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Pakistan tourism industry expects to earn 4b USD in next 4 years: PTDC MD

ISLAMABAD-Managing Director of Pakistan Tourism Department Corporation (PTDC) Aftab ur Rehman Rana, Tuesday said that Pakistan’s tourism industry, currently estimated at USD 2.5 billion which will go up to USD 4 billion in next four years. Tourism was not just about attractive destinations and leisure activities, but had emerged as one of the fundamental pillars of economic development and had one of the highest job-creating potentials across all sectors of the country, he said.  The government was doing all to promote tourism and generate more employment opportunities for youth in Pakistan, he said, adding, currently over 300,000 jobs were created through tourism industry which would be further increased to 500,000  in coming years. “The promotion of tourism will not only create economic activity in the local areas, but will also have a positive impact on the national economy,” he said adding, the contribution rate of the tourism industry to Pakistan’s GDP was 5%, which would exceed to 7%. The tourism ministry was taking a keen interest in promoting the culture, adventure and religious tourism in the country and adopting measures to revamp the infrastructure and ensure all the required facilities for the tourists, he added. With public-private partnership, more destinations were being identified and developed, historic and religious places were being refurbished and preserved, roads and motorways leading to tourist destinations were being built, and new hotels and accommodations were being set up, he mentioned. He said that government was facilitating private tour operators, adding, private tour operators from next year would participate in five major tourism expose to further promote soft image of Pakistan on international forums.  He also stressed for bringing improvement in aviation policy which would control high rate fares of airlines, adding, there was dire need to allow neighbour countries’ airlines in the country in which we would earn double revenue and it would give a new competition between airlines.  He said Pakistan was among the top few countries which were facing the highest risk of disasters due to impacts of global warming and climate change, adding that many heritage sites had faced serious damages and many natural landscapes of tourist areas had been eroded. To another question, he said Pakistan Tourism Development Corporation (PTDC) had held a two-day conference in Islamabad to mark the World Tourism Day, which was celebrated every year on 27th September.  Experts from tourism industry had participated in five panel discussions to discuss topics including restoration of tourism after floods and widespread rains, removing bottlenecks to promote foreign tourism in Pakistan, issues and challenges of mountaineering and trekking tourism in the country, he added.

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Pakistan attracted $16bn in visitor spending in 2022: World Bank

tourism contribution to gdp in pakistan 2022

ISLAMABAD: Pakistan attracted $16 billion in visitor spending in 2022 which is projected to touch $30 billion in 2033, says the World Bank.

The bank on its website stated that the travel and tourism sector’s total contribution to Pakistan’s GDP was 5.9 percent in 2022 and 4.2 million jobs. This is sub-optimal considering the diverse tourist sites located across the country.

Pakistan experienced an unprecedented surge in domestic tourism immediately after the Covid-induced travel restrictions were lifted: In 2021 and 2022, over 1.2 million domestic and international tourists visited the country’s Khyber-Pakhtunkhwa province alone.

$209m EDEIP: World Bank rates implementation progress as moderately satisfactory

To manage this increasing all-season footfall of visitors while harnessing its understated economic potential, the local authorities, communities, and private sector require resources, equipment and training without losing focus on green and inclusive tourism.

Travel Responsibly for Experiencing Eco-tourism in Khyber Pakhtunkhwa (TREK) initiative – a partnership between the Government of Khyber-Pakhtunkhwa, the World Bank (WB), and Nestlé Pakistan to promote and support responsible tourism initiatives, complements the ongoing activities of Khyber-Pakhtunkhwa Integrated Tourism Development Project (KITE) project for heritage preservation and tourism infrastructure development.

Since 2020, it has completed awareness campaigns for tourists, and training of local communities and hospitality businesses on waste management.

TREK has trained over 650 participants from more than 150 hotels and restaurants in Khyber-Pakhtunkhwa’s tourist areas. The beneficiaries also included local communities, local authorities and academia of Peshawar, Nathiagali, Abbottabad, Swat, Naran, and Chitral districts.

These trainings concentrated on solid waste minimisation, segregation, management, and recycling techniques. Public service messages on responsible tourism were also launched through social media and radio campaigns in Khyber-Pakhtunkhwa and cities of Islamabad and Lahore.

Most country’s domestic tourists are concentrated in these geographies and were thus, able to receive communication on tourist helplines on the importance of keeping the sites litter-free.

10,000 reusable bags were distributed to tourists and the hotel association in tourist hotspots aiming to encourage their use and minimise littering. In parallel, the IDA-financed KITE project provided waste bins, garbage collection and compacting machinery to the local authorities in Nathiagali, Naran, Chitral, and Kumrat districts of Khyber-Pakhtunkhwa, and a few locations in Punjab province, and installed 50 tourist information signboards to complement the awareness campaigns.

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tourism contribution to gdp in pakistan 2022

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Promoting Responsible Tourism in Pakistan’s North

TREK-November-2023-4-sm.jpg

Pakistan’s tourist attractions are diverse

World Bank Pakistan

Growing up, Muhammad Numan saw a cleaner, more natural environment in Khyber Pakhtunkhwa’s tourist destinations. But as time passed and tourism surged, the local landscape he once knew began to change. The influx of tourists resulted in a growing pile of litter across the otherwise scenic sites in the north.

The travel and tourism sector’s total contribution to Pakistan’s GDP was 5.9 percent in 2022 and 4.2 million jobs.  This is sub-optimal considering the diverse tourist sites located across the country. Pakistan attracted ~US$ 16 billion in visitor spending in 2022 which is projected to touch ~US$ 30 billion in 2033.

Pakistan experienced an unprecedented surge in domestic tourism immediately after the Covid induced travel restrictions were lifted: For instance, in 2021 and 2022, over 1.2 million domestic and international tourists visited the country’s Khyber Pakhtunkhwa province alone .

To manage this increasing all-season footfall of visitors while harnessing its understated economic potential, the local authorities, communities, and private sector require resources, equipment and training without losing focus on green and inclusive tourism.

Determined to make a change, Numan, who now works as a manager at a local hotel in Swat district of Khyber Pakhtunkhwa, sought ways to mitigate the negative impact of the tourism industry on the ecosystem. That is when he came across the “Travel Responsibly for Experiencing Eco-tourism in Khyber Pakhtunkhwa” (TREK) initiative – a partnership between the Government of Khyber Pakhtunkhwa, World Bank (WB) and Nestlé Pakistan to promote and support responsible tourism initiatives.

TREK complements the ongoing activities of Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE) project for heritage preservation and tourism infrastructure development. Since 2020, it has completed awareness campaigns for tourists, and training of local communities and hospitality businesses on waste management. TREK has trained over 650 participants from more than 150 hotels and restaurants in Khyber Pakhtunkhwa’s tourist areas. The beneficiaries also included local communities, local authorities and academia of Peshawar, Nathiagali, Abbottabad, Swat , Naran and Chitral districts.

These trainings concentrated on solid waste minimization, segregation, management, and recycling techniques. Public service messages on responsible tourism were also launched through social media and radio campaigns in Khyber Pakhtunkhwa and cities of Islamabad and Lahore. Most country’s domestic tourists are concentrated in these geographies and were thus able to receive communication on tourist helplines on the importance of keeping the sites litter-free.

10,000 reusable bags were distributed to tourists and the hotel association in tourist hotspots aiming to encourage their use and minimize littering. In parallel, the IDA-financed KITE project provided waste bins, garbage collection and compacting machinery to the local authorities in Nathiagali, Naran, Chitral and Kumrat districts of Khyber Pakhtunkhwa, and a few locations in Punjab province, and installed 50 tourist information signboards to complement the awareness campaigns.

TREK-November-2023-3.jpg

Tourist information sign boards in Galiyat, Pakistan

TREK-November-2023-2-Training-in-Abbottabad.jpg

TREK Awareness Workshop for Community and Local Government Participants

Incorporating the knowledge from these sessions, like several other participants, Numan introduced eco-friendly practices at his hotel. He also spearheads a community-funded clean-up initiative in his hometown of Mardan district. This initiative has transformed into a community-driven effort, with residents actively participating in regular clean-up drives. Such sustainable transformations encapsulate the very essence of what TREK envisions for communities throughout the province and beyond.

TREK has propelled its partners towards impactful activities by encouraging collaboration with the private sector. Its partner in the initiative, Nestlé Pakistan, is taking concrete actions to create circular systems that make it easier to collect, recycle and reuse products that use plastic. It is committed to designing 100 percent of its plastic packaging for recycling and expects to achieve a 95 percent target by 2025.

The Government of Khyber Pakhtunkhwa has allocated resources and supports its teams to ensure green and inclusive destination management in partnership with the private sector.

The project has also provided machinery for snow removal and solid waste management to local authorities to improve accessibility, traffic flow and promote sustainable tourism in the province.

TREK's inclusivity stands out, inviting participants from diverse backgrounds, including women, youth, and the transgender community.  Zareen Akhtar, a social worker, and human rights activist who underwent TREK training, testified to the program's transformative impact. She acknowledged the newfound knowledge she gained, eager to share it with others. She emphasized that she’s one of the many women in this region who have had the opportunity to attend these trainings. “Inclusion of women not only has a wider social impact but also a major mindset shift in the region, allowing for a cohesive awareness within the social fabric of the community.”

Initiatives like TREK have the power to transform the tourism landscape in some of Pakistan's most pristine destinations and ensure that future generations continue to enjoy these in years to come. In its next phase, TREK will integrate additional players from the private and financial sectors of the country to launch activities that support community empowerment and investment mobilization for job creation.

By Kiran Afzal , Senior Private Sector Specialist, World Bank Pakistan,  Touseef Khalid , Project Director, Khyber Pakhtunkhwa Integrated Tourism Development (KITE) Project, and  Sheikh Waqar Ahmad , Head of Corporate Affairs and Sustainability, Nestlé Pakistan.

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Tourism: economic development without increasing CO2 emissions in Pakistan

  • Published: 30 June 2021
  • Volume 24 , pages 4000–4023, ( 2022 )

Cite this article

tourism contribution to gdp in pakistan 2022

  • Sahib Oad 1 ,
  • Qu Jinliang 2 ,
  • Syed Babar Hussain Shah 3 &
  • Shafique-ul-Rehman Memon 4  

820 Accesses

14 Citations

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Globally , the national and cultural resources of a country are major sources of attraction for tourism. Pakistan is gifted with abundant natural and cultural resources that can promote tourism. Tourism, in general, contributes to a country's economy and creates job opportunities for local communities. However, previous studies have shown that tourism can adversely affect the environment by increasing CO 2 emissions generated by touristic activities. In the present study, we used data from the World Bank (1995–2014) to analyze the environmental effects of tourism in Pakistan. The parameters used in the present study were the number of tourist arrival, energy use, gross domestic product and CO 2 emissions. The data was analyzed using Vector Error Correction Model, and Granger Causality Test. The results of the study showed that no parameters have a significant effect on CO 2 emissions in the long-term. The number of tourist arrival has declined in recent years due to socio-political conditions in the country. However, if the political conditions improve, promoting tourism can generate employment and improve economic conditions which can be further invested in education, infrastructure, art and recreation activities. Therefore, we conclude that tourism can be a viable source of economic growth for Pakistan without harming the environment.

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tourism contribution to gdp in pakistan 2022

Source: Statista, ( 2021 )

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Acknowledgements

The author thanks the Chinese Scholarship Council (CSC) for funding his Ph.D. program. He is also thankful to the Department of Cultural Industry Management for providing academic services to him. The research was supported by China’s National Social Science Fund Top Project “Research on the Systemic Theory of China's Maritime Culture” (Approval No.: 12 and ZD113).

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Qu Jinliang

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Syed Babar Hussain Shah

College of Management, Ocean University of China, Qingdao, 266003, China

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Oad, S., Jinliang, Q., Shah, S.B.H. et al. Tourism: economic development without increasing CO2 emissions in Pakistan. Environ Dev Sustain 24 , 4000–4023 (2022). https://doi.org/10.1007/s10668-021-01601-y

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Abdullah Niazi

On the 9th of December, the once sleepy hill-town of Murree was declared a calamity hit after thousands of cars were stranded out on the roads because of an influx of tourists coming into the area. Before rescue operations could be launched, at least 23 people including children had perished in the night. 

The outrage that followed the tragedy has been as impassioned as it has been unfocused. While blame was naturally ascribed to the inefficient response of the local and provincial governments, a lot of the backlash focused on the fact that local hotels began charging exorbitant rates from stranded visitors and there also began a widespread call to boycott Murree as a tourist location. 

However, there is a much more critical lesson that needs to be taken from the tragedy at Murree. Only a few days before the incident, information minister Fawad Chahudhry had bragged that the arrival of more than 100,000 cars in Murree was an indicator of economic prosperity and showed that people were not under any great financial stress. The statement did not age well (to put it mildly) but it tells us something – the government approach towards tourism in the country has focused simply on getting people both local and foreign to travel and experience Pakistan without much care as to how these tourists should be managed. 

Tourism is a complicated subject that takes a lot of thought and planning. The number of tourist destinations in Pakistan have increased over the past decade, especially with greater road access along the Karakoram highway. But other than connectivity and access it is worth looking at what plans have been put in place in terms of sanitation, real estate development, energy, traffic management, resources, and public awareness. 

Tourism in Pakistan 

Pakistan’s tourism potential has long been known for a long time. Dogged by security issues and political instability, it has been unable to attract a significant amount of foreign tourists even though it has received a lot of media attention as a hidden gem. Different governments over time have been drawn to this idea of turning Pakistan into a tourist hub and some steps have been taken in terms of connectivity and accessibility of remote areas, particularly in the northern regions of the country. 

Tapping Pakistan’s tourism potential has in particular been a pet project of incumbent Prime Minister Imran Khan. His government came in with the aim of building four tourist resorts a year to reach a total of 20 by the end of their tenure. All to promote tourism in the country. According to the 2021 report of the World Travel & Tourism Council, travel and tourism contributed $8.8 billion, approximately 2.9% of total GDP of Pakistan, in 2017. By 2019, the total GDP contribution of tourism to Pakistan was $15 billion which accounts for 5.7% of the total GDP. However, because of the Covid-19 pandemic, this growth fell significantly in 2020 by nearly 25%, falling to $11.6 billion, or 4.4% of GDP. Similarly, jobs in the tourism industry fell 11.1% from 3.45 million in 2019 to 3.63 million in 2020. Most significant to these figures, however, is that the major contributor in this is Pakistan’s domestic tourists. In fact, domestic spending on tourism accounts for 91% of total spending, and foreign tourists bring in a mere 9% of the revenue of the tourism and travel industry in Pakistan. Of this, 93% is leisure spending on travel and tourism and only 7% is for business. 

tourism contribution to gdp in pakistan 2022

This then means that the majority of the demand for tourism in the country comes from within. Nearly five million domestic tourists travel each year across Pakistan. But for all of the natural potential that Pakistan has, it lags behind in some very specific areas. According to the Travel and Tourism Competitiveness Index developed by the World Economic Forum, Pakistan lags in all key sub-indicators with the exception of price competitiveness, which is only the result of the depreciation in the rupee. 

Out of a list of 141 countries, Pakistan is 130th at having an Enabling Environment, 138th on Safety and Security index, 102nd on the Health and Hygiene index, 138th on the Human Resource and Labour Market index, 123rd on Travel and Tourism Policy and Enabling Conditions, 120th on Prioritisation of Travel and Tourism by the Government, 107th on Tourism Infrastructure, and 141st out of 141 countries on the Environmental Sustainability index. 

What happened in Murree? 

The problems that have been described above have plagued Pakistan’s domestic tourism industry forever. There is very little care for environmental sustainability, sanitation is not taken care of, real estate development on the outskirts of places like Murree is rampant with complete disregard for utility provision like sewage and power. The influx of tourists can go in the hundreds of thousands in peak season and finding rooms can be increasingly difficult. 

Murree is still Pakistan’s most visited and well known tourist destination in the public imagination. What happened in Murree shows the same problems that have been described by the different indicators in which Pakistan ranks badly. In an article for Dawn, Dr Omer Mukhtar Khan, author of the recently published ‘Once Upon A Time in Murree’ argues that “part of the reason is our collective apathy when it comes to strong urban governance and sustainable environmental practises. Murree has been our top most visited resort since independence and while the elite may have found other places to spend their vacations, the majority of Pakistanis did not have many options and stuck to this beautiful colonial hill town for their brief holidays.”

‘Murree continues to be run from Lahore with very weak local government as elsewhere in the country, limited building regulations leading to monstrous hotels and apartments cropping up, poor waste management systems with trash everywhere, smelly sewage flowing all around and an unregulated and predatory hospitality industry doing the rest in destroying this only mainstream tourist resort for Pakistanis. There is also limited focus on traffic management as well as an effective communications system to inform the public at large about any weather warnings,” he went on to write. 

This is where our original point comes back in – tourism is not an easy sector to develop. requires development of infrastructure like power, telecommunication, water supply, roads, sewage and sanitation and some associated sectors like travel items, sports equipment, medicines, and cosmetics. 

Take simply the issue of sewage and solid waste management as an example to try and understand the level of detail that needs to go into developing tourism. Every single industry has a particular wasteful by-product. In the case of the tourism industry, that by-product is solid waste and sewage. A 2018 joint study by the National University of Civil Engineering in Vietnam and Okayama University of Japan, found that on average in tourist hotspots the amount of waste produced per day by a single guest was 2.28 KG. The study, which looked at 120 hotels in tourist hotspots, sampled waste produced from all departments of the hotels such as from the rooms, garden, restaurants, kitchen, laundry, offices, stores, repairing stores, and from other services. Vietnam, which has over the past few years been developing as a tourist destination, has had a fraught history with managing the waste from their tourists. A different study published in ‘The Journal for a Sustainable Economy’ shows that the tourist destination of Hoi An City, which gets more than 3 million visitors a year, generated around 15080 KG of waste daily. 

The amount of waste that can accumulate when a tourist destination’s population swells during peak season is one of the top problems in managing the growth of the tourism industry. If hundreds of thousands of people are visiting an area like Murree at a time, the size of the solid waste problem has to be measured in the tonnes. Going by the earlier mentioned study, if a single guest is producing just 2Kg in solid waste and sewage per day,and you have 100,000 visitors in Murree, that is 220 tonnes per day of waste. That translates to 6600 tonnes of waste per month in peak seasons. 

The impact can be an urban management disaster as well as an environmental hazard. In 2017, environmentalists raised concerns after hundreds of fish were found dying in Rawal lake because of contamination. The main reason for the contamination was the flow of sewage in the streams of Murree and its adjoining areas into the Korang River which discharges into Rawal Lake. A Dawn report on the issue said that “the Punjab government has yet to take action for stopping sewage from Murree and its adjoining areas from ending up in the lake as it wanted the federal government to install a treatment plant, claiming that the 12 kilometre area around the lake fell in the limits of the CDA. Though billions of rupees are being spent on the development of the hill station, no steps have been taken for installing a sewage treatment plant in or around Murree.” 

In a 2015 report by the government, the system of sewage in Murree was “non-existent. “At present no system exists for the drainage of domestic/commercial sewage and storm water in the Murree City area. Sewage is disposed of through lined / unlined drains constructed by local bodies and these drains either disposed of on the hills directly or terminated in the natural hill torrents around the inter periphery of the city. The sewage either seeps down in the crest of hills or contaminates the water bodies in the hill torrents. Especially at the western side of Murree sewage flows upto the Haro River and contaminates its water. Seeping down sewage and storm water in the hill causes frequent landslides and contaminating hill torrents,” read the report. 

The infrastructure for tourism thus includes basic infrastructure components like airports, railways, roads, waterways, electricity, water supply, drainage, sewerage, solid waste disposal systems and services. Moreover, facilities like accommodation, restaurants, recreational facilities, and shopping facilities also come under the ambit of Tourism Infrastructure. Planning for sustainable development of Tourism Infrastructure, therefore, involves the integrated development of basic infrastructure and amenities along with all the tourism facilities in a balanced manner. It needs thoughtful planning and dedicated execution. 

tourism contribution to gdp in pakistan 2022

In the case of Murree, the development of the hill-town has come with not just colonial baggage but the disadvantage of being administered remotely from Lahore as part of the Punjab. While Murree is the largest tourist destination in Pakistan in terms of inflow (particularly domestic inflow) it is worth looking at how other tourist destinations are being developed in Pakistan, such as Gilgit-Baltistan, which has seen more interest after accessibility to the region has increased through the China Pakistan Economic Corridor (CPEC) and the Karakoram Highway. 

The Gilgit-Baltistan example

In April 2021, Prime Minister Imran Khan announced the historic five-year development package worth Rs370 billion for Gilgit-Baltistan (GB) during his visit to Gilgit. After the inauguration of some projects of the Special Communication Organization (SCO) in Gilgit, the prime minister said that the government was starting with a package of Rs370 billion to be spent over five years and that never before had such an amount been spent in the area.

The Rs370 billion development plan includes PSDP funding of Rs275 billion in three years with an average Rs55 billion per year. At least 18 new PSDP projects are included in the package with the cost of Rs130 billion. Whereas 11 ongoing projects of PSDP of Rs31.2 billion are also included in the package. Besides, at least 2,114 ongoing projects of the Annual Development Programme (ADP) of GB worth Rs113 billion are also included in the development package.

The major focus of the package and the projects is supposed to be developing infrastructure in Gilgit-Baltistan to make it an attractive location for tourism. 

For tourism in particular, skills development and training related to tourism, Rs6 billion have been allocated, while Rs17 billion will be spent on projects relating to health and education initiatives. However, other than health and education, the allocation of the money is supposed to be in the general interest developing tourism in the area. As part of the package, there are five road projects worth Rs35 billion, two big water projects of Rs8.5 billion including a water supply scheme for GB and a sewage and sanitation scheme for Skardu. There are also various projects such as incubation centres for promoting business and entrepreneurship, flood protection structures, enhancement of biodiversity and aqua systems, network expansion of 3G and 4G services in the pipeline. 

All of these projects from sanitation to mobile connectivity are critical to any sort of tourism economy developing in the region. According to data gathered in the last three years, the flow of domestic tourists in Gilgit-Baltistan is 86% while the rest is foreign tourists. Back in 2012, the government of Gilgit-Baltistan had tried to identify some of the problems that were resulting in poor inflows into the area for tourism. 

In a presentation given by Imran Sikandar Baloch, then Secretary Tourism, the problems started from the condition of the Karakoram Highway, which was in poor condition with no alternative road available. If the highway was choked or if there was a particularly bad landslide, there would then be the issue of long pileups in an environmentally volatile and harsh area. 

And the infrastructural issues did not end there. Unpredictable flight scheduling and the woes of PIA bookings means that by-road is the only sensible way to approach the issue. The centralised issuance of permits and conduct of briefing and debriefing in Islamabad is also an issue in addition to the lack of tourist facilities at the tourist attractions and lack of skilled manpower despite a reasonable literacy rate. 

The presentation also highlighted how there is a lack of authentic tourism related data or any baseline study by reputed parties, a lack of online information, reluctance of major travel insurance companies to insure foreign tourists, the absence of a tourism policy, mushrooming growth of civil structures due to absence of zoning laws, and no tangible investment policy. 

Since then, a lot has changed. For starters, the Karakoram Highway as part of CPEC has been cleaned up and made accessibility to the region much easier. In terms of getting there, the Skardu airport has also improved. Only recently, in December 2021, Prime Minister Imran Khan inaugurated the Skardu International Airport and Jaglot-Skardu road during a day-long visit to the region. The airport in Skardu was previously only operational for domestic flights, and the Prime Minister promised that if Switzerland could generate $70 billion from tourism then “we can make at least $30-$40 billion from tourism just in GB”. Meanwhile, through the Rs 370 billion package that was mentioned earlier, the government wants to address the issue of a dedicated workforce through skills development programmes. 

Progress has clearly been made and the number of tourists coming into the region has increased over the past few years, especially since the paving of the Karakoram Highway. Two major communication projects included in the package, including Astore-AJK Shuntar Road (connecting GB with Punjab via AJK) and Gilgit-Chitral Road (via Shandoor) Road (connecting Gilgit with KPK and Rawalpindi/Islamabad) would play the major role in tourism development in GB and adjoining areas. These roads are in addition to the existing highway. 

In May 2021, during the peak summer months, Skardu and Gilgit airports on Tuesday saw a massive rise in flight operations, at par with major cities of Pakistan, when nearly 16 PIA flights operated to and from both the cities daily. The airports saw a hustle bustle with flights continuously arriving and departing at the same time.

Getting to GB for tourism has become easier for sure. But is the region equipped to handle such a large and rising load of visitors? Have arrangements been made to first discourage the use of single-use items like plastic wrappers, or safe and sustainable disposal of the sewage that such a large number of visitors will bring? Already pristine parts of the region, like Deosai, are littered with plastic waste. What will happen millions of people start visiting the region over one season? Zoning laws are not clearly implemented, power coverage in the region continues to be low, sewerage and sanitation treatment and disposal is virtually non existent, and other than getting there the tourism process has not become significantly easier in terms of having facilities like accommodation, restaurants, recreational facilities, and shopping facilities. 

Case study – Malaysia 

The example of Malaysia could be one that Pakistan could look to learn from. 

There are, of course, structural differences that make things easier for Malaysia and are important in developing any kind of tourism anywhere. For starters, they have a stable political system unlike in Pakistan. Malaysia also has developed and modernised infrastructure including roads and highways linking different cities, renovated and new airports, international standard car rental system, high-speed trains, reconstructed public transport system (trams, buses, taxis etc.), public internet facilities.

In addition to connectivity, they have also focused on developing shopping centres, tax exemptions on luxury goods and exchange rate management. There is great emphasis on the  maintenance of tourist sites, conservation of archaeological sites, renovation and the development of urban areas. The government has also given the private sector representation in policy making and reduced obstacles for international and local investors in Malaysian entities. 

Like Pakistan, travel to Malaysia is also cheap and there is a very favourable exchange rate for travellers from developed countries. However, for domestic tourists, there are also strict policy measures for crime prevention, especially in tourist areas and developed outstanding health care systems for tourists. Malaysia has also been successful in promoting education for the development of skilled resources, professionalism, and innovation in the tourism industry – which as mentioned is what is being attempted in Gilgit-Baltistan and other regions as well. 

The government of Malaysia partnering with private agencies for production of telegraphic imagery including movies, documentaries, adverts etc. for the branding of Malaysian tourism outside of international borders including channels such as National geographic and discovery channels. The entire “Malaysia Truly Asia” campaign in 1999 and “Visit Malaysia (VMY) 2014” were both incredibly popular and successful marketing campaigns that brought serious tourist attention towards the island nation. 

They have also encouraged tourism activities such as amusement parks, casinos, races such as the  grand prix and formula one — essentially, it is not enough to be just scenic. There need to be things to do. 

What are the lessons Pakistan can take out of this? That the government should focus on encouraging more activities related to tourism and focus on creative tools for tourism development based on local resources, such as arts and culture, local wisdom, history, and archaeological sites. Another critical factor would be developing rapid public transportation between tourist areas and cosmopolitan cities for better linkage and accessibility. In Pakistan in particular, there is a dire need to Increase patrolling and crime prevention techniques for more security. It will be vital for the government to show more concern about low-carbon tourism, and they should show more concern about law enforcement to preserve the natural environment and to increase awareness about eco-tourism in the society. 

Conclusion 

The tragic events in Murree must never be allowed to happen again. Over the years, our tourism infrastructure has failed us. There has been a complete disregard for planning, no focus on developing areas and spaces for domestic and international tourism, and very little attention given to risk mitigation and disaster management. With the government banking on tourism being a big money-puller for Pakistan, there will be the need for some serious introspection after the incident. And this introspection must not simply be limited to the incident at Murree, but making sure we learn from our mistakes and treat the areas we have poised to be tourist hotspots with the respect and care that they deserve.

Abdullah Niazi

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Rich potential needs to be realized

Dr Zafar Khan Safdar

Tourism significantly boosts economic status and global harmony by connecting different cultures, increasing local production rates and competition among tourism companies. It also reduces poverty and supports middle and lower-level economic communities. Tourism is predicted to reach $1.8 billion by 2030, strong tourist endeavours benefit any country by creating jobs, raising income, attracting diverse investments, facilitating tax collection, and improving GDP.

It contributes to economic growth across various sectors, increasing foreign exchange profits, spurring industrial expansion, and supporting travel and lodging industries. Rapid economic expansion attracts international business travellers, increasing developed nations’ foreign reserves.

As the world increasingly turns to Pakistan’s hidden gem, the future of tourism holds the promise of transformation, fostering economic growth, cultural exchange, and global understanding. Pakistan’s tourism potential requires a comprehensive management plan, investments, marketing, attractive packages, and infrastructure, with key factors including information availability, security, 24/7 emergency support, and a courteous workforce

Pakistan attracts 0.7 million tourists annually, a significant increase from the previous decade. In 2009, Pakistan ranked among 25 percent of the world’s most visited places based on its world heritage sites. According to the World Bank, Pakistan brought in $16 billion in tourist spending in 2022, and that amount is expected to rise to $30 billion by 2033. The travel and tourism sector’s total contribution to Pakistan’s GDP was 5.9 percent in 2022 and 4.2 million jobs. With its diverse landscapes, historical treasures, and vibrant culture, Pakistan is gaining popularity as a global travel destination.

Pakistan is a significant site for prehistoric archaeological research, containing ancient civilizations like the Gandhara Civilization and the Indus Valley Civilization, and the Mughal Empire. The Gandhara Civilization, linked to an ancient kingdom, is considered the sixth most beautiful area on earth. The Indus Valley Civilization, linked to the Bronze Era, was established on a 1.2 million km area with an estimated population of 5 million. Samples, antiques, and collections from these civilizations are housed in various museums in Pakistan.

Religious tourism in Pakistan involves visiting holy places for worship and spiritual pleasure. The country has a rich Islamic heritage and diverse religious heritage from other religions. The Kalash people, animists with ancient Albanian roots, have a unique culture with captivating festivals. Gurdwaras’ holy place in Nankana Sahib and Hasan Abdal are a significant persuasion site for the Sikh community. The Kartarpur Corridor connects the Dera Baba Nanak shrine in northwest India to Gurdwara Darbar Sahib in Pakistan, believed to be a place of Sikhism foundation. Other notable shrines in Pakistan include those of Shah Abdul Latif Bhitai, Lal Shahbaz Qalandar, Data Ganj Bakhsh Ali Hujwairi, Hazrat Baba Fariduddin Ganj-e-Shakar, Mian Mir, Shah Hussain, and Bahauddin Zakaria.

Pakistani culture values sports, with cricket being the favourite. The Pakistan Sports Board aims to enhance competition, maintain international standards, and manage sports in Pakistan. The Board supports players and associations in participating in sports. Field hockey, cricket, kabaddi, and squash attract international tourists. Pakistan’s diverse ecosystem, including dunes, mountains, deserts, and forests, is protected by national parks, wildlife sanctuaries, game reserves, and community-controlled hunting areas. With over 668 bird species, Pakistan offers nature-based tourism activities like trekking, mountain biking, mountain climbing, whitewater rafting, jeep safaris, trophy hunting, fishing, and wildlife watching. Cultural festivals and fairs provide excellent tourism opportunities, such as Shandur Polo, the Silk Route fair, the Kalash dance festival, the water sports festival, and various food festivals. Adventure tourism offers various opportunities, including the Karakoram Range, Baltoro Glacier, Chitral Valley, and Deosai National Park. These regions attract mountaineers, trekkers, and nature enthusiasts, offering challenging and rewarding experiences.

The northern part of Pakistan features some of the world’s most beautiful scenic areas, including Swat, Kalam, Malam Jaba, Shangla, Balakot, Galyat, Murree, Chitral, Gilgit Baltistan, Hunza, Kaghan, Naran, and Neelam valley. The country has an inordinate diversity of animals and plants, with five of the highest peaks in the world, including K-2, Nanga Parbat, Gasherbrum-I, Broad Peak, and Gasherbrum II. The Karakoram Highway connects Pakistan to China, offering stunning views of snow-capped peaks and valleys.

The Kaghan Valley and Neelum Valley attract nature enthusiasts. The Makran Coastal Highway, stretching along the Arabian Sea in Balochistan, presents a scenic route for road trips, allowing travellers to explore the pristine beaches and coastal landscapes. The Hingol National Park, with its diverse flora and fauna, is a testament to the country’s ecological richness. Lahore, a Mughal architecture treasure, and Karachi’s bustling bazaars showcase Pakistan’s urban life.

Pakistan’s tourism industry has potential to attract both visitors and the investors, but fears several challenges. A research report by TDAP identifies several issues, including security issues, negative media portrayal, lack of supportive infrastructure, poor development policies, inadequate facilities, lack of government support, and low investment. Other issues include shortages of trained staff, lack of services, insufficient equipment, lack of interest in meeting visitor needs, and haphazard price hikes. Authorities should play a more active role in tourism development, ensuring tourists obtain visas and relevant information promptly.

Challenges and security concerns remain significant for Pakistan’s tourism sector, with internal conflicts and geopolitical tensions contributing to a perception of instability. Efforts to promote tourism include infrastructure development, the ‘Brand Pakistan’ campaign, international collaborations with travel agencies and organizations, specialized tourism packages, and community involvement.

As the world increasingly turns to Pakistan’s hidden gem, the future of tourism holds the promise of transformation, fostering economic growth, cultural exchange, and global understanding. Pakistan’s tourism potential requires a comprehensive management plan, investments, marketing, attractive packages, and infrastructure, with key factors including information availability, security, 24/7 emergency support, and a courteous workforce.

Dr Zafar Khan Safdar

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Pakistan Tourism Revenue

  • Pakistan's Tourism Revenue reached 765 USD mn in Dec 2020, compared with 992 USD mn in the previous year
  • Pakistan's Tourism Revenue data is updated yearly, available from Dec 1995 to Dec 2020
  • The data reached an all-time high of 1,127 USD mn in Dec 2011 and a record low of 492 USD mn in Dec 1999

View Pakistan's Tourism Revenue from 1995 to 2020 in the chart:

Pakistan Tourism Revenue

What was Pakistan's Tourism Revenue in 2020?

Pakistan's Tourism Revenue reached 765 USD mn in Dec 2020, compared with 992 USD mn in the previous year See the table below for more data.

Tourism Revenue by Country Comparison

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Travel, Tourism & Hospitality

  • Total contribution of travel and tourism to GDP worldwide 2019-2033

Which countries record the highest travel and tourism contribution to GDP?

What are the most visited countries in the world, total contribution of travel and tourism to gross domestic product (gdp) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion u.s. dollars).

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2019 and 2022

figures are in constant 2022 prices and exchange rates as of March 2023

The total contribution of travel and tourism to GDP reflects GDP generated directly by the travel and tourism sector plus its indirect and induced impacts.

Other statistics on the topic Tourism worldwide

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  • Leading hotel companies worldwide 2023, by number of properties

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  • Number of international tourist arrivals worldwide 1950-2023
  • Market value of selected airlines worldwide 2023
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Statistics on " Tourism worldwide "

  • Travel and tourism: share of global GDP 2019-2033
  • Leading global travel markets by travel and tourism contribution to GDP 2019-2022
  • Global leisure travel spend 2019-2022
  • Global business travel spending 2001-2022
  • Number of international tourist arrivals worldwide 2005-2023, by region
  • Travel and tourism employment worldwide 2019-2033
  • Global hotel and resort industry market size worldwide 2013-2023
  • Most valuable hotel brands worldwide 2023, by brand value
  • Hotel openings worldwide 2021-2024
  • Hotel room openings worldwide 2021-2024
  • Countries with the most hotel construction projects in the pipeline worldwide 2022
  • Airports with the most international air passenger traffic worldwide 2022
  • Global passenger rail users forecast 2017-2027
  • Daily ridership of bus rapid transit systems worldwide by region 2023
  • Number of users of car rentals worldwide 2019-2028
  • Number of users in selected countries in the Car Rentals market in 2023
  • Carbon footprint of international tourism transport worldwide 2005-2030, by type
  • Leading museums by highest attendance worldwide 2019-2022
  • Monuments on the UNESCO world heritage list 2023, by type
  • Selected countries with the most Michelin-starred restaurants worldwide 2023
  • Online travel market size worldwide 2017-2028
  • Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
  • Number of aggregated downloads of leading online travel agency apps worldwide 2023
  • Market cap of leading online travel companies worldwide 2023
  • Estimated EV/Revenue ratio in the online travel market 2024, by segment
  • Estimated EV/EBITDA ratio in the online travel market 2024, by segment
  • Global travelers who believe in the importance of green travel 2023
  • Sustainable initiatives travelers would adopt worldwide 2022, by region
  • Airbnb revenue worldwide 2017-2023
  • Airbnb nights and experiences booked worldwide 2017-2023
  • Technologies global hotels plan to implement in the next three years 2022
  • Hotel technologies global consumers think would improve their future stay 2022
  • Travel and tourism revenue worldwide 2019-2028, by segment
  • Distribution of sales channels in the travel and tourism market worldwide 2018-2028
  • Inbound tourism visitor growth worldwide 2020-2025, by region
  • Outbound tourism visitor growth worldwide 2020-2025, by region

Other statistics that may interest you Tourism worldwide

  • Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
  • Basic Statistic Travel and tourism: share of global GDP 2019-2033
  • Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
  • Basic Statistic Global leisure travel spend 2019-2022
  • Premium Statistic Global business travel spending 2001-2022
  • Premium Statistic Number of international tourist arrivals worldwide 1950-2023
  • Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
  • Basic Statistic Travel and tourism employment worldwide 2019-2033
  • Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
  • Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
  • Basic Statistic Leading hotel companies worldwide 2023, by number of properties
  • Premium Statistic Hotel openings worldwide 2021-2024
  • Premium Statistic Hotel room openings worldwide 2021-2024
  • Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022
  • Premium Statistic Airports with the most international air passenger traffic worldwide 2022
  • Premium Statistic Market value of selected airlines worldwide 2023
  • Premium Statistic Global passenger rail users forecast 2017-2027
  • Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
  • Premium Statistic Number of users of car rentals worldwide 2019-2028
  • Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
  • Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Attractions

  • Premium Statistic Leading museums by highest attendance worldwide 2019-2022
  • Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
  • Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
  • Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Online travel market

  • Premium Statistic Online travel market size worldwide 2017-2028
  • Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
  • Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
  • Basic Statistic Market cap of leading online travel companies worldwide 2023
  • Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
  • Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Selected trends

  • Premium Statistic Global travelers who believe in the importance of green travel 2023
  • Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
  • Premium Statistic Airbnb revenue worldwide 2017-2023
  • Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
  • Premium Statistic Technologies global hotels plan to implement in the next three years 2022
  • Premium Statistic Hotel technologies global consumers think would improve their future stay 2022
  • Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
  • Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
  • Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
  • Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Further related statistics

  • Basic Statistic Global travel and tourism expenditure 2019-2022, by type
  • Basic Statistic Forecast: economic contribution of travel and tourism to GDP worldwide 2020-2029
  • Premium Statistic Leading countries in the MEA in the Travel & Tourism Competitiveness Index 2018
  • Premium Statistic Leading European countries in the Travel & Tourism Development Index 2021
  • Premium Statistic Sub-Saharan African countries in the Travel & Tourism Competitiveness Index 2019
  • Premium Statistic Inbound tourism of visitors from Denmark to the Netherlands 2013-2019
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  • Premium Statistic Price competitiveness ranking of the Nordic countries 2017
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  • Tourism share of GDP in El Salvador 2019-2021
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COMMENTS

  1. Pakistan

    This factsheet highlights the importance of Travel & Tourism to Pakistan across many metrics, and features details such as: Contribution of the sector to overall GDP and employment. Comparisons between 2019 and 2023. Forecasts for 2024 and 2034. International and domestic visitor spending. Proportion of leisure vs business spending.

  2. PDF Research Report on Tourism Industry of Pakistan

    2.3 Contribution to Economy According to World Travel & Tourism Council, the direct contribution of Travel & Tourism to GDP was PKR 930.9bn (USD8,832.1mn), 2.9% of total GDP in 2017. Moreover, Travel & Tourism directly supported 1,493,000 jobs (2.5% of total employment) in 2017. While total investment of PKR 410.4bn,

  3. Pakistan tourism industry expects to earn 4b USD in next 4 years: PTDC MD

    September 28, 2022 . ... but will also have a positive impact on the national economy," he said adding, the contribution rate of the tourism industry to Pakistan's GDP was 5%, which would exceed to 7%. The tourism ministry was taking a keen interest in promoting the culture, adventure and religious tourism in the country and adopting ...

  4. Pakistan

    In 2022, agriculture contributed around 22.35 percent to the GDP of Pakistan, 20.42 percent came from the industry, and over half of the economy's contribution to GDP came from the services sector.

  5. Pakistan Attracted $16 Billion in Visitor Spending in 2022

    The bank on its website stated that the travel and tourism sector's total contribution to Pakistan's GDP was 5.9 percent in 2022 and 4.2 million jobs. This is sub-optimal considering the ...

  6. Pakistan attracted $16bn in visitor spending in 2022: World Bank

    The bank on its website stated that the travel and tourism sector's total contribution to Pakistan's GDP was 5.9 percent in 2022 and 4.2 million jobs. This is sub-optimal considering the ...

  7. Travel & Tourism Economic Impact

    In 2022, the Travel & Tourism sector contributed 7.6% to global GDP; an increase of 22% from 2021 and only 23% below 2019 levels. In 2022, ... Each year, WTTC and Oxford Economics produce reports covering the economic contribution of our sector in 185 countries, for 26 economic and geographic regions, and for more than 70 cities. ...

  8. Promoting Responsible Tourism in Pakistan's North

    The travel and tourism sector's total contribution to Pakistan's GDP was 5.9 percent in 2022 and 4.2 million jobs. This is sub-optimal considering the diverse tourist sites located across the country. Pakistan attracted ~US$ 16 billion in visitor spending in 2022 which is projected to touch ~US$ 30 billion in 2033.

  9. How We Can Tap Into Pakistan's Tourism Potential As The World Emerges

    As per the World Travel & Tourism Council report 2021, travel and tourism contributed $8.8 billion, approximately 2.9% of total GDP of Pakistan, in 2017. By 2019, the total GDP contribution of tourism to Pakistan was $15 billion, which accounts for 5.7% of the total GDP. However, due to the Covid-19 pandemic, this growth fell significantly in ...

  10. PDF Tourism: economic development without increasing CO2 emissions in Pakistan

    Similarly, the dimension and contribution of the tourism industry toward the economic growth and development of Pakistan is of signicant importance as it is expected to grow by USD 6.2 billion by 2025 (Government of Pakistan, 2020). Moreover, the current situ-ation of Pakistan's tourism industry has experienced a signicant boom, which has been

  11. Can Pakistan afford to build its tourism industry?

    According to the 2021 report of the World Travel & Tourism Council, travel and tourism contributed $8.8 billion, approximately 2.9% of total GDP of Pakistan, in 2017. By 2019, the total GDP contribution of tourism to Pakistan was $15 billion which accounts for 5.7% of the total GDP. However, because of the Covid-19 pandemic, this growth fell ...

  12. PDF Visit PAKISTAN You Will Love to Stay Longer

    sector as one of the world's largest economic sectors. Pakistan Tourism Growth and Economy ... Source: WTTC, (2022) Pakistan Travel & Tourism. No. of International Arrivals (000) During the last 10 years, a continues growth has been recorded in the international arrivals in Pakistan. In 2013, Pakistan's international arrival was at 924,000 ...

  13. Pakistan Economic Impact Report

    This latest report reveals the importance of Travel & Tourism to Pakistan in granular detail across many metrics. The report's features include: Absolute and relative contributions of Travel & Tourism to GDP and employment, international and domestic spending. Data on leisure and business spending, capital investment, government spending and ...

  14. Investigating the Role of Tourism in Economic Growth: Empirical

    Contribution of T&T to Pakistan economy in 2019 ... 2022;Khan et al., 2022;Ravikumar et al., 2022 ... approach to investigate the influence of tourism on Pakistan's economic growth rate. According ...

  15. Tourism in Pakistan: A long way off

    The travel and tourism sector's total contribution to Pakistan's GDP was 5.9 percent in 2022 and 4.2 million jobs. With its diverse landscapes, historical treasures, and vibrant culture ...

  16. Pakistan Tourism Revenue

    Pakistan's Tourism Revenue reached 765 USD mn in Dec 2020, compared with 992 USD mn in the previous year. ... Accurate Macro & Micro Economic Data You Can Trust. ... -7.9 2022: yearly 2000 - 2022 Consolidated Fiscal Balance (USD mn) -29,641.346 2022: yearly 1991 - 2022 ...

  17. Travel & Tourism

    The Travel & Tourism market in in Pakistan is projected to grow by 3.59% (2024-2028) resulting in a market volume of US$3,918.00m in 2028.

  18. GDP (current US$)

    GDP (current US$) - Pakistan from The World Bank: Data. Free and open access to global development data. Data. This page in: English; Español; ... 2022. 2022. GDP growth (annual %) GDP (constant 2015 US$) GDP (constant LCU) GDP: linked series (current LCU) GDP, PPP (constant 2017 international $)

  19. Economic Impact Research

    WTTC's latest annual research shows: In 2023, the Travel & Tourism sector contributed 9.1% to the global GDP; an increase of 23.2% from 2022 and only 4.1% below the 2019 level. In 2023, there were 27 million new jobs, representing a 9.1% increase compared to 2022, and only 1.4% below the 2019 level.

  20. PDF Tourism'S Contribution to Pakistan'S Socioeconomic Growth

    Government's contributions to the tourism industry to assure social and economic development. Keyboards-Tourism, Tourism in Pakistan, Challenges faced by Tourism, Growth in GDP by Tourism, Scientific, and Cultural Organization (UNESCO) I. INTRODUCTION 1.1. Background The subcontinent was called Pakistan on August 14, before

  21. PDF Pakistan Tourism Development Corporation

    Pakistan Tourism Development Corporation (PTDC) was incorporated on March 30th, 1970 under the repealed Companies Act 1913 (Now the Companies Ordinance, 1984) ... • Play a vital role in job creation, poverty reduction and socio-economic development of the country. ...

  22. Travel and tourism: contribution to global GDP 2023

    Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars) [Graph], WTTC, May 9, 2023. [Online].

  23. Pakistan Contribution of travel and tourism to GDP (% of GDP ...

    7.2 (%) in 2019. In 2019, contribution of travel and tourism to GDP (% of GDP) for Pakistan was 7.2 %. Though Pakistan contribution of travel and tourism to GDP (% of GDP) fluctuated substantially in recent years, it tended to increase through 2000 - 2019 period ending at 7.2 % in 2019. The description is composed by our digital data assistant.