Tourism for Socio-Economic Development

SOCIO-ECONOMIC IMPACT OF TOURISM

Tourism is the worlds 2nd largest and most rapidly growing industry. There were 940 million tourists in the world in the 2010. South Asia welcomed around 2% of total world tourist arrivals.

Pakistan gets only just over 10% of South Asias share, which is 907,000 visitors in 2010 whereas tourism receipts were US$ 305 million.

SOCIO-ECONOMIC IMPACT OF TOURISM

Tourism creates quality jobs. Globally, one in every ten jobs is generated directly or indirectly from tourism. It is a 24-hour-a-day, seven-days-a-week industry, despite seasonal fluctuations. Tourism industry is labour intensive, employment opportunities at all skill levels. with

Tourism is a major (invisible) export, with international visitors injecting foreign exchange directly into the economy.

SOCIO-ECONOMIC IMPACT OF TOURISM

Tourism works as a catalyst for construction and manufacturing industry but it's so woven into the economy that its significance often goes unnoticed. Tourism industry consists predominantly of small businesses, despite growing investment by larger companies. It relies on minimal direct financial assistance or regulation by government. Tourism is a decentralized industry capable of diversifying regional economies. Compared to other industries, there are relatively few barriers to entry in this industry.

SOCIO-ECONOMIC IMPACT OF TOURISM

Tourism is a relatively low pollutant, which, if properly managed, can contribute to the conservation of natural and cultural heritage.
It is an important medium for educational and cultural exchange, promoting international understanding and goodwill.

Tourism a key to development, prosperity and well-being

An ever increasing investment in tourism development has turned it into a key driver for socio-economic progress through the creation of jobs and enterprises, infrastructure development and the export revenues earned. The overall export income generated by inbound tourism, including passengers transport, exceeded US$ 1 trillion in 2010, or close to US$ 3 billion a day. Tourism exports account for as much as 30% of the worlds exports of commercial services and 6% of overall exports of goods and services.

Tourism a key to development, prosperity and well-being

As an export category, tourism ranks fourth after fuels, chemicals and automotive products. For many developing countries it is one of the main sources for foreign exchange income, creating opportunities for employment and development. Tourisms contribution to worldwide gross domestic product (GDP) is estimated around 5%. Tourisms contribution to employment tends is estimated around 6-7% of the overall number of jobs worldwide (direct and indirect).

INTERNATIONAL TOURISM TRENDS 2010

By 2020 international arrivals are expected to reach 1.6 billion. Despite the impact of the worldwide financial crisis and economic recession, international tourist arrivals increased by 3.2% in 2010 to 940 million (as compared to 880 mn. in 2009).

International tourism receipts reached US$ 919 billion (693 billion euros) in 2010, corresponding to a increase in real terms of 5% on 2009 (US$ 852 billion)

Current developments and outlook

According to the April 2011 Interim Update of the UNWTO World Tourism Barometer, International tourist arrivals grew by close to 5% during the first two months of 2011, consolidating the rebound registered in 2010. According to the forecast prepared by UNWTO at the beginning of the year, international tourist arrivals are projected to increase in 2011 by 4% to 5%.

Top 10 Tourism Destinations in 2010

Arrivals (millions)
2010 : rank 1. Percent change 2009/2008 -3.0 Percent change 2010/2009 0.0

Country
France United States China Spain Italy United Kingdom Turkey Germany

2009
76.8

2010
76.8

2.
3. 4. 5.

55.0
50.9 52.2 43.2

59.7
55.7 52.7 43.6

-5.1
-4.1 -8.8 1.2

8.7
9.4 1.0 0.9

6.
7. 8.

28.2
25.5 24.2

28.1
27.0 26.9

-6.4
2.0 -2.7

-0.2
5.9 10.9

9.
10.

Malaysia
Mexico

23.6
21.5

24.6
22.4

7.2
-5.2

3.9
4.4

Source: UNWTO

Top-10 Tourism Destinations in 2010 Earnings

2010 rank 1.

US$ in billion
Country 2009 94.2 2010 103.5

Change % 2010/2009 9.9

United States
Spain
France China Italy Germany United Kingdom Australia Hong Kong Turkey

2.
3. 4. 5. 6. 7. 8. 9. 10.

53.2
49.4 39.7 40.2 34.6 30.1 25.4 16.4 21.3

52.5
46.3 45.8 38.8 34.7 30.4 30.1 23.0 20.8

-1.2
-7.9 -2.9 -7.2 -8.5 -1.3 10.3 7.0 -2.1

SOUTH-EAST ASIA REBOUNDING STRONGLY IN 2010

In 2010, South-East Asia, recorded a 1.9% increase in arrivals, driven by the positive results of Malaysia (+8%), Cambodia (+2%) and Indonesia (+1%). In North-East Asia the year was still down 3%, with China, the top destination of the region, down 4%, but the Republic of Korea and Taiwan up by 13.4% and 12% respectively.
International arrivals in South Asia decreased by 1.2%. Pakistan (+3.9%) and Sri Lanka (+2.3%) reported positive results, while India declined by 2.8%.

Tourism in Pakistan - 2010

Foreign Tourist Arrivals

0.907 Million

Percentage Growth per year

Tourism Receipts

2.8%
US$ 305.9 Million

Tourist Receipts as percentage of GDP 0.3%

Domestic Tourists
Hospitality Industry employees Number of Registered Hotels

47.500 Million
600,000 person 1,792

Total number of rooms

41,901 rooms
Source: Ministry of Tourism (Defunct) Government of Pakistan

Foreign Tourist Arrivals and Tourism Receipts 2001 to 2010

YEAR Tourists (million) Receipts (US$ million)

2001 2002 2003 2004 2005 2006 2007 2008 2009

2010

0.4997 0.4981 0.5009 0.6480 0.7983 0.8984 0.8395 0.8228 0.8549

0.9068

92.20 105.4 135.6 185.6 185.3 260.1 276.1 243.5 240.6

305.9

Top-10 Tourist Generating Countries to Pakistan

Country Arrivals (Nos) Percentage Share of total tourist arrivals 31.8 13.3 12.2 5.1

U.K U.S.A Afghanistan Canada

288,238 120,369 110,922 46,228

India Iran China Germany Philippines Australia

43,751 37,722 27,887 22,555 15,871 13,931

4.8 4.2 3.1 2.5 1.8 1.5

MARKET WISE FOREIGN TOURIST ARRIVALS IN PAKISTAN - 2010

Market Europe South Asia America Pacific & East Asia Middle East Africa Tourists (NOs) 395,644 204,136 168,421 89,748 28,188 15,320 Percentage Share (%) 43.6 22.5 18.6 9.9 3.1 1.7

Others

5,361

0.6

FOREIGN TOURIST ARRIVALS IN PAKISTAN BY PURPOSE (2010)

Percentage

Holiday / Recreation Visiting friends and relatives Business Others

Total

11.9% 35.6% 28.4% 24.1% _____ 100%

HOW TO DEVELOP TOURISM IN PAKISTAN ?

Vision:
To develop tourism sector as a national priority in a sustainable and acceptable manner, taking full advantage of regional and international trends and developments so that it can significantly contribute to the improvement of quality of life in Pakistan whilst promoting the countrys cultural and natural heritage.

MISSION ?
To create an enabling environment for Pakistans tourism industry by providing world-class facilities that commensurate with our rich cultural heritage, rare archaeological treasures and exquisite environmental beauty in close partnership and coordination between the public and the private sector while preserving and protecting our cultural and moral values and projecting tourist friendly image of the country.

Pakistan Tourism Potential

Nature & Adventure - Deserts, hill stations, valleys and mountains offer opportunities for adventure sports like mountaineering and trekking, white water rafting, skiing, jeep & camel safaris, car rallies, mountain biking, Ecotourism, flora, fauna, wildlife etc. Culture & Heritage - Indus Valley Civilization, Gandhara Civilization, Early Muslim and Moghul Heritage, Colonial Heritage, unique cultures and hospitable people. Religious Tourism - Sacred religious places for Muslims, Buddhists, Sikhs and Hindus. Coastal Zone - spreading over 1,000 kms along the Arabian Sea offers long term development potential for beach resorts.

Challenges

Coordination at all Levels of Government

Numbers versus Yield

Industry Quality Aligning Product with Market Needs

Tourists Dispersal and Niche Products

Skills Base Tourism Infrastructure

Aviation Services
Research and Statistics

Constraints

Security concerns

Negative country image abroad

Underdeveloped civic, communication and tourism infrastructure Financial constraints Non-implementation of a well-laid and well

coordinated marketing strategy

Trust deficit between public and private sector tourism stake-holders.

INCENTIVES BEING PROVIDED BY THE GOVERNMENT IN TOURISM SECTOR:

Group Tourist Visa on Arrival for 24 countries Tourism is categorized as an industry. Plant, machinery and equipment (PME) not manufactured in Pakistan can be imported at only 5% customs duty. Tax relief - first year allowance at 75% of PME. Import of Special equipment for adventure and sports tourism allowed at 10% customs duty. Chartered flights allowed on point to point basis from Karachi, Lahore, Islamabad and Peshawar. Public-private sector joint ventures opportunity for a number of tourism development projects..

Marketing Strategy

Explore Asian Markets (SAARC, ECO, ASEAN, Middle East etc). Strengthen traditional base Adventure, Culture, Heritage and Religious Tourism

Develop & explore new products & markets Ecotourism, MICE, discover your roots, sports tourism, transit tours etc. Promote Domestic Tourism family holidays, students and incentive tours
Promote Winter tourism

Marketing Tools

Participation in Foreign Tourism Exhibitions

Participation and organizing local cultural and tourism events, awareness and orientation seminars / walks Adventure and outdoor activities
Printing, Publication and distribution of free tourist literature, newsletters, maps, posters etc.

Publicity in print and electronic media

Familiarization trips Production of documentaries, CDs, DVDs,

DEVELOPMENT STRATEGY

Private sector plays a key role in the development of the tourist industry including hotel accommodation, resorts, recreation activities, transport and tour operations.

Enhance coordination and communication among private and public sectors and develop public private partnerships.
Major private sector investment will be in hotel & restaurant industry which is expected to grow at a rapid pace.

PPP Opportunities in Pakistans Tourism Sector

Development of Hotels, Restaurants, Resorts,

Theme Parks and recreation facilities. Leasing-out of existing public sector tourism facilities Provision of foodservices and entertainment

facilities at a tourist attraction

Event Sponsorship

PAKISTAN TOURISM DEVELOPMENT CORPORATION

Pakistan Tourism Development Corporation (PTDC) was incorporated on March 30, 1970 under the Companies Act 1913 (Now the Companies

Ordinance, 1984) as a Public Corporation Limited by shares. Principal objective of the corporation is to promote and develop tourism in Pakistan. The Corporation owns and controls following subsidiaries:

PTDC Motels North (Pvt.) Ltd. PTDC Motels South (Pvt.) Ltd. Associated Hotels of Pakistan (AHP) Pakistan Tours (Pvt.) Ltd (PTL)

PTDC is owned by Government of Pakistan (99.75% share) 12% shares of PTDC and its subsidiaries have been transferred to its Employees under Benazir Employees Empowerment Scheme.

TOURIST INFORMATION CENTRES

PTDC is providing tourist information, facilitation and publications to tourists through its following 18 Tourist Information Centres:
S# LOCATION BUILDING STATUS

PUNJAB 1. 2. 3. 4. 5. 6. BAHAWALPUR LAHORE CITY LAHORE AIRPORT RAWALPINDI CITY TAXILA MULTAN Rented Rented Rented at Flashmans Hotel at PTDC Motel Rented

KHYBER PAKHTUNKHWA 1. 2 3. 4. ABBOTTABAD PESHAWAR SAIDU SHARIF, SWAT PESHAWAR AIRPORT Rented Rented at PTDC Motel Rented

TOURIST INFORMATION CENTRES

GILGIT BALTISTAN

1.
2.

GILGIT
SKARDU

at PTDC Motel
at PTDC Motel

ISLAMABAD CAPITAL TERRITORY 1. 2. ISLAMABAD ISLAMABAD AIRPORT Own Building Rented

SINDH 1. 2. 3. KARACHI MOENJODARO THATTA Rented Rented Own Building

BALOCHISTAN 1. QUETTA Rented

Publicity & Promotion

Marketing of Pakistans tourist attractions through: Publications: Brochures, maps, leaflets, newsletters, posters, view cards, CDs, DVDs etc. Internet / Website, Email, Facebook International and domestic tourism exhibitions, conferences, cultural events etc. Print & Electronic Media (articles, press releases, documentaries) Sponsoring / organizing familiarization tours for international and domestic print & electronic media reps / teams, travel writers/photographers, travel agents etc. Organizing tourism and cultural events, seminars, conferences in Pakistan Distribution of tourist publications through Tourist Information Centres, Pakistani embassies, PIA Offices abroad, Pakistani and foreign travel agents / tour operators, airlines, educational institutions

PTDC MOTELS NORTH (PVT) LTD. PTDC MOTELS SOUTH (PVT) LTD.

These two companies were incorporated in 1977 as wholly owned subsidiaries of PTDC under the (repealed) Companies Act 1913 (Now the Companies Ordinance, 1984) to operate motels, resorts and restaurants constructed under PSDP grants. These are governed by its Board of Directors with MD PTDC as its Chairman.

PTDC Motels (South) was operating motels/ resorts located in Sindh and Balochistan. The operation of its units was transferred to PTDC Motels North (Pvt.) Ltd w.e.f. 01-07-1990. PTDC Motels North (Pvt.) Ltd. is currently running 35 motels and 4 restaurants all over Pakistan. All restaurants and 10 motels have been leased out to private parties.

List of PTDC Motels

S# A. 1 2 3 4 5 B. 6 C. 7 8 9 10 11 12 13 14 15 16 17 Location PUNJAB PTDC Motel at Taxila PTDC Motel at Wagha Pak-India Border PTDC Motel at Bahawalpur PTDC RSF at Bahawalpur PTDC Motel at Katas SINDH PTDC Motel at Moenjodaro KHYBER PAKHTUNKHWA PTDC Motel at Saidu Sharif PTDC Motel at Kalam PTDC Motel at Miandam PTDC RSF at Chakdara PTDC Motel at Panakot, Dir PTDC Motel at Bamburet PTDC Motel at Bunni PTDC Motel at Birmoglasht PTDC Motel at Chitral PTDC Motel at Mastuj PTDC Motel at Chattar Plain Facilities Area/Land (7 rooms) (4 rooms) (14 rooms) Restaurant (6 rooms) (12 rooms) (23 rooms) (38 rooms) (21 rooms) Restaurant (4 rooms) (16 rooms) (4 rooms) (16 rooms) (30 rooms) (12 rooms) (4 rooms) 2 K 12 M 1K 11M 21K 41K 15M 20K 18M 6 K 18M 6 K 10M 40K 10K 19M 6K 6K 11M 8K 2M 6K 32K 4K 15M 13K 9K 10M Status Operational Operational Operational Leased out Leased out
Under Repair/ Renovation

Operational With Security Forces Operational Leased out Leased out Operational Operational Leased out Operational Operational Cont. Leased out

S# 18 19 20 21 22 23 C. 24 25 26 27 D. 28 29 30 31 32 33 34 35 36 37 E. 38 39

Location PTDC Motel at Besham PTDC Motel at Barseen PTDC Motel at Balakot PTDC Motel at Naran PTDC Motel at Torkham PTDC Motel at Ayubia BALOCHISTAN PTDC Motel at Taftan, Pak-Iran Border PTDC Motel at Ziarat PTDC Motel at Khuzdar PTDC Motel at Chamman GILGIT BALTISTAN PTDC Motel at Gilgit PTDC Motel at Gupis PTDC Motel at Hunza PTDC Motel at Phandar PTDC Motel at Rama Lake PTDC Motel at Sust, Pak-China Border PTDC Motel at Astak PTDC Motel at Khaplu PTDC Motel at Satpara PTDC Motel at Skardu ISLAMABAD PTDC Restaurant at Dam-e-Koh PTDC Restaurant at Jaltrang

Facilities Area/Land (47 rooms) 16K 4M (4 rooms) 9K 7M (5 rooms) 2K 21M (60 rooms) 160K (4 rooms) 1K 13M (24 rooms) 21K 9M (4 rooms) (18 rooms) (6 rooms) (4 rooms) (44 (12 (28 (12 (12 (24 rooms) rooms) rooms) rooms) rooms) rooms) 20K 11K 3M 3K 4M 8K 5M 6K 10M 16K 7M 25K 12M 17K 6M 21K 8K 11K 8M 12K 15M 30 K 31K 1M 1K 10M 1K 2M

Status Operational Leased out Operational Operational Operational Operational Leased out Leased out Leased out Leased out Operational Operational Operational Operational Operational Operational Operational Operational Non operational Operational Leased out Cont. Leased out

(4 rooms) (12 rooms) (12 rooms) (28 rooms) Restaurant Restaurant

ASSOCIATED HOTELS OF PAKISTAN (AHP)

Associated Hotels of Pakistan Ltd. (AHP) was formed in 1961 under the repealed Companies Act 1913 (Now the Companies Ordinance, 1984) to

take over running business of 04 hotels of Associated Hotels of India (AHI),

namely Cecils (Murree), Deans (Peshawar), Falettis (Lahore) and Flashmans (Rawalpindi).

PTDC owns 86.82% shares of AHP whereas 13.18% shares are with Private Shareholders. AHP has its own Board of Directors with Managing Director PTDC as its Chairman.

03 hotels were privatized in 1998 and 2004 leaving only Flashmans Hotel, Rawalpindi.

PAKISTAN TOURS LTD.

1.

The Pakistan Tours (Pvt.) Limited was incorporated as PTDCs

wholly owned subsidiary in 1977 under the repealed Companies

Act 1913 (Now the Companies Ordinance, 1984) . PTL has its own Board of Directors with MD PTDC as its Chairman.

2.

Pakistan Tours (Pvt.) Limited is organizing package tours and treks, renting tourist transport, booking of hotels and operating a few domestic / international tourist bus services.

PAKISTAN TOURS LTD.

i). Lahore Delhi Bus Service: Pakistan Tours (Pvt.) Ltd. is operating Lahore - Dehli Bus Service on behalf of PTDC under a bilateral agreement between Pakistan (Ministry of Communication) and India since February 1999.
ii)

Lahore Amritsar & Nankana-Amritsar Bus Service: These services were started in March/April 2006 under a bilateral agreement between Pakistan and India.

iii) Sost Taxkurgan (China) Bus Service: This bus service is in operation since 1st May 1986 under the bilateral agreement between Pakistan and China.
iv)

Rawalpindi Naran Tourist Coach Service: This service is operated from 1st June till 31st August

PTDC LANDS / PROPERTIES

S# Name of Provinces / Areas

Federal Land Acres/Kanals/Sq. Yards

Area Status

List of offices building

Facilities Covered area (Sq. Ft.)

A. 1. 2.

PUNJAB PTDC Flashmans Hotel, (Rawalpindi) PTDC land Haider Road adjacent Flashmans Hotel, (Rawalpindi) PTDC Bus Terminal at Nankana Sahib, (Nankana Sahib) {under construction} SINDH PTDC Land at Sukkur, (Sukkur) {Encroached} PTDC Motel at Hawks Bay, (Karachi) {under construction} PTDC TFC at Karachi, (Karachi) {under construction} Tourist Information Center (TIC), Thatta 4 Acres 8 Kanals Owned Owned Land Motel (14 rooms) 30000 57 K 18 K 6 M Under litigation Under litigation Owned Hotel (60 rooms) Land 70500 -

3.

20 K 18 M

Bus Terminal/ 14 rooms

17340

B. 4. 5.

6.

1.5 K

Land on lease

Office building

8585

7.

4757 Sq. yards

Owned

Office building

1890

Contd.....

PTDC LANDS / PROPERTIES

Federal Land Acres/Kanals/Sq. Yards
S# Name of Provinces / Areas Area Status Accommod-ation Covered area (Sq. Ft.)

List of offices building

C. 8

KHYBER PAKHTUN KHWA PTDC Motel at Baffar, (Swat) {under construction} PTDC Motel at Chail Mankial, (Swat) PTDC land at Garam Chashma, (Chitral) BALOCHISTAN PTDC land at Gadani Beach, (Hub) {Encroached} PTDC TFC at Quetta, (Quetta) {under construction} GILGIT BALTISTAN PTDC land at Thalichi, (Chilas) PTDC TFC at Gilgit, (Gilgit) {under construction} 8K 8K5M Owned Owned Land Office building 9312 25 K Owned Motel (17 rooms) Motel (18 rooms) Land 30150

9. 10. D. 11.

40 K 10 K

Disputed Owned

25100 -

172 Acres

Owned

Land

12. E. 13. 14.

12 K

Mutation is under process

Office building

7417

Contd

PTDC LANDS / PROPERTIES

S# Name of Provinces / Areas Federal Land Acres/Kanals/Sq. Yards Area F. ISLAMABAD Status List of offices building Facilities Covered area (Sq. Ft.)

15.
16.

PTDC Land for Camping site Islamabad, (Islamabad)

PTDC Land for Head Office Islamabad, (Islamabad), {TFC building under construction}

25 Acres
7544 sq. yards

Owned
Owned

Land
Office building

4434

17.

Tourist Information Center (TIC), Agha Khan Road, Super Market, Islamabad
AJK PTDC land at Benjosa, (Rawalakot) PTDC land at Muzaffarabad, (Muzaffarabad) PTDC TFC Muzaffarabad, (Muzaffarabad) {under construction}

83.3 Sqm

Owned

Office building

2250

G. 18. 19. 20.

9K 8K 1K

Owned Owned Mutation under process

Land Land Office building

5180

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