop in this sector and take advantage of tourism. Pakistan was ranked 124th out of 136 nations, based on several factors, by the Travel and Competitiveness report in 2017. 

Most of Pakistan's areas are difficult to access and poorly constructed. In fact, some of the roads (especially those in the north) are one of the world's most dangerous. The highlighted point is a preventative measure for tourists in Pakistan. Moreover, Pakistan has had a bad effect on tourism environment in recent years, due to political instability and security problems.

Investments in this sector are likely to contribute greatly the overall economic activity of Pakistan that will give the economic and social benefits to society. Government support for emerging tourism businesses; improvement of international standards for infrastructure; marketing programs to attract visitors and creation of vacation packages are some the steps that need to be taken.


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