Is Pakistan’s Tourism Industry Teetering on the Brink

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Tooba Altaf

The recently booming tourism industry of Pakistan has seen a sharp decline in the current times due to COVID 19. This situation is not particular to Pakistan’s tourism industry but a phenomenon faced globally. According to a World Bank policy brief on South Asian tourism sector, Pakistan would lose $3.64 billion in tourism sector, with the province of Khyber Pakhtunkhwa (KPK), famous for its tourist attractions, incurring a loss of $10-20 million. The potential risk for job loss from tourism industry at global level stands at 75 million and a global revenue loss of $910 billion to $1.2 trillion.                           

Pakistan tourism industry has made strides, only in the recent years and its share in the National GDP has reached 2.9% with the creation of 1.4 million jobs. This became possible with the encouragement form the government sector through improved law and order situation and tourist friendly policies such as easing visa requirements. This was further augmented by the visit of Duke and Duchess of Cambridge in the last year and the visit by Queen Maxima of the Netherlands, portraying a positive image of the country throughout the globe. In 2019, US based travel magazine Conde Nast also declared Pakistan as a top destination for tourism.

However, the pandemic has dealt a severe blow to this burgeoning industry, this year. The impact of the decline weighs heavily on the natives, employed in the hoteling and transportation business as well as people employed indirectly in the business through informal sector. Although, the government announced the opening up of tourism industry with SOPs during the midyear, but that also stirred fears of surge in the COVID-19 cases, which is particularly true as the second wave of the pandemic is on the rise.

All in all, Pakistan tourism industry can be saved from its downward trajectory through proper cushioning measures by the National Tourism Coordination Board (NTCB). This can be done so if domestic tourism is boosted up for the upcoming year as there might not be considerable international visits as the global economy tries to recover. Mitigation strategies such as cash grant or subsidies, tax rebates or relief, fee and bills waivers etc. by the government to address the concerns of the tourism sector can also forestall the decline, the tourism industry would continue to face, owing to the pandemic.