KARACHI: Pakistan lags behind more than halfway to reach the average GDP share of region’s travel and tourism sector, yet the growth prospect is bright on a recent economic upturn, a foreign advocacy group said. The country’s travel and tourism sector contributed $19.4 billion to GDP in 2016 as compared to south Asia’s average of $42.1 billion, World Travel and Tourism Council said in the country report, “Travel and Tourism Economic Impact 2017 Pakistan”. London-based nonprofit organisation, monitoring tourism performance in 186 countries, said the country’s travel and tourism direct contribution to GDP amounted to $7.6 billion as against the region’s average of $15.2 billion during the last year. Tourism GDP shares in China, India, Thailand and Indonesia stood above the region’s average during the past year. The tourism body, however, expects the sector’s share in Pakistan’s economy to more than double over the next decade as rising spending by local and foreign tourists would fuel economic activities. Pakistan’s economy recorded a decade-high growth of 5.3 percent during the last fiscal year of 2016/17. “This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services),” the body said. “But, it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.” The sector accounted for 2.7 percent, equivalent to $7.6 billion, of the country’s GDP in 2016. Its share is forecast to increase 5.1 percent in 2017. The contribution of travel and tourism sector will reach $13.6 billion by 2027. Total contribution of travel and tourism to GDP was $19.4 billion, 6.9 percent of GDP in 2016, and is forecast to rise by six percent in 2017, and to increase 5.8 percent a year to $36.1 billion in 2027.
World Travel and Tourism Council projects visitor exports to grow 3.1 percent in 2017, and increase 7.7 percent a year from 2017-2027 to $1.94 billion in 2027. In 2016, the country’s exports revenue from the sector amounted to $894 million, around four percent of total exports. Number of foreign tourists is expected to reach 2.173 million in 2027, it said. Yet, domestic travel spending generated 92.6 percent of the sector’s GDP share in 2016 compared with 7.4 percent for visitor exports. The council said travel spending by locals would grow 5.3 percent to $11.76 billion, and rise by 5.6 percent a year to $20 billion in 2027. Domestic tourism is growing in Pakistan after the improvement in security condition. The country’s most sought-after tourist destination in northern areas are witnessing revival in interest of tourists, reflecting in the increase in revenue of hotel industry. Gilgit-Baltistan is also seeing a rush of local and international travelers to the region’s scenic meadows and valleys. The group further said investment in travel and tourism sector would more than double to $8.3 billion over the next 10 years. In 2016, the investment in the sector amounted to $3.6 billion and it would grow eight percent a year to reach $8.3 billion in 2027. Yet, the sector is a little over halfway to south Asia’s average of $6.6 billion during the last year. The hospitality sector directly supported 1.34 million jobs, 2.3 percent of total employment last year. This is expected to rise to 1.76 million in 2027. Indirectly, the sector supported 3.55 million jobs in 2016 and within a decade the indirect jobs would be 4.78 million, according to the council. South Asia’s average employment in the sector was 4.78 million during the last year. The council put Pakistan’s hospitality sector on 47 position in terms of size, 136 with regards to GDP share, 45 in relation to short-term growth forecast and 33 for long-term growth projection.