Tourism Industry: A Game Changer for Pakistan’s Economy

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Laraib Nisar

International tourism stands as the third largest export category, generating $1.7 trillion in revenues as of 2018, only behind fuels (USD 2.4 trillion) and chemicals (USD 2.2 trillion). In developed economies, tourism’s remarkable performance and sustained growth has lessened the gap with automotive product exports.

International tourism accounts for 29% of the world’s services exports and 7% of overall exports. In some regions these proportions exceed the world average, especially the Middle East and Africa where tourism represents over 50% of services exports and about 9% of exports overall. Pakistan, due to its versatile geography, has immense potential to excel its economy by promoting tourism.

Switzerland, which is half the size of Pakistan’s northern areas and not more serene or beautiful than Pakistan’s landscape, earns $80B from tourism annually, while Pakistan’s total exports yield around $25B. Countless opportunities exist for Pakistan to promote the tourism industry, as it is home to versatile physical features ranging from beautiful mountains, valleys, and lakes in the north, deserts and a beautiful coast line in the south and south-western parts, heritage sites, and beautiful architectural wonders in the central part of the country.

However, in order for the tourism industry to bloom, the government needs to address some of the key challenges faced by the industry which include the problem of inadequate infrastructure, poor security situation, lack of government will to enhance the sector, insufficient and substandard accommodation facilities etc.

The first step that the government needs to undertake in order to enhance the tourism sector generated economy is to invest in infrastructural development. A lot of serene, scenic places aren’t explored by the tourists because they’re so under developed that they can’t be reached. It is imperative that the government discovers and develops such spots as tourist destinations, and should also conduct awareness seminars and create documentaries to publicize such places through print and electronic media. Adequate infrastructure includes road network, railway tracks, airports, supply of electricity, gas and other amenities.

In order to attract foreign tourists, it is important to create a tourist-friendly environment in the region for which the government must devise tourist-friendly policies including a simpler visa regime, establish facilitation desks for tourists, develop high-quality hotels and restaurants, and ensure provision of safety and security along with establishing a proper tourist rights’ framework, regulating the rates of accommodation facilities and basic commodities in tourist areas.

Another area of focus should be countering and overcoming problems like terrorism, human rights violations particularly violence against women, the culture of burglary and abduction etc., as these problems largely deter the international audience from visiting Pakistan.

If the government succeeds in adopting and implementing the above-mentioned measures, the true potential of tourism can be exploited because mainstreaming tourism in national export policies is highly significant to broaden revenue streams, reduce trade deficits and ensure sustainable development on the long run. Only by unlocking the true potential of tourism industry, will Pakistan become able to bring about a revolution in improving the economy and creating business opportunities.

The author Laraib Nisar is a Defense and Strategic Studies’ graduate, working as a Program Coordinator at the Center for Research and Security Studies (CRSS), Islamabad.