Tourism increases Revenue in Pakistan
How Tourism Plays role in increasing Revenue
Tourism is a huge source of economic development. It is key source of income and employment today. Tourism is the significant social and cultural impact. It has the fourth expert in the world after fuel, chemicals and food (curry err, Al 2016).
Pakistan is blessed with beautiful tourist’s sites. It has the great cultural and heritage sites. It is geographically and ethnically diverse. Pakistan’s northern areas are blessings of Allah. Tourists from all over the world’s visits these areas every year in a big number of amount.
Pakistan’s position in tourism
Pakistan was hierarchal the most effective vacation destination Tourism Latest News in 2020 and was additionally declared the third-highest potential destination within the world for 2020.
Government steps for improving tourism
With the improvement of security in the country, tourism increases. It has increased by more than 300 % in the last two years. The government of Pakistan took many steps for the tourists.
The government has launched a web visa service for a hundred seventy five countries and fifty counts were providing visas on arrival, creating visits to Asian nation easier.
The country received an influx of vloggers in the northern areas, especially Skardu and Hunza.
Economic condition and revenue:
Well, as per the world economic forum travels and tourism competitiveness report 2017, the direct contribution of travel and tourism to Pakistan’s GDP in 2015 was US$328.3 million, creating 2.8% of the total GDP.
In addition, according to the World Travel and Tourism Council, the direct contribution of travel and tourism to Pakistan’s GDP in 2016 was US$7.6 billion (PKR 793.0 billion), constituting 2.7% of the total GDP. And it is really delightful to hear that by 2025, the government predicts tourism will contribute ₨1 trillion (US$6.2 billion) to the Pakistani economy.
Tourism increases revenue:
Admirably, the tourism impact has three important types of economic development, direct, indirect, and induced. If you look around, you will that the example of the direct economic impact of tourism is the increased revenue of hotels, restaurants, and tourism organization.
Moreover, the indirect tourism occurs from flow such as hotels and restaurants purchases supplies by firms at the destination.
Further more, the induced impact occurs when the benefactress of direct and indirect impacts (such as firm owners, employees) spend their income. The tourism brings the foreign exchange, good commodities, and trade. Tourism development is viewed as instrument of employment generation and income. Hence, the tourism development influences various sectors of the economy through multiple effects.
Without a doubt, Our country has massive tourism potential and offers a vast infrastructure network for international tourists in the form of the China–Pakistan Economic Corridor (CPEC) and a vast road network, the Motorways.
Tourism in Pakistan
Despite the fact that tourism revenue in Pakistan is lower than in other South Asian countries, capital investments in the tourism sector are higher, with some exceptions. And yes!! Our Pakistan is an agriculture-dependent economy.
Approximately, 40% of people live below the poverty line. Pakistan is dependent on fossil Fuel for energy and spends approximately 60% of foreign exchange earnings on energy imports.
So, the trends suggest that tourism development has never been investigated with economic growth, Capital investment, agriculture, energy development, and poverty in a single econometric framework to analyze the backward and forward integration of tourism in developing nations.
Research and Written by: Amna Salam