Wednesday, 6 May 2015

Tourism and its Impact on Pakistan economy

TOURISM

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.
Tourism is a product of modern social arrangements, beginning in western Europe in the 17th century, although is has antecedents in classical antiquity.


 Economic Impact of Tourism



The travel and tourism industry is the lifeblood of many states around the country - Mark Foley

Tourism Plays an important role in an economy of a country.It is widely believed that travel and tourism do generate impacts, including economic ones.The tourism industry generates substantial economic benefits to both host countries and tourist's home countries. Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the
expected economic improvement.
Tourism is one of the most important aspect for developing countries.Tourism is the second biggest industry in terms of people it employs.Tourism contributes a major proportion in the country's GDP Without Tourism industry, economy of a country can't flourish.
An american travel writer Paul Theroux says: 
I don't look down on tourism. I live in Hawaii where we have 7 million visitors a year. If they weren't there, there would be no economy. So I understand why a tourist economy is necessary. - Paul Theroux
Travel and tourism is one of the largest and fastest growing global service industries. According to World Travel and Tourism Council (WTTC), Travel & Tourism generated US$7.6 trillion (10% of global GDP) and 277 million jobs (1 in 11 jobs) to the global economy in 2014 - 9.8% of total World GDP. The contribution of total Travel and Tourism GDP to the wider economy is expected to rise from 9.8% in 2014 to 10.5% in 2025, and from 9.4% to 10.7% for employment. http://www.wttc.org/
Tourism has multiple impacts on economy. Tourism's economic impact are mainly considered to be beneficial. These are :
  • The generation of foreign exchange.
  • The creation of new job and employment opportunities.
  • The stimulation of trade, income and entrepreneurship - especially in the service and small business sectors.
  • The provision of new infrastructure.
  • Increased regional development - particularly in isolated areas.
  • Greater tax revenues permitting greater government spending or reduced taxes on other activities .
  • The operation of what is called the multiplier effect.

TOURISM’S IMPACT ON PAKISTAN’S 


ECONOMY


       Pakistan is located in the hub of South Asian subcontinent. Given the geographic location of Pakistan it is heaven for tourist. Pakistan has been blessed by nature with some of the excellent and breath-taking tourist spots that are placed nearly all over the country.   Especially, the northern areas and the Kashmir region are one of the most beautiful places in the world. The places visited most frequently in Pakistan include the Muree Hills, Bhurban, Ayubia, Patriata, Kaghan Valley, Naran Valley, Soon Valley, Neelam Valley and Swat Valley. This part of the country is famous all around the world for its sky-high mountains, lush green valleys, mighty rivers, plentiful wildlife and beautiful lakes.




There are also many historical sites that are being captured is all the cities of Pakistan like Ghandara Civilization, Indus valley civilization, shrines of sufis and saints.
But unfortunately Pakistan tourism’s industry didn’t flourish much. Its impact on Pakistan economy is very small.
Pakistan’s share in both global tourist arrivals and receipts is less than 1%. While its share in South Asian tourist arrival is only 9%.The Direct contribution of travel and tourism to GDP in 2013 was PKR 704.2 billion (3.1% of GDP). In 2013 the travel and tourism supports 3563 thousand jobs which is 62% of total employment.


     Pakistan tourist arrivals in year 2010-2013 and their earnings are as follows:  

Years
Tourist Arrivals
Earnings (millions)
2010
906800
$305.90
2011
718832
$351.34
2012
663829
$369.03
2013
565212
$298.48
        



 The above graph shows that tourist arrivals in Pakistan along the year decreases. In year 2010 approximately 1 million tourist arrives in Pakistan while in year 2013 their number decreases to 0.56 million. Along with tourist their earnings also decreases. Due to this Pakistan’s economy suffers a lot.

Pakistan Comparison With Different Countries

Tourism is a booming industry all over the world.  Most of the developed countries earned a lot from tourism. Not surprisingly, Europe and North America have been the largest sources and recipients of international tourists.Countries of the south Asian region are also generating large portions of their revenues  from international as well as domestic tourism.Unlike other countries of the region Pakistan's tourism industry was already small which is now facing its worst times. According to the tourism experts it is not due to the fear of terrorism but reasons behind spoiling our tourism are the ambiguous or even anti tourist policies, that's why, just like other industries tourism is also suffering 
The above table shows the comparison of Pakistan tourism with three different countries. In 2013  Pakistan tourism industry has the lowest (3.1%) contribution of the total GDP of the country from the other three countries. While India which is our neighbor country has 6.2% contribution of the total GDP of the economy. According to report by WTTC Pakistan ranked 122 out of 140 countries in 2013 in travel and tourism.

Most Visited Countries by International Tourist Arrivals in 2013

Rank
Country
International
tourist
arrivals
(2013)
[4]
International
tourist
arrivals
(2012)
[4]
Change
(2012 to
2013)
(%)
Change
(2011 to
2012)
(%)
1
Europe
84.7 million
83.0 million
Increase 2.0
Increase 1.8
2
North America
69.8 million
66.7 million
Increase 4.7
Increase 6.3
3
Europe
60.7 million
57.5 million
Increase 5.6
Increase 2.3
4
Asia
55.7 million
57.7 million
Decrease 3.5
Increase 0.3
5
Europe
47.7 million
46.4 million
Increase 2.9
Increase 0.5
6
Europe
37.8 million
35.7 million
Increase 5.9
Increase 3.0
7
Europe
31.5 million
30.4 million
Increase 3.7
Increase 7.3
8
Europe
31.2 million
29.3 million
Increase 6.4
Decrease 0.1
9
Europe
28.4 million
25.7 million
Increase 10.2
Increase 13.5
10
Asia
26.5 million
22.4 million
Increase 18.8
Increase 16.2

The World's Most visited Countries - 2014




WHY TOURISM DECLINE IN PAKISTAN?


                             Lack of tourism in Pakistan




There are several reasons due to which Tourism’s decline in Pakistan. They are as follows:
Ø  Terrorism:Tourism decline in Pakistan mainly caused by terrorism. According to report Pakistan become7th most dangerous country in the world for travel due to terrorism and target killing.
·         Attack on Srilankan Cricket team in 2009.
·         Marriot hotel attack in Islamabad in 2008.
·         Tourist killed in Nanga Parbat in 2013.
·         Zarb e Azb
·         Quaid-e-Azam Residency attack and many others.
Ø  High Inflation rate
·   High priced food, hotel and transportation have made Pakistan a place that is beyond the reach and affordability of tourists          

·      Due to high inflation rate, middle and poor class can’t afford.
Ø  Lack of Infra Structure
·   Tourism sector has lack of facilities that cannot compete the international standards.
Ø  BAD Transportation System.

   Ø  Lack of Government intervention.

Steps to Promote Tourism in Pakistan

There are many steps through which we promote tourism in a country. I am describing these steps one by one.

Security:

As we all know that terrorism and target killing is the burning issue in our country, which create hurdles in the promotion of tourism. So the most important step to promote Tourism is to eradicate the terror and target killing in a country.When people feel secure then they prefer to visit Pakistan, because security is the basic need of people all over the world. so we should give security to tourists.


Guidance:

Visitors who comes from abroad don't have much knowledge of the country . They don't know the place which they want to visit is where? We should made several information centers in our country to provide guidance to the visitors, that are helpful for tourist to get information for specific places. Where these center are available visitors prefer those countries.




Publicity:

Through publicity we can show most beautiful places of our country to the world that attracts tourists to our country and people want to visit those beautiful places of our lovely country. Fort this purpose we should give add in famous news papers and news channels. We should also give online advertisement  for publicity.


Government Intervention:

Subsidies:

Government should involve to promote tourism in a country. For this purpose, they should give subsidies and make certain policies which are beneficial for tourists.Government should provide subsidies to tourism industry for promoting tourism in our country, by spending this amount we can maintain our most beautiful places that attracts visitors.

Organized Festival:

Government should organized special type of festivals like cultural festivals, sports festivals etc. International sports should held in Pakistan.


Clean Environment: 

Clean surroundings also can help to promote tourism. Tourists also want to stay in an area that is clean, and they prefer the clean environment to visit, so we should keep our surroundings clean to promote tourism for our country. 



Saving Tourism industry is as much important as any other industry because tourism not only can generate huge revenue but also its helps to create an image among the nations worldwide, besides thousands of individuals and businesses depend on this industry.Strong practical measures by the government are required in order to help tourism industry bringing back on its feet. The sooner it is done the better it will be for the thousands rely on the tourism for a living.



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