Poverty alleviation through tourism

T O U R I S M – A D R I V I N G F O R C E F O R
P O V E R T Y A L L E V I A T I O N , J O B
C R E A T I O N A N D S O C I A L H A R M O N Y
By Tayyab Nisar Mir
 
According to UN’s Statement on Tourism, Employment and Culture inPakistan, issued in 2001,
“If Pakistan is known at all in the world of tourism,it isbecause of the mountainous regions of the
north; the four mountain ranges of theHundukush, Pamir, Karakoram and the Himalaya form the
densest concentrationof high peaks in the world. But the most notable feature of Pakistan’s
topographyis the diversity of its landscape; from the coastal regions and the deserts of thesouth
to the lush plains of the 2500 km long Indus river which courses throughthe country, rising in
Tibet and emptying into the Arabian Sea. Historically andculturally, too, Pakistan offers far
greater diversity for the tourist than is generallyassumed. Although an Islamic country, the local
culture is enriched with theinfluences and resources of over half a dozen ancient civilizations that
haveflourished here since the 4
th
Millennium BC. The historical and archeological sitesof the Gandhara and Indus Valley
civilizations, Moenjodaro, the Mughal Empire;these treasures are relatively unknown outside the
country and are richresources for the development of tourism in Pakistan.”Tourism is now the
world’s largest and most rapidly growing industry.There were 806 million tourists in the world
in the 2005, of which South Asiawelcomed some 8 million visitors, which is around 1% of total
world touristarrivals. Pakistan gets only just over 10% of South Asia’s share, which is
798,300visitors in 2005 whereas tourism receipts were US$ 185 million. With such alarge
potential market to attract, Pakistan could benefit greatly by pursuingspecific niche markets such
as archaeology, culture, adventure, religious tourismwhere it can offer something distinct from
its regional competitors.Tourism creates quality jobs. Globally, one in every ten jobs is
generateddirectly or indirectly from tourism. It is a 24-hour-a-day, seven-days-a-weekindustry,
despite seasonal fluctuations. Tourism industry is labour intensive, withemployment
opportunities at all skill levels. It is a major exporter, withinternational visitors injecting foreign
exchange directly into the economy. At thesame time, it is considered as a catalyst for
construction and manufacturingindustry but it's so woven into the economy that its significance
often goesunnoticed. It is composed of many different products and services. Tourismindustry
consists predominantly of small businesses, despite growing investmentby larger companies. It
relies on minimal direct financial assistance from orregulation by government. It is a
decentralized industry capable of diversifyingregional economies. Compared to other
industries, thereare relatively few barriers to entry in this industry. It is a relatively low
pollutant, which, if properlymanaged, can contribute to the conservation of natural and cultural
heritage. It is
 
an important medium for educational and cultural exchange, promotinginternational
understanding and goodwill.Therefore, there is a pressing need for a re-evaluation of the
perceivedimportance of the tourism sector in Pakistan. International tourism is an export – the
only difference being that Pakistan’s goods and services (i.e., touristattractions and services) are
bought within the country. The tourism receiptsformed 1.3% of Pakistan’s total export earnings
and tourism’s share in Pakistan’sGDP is only 0.2%.Tourism can play a fundamental role in
reduction of poverty, creation of job opportunities and bringing social harmony in Pakistan. It
can contribute tosocial and economic development of rural area of Pakistan where most
poorpeople live.Tourism is the only industry, which, directly or indirectly, involves awide range
of stakeholders. Starting from the tour operators, travel agents,hoteliers, transporters, tourist
guides, drivers, food suppliers, equipmentmanufacturers and ending at taxi drivers and porters, it
can bring employmentand economic benefit for everybody.The impact of international tourist
spending is spread widely through theeconomy, encompassing accommodation, meals, local
transport, entertainmentand retail shopping. Domestic tourism also makes a considerable
contribution tothe economy and brings harmony among people. For Pakistanis, traveling
withinthe country helps to inspire a national identity, and is ideally encouraged inchildren
through family and school trips to promote a greater awareness of thecountry’s varied
geography,society and culture. The government also earns directly from tourism through
taxes (such asthe 15% sales tax on virtually all items consumed or purchased by the
tourist),trekking fee, mountain climbing royalty and license fee for hotels, restaurants,travel
agents, tour operators, rent-a-car services etc.Tourism is labour-intensive and provides an ideal

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mechanism forincreasing employment in the service sector. The principal employers are
hotelsand the larger hotels create more employment opportunities relating to servicesoffered,
such as pools, fitness centers, shops and restaurants. In up-markethotels, the staff to room ratio
varies between 1 staff to 1 room and 2.5 staff to 1room. The estimated overall employment in
tourism sector was over 600,000 in2005. There is a growing gap between existing first class
hotel accommodationand the requirement/demand particularly in Lahore,
Peshawar,Rawalpindi/Islamabad, Swat and Kaghan Valleys and the Northern Areas.Private
sector investors should fill this gap thus bringing a multi-dimensional,positive impact on the
economy of these areas.Here the question arises that how we can convert tourism industry into
adriving force, which can alleviate poverty, create jobs and bring social harmony in
 
Pakistan? How can we create and divert all these economic and social benefitstowards the poor
masses of Pakistan? The answer is not difficult but itsimplementation is!There are a number of
initiatives to be taken by both the public sector andthe private sector. We all know that tourism is
the only industry, which is heavilydependent on other economic, administrative and social
factors. Security, lawand order situation, economic policies and social behaviours of a country
directlyaffect tourism activityin that country. Therefore, a close coordination between
allgovernment departments looking after these aspects is very vital if we really areserious to
develop and promote tourism in Pakistan. Whatever moves the PTDC,Ministry of Tourism or
even the provincial tourism organizations would taketowards promotion of tourism, all other
players should be taken into confidence.This can also be done through re-activating the National
Tourism Council (NTC)with an extended list of members. An active NTC is the right answer to
thecurrent lack of coordination among different stakeholders and relatively lowerpriority status
enjoyed by the tourism sector in Pakistan.As National Tourism Organization (NTO), PTDC and
the Ministry ofTourism has to create the will, awareness and understanding among the
policymakers at government level that promotion and development of tourism canbecome a
remedy to most of our economic and social problems. This messagemay be communicated
consistently and persistently. Only then we can makesome progress in tourism sector. The
decision-makers at these channels may beinvited and involved in all tourism-related events and
projects.Success of any marketing or development plan for tourism lies in thecommunity
participation and interaction of local stakeholders. The district/divisionlevel Tourism Advisory
Committees (TACs) set-up some years ago was excellentinstitution for community participation
in tourism development activities. TheseTACs also need to be re-activated on a national level, in
line with the presentgovernment’s policy of poverty alleviation and devolution of power. This
time,TACs can play a wider role, i.e., sustainable tourism development, povertyalleviation
alongwith preservation of local culture, heritage, environment, wildlifeand promotion of eco-
tourism.International donor organizations like UNDP, CIDA, AKRSP, JAICA etc.would be too
willing to sponsor any such project which is based on communityparticipation, eco-tourism,
sustainable tourism development, wildlife preservation,mountain clean-up operations,
community environment & tourism awarenessprogrammes and developing a tourism friendly
curriculum for primary educationlevel. A number of NGOs like the Adventure Foundation of
Pakistan, Alpine Clubof Pakistan and WWF etc. can be on the forefront with the National
andProvincial Tourism Organizations providing the necessary support andinfrastructure.
On marketing front, as National Tourism Organization, (PTDC) may find-out other sources of
funding, rather than wholly relying on diminishinggovernment grants. There are examples of
marketing activities, which are beingsponsored mostly by the private sector. The Hong Kong

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Tourist Association’smost of marketing projects are being financed by the private sector or
bygenerating their own source of income from sale of handicrafts, souvenirs, viewcards,
publications, commissions from booking of transport, tours, hotels railwaytickets and similar
tourism services. Similarly, PTDC, in cooperation with theprivate sector, can embark on a
similar marketing campaign.On development side, PTDC, may now resolve to undertake new
projectson self-financing basis or by inviting private sector for investment. With anextensive
network of 36 motels and a number of restaurants/road-side facilities,PTDC has now a
supportive base ideal for self financing and it may stop lookingtowards government to finance its
development activities.To sum up, I would say that as recommended by the World
TourismOrganization, tourism should be developed as a contributor to the nationalobjective,
such as the alleviation of poverty, the creation of employment, theincrease of foreign exchange
and foreign and domestic investment, and thepreservation of Pakistan’s cultural heritage and
ecological environment. It is clearthat the government is already cognizant of the importance of
the involvement ofthe private sector in future policy direction. Tourism is a commercial sector
andneeds intensive promotional and marketing activities. While government mustcontinue to
take responsibility for the underpinning policy, for providing the legaland regulatory framework
and the basic physical infrastructure such as roads,airports, power, communications, water and
sanitation, the private sector shouldbe given increasingly key role.

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