THE PLACE OF TOURISM IN PAKISTAN ECONOMY

Position of Pakistan
Pakistan receives limited numbers of tourists, and recent data have shown no growth in
real terms, although there has been recovery from a low point in 1992, and current
trends are positive. Using the latest figures available (1998) it can be seen that since a
peak in 1989, total visitor arrivals have in fact decreased from 494,600 to 428,790. An
examination of the motivation for travel in 1998 shows that returning Pakistanis and
others visiting Friends and Relative account for more than half of all foreign arrivals at
57%. Business visits remain strong at 25%, while holiday/ vacation visits are limited to
only 13% of all arrivals. Currently, Pakistan receives approximately the same number of
foreign arrivals as Nepal, a smaller country with much less returning ethnic traffic, only
one sixth of the numbers of India, and less than half of the number received by Iran.
Table

Visitors to Pakistan Annual Arrival Data

44000
0
43000
0
42000
0
41000
0
40000
0
39000
0
38000
0
37000
0
36000
0
35000
0
34000
0
33000
0
1995
1996
1997

Visitor Arrivals by Main Purpose of Visit 1996 - 1998

Visiting Friends
Holiday/Vacation
Business
Other
and Relatives

1998

Table 6.5

Total

1996 53,500

15%-

206,700

56%

91,200

24% 17,300

5% 368,700 100%

1997 53,400

14%

210,700

56%

93,000

25% 17,700

5% 374,800 100%

1998 55,600 13%

Source MCSTYA

245,300

57%

107,800 25% 20,100

5% 428,800 100%

In real terms, with only 55,000 tourists arriving in Pakistan for holiday and leisure
purposes in 1998, this is a very low base. Without returning Pakistanis and business
traffic (some of whom participate in leisure activities as a secondary motivation), the
Country would have minimal tourism. After discussion with tour operators, we believe

that over 75% of long-haul leisure tourists confine their tour to major cites such as
Lahore and Islamabad, and to the northern part of the Country.
Trekking, and to a lesser degree mountaineering, are the highest profile activities of
tourists, although there are a growing number of more general tours, while religious
sites are providing a significant attraction to visitors from the Far East.

On the above analogy when we relate the existing figures of the 5 lacs of
tourists during 2005-06-07 then it is revealed that tourism is generating
foreign exchange worth approximately 350-500 million US$ per annum out
of which approximately 70% is spent in NWFP by the tourists, thereby,
creating employment for 8 persons per tourist (3 lacs tourists during
tourism season in summer generate businesses for 38 lacs people directly
or indirectly) due to multiplier effect for the people of Malakand region,
Haraza region and Peshawar valley including Mardan, Charsadda and
Swabi.
In the after math of USSR invasion in the mid 70s in Afghanistan
approximately 5 million refuges settled in NWFP which was more then the
absorption capacity of the provincial economy. The analysis of the 9/11
situation after 2001 worsened the security situation in NWFP to the extent
that the hotels and motels in Swat are being used for purposes other then
tourism. This province on the one hand is deprived of tourists spending and
on the other hand what ever foreign exchange from the tourists is taken
away by the federal government with out any share for the provincial
tourism industry. In order to revive tourism half of the amount i.e. 100-200
million US$ from tourism has to be invested in to the victim of situational
issues generated by the war on tourism.