Exploiting Khyber Pakhtunkhwa’s Tourism Potential: Gaps and Remedies

Introduction

Globally, travel and tourism make up the largest service industry and accounts for more than
10.4 percent of the global Gross Domestic Product (GDP). According to the World Travel and
Tourism Council (WTTC) report, the sector is worth US$7.6 trillion and employs 313 million
people worldwide, which means that one in every ten jobs is directly linked to tourism. It is an
effective tool to drive infrastructure development, inform urban planning, increase female labour
force participation and promote artisans and intangible culture. As a service industry, tourism is
labour intensive and is traditionally made of small and medium enterprises (SMEs). It cultivates
collaboration between firms, public sector and local communities while building peace and
encouraging cross-border travel. To unlock the potential of this industry, the policymakers in
several countries are supporting regulatory reforms to develop tourism and associated value
chains, including food and beverage, construction and transport.

Some countries are benefitting already. For instance, the Rwandan government and Sri Lanka,
where the tourism industry has contributed significantly towards creation of inclusive jobs and
sustained peace building. It is now time for Pakistan to also use the country’s unique landscape
and cultural heritage by transforming these assets into engines of job creation, image building
and economic prosperity. With the evolution of technology, new possibilities are emerging for
both travelers and service providers in public and private domain.

Pakistan is a country having four seasons, mountains, lakes, deserts and agriculture set up
comprising of 60 percent of the workforce involved in it. Internally Pakistan has a tourist flow of
about 10 million inside the country during summer season. This domestic tourist flow is mainly
during summer season from areas that are hot in summer to mountainous areas in the north
where temperatures are cool. The domestic tourist flow is visibly large in winters too, where
people from the plains and hotter areas visit snow bound areas to witness snowfall.
The socio-economic prospects of tourism in Pakistan appear promising, provided the government
and private stakeholders prioritize their policy with coordinated efforts to induce drastic changes
in the industry. The figures recorded in the travel and tourism sector in Pakistan are promising as
it is evident by the rise in total visitor exports which was 3.7 percent of total exports in 2017, that
grew by 4.7 percent in 2018 and likely to grow per annum by 6.4 percent from 2018 to
2028. There will be a nearly 100 percent rise in monetary terms from US$ 936.4 million worth of
visitor exports to US$ 1,826.4 million in the coming decade. Investment in travel and tourism
was 9.1 percent of the total investment in the country in 2017, which stood at US$ 3,893.4
million. This increased by 5.2 percent in 2018 and it is likely to rise by 4.1 percent per annum
over the next decade to US$ 6,142.0 million. Moreover, the total contribution of travel and
tourism to employment (directly and indirectly) was almost 6.5 percent of total employment,
which makes it to 3,894,000 jobs. This trend grew by 2.6 percent in 2018 to a round off figure of
4 million jobs and is expected to rise by 2.3 percent per annum to 5,017,000 jobs in 2028 (6.5
percent of total). The total contribution of the travel and tourism to GDP was US$ 22,286.3
million, 7.4 percent of GDP in 2017 and rise by 5.4 percent per annum to US$ 39,851.6 million
by 2028. However, Pakistan in 2017, in comparison to world average of US$ 4.8 billion,
received investment of US$ 3.9 billion, which stands relatively lower than Indonesia, Thailand
and Malaysia. Pakistan’s visitor exports stood at US$ 0.9 billion, which is lower than the world
average of US$ 8.1 billion and South Asian average of US$ 6.1 billion in the same year. 

The northern areas of Pakistan mostly comprising of Khyber Pakhtunkhwa’s province is a

heaven for any tourist. From snowcapped peaks and frozen lakes to serene valleys, interspersed
with the ruins of ancient civilizations, the province is full of breath taking views. Moreover, the
religious sits of Hindus and Buddhists are a source of attraction for pilgrims. The potential
tourism industry of the province can largely be improved provided that certain challenges are
addressed, opportunities are fully utilized and a sustained approach is adopted. Following is a
detailed account of gaps and remedies for tourism industry in Khyber Pakhtunkhwa.

Gaps in KP’s Tourism Industry

Khyber Pakhtunkhwa has clear attractions for local and foreigners alike. But terrorism and lack
of facilities had hamstrung tourism in the province in the past. Consequent governments in the
past has not paid enough attention for boosting this potential industry. They spent little effort to
high light the positive image of the province and neglected the essential steps needed to enhance
the sector. Foreigners hesitated to visit the province, considering a war stricken, intolerant, and
ultra conservative area. The province also has insufficient lodging facilities and tourist resorts.
The far flung tourist destinations has inadequate infrastructure. Some gaps in tourism industry of
the KP are given as under:

Absence of infrastructure

There is no adequate infrastructure developed by the government which might have been helpful
for the tourists. For instance, in many areas there are no roads and at some places roads are in
poor condition. Similarly, land sliding blocks all the roads sometimes and there is no effective
measure to let the people commute safely. Every other tour operator will let you know that they
have experienced some serious and perennial challenges due to the absence of adequate
infrastructure.

Inadequate lodging facilities

There are hotels and restaurants but in very limited number. The tourist faces serious problems in
top seasons due to rush of tourist and unavailability of hotels and restaurants. Similarly, the
foreign tourists refrain from visiting the serene tourist sites due to absence of standard lodging
facilities. Moreover, there is no concrete policy mechanism to have a check over the hotels and
restaurants to fix the prices, hygiene and fares.

Sociological factors

This is something we Pakistanis are not comfortable to talk about. There is a misperception about
ourselves that we’re extra-caring and hospitable people. Such assertions have some elements of
truth but cannot be treated as a final word. Local people in northern areas are generally good but
overtly protective of their own culture and have some unrestrained economic interests which
usually lead to exploitation of the tourists if they are not accompanied by a tour operator. The
government has not made any effort to make local culture inclusive or tourist-friendly. It is
ultimately the responsibility of the government (carried out through district administration) to
protect both the locals and the tourists.
Frequent Natural Calamities

The tourist sites in Khyber Pakhtunkhwa often faces extreme weather curses during summer and
winters. The unexpected and heavy snow falls in winter often lead to complete destruction of
communication system and blockage of roads. The flash floods in hot summers cause severe
damages to roads and buildings built for tourist facilitation. The consequent governments have
not paid substantial heed to address these challenges and consequently, it has deterred local and
foreigner tourists to visit the serene tourist sites in peak seasons.

Remedies for Boosting Tourism Potential of KP

There is dire need of adopting the following remedies to promote the tourism industry of Khyber
Pakhtunkhwa and exploiting it to its full potential.

Infrastructure Development and Improving Public Services

One of the major factors that the government needs to prioritize is the development of
infrastructure and public services to different tourist attractions across the province. Building up
of infrastructure will allow government to promote and attract international and domestic tourists
to new locations. Similarly, development of different municipal services such as waste
management services, emergency and health services and setting up of tourist police departments
across the tourist sites will also enable in further reinforcing KP’s tourism credentials. It appears
that these areas of improvement will soon be addressed as government has prioritized
development of tourism sector. Moreover, it is also worth mentioning that bilateral
collaboration between China and Pakistan under the Belt and Road Initiative (BRI) in form of
China – Pakistan Economic Corridor (CPEC) has enabled Pakistan to expand network of road
highways and power generation plants. These notable developments have allowed Pakistan to
reduce inter-city travel distances and also to favorite tourist destinations in Khyber
Pakhtunkhwa.

Inclusive Private Sector and Tourism Sector

Traditionally, in every sector the government’s role is as a facilitator and enables the private
sector to pitch itself in for provision of revenue generating services. The government needs to
provide an encouraging space to hospitality industry to flourish. Private hotels and markets can
be allocated spaces at planned areas in order to overcome spacing issues. Local specialized
cuisines can serve to provide an additional reason for attracting tourists to favorite tourist
destinations. Similarly, international associations including United Nations World Tourism
Organization, along with other international bodies, are not fully mobilized to improve
Pakistan’s position among international tourist agencies for bringing in international tourists to
Pakistan. Government’s inclination to promote formalization of economy will enable private
sector to connect different tourist locations with modern banking and payment systems.

Mountain Tourism in Northern KP

Scenic locations in Northern areas of Khyber Pakhtunkhwa, serve as attractive tourist destination
for adventure seekers. Locations for adventure tourism in Northern parts of the province have
multiple locations to help satiate the appetite of thrill and adventure seeking tourists in
mountainous areas. Moreover, the decision by the Khyber Pakhtunkhwa government to identify
20 new valleys for promoting tourism will generate new tourist destinations and create additional
business opportunities for travel operators, new businesses to flourish and new opportunities to
arise.

Promoting Spiritual and Religious Tourism

There is a great potential for promoting international tourism at historical Buddhist sites in,
Takhti Bahi and Swat, which can bring inflow of foreign tourists mostly Buddhist visitors from
North and South East Asia. Hindu pilgrims from India, Southeast Asia, and western countries
can be attracted for spiritual and religious tourism to religious locations of Hindu religion.

Promotion of International Tourism

Return of normalcy to Pakistan’s social and economic milieu is one of the key accomplishments
of Pakistan’s fight against terrorism. The positive outcome of this is visible in the KP’s tourism
sector as well. In past few years, the province has started gaining heightened interest by
international tourists. This is evident by the number of vlogs over YouTube and other social
media platforms regarding KP’s diverse culture, heritage, cuisines, adventure sports and diverse
landscapes. This promotion enabled generation of renewed interest among international tourists
to explore rich cultural experience and hospitality of northern Pakistan.

Branding Strategy, Advertising and Marketing

In order to attract tourism from abroad, Khyber Pakhtunkhwa’s government has to work on a
synchronized promotion strategy. Under this strategy, it will need to adopt an innovative,
creative and international branding strategy. Marketing campaigns designed at promoting
tourism in the province at International Expos and advertising it in international media will
enable strategic targeting of potential tourists.

Encouraging Private and International Investment

Pakistan’s tourism sector holds the potential of offering a world class experience to international
tourists and travelers. The efforts by NTCB and government’s Board of Investment (BOI) are
encouraging for private and international businesses to make their investment in Pakistan. The
government is also inclined to remove barriers for attracting more international businesses.
Since, the ongoing trends suggest that the tourism sector will yield promising returns;
international businesses need to capitalize upon this opportunity and direct their investments in
Pakistan’s tourism sector. Investment from international business in tourism sector will reinforce
and elevate the scale of international tourists to Pakistan.

Facilitations of Foreign Tourists

Concrete measures are required to facilitate the international tourists, for example,
implementation of a more flexible visa policy (electronic visas for selective nationalities initially,
similar to what Sri Lanka, Turkey and Egypt are doing) and increased frequency of flights to the
destinations in Khyber Pakhtunkhwa.

Management of Tourist Destinations

Both existing and emerging tourist sites require destination management which can help the
public-sector service providers to address the challenges faced by the industry while preserving
the tourism assets and ecosystem. This is already work in process and requires diligent planning
to ensure that the elements of environmental sustainability, inclusiveness and protection of local
communities and revenue mobilization are factored in.

Inclusion of the Local Bodies and Communities

The role of local government bodies is instrumental in the overall site planning and management,
otherwise, both intangible and monetary benefits generated by tourism cannot be retained within
the communities and local economy.

Promoting Tourism Education

It is important to reorient the curriculum of national and provincial universities so that the young
men and women are well equipped with knowledge and skills in archaeology, hospitality,
aviation, and food and beverage industry. This will enhance the opportunities for youth to land
inclusive jobs or opt for entrepreneurship, thereby creating new jobs;

Inclusion of Women in the Industry

The industry should be encouraged to make an all-out effort to offer tourism products and
services for women travelers and more importantly, introduce a conducive working environment
so that more qualified women opt to work in this sector.

Conclusion

Khyber Pakhtunkhwa has the potential of becoming one of the most favorite tourist destinations
in Pakistan. Coordination between different stakeholders on key factors including branding,
marketing, promotion, development of infrastructure, and promoting investments from private
sector can attract more international tourists, seeking to visit the province. Continuing the
upward trajectory of international tourism will renew interest of international businesses to invest
in KP’s tourism industry. Coming up with comprehensive and novel solutions to promote diverse
forms of tourism will soon enable the province to convert its promising tourism potential into a
reality.