NATIONAL TOURISM POLICY 7240 Ministry of Tourism Government of Pakistan Islamabad www.pakistantourism,.gov.pk Reprinted with update, December, 2007LIST OF CONTENTS Contents Page PART-1 PART-II PART-II PART-IV PART-V PART-VI PART-VII PART-VIII PART-IX PART-X PART-XI PART-Xil PART-XIlIl PART-XIV PART-XV PART-XVI Appendix-v Appendix-vi HIGHLIGHTS OF TOURISM POLICY TOURISM IN THE WORLD 0101 ECONOMY PAKISTAN TOURISM PROFILE ROLE OF TOURISM 0203 IN SOCIO-ECONOMIC DEVELOPMENT. THE RESPECTIVE 05 06 ROLES OF PUBLIC AND PRIVATE SECTOR IN THE 08 09 PROMOTION AND DEVELOPMENT OF TOURISM. ROLE OF 1112 THE PRIVATE SECTOR-DECLARATION OF TOURISM AS AN 1314 INDUSTRY. ROLE OF THE PRIVATE SECTOR-MONETARY OF 1415 TOURISM AND FISCAL INCENTIVES. CONCESSIONS AND 1516 INCENTIVES FOR THE TRAVEL TRADE. TOURISM 2324 MARKETING TOURISM AND TRANSPORT LINKAGES 25 29 TOURIST FACILITATION HUMAN RESOURCE DEVELOPMENT 3031 PROMOTION OF DOMESTIC TOURISM REDEVELOPMENT AND LEASING OF GOVERNMENT PROPERTIES FOREIGN INVESTMENT ADOPTION BY THE GOVERNMENT OF AZAD JAMMU AND KASHMIR TOURISM STATISTICS CURRENT INCENTIVES FOR INVESTMENT IN TOURISM INDUSTRY FOLLOWING INCENTIVES & CONCESSIONS ARE NOT OPERATIONAL AT PRESENT APPLICATION FORM DECLARATION OF PROJECT AS TOURISM PROJECT LIST OF HOTELS/RESORTS/PARKS Declared as Tourism Projects by MO Tourism TOURISM AND THE WORLD ECONOMY PAKISTAN'S TOURISM PROFILEBadshahi Mosque, Lahore10. 11. 12. 13. HIGHLIGHTS OF THE TOURISM POLICY ‘Tourism shall henceforth be accorded the status of an industry. All tourism facilities would be treated as industrial concems and would qualify for the same benefits, concessions and treatment as is extended to other recognized industries. "Deemed Export Status" has been granted to the tourism industry including hotels. Monetary incentives provided to export industries shall henceforth be admissible to tourism related projects. All tourism related projects established between July 1990 and June 1995 shall qualify for an eight year tax holiday, if established in areas where such concession to other indusiriesis allowed. Concession of duty free imports admissible to industries in the prescribed areas would also be allowed for tourism projects. Concessionary loan financing as admissible for tourism projects in the Northern Areas would henceforth also be available to projects established in Hazara Division, Chitral District, Murree Tehsil and the coastal areas of the country (excluding Karachi). ies for pilgrims visiting various shrines in Multan and Sehwan Sharif would also qualify for loansalconcessianary rales. All tourism projects would henceforth be eligible under the Non-Repatriable Investment Scheme. All machinery and equipment for hotel indusiry, recreation, amusement, aviation and transport sector not manufactured in Pakistan would be allowed free importunder NRI scheme. Provincial Governments would allot state land for tourism projects on long lease basis. Federal and Evacuee land where available shall be similarly allotted. Land adjacent to Government rest houses would be leased out on nominal lease basis for construction of 2-3 starhotels and motels. . Income from log cabins, log lodges, campers, cabanas etc. built in Kirthar National Park, Keenjhar and Haleji Lakes, Khunjerab Park and the Northern Areas will notbe taxed for a period of five years.16 7, 18 19 21 23. 24. 25. . Youth hostels and Camping grounds established by PTDC would be leased ‘out to private sector for operation Kitchen and other hotel equipment not manufactured within the country shall be allowed to be imported free of duty and sales tax. Incentives admissible to other industries would be allowed to Tourism Zones or Enclaves esiablished exclusively far foreign tourists. Imports of tourist coaches with a seating capacity of 15-20 persons and 4 wheel drives will be permitted in built up condition by registered travel agents and tour operators. Custom duty and sales tax on such vehicles will be tealizedin5 equalinstalments against a bank guarantee Approved travel agents and tour operators shall be provided telephone, telex and fax facilities on priority. Special equipment for adventure tourism will be allowed to be imported free ofcustom duty and sales tax. Charter fights shall be allowed henceforth under a regulated programme to operate on point to point (city to city) basis. Tourist helicopters/small planes in the private sector would be allowed to operate. Pakistan Railways would operate steam locomotives and narrow gauge trains under a package programme. 72 hour transit visas shall henceforth be granted free of cast on arrival to tourists at entry points, subject to overall policy considerations. Multiple entry visas will also be granted by Pakistani Missions abroad if such arequestis made al the time of visa application.Part-I TOURISM IN THE WORLD ECONOMY 4. The expansion of international travel continues to achieve spectacular gains. Total world tourism arrivals in 1988 were estimated at 390 million, a gain of 8.7 percent over the preceding year. International tourists spent US $ 195 billion on accommodation, catering, local transport and other goods and services. Receip! from international tourism accounted for more than 7 percent of world trade in goods and services and gained tourism a place among the top three constituents of world trade alongside oil and motor vehicles. 2. The buoyancy of international tourism in 1988 Is reflected in estimates prepared by ICAO, which piace the world total of passengers on scheduled flights at over one billion, a year-to-year increase of 4.2 percent. East Asia and the Pacific recorded the largest increase (11.2%) followed by Europe witha gain of 6.6%, 3. Tourism ranks among the most important and fastest growing sectors of the service economy. A major characteristic of tourism is its resistance to economic deceleration in that employment in the tourisrn trade is thought to account for more than 74 million jobs worldwide. Part-I PAKISTAN'S TOURISM PROFILE 4, Duetolack of investmentin advertising and marketing Pakistan abroaa, Its tourist products and potential remain un-known to the tourist generating countries of Western Europe, North America and the Far East. 6. The over-land traffic through Afghanistan and Iran dried-up as 2 result of the Russian invasion of Afghanistan and the Iran-Iraq war. Bomb explosions and other acts of sabotage created a negative profile ofthe country in the West. 6. Low priority was accorded to the sector in the country's 6th and 7th Five Year Plans. The actual releases of funds during the period fell short of the plan allocations. 7. Due to lack of incentives and concessions, the private sector investment envisaged during the above plan periods did not fully materialize. While 4-5 star accommodation was created in the major cities, economic accommodation of 2-3 star category for the budget conscious tourist, safe and comfortable transport, tourist guide- service, organized souvenir shopping centres, healtiy outdoor and indoor recreation remained un-realized objectives. 8. Foreign tourist flows to Pakistan remained severely restricted due to lack of basic infrastructure in the Northern Areas, the NWEP, Azad Kashmir and other places of interest for such tourists. Charter flights were not permitted, visa restrictions were tightened and a baffling variety of irritating customs and police registration procedures were invoked. 9. Foreign tourists visiting Pakistan are amazed at the wide variety of tourist products the country has to offer. They, however, emphasize the need for maintaining our N ol‘cultural and historical assets which have been allowed to run down due to sheer neglect. 10. In order to function properly and develop, tourism requires safety for travellers and holiday-makers including their personal property, be they Pakistani or foreigners. Molestation of foreign tourists causes tarnishing of the country's image. No steps were taken to create an institutional frame-work to deal with safety problems of tourists, particularly in emergencies. Part-II ROLE OF TOURISM IN SOCIO-ECONOMIC DEVELOPMENT 11. The Increasing affluence in many parts of the world has resultad in reduced hours of work, more leisure time and the economic ability to travel around the warld for business. and pleasure. This has given rise to new vistas of holiday travel. One of the significant features of tourism which applies equally to domestic and international tourism, is that income earned in places of ‘residence’ is spent in places ‘visited! In this way tourism is responsible for the transfer of large sums of money trom the generating to the receiving economies. 12, The money spent by tourists, both domestic and foreign, tends to percolate through many levels. If an area is included in the tourism development plans, the whole community benefits from it. When such schemes are located in the less developed areas, new avenues of life open cut before groups of people who would ordinarily have been by passed by the development process. There are few other activities which can secure as wide a spread of incomes tourist davelopment. 13, Tourism is an industry with great employment potential. It provides ‘employment from highly trained managers of 5 star hotels to airline staff, travel agencies, tour operators, handicraft artisans, transport workers, resort operators, and ancillaries. such as horticulture and handicrafts. In fact, there are very few activities in which the potential for providing gainful employments so unlimited. 14. Tourism can serve as an effective instrument for national cohesion and integration. No other activity has the potential for overcoming the barriers of prejudice and mistrust. Tourism can motivate the various linguistic groups to inter-act with one anather and promote inter-regional understanding of each other's way of life. 15, Tourism provides an opportunity for citizens from foreign countries to see Pakistan's cultural heritage, the efforts we are making for its preservation, and the support we need to supplement these efforts. Such visits also enable foreign guests to ses the efforts being made by the Government to build a free, open and fair society. 16. Pakistan's tourist resources are immense. The historical and cultural inneritance is indeed unique. Our geographical features are both colorful and varied. The K-2 and the awesome Karakuram inspire the human spirit and offer a whole range of adventure sports. We have the beaches and the deserts with an Irresistible combination of sun, sand and sea. There is an abundance of fairs and festivals. Pakistani touristic products can boast of being exceptional and unique.17. Fortunately, the intemational environment and national circumstances are propitious for a rapid expansion of tourism in the country. Of late, the growth of protectionist sentiments in industrially advanced countries has prevented expansion of exports from developing countries. In the case of tourism, however, no quotas can be applied. The efforts on the part of Pakistan to attract larger number of tourists from the affluent countries may prove to be less daunting and mora rawarding than the struggle to obtain fair prices for primary commodities or expand the export of manufactured products. 18. There are negative aspects of tourism as well. The inter-action between tourism and cultural pollution and environmental spoilation is complex and requires careful handling. In fact, cultural regeneration and protection of scenic spots must be viewed as indispensable inputs for achieving success in tourism. Increased investment in maintaining monuments, developing cultural complexes, and upgrading the natural environment, while helping to enrich the quality of Ife of our citizens, would assist in augmenting income from overseas tourists. 19. To conclude, tourism today can no longer be viewed as a peripheral or luxury- oriented activity. The ramifications of tourism related activities reach and affect many sections of the economy. Besides, their impact on faster economic growth, larger employment opportunities, fairer income distribution and more effective resource mobilization are too signiicant 10 be over-tooked. We terefore, recommend that tourtsm be treated as a major plank in the nations’ overall economic development. The policy measures to achieve this objective are given in the following paragraphs. The main thrust af the policy is to induce the private sector both domestic and foreign by improving upon the package of incentives and concessions for them; augmenting the existing infrastructure such as electricity, water, road and communications at various tourist resorts and attractions; to Improve upon the measutes for facilitation end support of tourists; to market Pakistani tourist products abroad vigorously; and to improve upon the existing regulatory procedures. Part-IV THE RESPECTIVE ROLES OF PUBLIC & PRIVATE SECTOR IN THE PROMOTION & DEVELOPMENT OF TOURISM. 20. Tourism infra-structure comprises wide-ranging and diverse activities which require heavy investment. Many of these activities are in the form of public utilities like power, water, gas and transport etc. These services are so vital to society that government intervention has been considered inevitable even in those countries which follow "free market" policies. Thus, government participation in case of developing countries such as Pakistan is fully justifiable. Tourism is a multi-dimensional activity. It has to inter-face with several other sectors of the economy. The Government, therefore, cannot abstain from playing a major role which may involve channeling of funds to various Federal and Provincial agencies for providing the needed services to the tourism sector. The development of roads as also their maintenance, the provision of land at non-commercial rates, the supply of water and power and the development of telecommunication facilities have to be undertaken by the Government. In the absence of these basic requisites, private sector intiative would not sprout, let alone grow. 03Mausoleum of Shah Rukn-e-Alam, Multan21. Apart from investment in providing the basic services, the Govemment would have to ensure the preservation of our environment and ecology. Market forces cannot be expected to ensure that environmental degradation will not occur. Pakistan has un- paralleled environmental assets which need to be preserved despite their potential touristic attraction. Public funds would be provided for launching educational programmes, creating awareness and for undertaking the requiske preservation efforts. 22. ABeach DevelopmentAuthority would be established by the Federal Goverment for developing the beaches in the country which shall include representatives of the Provincial Governments. 23. Government would continue to assume the responsibility for the coordinated and effective marketing e*fort in established and developing tourist markets abroad. This task has been neglected so far. The Ministry of Tourism would commission experts to prepare a marketing plan which would be launched through the pooling of Federal, Provincial and private sectorresources. 24, The Provinces have generally ignored the potential of tourism. While Punjab has recently set up a Corporation, the other Provinces continue to ignore the pressing needs of the sector. It has to be appreciated that tourism is a national product that is not limited by provincial or regional boundaries. There is an evident need to establish organizations within the Provincial Governments which could deal exclusively with the development of tourism in their respective jurisdictions. The Provincial Governments other than Punjab would be encouraged to establish organizations such as PTDC and TDCP. 25. _Inorderto achieve integration of policies between the Provinces, and the Federal Ministries, an apex body known as the Pakistan National Tourism Council headed by the Prime Minister would be re-activated. This Council would inter-alia formulate guidelines for future policy development, financial allocations for Federal arid Provincial projects, foreign investment, adoption of marketing strategies, incentives for the private sector and measures necessary for the future development and well-being of the sactor. The Ministry of Tourism would be represented in the Economic Coordination Committee, Board of Investment and in other forums responsible for economic decision making. The Ministry would also be appointed on the Board of Directors of PIA. Part-V ROLE OF THE PRIVATE SECTOR - DECLARATION OF TOURISM AS AN INDUSTRY. 26. Tourism has been accorded the status of an industry by countries such as Turkey, Egypt, Spain, Jordan and Morocco. Countries in South Asia such as Sri Lanka, Maldives and Nepal recognize tourism as. an industry. India has granted tourism the status of an export industry Pakistan has however, lagged behind its South Asian neighbors as well as other Islamic countries some of whom are faced with socio-economic conditions similar to Pakistan. Hotels were recognized as a service industry some years ago. Despite this recognition they have been denied the facilifies and concessions that are available to other recognized industries. The non-declaration of tourism as an industry has prevented the private sector from making the requisite and much needed investment in various tourist facilities. The lack of these facilities have in tum kept Pakistan from emerging as a 0s‘major tourist destination. 27. In order to create the necessary environment which would induce the private sector to make the needed investment in the tourism sector, it has been decided that tourism shall henceforth be accorded the status of an industry. All tourism related facilities. including funtands, amusement parks, hotels, motels, cultural centres, travel and transport, tourist service agencies, handicrafts and souvenir manufacturing would be treated as "industrial concems" and would qualify for the same benefits, concessions and treatment as is extended to the other recognized industries. A list of projects that would qualify for this treatment is attached as annexure'''to this policy. 28. The tourism sector has suffered from neglect in the past. Although the hospitality and travel trade sectors have been earning foreign exchange worth more than US$ 150 milion per annum, they have not been provided any of the concessions that are admissible to the other export industries in the country. In order to rectify this situation, it has been decided to grant ‘Deemed Export Status" to the tourism industry including hotels. All fiscal and monetary incentives provided by the Government to the exporting industries shall henceforth be admissible tothe tourism related projects. Part-VI ROLE OF PRIVATE SECTOR - MONETARY AND FISCAL INCENTIVES. 29. ‘The Development Finance Institutions are not fully geared to meet the needs of the tourism sector. As tourism was not regarded as an industry, very few cases of loan financing were handled by these institutions. With the grant of industry status to the sector, itis expected that a lerge number of loan applications would have to be processed by such institutions. The investment objective can best be realized if a separate Tourism Finance Corporation in the private sector is established. To being with however the instrument of an investment bank can be utilized for the purpose. The Government of Pakistan would allow the private sector to establish such investment banks which may also finance tourism projects. 90. _ As tourism has been granted the status of an industry, all tourism related projects established between July 1990 and June 1995 qualify for an eight year tax holiday, if established in areas where such concession to other industries is allowed. The concession of duty free imports admissible to industries in the above areas would also be allowed for tourism projects. 31. Recognizing the need for establishing tourist accommodation in the Northern Areas, Hazara Division, Chitral District, Murree Tehsil and the coastal areas of the country (excluding Karachi), the Federal Govemment would provide loans at concessionary rate of interest for Tourism projects to be established in these places. The interest differential would be absorbed by the Government of Pakistan. In orderto provide accommodation facilities for pilgrims visiting various shrines In Multan and Sehwan Sharif, loans to the private sector for such facilities would also be allowed on conceesionary interest rate provided that the locational plane in the above casee are approved by the Ministry of Tourism32. _ In view of the prevailing resource constraints, It is essential to tap all possible financial resources for investment in the tourism sector. All tourism related projects would henceforth be eligible for Non-Repatriable Investment 23, All machinery and equipment for hotel industry, recreation and amusement, aviation and transport sector not manufactured in Pakistan would be allowed to be importeditree of duty under the NRIscheme. 34. _ Land is the most important and expensive component of the total cost of any tourism project. To contain the project cost and to render it financially viable it is essential that land for hotels, motels, recreation parks, fun-lands, athletic clubs, cultural contres ctc., & provided at non-commercial rates by the dovolopment authoritios both Federal and Provincial. In order to induce private sector investment, it has been decided that land earmarked for tourism related projects shall henceforth be provided at non commercial rates on tha recommendation of the Ministry of Tourism. This recommendation shall be based on guidelines and eligibility criteria which the Ministry would esiablish and nolify for investors’ information. The purchaser of such land would not be permitted to change the purpose for which landis sold. 35. _ The LawofPre-emption may attimes delay acquisition of land for tourism projects. The Provincial Governments shall endeavour to remove difficulliesidelays arising on this account. 36. The Provincial Governments will be required to allot state land to tourism projects ‘on long lease basis. Federal and evacuee land where available shall be similarly allotted, In case of more than one claimant for the land, priority would be granted to the tourism related projects. 97. Land adjacent to the govemment rest houses (Forest, PWD, Irrigation & WAPDA, etc.) would be leased out to the private entrepreneurs in the privaie sector on nominal lease basis forconstruction of 2-3 star hotols and motels. 38. Wildlife and adventure tourism will attract sizeable number of tourists. ‘Suitable accommodation like log cabins, log lodges, campers, cabanas etc., can be built in places such as the Khirthar National Park, Keenjhar and Haleji lakes, the Khunjerab Park and the Northern Areas. Income from such investment will not be taxed for a period af five years. 39. Youth tourism deserves special consideration. Travel and tourism educates: the citizens of tomorrow, promotes national integration and intemational understanding. Youth hostels are nowhere regarded as income generating. Similarly camping sites and tentage accommodation do not yield financial dividends. As a result, private sector has stayed away from making any investment in this important sactor. The Pakistan Tourism Development Corporation would assume the responsibility of establishing youth hostels and camping grounds which would eubsequentty be leased out to the private sector for operation. 40. Recognizing that invesiment in hotel accommodation does not yield immadiats dividends, duty free import of various items was permitted. This concession was withdrawn in 1885 as indigenous manufacture of various items had commenced within the country. It is however, recognised that there are a number of items tha: would ire to bo imported for providing basic facilities for tourists. It has, therefore, boon 0o708 ‘docided that kitchen and other hotel equipment not manufactured within the country shall be allowed to be Imported free of duty and sales tax, 41. — Tourism zones or enclaves would be established exclusively for foreign tourists. Private sector shall be allowed to develop these zones or enclaves. Locational incentives admissible to other industries would be allowed to such enclaves/zones. Part-VIL CONCESSIONS & INCENTIVES FOR THE TRAVEL TRADE 42, Travel trade is part of an integrated net-work that helps eam foreign exchange. The travel agentftour operator coordinates and combines the different components of the tourism product to create a package or a service, thereby helping to eam foreign exchange. The travel trade is therefore granted "deemed export status" which will make it eligible for the same concessions which are admissible to the export industries. 43. While duty free import of coasters and coaches In knocked down condition with seating capacity of 40 or more porsons has beon allowed, tho Import of coachas with seating of 15-20 persons is banned. Coaches with seating capacity of 40 or more persons imporied in built up condition attract 20 percent sales tax. The travel trade in Pakistan handles tourist groups of 15-20 persons for which smaller vehicles are far more economical. It has therefore been decided that tourist coaches with seating capacity of 1-20 persons and 4 wheel drives will be allowed to be imported in completely built up condition by registered travel agents and tour operators. Customs duty and sales tax etc., on such vehicles will be realized in 5 equal instalments to be secured against a bank guarantee. 44. Communication is the pulse of the travel trade. The approved travel agents and tour operators shall be provided telephone, telex and fax facilis on priority. 45. — Spocial equipment for adventure tourism activities like water sports, hang gliding, trokking, mountaineering, angling, golf, Indoor sports equipment, power beats, water rafts, canoes, water and snow skiling equipment which is provided by the travel trade asa service to the tourists will be allowed to be Imported free of customs duty and sales tax. ‘This would help to keep the cost of operation low and enable our private sector to offer competitive services tothe touristPart-VIIT TOURISM MARKETING 48. The increasing affluence of Western Europe, North Ameria and Japan with reduced working days and highar leisure time is likely to see large scale movement of tourists across the continents. A competent nationalintemational organization shall be ‘engaged for conducting a Path Finder Study. On the basis of this study, a short term and a long term plan for promoting tourism In the country would be drawn up. 47. _ The responsibility of promoting Pakistan's touristic image abroad shall continue to remain with the government. Admittedly, the efforts so far made have been wootully inadequate. As a result, we have failed to develop Pakistan as a tourist destination, A marketing plan would be prepared and speedily implemented after its acceptance by the government. 48, _ Pending the formulation of the marketing plan, the initial promotional efforts would be directed at pooling the resources of all the concerned agencies and the private sector to prevent waste and duplication of efforts. The proposed Tourism Council under the Prime Minister would lay down the necessary policy guideline. 49. In ordor to launch an effective marketing campaign PIA offices and Pakistani missions abroad would ear-mark space for display of promotional material and ear-mark personnel :o handle tourism marketing. Funds for production of publicity material and advertising would be provided by the Finance Division. 50. Many national carriers operating in the South Asian Region have assisted their tourism organizations by offering complimentary seats to travel writers, tour operators, hoteliers and professionals engaged in promoting tourism. These visits have yielded manifold benefits to the concemed countries at a very nominal cost. PIA has made some contribution by arranging familiarisation trips. These efforts now need to be integrated with the overall marketing policy. 51. On many international sectors PIA is not operating on its full capacity. Based on the historical data for the last two years, itis seen that approximately 35 percent of the total capacity remains un-utiized, It has therefore, been decided that five percent of the total unutilized seats on different international routes shall be placed at the disposal of the Ministry of Tourism on complimentary oasis. 52. The Ministry of Tourism, in consultation with the private sector, Pakistani mi the Provincial Governments and the Pakistan Tourism Development Corporation, will draw up a plan at the outset of each year for arranging tours of leading tour operators, travel writers and others concemed with 6 view to familiarize them with our tourist products. These seats shall be exclusively utilized for the above purpose. 53. As aconsequence of the various policy measures, Pakistan can hope to generate @ 10 percent per annum growth in the tourist traffic to the country. This would be hosting more than ‘ million tourists by the end of the century. The target is difficult but achievable.Hawksbay, Karachi54. International conventions and conferences have emergad as a specialize business of modem times and form an integral part of the tourism industry. It has been estimated that there are 20.000 associations world-wide besides the United Nations and other statutory bodies who participate in this activity. A recent survey has revealed that more than 17,000 associations organized more than 22,000 intemational conventions with turnover of US $ 65 billion. Conventions and conferences form about 10 percent of the world tourist activities, 55. _ Pakistan has made no serious effort in attracting international associations and multi-nationals to hold their conferences, seminars, symposium and annual meetings in our country. Our Embassies In Wostern Europe and the United States could play an effective role in encouraging and bidding for such conferences. The Ministry of Tourism shall have to develop specialized personnel for handling all ground arrangements for these conferences. Karachi, Lahore and Islamabad could — be initially selected as. convention centres. In due course, Peshawar, Quetta and other cities could be added to tha list. 56. A major ingredient of tourist facilitation is information service. Though invisible, it is invaluable for tourists. The source of information for foreign tourists are our Embassies, Consulates and PIA offices abroad. The Embassies and Consulates have neither the specialized personnel nor the requisite material available with them. While PIA is equipped to handle inquiries about Pakistan, they lack literature and costed! itineraries. Printed folders, booklets and directories are generally not uptodate. Our marketing thrust in Westem Europe, North America, Japan, the Gulf and the Middle East will involve higher levels of involvement of our Embassies and PIA offices than has been the case hitherto. The Embassies apart from handling tourism information work shall develop close coordination with PIA and local tour operators. PTDC shall be responsible to eauip the selected Embassies and Consulates with requisite publicity and information material including display of our cultural and historical assets in an office located within the Embassy/Consulale premise Part-IX TOURISM AND TRANSPORT LINKAGES 57. _ Civil Aviation Is a key to the development of tourism in Pakistan, Once having arrived in Pakistan, tourlsts offer the potential of further demand for air transport. Clearty, ‘the pace of development of air links to and from the country and within it, would be an important factor in determining the growth of tourist arrivals and their average length of stay in the country. 58. Given the lose link between tourism and civil aviation, it is olear that whatever measures are taken to improve the growth of tourism, these will be of diract consequence 10 the aviation sector. If the country aims ata target of 1 million tourists by 2000 A.D., the load on civii aviation sector will substantially increase. Itis, therefore, in our interest to pay adequate attention to the growth and performance ofthe civil aviation sector.12 59. Taking into consideration the existing financial and other limitations on PAA, it would he highly optimistic to believe that they will be able to meet the growing tratfic load. It has, therefore, been decided to allow foreign airlines to meet the projected ‘demand for travel to and from Pakistan by adopting an ‘open skies’ poliy. The adoption of the proposed ‘open skies" policy would generate demand for tourist accommodation, transport and other services which the private sector would move to provide. The provision of this facility shall be reguiated. 60, Pakistan is charging high landing and fuel rates whichis a deterrent to tourism This would be brought in line with rates being charged by other counties in this region. 61. While operation of foreign airlines through Pakistan would undeniably lead to growth in transiting tourists through Pakistan, charter operations would yield the projected growth in in-bound tourist traffic to the country. Charters are economical es they operate on a 100 percent load factor. It has, therefore, been decided to adopt a liberal charter policy with the stipulation that the charters will operate on point to point (city to city) basis. The in-bound charters will be allowed stop-overs enroute to Pakistan. Adding on new passengers during such stop-overs would not be permissible. In case of out-bound flights from Pakistan, charters will nol be permitted to carry new passengers from the destination city in Pakistan. Such charters may however be allowed stop-overs enroute the city of origin. 62. While PIA has played a significant role in linking the northern areas with the principal cities of the country the projected growth in traffic may warrant the setting up of another airline in the private sector. Aside from improvement in the quality of service- provided, the private sector airline would be free to set its own tariffs. Private sector tourist helicopter service would also be allowed. Sanctions in such cases would be granted by the Prime Minister. 63. Steam locomotives and narrow gauge trains would be operated under a special package programme for foreign tourists. Rallway authorities may operate excursion trains for tourists. These should consis: of deluxe coaches which are meant for the senior officials of the rallways and Ministers but are seldom used. The excursion trains with pre- setitineraries would be marketed by the private sector. Part-X TOURIST FACILITATION 64. Almorts aro the gateway to the country. Facilites and handling provided at the International airports form a lasting impression on the foreign tourist. Our altports suffer from a number of drawbacks despite the vast improvements undertaken in recent years. ‘Sufficient attention has not been paid to the periodic training and education of personnel involved in hangling immigration, security and health checks. Personnel al the airports would be encouraged to leam at least one foreign language. Suitable financial incentive ill be provided for this purpose. Facilitation counters located in the immigration area will he manned by the personnel of PTDC. Accredited representatives of recognired travel agencies would be given identity cards valid upto airline and immigration counters. Baggage handling and clearance systern shallbe improved.65. The policy regulating grant of visas has been reviewed. Tourism to Pakistai cannot be promoted if the principle of reciprocity is adopted. Transit visas valid for 72 hours shall be granted free of cost on arrival of tourists at our airports. This facility shall however be regulated by security considerations as determined from timeto time. Multiple entry visas will be granted by our Embassies abroad if such a request is made at the time of visa application. Transit visas as In case of alrports shalll also be allowed to luxury liner Passengers berthing at Karachi port and to tourists arriving at land entry points. Presentation of cultural programmes for foreigners would be permitted. 66. The tour operators will arrange insurance cover for the tourist groups handled by thom. The existing requirement of police registration and rostriction of movement of foreigners would be removed except where specifically required under security considerations. 67. Restrictions on photography of bridges and clams etc., will be relaxed. These restrictions appear to bo un-necossary due to sciontific development and satellite photography. Part-XI HUMAN RESOURCE DEVELOPMENT 8. Human resource development is of vital importance in a service Industry like tourism. Pakistan has only one Institute of Tourism and Hotel Management at Karachi. The quality of the training programmes at this institute needs serious improvement. Universities have to be encouraged to introduce tourism oriented courses. Leading management institutions such as the Institute of Business Administration at Karachi, the Business Administration Depariment of the Punjab, the Lahore School of Business and the Quaid-e-Azam University would be encouraged to establish separate Departments of Tourism and Hospitality Management. These institutions could offer a diploma programme in tourism to begin with. Later, degree courses could be offered 69. Even after the introduction of the above programmes, it would still be necessary totrain cur manpower abroad. For this purpose, the Ministry of Tourism shall be provided adequate number of training facilities. The Ministry of Tourism shall be allowed funds to establish the needed training institutes in the country. 13Part-XII PROMOTION OF DOMESTIC TOURISM 70. The growth of domestic tourism in Pakistan has remained extremely inhibited for a variety of reasons. Some of the major reasons responsible for the stagnation are listed below :- - Non-availability ofneat and clean accommodation at modest rates; = Non-availabllity of concessional fares on Railways and PIA for groups of 10 or more persons; - Lack of safe and comfortable tourist coaches connecting majortowns and cities; - Lack of information material including costs and confirmations about accommodation etc. = Non-availability of road-side facilities including wash-rooms specially for ladies. n Ine Incenuves proposed to be granted to the private sector would resolve the accommodation and tourist transport problems in due course. A number of other Measures.are necessary for promotion of domestic tourism. These are listed below: ‘The rest houses and inspection bungalows owned by the Government and semi-autonomous bodies would be allotted to domestic tourists when not in use by those entitled. Income thus generated should be ploughed back on the maintenance of these properties. Pakistan Railways will introduce a "Discover Pak excursion trains. These trains would be air-conditioned with dining and sleeping facilities. The excursion ‘rains will operate on pre-determined routes with 12-24 hours breaks in journey enabling local sight-seei ‘The Augaf Department would use the substantial funds at thelr disposal for building hostels near important shrines. The tourists visiting these shrines currently face enormous difficulties In the absence of proper accommodation. 72. PTV and PBC will henceforth devote greater attention to generating tourism awarenessin the country. Part-XTIL REDEVELOPMENT AND LEASING OF GOVERNMENT PROPERTIES 73 For a variety of reasons, the private sector was reluctant io make investmentin tourist accommodation in the relatively backward but touristically attractive areas, The government therefore, had tostep in through PTD tomake such investment. 1474. — The government would involve the private sector in the redevelopment of PTDC hotels. In addition, other properties wou kd be leased out to the private sector for operation. Part-XIV FOREIGN INVESTMENT 75. The policy governing foreign investment in other industrial undertaking shall mutatis mutandis apply to all foreign investments in tourism related projects. Part-XV ADOPTION BY THE GOVERNMENT OF AZAD JAMMU AND. KASHMIR: 76. After approval by the Cabinet, tie Government of AJ&K may adopt the policy and make the necessary arrangements for its implementation. Rohtas Fort 1s16 7. Part-XVI TOURISM STATISTICS Attached with this policy are statistics following data:- TABLE-| TABLE-I TABLE-Il TABLE-V TABLE-V TABLE-VI TABLE-VII TABLE-VIII TABLE-IX Tourist Arrivals 1997-2006 Non-Indian Tourist Arrivals 1997-2006 Tourism Foreign Exchange Receipts 1997-2006 Actual/Projected Foreign Tourism growth and Eamings 2001- 2010 Actual/Projected Impact of Tourism on Employment Generation. Actual / Projected Public Revenues from Tourism. ActualiProjected Additions to Hotel Rooms and Restaurant Seats. Actual/Projected Tourism Contribution tothe GNP. Comparative Arrivals of Tourists from Abroad and Intemational Tourism Receipts.TABLE NO.I TOURIST ARRIVALS 1997-2006 YEAR (Figures in Thousand) 1997 3748. 1398 428.8 1999 432.2 2000 580.7 2001 499.7 2002 498.4 2003 2004 2008 2008 ‘Sources lrmigration, Ministy of Ierior, Gover nent of Palistan TABLE NO. II NON - INDIAN TOURIST ARRIVALS 1997-2006 YEAR (Figuras in Thousand) 1997 2203 1998 3617 1999 369.0 2000 490.6 2001 aan 2002 495.5 2003 493.8 2004 628.3 2005 7387 2006 2282 ‘Sourea: Immigration, Ministry of Interior, Goverment of Pakistan ‘TABLE NO. IIL TOURISM FOREIGN EXCHANGE RECEIPTS 1997-2006 YEAR {Figures in Million USS) 1997 109 1998 979 1999 Te4 2000 44 2001 922 2002 1084 2003 1356 2004 1856 2005 195.3 2008 260.4 ‘Source? State Bank of Pakistan 17Baloch Kids & CamelsTABLE NO.IV ACTUALIPROJECTED FOREIGN TOURISM GROWTH AND EARNINGS (2001-2010) Arrivals excluding indian i i & Afghan Nationals. ene EAR (Figures In Million) russ) (a) 2008 0304 222 2002 0397 108.4 2003 o37a 135 2008 ost 1058 2005 0661 1853 2008 o7as 260.4 2007 0795 mea 2008 oss9 3008 2009 oo4s 3207 zoo 1049 a7 ‘Source: 2) Tha 2006 non Indian foreign tourists, 0.743 milion are aetimatedto grow at7 percent n 2007, 8 parcertin 2008, 1 peroare if 2009, 11 parcent in 2010 wll oosur dle to meer eructural changes which vAl ve ‘the country granting of Trusty stan 70 fours sector, ‘Daamad Export sts 1 our ceratars And {ravelagenis. effacive marcaing,seting-up of Tourism Investment Corporaton, safegvards to foreign investment, relaxation in tavor sale, importaion of bulk up factory-ited ai-conditoned coaches, inmportationot eqapment{oradventure spors aciviiestreect custom and sele. tax end finally Ibralizaion efvee policy. b) Foreign Exchange Earninge USS 260.1 milicn are during 2005 are estimated to grow a17 pereantin 2007, ‘Sparoantin 2002, 10peroancin 2009, 71 percartin 20'0 on account sructuralcranges Ftnarature ane ‘ypectforeigntouiam @pected.asa restitctImplomentstion oF tis policy 0.9. ease In reatictions and shterainment enclave ours and piceincreases, ac BLE NO. V ACTUAL/PROJECTED IMPACT OF TOURISM ON EMPLOYMENT GENERATION (Nos, 000) YEAR Projected Job 2001 518 2002 366 2003 9 2004 590 2008 625 2006 667 2007 687 2008 710 2009 738 2010 769 The arelaymant Fy tnirlam aarior has hear _aniimaiad cning wvamon GNP par Joh nha mveral econcmy, During 2000, the contys GNP. at current factor cost was Re, 3540038 rnllion wile empicyedlasour force vas 28.60 millon es glven Inthe Economic Survey 2004-05. tytekls average G NP. per fempieyedlabour oqualto Re, 91412. Uaingthisquotientwe have werkedbackemploymentin teuriem from GNP. gonoratodey the eoctor 19TABLE NO. VI ACTUAL/ PROJECTED PUBLIC REVENUES FROM TOURISM (Rupees in Million) GNP Generated Projected Tax YEAR by Tourism Revenue @ (b) 2000-2001 47362 3362702 2001-2002 51781 3676451 2002-2003 30228 368.046 2003-2004 53982 3e30.592 2004-2008 srier 4058.857 2005-2008 0931 4926101 2006-2007 ozsi0 4459510 2007-2008 easta 4008.894 208.2008 oraz aTeT.672 2009-2010 70291 4990.61 Note: 3) Token fom Table No. Vil 3) The average reflow tex rate as gen In fie Economic Survey 2005-08 ls 7.1 percent of ES NE The same quoter hes boon used hats fo workout serales of public reverse fom TABLE NO. VII ACTUAL/PROJECTED ADDITIONS TO HOTEL ROOMS & RESTAURANT SEATS: (Nos) Restaurant YEAR Hotel Rooms ‘Seats (Ac) 2001 = = 2002 359 100 2003 588 275 2004 sao zn 2008 199 2460 2006 2020 2825 2007 3134 2023 2008 2308 2268 2009 2724 3592 2010 4138 2997 Note The rates of increase are assumed at 7 percent in 2007, 8 percent 2008, 10 percent 2009 and 11 percentduring 2019, (2001 to 2008 are actual data}TABLE NO. VIIL ACTUALIPROJECTED TOURISM CONTRIBUTION TO THE GNP (Rupees in Million) Forel Domeatio ‘Quarall GNP wenn Tourtsm Tourism from Tourism 2004 3148, 42217 47362 2002 es10 45262 e170 2003 228: aso0a 0226 2004 9028 aaz7 saosz 2005 10759 aoaoa sr107 2006 13191 arrs2 0931 2007 19123 0007 szs10 2008 15253 49001 santa 2008 16778 0634 87432 2010 sg0za 51087 0291 ‘esarptons! 1) While celauletng the sontution of Touran fo the GN eonenditure approach 2) Fanalgh Toufam contibutorvta ONPIs Ra. 191 99Hnlion 42008, andis eatmatedte grow at7 parca ZGUr a percertin 200s, lu persertincogana Ti persertin 2010. 3) Domestic tourism contribution 0 G.N.P from 2001 Jo 2008 la taken from the Tapert. “Touran GroasDamestia. Product and” Piola Sector. Revania’s Minity at Yeurern, Maret” 2G01 which "is prapored on wie ‘oasis of goae ard targets given, in Plan-2000, The Agures, Bayon Zee ‘have. buen projaciedoat te 9 anhuimas cvenit te Toure DeveloprmentNaster Pian TABLE NO. IX COMPARATIVE ARRIVALS OF TOURISTS FROM ABROAD (In Thousands) Nationality 2001 2002 2003 2004 2005 2837 2288 2726 287 3019 s2778 szze2 10877 18703 10431 337 393 so1 S66 sus 0793 12700 a3244 6026 20273 10133 10673 19082 11737 11967 ‘Soures: Compendiums of Tourism Statistics, UNWTO, 2007 Edition INTERNATIONAL TOURISM RECEIPTS: (in Wition USS) Nationality. 2001 2002, 2003 2004 72005. 2497 2476 4428 = = 7627 2084 e700 10380 a7 508 709 729 0067 1901 203 ssaa8 sats2 9380 10388 0486 13054 12628 ‘Sourea: Compendium of Tourlam Statistios, UNWTO, 2007 Eaton 21Clock Tower Peshawarvil) will) ix) x) Appendix-i Current Incentives for Investment in Tourism Industry Tourism is categorized as ‘Industry’. Ministry of Tourism issues a certificate that a project falls in the category of Tourism Industry. 100% foreign equity allowed in infrastructure, services and manufacturing industry, Equal treatmentto foreign & domesticinvestment. Permissions not required for setting up of tourism projectsin the Private Sector. Telephone & Fax facilities are provided to travel Trade on priority basis. Plant, Machinery & Equipment (PME) and other items required for setting up, up- gradation and expansion of hotels, tourism supporting and other recreationat services related projects as approved by the Ministry of Tourism can be imported @F% customs dusty with certain soncitinns Initial depreciation is available @ 50% in addition to normal depreciation allowable @ 10% on alll depreciable assets. This incentive practically operates as Tax holiday as income may not generally be liable to tax for a period of five to six years, because of carry forward of unadjusted depreciation loss. Payment of withholding tax at import stage In respect of plant machinery equipment (PME) and parts has been done away with through inclusion of sub- clause (vii) in clause -56 of part-iv of the Second Schedule to the Income Tax Ordinance, 2001 Special equipment for adventure tourism activities like water sports, trekking, mountaineering, angling, golf, indoor sports equipment, power boats. water rafts, canoos, water and snow skiing oquipment provided by tho travel trade as a service to the tourists is allowed to be imported on 5% customs duly. The central air-conditioning equipment and apoaratus of general utility in hotels are charged industrial tariffor electricity. Work visas are granted fora period of 5-6 yers to foreign technical and managerial personnel by Board of Investment.24 Appendix-ii Following Incentives & Concessions are not Operational at present All tourism relatad projects established between July 1990 and June 1995 shall qualify for an eight-year tax holiday, if establishedin areas where such concession to other industries is allowed. Concession of duty ‘ree imports admissible to incustries in the prescribed areas would also be allowed for tourism projects. Concessionary loan financing as admissible for tourism projects in the Northern Areas would henceforth also be available to projects established in Hazara Division, Chitral District, Murree Tehsil and the coastal areas of the country (excluding Karachi). Accommodation facilities for pilgrims visiting various shrines in Multan and ‘Sehwan Sharif would also qualify fortoans at concessionary rates. All machinery and equipmant for hntel industry, recreation, amusement, aviation and transport sector not manufactured in Pakistan would be allowed free import under NRi scheme. Income from log cabins, log lodges, campers, cabanas etc. build in Kirthar National Park, Keenjhar and Hileji Lakes, Khunjerad Park and the Northem Arcas will not be taxad fora period of five years. Kitchen and other hotel equipment not manufactured within the country shall be allowed tobe imported free of duty and salestax. Imports of tourist coaches with a seating capacity of 15-20 persons and 4 wheel drives will be permitted in built up condition by registered travel agents and tour operators. Custom duty and sales taxon such vehicles will be realized in 5 equal installments against a bank guarantee. Special equipment for adventure tourism will be allowed to be imported free of custom duty and sales tax.Appendix APPLICATION FORM DECLARATION OF PROJECT AS TOURISM PROJECT [Please read the following before filling inthe Application Form: + Give complete answers, use extra sheets if required, attach copies of documents, if required, to illustrate an answer; » Use the typescript or write in black ink in CAPITAL letters, '* Please attach documentary evidence of your authorization to act on behalt| ofthe applicant (Company); To Secretary, Ministry of Tourism, Green Trust Tower, 11" Floor, BlueArea, Islamabad 1.4.1 Name/Title of applicant(Company) 1.2 Name & National Identify Card No. (of Company's CEO) 1.3 Registration No. (for corporate body), 1.4 National TaxNo. 1.5 Date ofestablishmentincorporation, 1.8 Business Address 1.7 Mailing Address (if differentfrom above) 1.8 Telephone No. CellutarNo, 1.9 FaxNo. E-mail Address, 1.10 Web-site. 2.2.1 Whatis (orwill be) the location of applicant's head office?, 2.2 Does the applicant have (or will it have) offices outside Pakistan? If so, pleese specify the country26 Category of the Project: 1 Tourist Accommodation (Hotel & Restaurant). C0 Tourist Transport. 1 Entertainment & Recreation C1 Convention & Fecilitation for Tourists. C Other Project (Bowling Alleys, Athletic and Health Club, White Water Sports, Amusement Parks). 3.1 Isthe Project: a) New, b) Extension Plan of existing facility, 4. Organizational set-up ofthe Company: 1, Details regarding Ownership/Control of the Company: (Information regarding GLO, Directors and Shareholders). Father Position Extent of Ss. Home nic Name | Spouse's Nationality | — in the ‘Share No, pause’s | Address company | N& | holding ational Char¥Financial Standing/Position, information: 61 a) Nameof Project: b) Address: a) Date of Completion of Project: 5.2 Supplementary information (Ifany): 6. Equipment Data (Required to be imported forthe Project). (Please atiach details)7. Proposed source of Financing/Investment: S.No. Source of Funding Please specify 8. Socio-economic effect: (Attach brief note on the social benefits ar objectives sought to be achieved by the Project) 9. Project Feasil ity. (Please attach details) 410. Acquiring of Land for the Projec’ () on ownership provide copy of registry (i) on lease, provide copies oflease agreement. “1. Copy of Site Plan dully approved by Municipal Authority/City Govemment. (where applicable) 42. NOC fromLocal Government. 13, Is the Project a Franchise:- Yes No. a a Ifyes, Please attach copyofleter from the parentcompany. arUNDERTAKING We. the applicant(s) do hereby declare that the above facts are correctin all respects. Ve also undertake to: a) Obtain NOC from the Ministry of Tourism before import of any equipmenttor the Project. b) Ensure that the imported equipmentis installed in the projectapplied for only. ¢) Abstain from selling, transferring or assigning any of the ighLs conferred by the NOG without prior wrillen permission of the Ministry of Tourism Signature of Applicant Place Date, 28Appendix-iv LIST OF HOTELS/RESORTS/PARKS. Declared as Tourism Projects by M/O Tourism NAMES Mis. Mangla View Resort (Pvt) Ltd. Mis. Hashwani Hotel Ltd Islamabad. Mis. Grand Sari Hotel, Lahore. Mis. Serena Hotel Islamabad. Mis. Bridge View Hotel Lahore. Mis. Royal Palm Golf & Country Club Lahore. Mis. Rehman Residency Hotel, Lahore. Mis. Holiday Inn, Islamabad. Mis. Grand Leisure, Karachi. Mis. Lahore Regency, Lahore. Mis. Regency Inn Hotel Islamabad. Mis. Sozo Adventure Park, Murree. Mis. Millennium Entertainment, Karachi. Mis. Avari Hotels Islamabad. Mis. Pearl Continental Hotels. Mis. Pizza Hut Restaurant Karachi. Mis. Hawk Gliding Club Lahore. Mis. Wayzgoose Park Chakwal. Mis. Jacaranda Family Club, Islamabad. Mis. Aashinna Hotel Lahore Mis. Lahore Sports Meadows, Lahore. Mis. Gloria Jean's Coffees Lahore. Mis. Chenab View Resort, Gujrat. Mis. Hotel Hill View, F-7, Islamabad 2930 Appendix-v ‘TOURISM AND THE WORLD ECONOMY International tourism arrivals reached 842 million in 2006. In relative terms intamational tourist arrivals increased by 4.5% in 2006. International tourism receipts reached US$ 735 billion (586 billion euros) in 2006. In absolute terms, Intemational tourism receipts increased by US$ 67 billion(41 billion euros) and .in relative terms graw by 4.5% in 2006, Tourism demand depends above all strongly on the economic conditions in major generating markets. When economies grow, levels of disposable income will usually also tise. A relatively large part of discretionary income will typically be spent on tourism, in particular in the case of emerging economies. A tightening of the economic situation on theother hand, will often result in a decrease or trading down of tourism spending. In general, the growth of international tourism arrivals significantly outpaces growth of economic output as measured in Gross Domestic Product (GDP). In years when world economic growth excseds 4 per cent, the growth of tourism volume tends to be higher. When GDP growth falls below 2 per cent, tourism growth tends to be even lower. In and GDP at 3.5 per cent, tourism grew on average 1.3 times faster than GDP. During 1975- 2000 tourism increased at an average rate of 4.6 per centa year. Economic Growth (GDP) & International Tourist Arrivals 2 2 | Real GDP 8 10 mm Tourist Arrivals a Se Z 8 Average 1975-2000 2 | Bs Ba & | 8 Pe So x & 1975 1980 1985 1990 1995 2000 2005 Souree: World Tourism Organization; Intemational Monetary FundAppendix-vi PAKISTAN’S TOURISM PROFILE ‘Tourism isa growing industry in Pakistan. The varlety of attractions range from the ruins of ancient civilizations such as Mohenjo-daro, Harappa and Taxila, to the Himalayan hill stations, which attract those interested in field and winter sports. Pakistan is home to ‘several mountain peaks over 7000m, which attracts adventurers and mountaineers from around the world, especially K2. The northern parts of Pakistan have many old fortresses, towers and other architecture as well as the Hunza end Chitral valleys, the latter being home to the small pre-Islamic Animist Kalasha community who claim descent from the army of Alexander the Great. In the Punjab is the site of Alexanders battle on the Jhelum River and the historic city Lahore, Pakistan's cultural capital with many examples of Mughal architecture such as the Badshahi Masjid, Shalimar Gardens, Tomb of Jahangir and the Lahore Fort. To promote Pakistan's unique and various cultural heritage, year 2007 was declared as "Visit Pakistan Year" Export rocsipte grow at an annual rate of 18.1% over the last five yoars, while earning from tourism increased at an annual rate of 19.3% over the same period. During 2005-06, the G.N.P. of the country was Rs. 5285 billion, equivalent to USS 88.3 billion. During the same period foreign exchange earings from tourism, amounted to Rs. 13.2 billion, equivalent to US$ 0.22 billion. However, tourism receipt remained 0.2% of G.N.P in 2005- 06, as were in 2004-05. Tourism industry in Pakistan comprises 1761 hotels with 41146 rooms. The Travel Agents and Tour operators in the country are approximately 2142. ‘Tourism plays an important role in the regional development. Itisestimated that more than hatf of total Income eamed by the people in the tourism sector was in relatively backward areas such as Murree and Galliat, Northern Areas, Swat, Ziarat, Abbottabad, Kaghan, Naran,Azad Jammu & Kashmir and other smaller Resort Areas. ‘Tourism though relatively small in size at 900,000 tourist arrivals in yaar 2006 and US $ 260 million in foreign exchange earnings is the eighth largest source of foreign exchange earnings. It Is a substantive source of employment for more than haifa million people and itis the only source of employment for many people in far-flung nature rich mountainous areas. Tourism has played a significant role in the socio-economic development and has ‘promising future and growth potential in the country, 31Rakaposhi