KARACHI: The Policy Advisory Board of the Federation of Pakistan Chambers of Commerce & Industry (PAB-FPCCI) has identified immense opportunities in the tourism sector as a driver of exports, economic growth and employment generation, while identifying the structural challenges currently constraining its international competitiveness.
The board noted this in a new study titled ‘Mapping Pakistan’s Tourism Potential: A Comprehensive Export Analysis’. The research explores the immense opportunities the tourism sector offers as a driver of exports, economic growth, and employment generation, while identifying the structural challenges that currently constrain its international competitiveness.
Despite Pakistan’s extraordinary natural beauty, rich cultural heritage, religious landmarks and adventure tourism potential, the sector requires strategic intervention to fully capitalise on its global appeal.
The comprehensive study by PAB-FPCCI, based on primary data from 213 stakeholders — including tourists, tour operators, hospitality sector representatives, and government representatives — emphasises the strategic economic importance of the Travel and Tourism (T&T) sector.
Key economic indicators highlighted in the report include GDP and employment, as tourism currently accounts for approximately 5.9 per cent of Pakistan’s GDP and supports 4.7 million jobs. The sector’s export earnings contribution in 2024 was $1.15 billion from tourism. The tourism export trade share accounted for 2.9 per cent of Pakistan’s total exports and 14 per cent of its services exports in 2024.
PAB-FPCCI has mapped Pakistan’s tourism demand across eight major categories: Adventure (45 per cent), Religious (22 per cent), Historical (11 per cent), Business (6 per cent), Education (6 per cent), Sports (5 per cent), Dark (3 per cent), and Cruise (2 per cent).
The FPCCI report identifies a substantial imbalance between inbound and outbound tourism spending. While Pakistan earned $1.15 billion from foreign tourists in 2024, Pakistani outbound tourists spent an estimated $2.4 billion abroad.
Spending behaviours further illustrate the economic potential of attracting international visitors. Foreign tourists spend an average of $12.5 per day, with a typical four-to five-day trip injecting between $1,500 and $1,750 into the local economy. In contrast, domestic tourists spend an average of $8.5 per day, totalling approximately $500 per trip.
To bridge this gap and boost foreign inflows, the study identifies critical barriers stifling industry growth as Demand-Side Constraints, which include inadequate road infrastructure, limited basic amenities, weak digital connectivity and ongoing safety and security concerns. Supply-Side Bottlenecks include unplanned construction, visa complexities, poor international marketing and branding, inconsistent government policies, and severe regulatory hurdles –—most notably the requirement of No-Objection Certificates (NOCs) for foreign tourists.
To unlock new avenues for tourism-driven economic growth and improve Pakistan’s standing on the global Travel and Tourism Development Index (TTDI), the FPCCI Policy Advisory Board recommends the immediate implementation of targeted strategies, such as Regulatory Reforms, to simplify visa procedures and ease NOC requirements for foreign visitors.
PAB-FPCCI emphasised digital integration to introduce digital governance systems for surveillance and complaint management, and aggressively promote digital payment infrastructure across tourist hubs. Infrastructure Development stressed the need to invest in climate-resilient infrastructure and expand roadside facilities to ensure safety and convenience. A quality control mechanism is required to standardise and improve food quality, hygiene, and waste management systems in tourist zones.
