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.