Tourism: An Essential Element for Sustainable and Inclusive Growth

By Naghmana A. Hashmi

Tourism that was once done for recreational purposes only has now become a huge industry, particularly for developing countries. The impact of globalization has further converted tourism into an industries that generate revenue. The importance of tourism has increased ten folds since the normalization of travel bloggers through social media. Tourism is now considered a competent driver of development and is shaping the fundamental pillars of economic growth in developing economies.

2. According to experts and researchers, a 1% increase in tourism significantly enhances gross domestic product (GPD) by 0.051%, foreign direct investment by 2.647%, energy development by 0.134%, and agriculture development by 0.26%, and reduces poverty by 0.51% in the long run. Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries. Hence, policy-makers should focus on how through public interventions, tourism can advance development by the design and implementation of integrated policies. In addition, policy consistency and coherence are essential for competitiveness, sustainability, and maximizing benefits from tourism.
3. Governments in the developing world that support and promote tourism benefit from its high multiplier effects in terms of generating employment, increasing foreign exchange earnings, having a positive impact on  the balance of payment, and stimulating the supply sectors of tourism that help to alleviate poverty. Tourism development also stimulates growth by attracting new foreign direct investment (FDI) and building new facilities. The relationship between tourism and capital investment is twofold: potential business tourists are attracted by investment opportunities through information business‐friendly environments, and available human capital and foreign investors develop tourism facilities such as hotels, resorts, parks, and energy and transportation amenities.
4. Moreover, tourism is highly dependent on energy to carry out its daily business activities. Scholars suggest that an increase in tourism activities leads to a higher demand for energy development.  Through a backward integration strategy, tourism supports the agriculture sector which is considered as a backbone in developing countries such as Pakistan.
5. Tourism is also recognized as an important pillar of the Sustainable Development Goals (SGDs), particularly Goals 1 (no poverty), 5 (gender equality), 8 (decent work and economic growth) and 10 (reduce inequalities). The basic premise behind sustainable tourism is to visit the locations without harming the local community and nature but also contribute in some constructive way for positive impact on the environment, society, in addition to a positive impact on economy. Tourism can include transportation to the general area close to the tourist destinations, local transportation, accommodation, leisure, entertainment, shopping, and food among other things. It can be linked to travel for recreation, business, family, and friends. These tourism activities in many countries, remain an important source for generations of employment and income in both formal and informal sectors. Developing countries like Pakistan can engender a huge amount of foreign exchange from tourism that could also boost their sustainable growth and development.
6.  In most countries, the government can generate revenue and also enhance household income through development of this sector. Economic development of nations around the world is replete with examples where tourism has had a very positive impact in socio-economic development. Mauritius, South Africa, Maldives, Croatia, Sri Lanka, Malaysia, Indonesia, Thailand, Netherlands, Italy, France to name but a few.
7. In South Asia there are several countries where tourism industry is an engine of economic development and GDP growth. Maldives is a shining example of how a small island nation has harnessed their tourism potential for the socio-economic development and enhancing the foreign exchange reserves of the country. Alternatively, economic expansion in the developed nations influences business travel which can lead to a rise in the nation’s overseas reserves. However, Pakistan remains the only country in South Asia with the least share of tourism revenues in this region.
8. Pakistan all has the ingredients that can make it a great tourist destination and tourism industry an effective tool of economic development and poverty alleviation. With its breathtaking natural beauty, rich cultural heritage, and historical sites, can become a popular tourist destination. From the towering peaks of the Himalayas in the north to the pristine beaches of the Arabian Sea in the south, the country boasts an array of attractions that should draw visitors from all over the world.
9. Pakistan, in the early decades of its independence, emerged as a great new destination for tourism offering the entire gamut from some of the highest mountains, lakes and glaciers to the lush green fields to the only Green desert in the world to the mud volcanoes and over a thousand miles of pristine coastline. It also offers rich cultural heritage and several millennia old civilizational sites and relics. Not to forget the beautiful culture, arts, music, culinary traditions and legendary hospitality.
10. I still remember the red double-decker Buses that use to take tourists from London to Dhacca, thousands of Buddhists traveling from Japan, Korea and other far off destinations to Taxila and Takht Bhai to visit the holy Buddhist sites and the Ghandhara Civilization relics, young girls and boys from European and Western countries following the hippie trail traversing the great Khyber pass and flocking to our beautiful camping sites, not to forget the history lovers who travelled from far and wide to marvel at the treasure trove of beautiful ancient and Mughal architecture and of course the brave hearted who come to admire the beauty of our majestic mountains for trekking to challenge themselves by scaling the forbidding peaks.
11. Then unfortunately, like so many other aspects of life in Pakistan, tourism also suffered as a result of the consequences of political developments in the wake of Soviet invasion of Afghanistan in December 1979. The clock of progressive development was forced to churn backwards and an artificial cape of fundamentalism and extremism was forced on a land known for its moderate, tolerant Sufi ethos. We saw a viscous crack down on all art, culture and heritage related activities and genuine debate on what cultural and civilizational direction the country needed to take. A pervading darkness settled on this beautiful land of ours which was full of music, dance and all hues of life with artists making waves around the world and attracting tourists to this land of many wonders. Forty years on and we have still not been able to fully set ourselves free of this darkness.
12. COVID-19 pandemic also had a massive social and economic impact on both developed and developing economies. Marginalized groups and most vulnerable were hit the hardest. However, despite the fact that travel and tourism remained largely limited during the peak COVID years, yet according to a report published last year, international tourists spent $1.3 billion per day and in total $462 billion in the year 2001 only. This is a clear manifestation of the resilience of the tourism sector to thrive even through difficult political and pandemic situations.
13. It is however, painful to see how Pakistan has fallen behind its neighbours and other small developing countries in fully realizing its rich tourism potential. Only a few regions in the world can present a high-class combination of magnificent natural attraction, a rich variety of socio–economic systems, and history as offered by Himalayan and Hindukush regions of Pakistan. This is primarily due a number of challenges that hinder its growth and development. Some of the key problems facing the industry include:

• One of the biggest challenges facing the tourism industry in Pakistan is the lack of proper infrastructure. This includes inadequate transportation facilities, limited numbers of quality hotels and restaurants, and a lack of modern facilities for tourists. These shortcomings make it difficult for tourists to travel around the country and experience all that it has to offer.
• The past three decades instability in Afghanistan and terrorist attacks not only destroyed the tourism sector but also tarnished the soft image of Pakistan. Pakistan was declared an unsafe destination for visitors of all sorts and negative travel advisories particularly those issued by the Western countries became an inhibiting factor badly hitting the tourist travel to Pakistan. Pakistan continues to face a number of security challenges which has led to concerns about the safety of tourists visiting the country. The government has taken steps to improve security, but the perception of danger still persists, which discourages many tourists from visiting.
• Political instability and tensions between various ethnic and religious groups can also be a barrier to the growth of tourism in Pakistan. Tourists are often hesitant to visit countries that are perceived as being politically unstable, and this can have a negative impact on the country’s reputation and its ability to attract visitors.
• Lack of entertainment and recreational facilities and an artificially exaggerated sensitivity and myopic view of all normal leisure and relaxation activities at tourist destination is a huge inhibiting factor.
• Strict and long-winded visa procedures and requirements also discourage tourists from Pakistan.
• Some of the analysts have rightly pointed out that “in Pakistan, acts like public destruction of confiscated alcohol works as a barrier for foreigners to visit the country.  Furthermore, it only depicts the innate hypocrisy of society, where there is a huge difference in theory and practice of the people. Societal malpractices are conducted on a regular basis in society on a large scale.”
• It is also true that our and freedom of travelling to all parts of the country without the NOC sends a negative message about the country and contribute to impeding tourism.
• Poor Promotion and Marketing: Despite its many attractions, Pakistan has not been successful in promoting itself as a tourist destination to the wider world. The country lacks a comprehensive marketing strategy, and this has hindered its ability to compete with other countries in attracting visitors.
• Environmental Concerns: The rapid growth of the tourism industry in Pakistan has put pressure on the country’s fragile environment. Many tourist sites are located in areas with sensitive ecosystems, and the influx of visitors can lead to environmental degradation and harm to wildlife.
• Some of the analysts have rightly pointed out that “in Pakistan, acts like public destruction of confiscated alcohol works as a barrier for foreigners to visit the country.  Furthermore, it only depicts the innate hypocrisy of society, where there is a huge difference in theory and practice of the people. Societal malpractices are conducted on a regular basis in society on a large scale.”
• Last but not the least   intolerance and lack of consideration for other people, particularly those not from our culture and religion has exponentially grown over the past few decades, scarring potential tourists and businessmen.

14. All is however, not lost. We have seen that despite all the problems and irrespective of the poverty, unemployment, inflation, and infrastructure development, Northern areas have continued to attract the dedicated hikers and mountaineers. A steady trickle of tourists are also seen retuning to some selected destinations in Pakistan but the massive movement of foreign tourists is still awaited. It is however, encouraging to see that due to travel restrictions abroad because of COVID restrictions, there has been a massive increase of internal travel in Pakistan especially to the Northern Areas which is a good sign and will encourage more of our countrymen to explore Pakistan before heading abroad and thus contributing to the socio-economic development of these areas.
15. In order to alleviate poverty and enrich the standard of life, an international level promotion of tourism in Pakistan is needed. In addition to the promotion efforts, focused attention is essential to reboot our tourism sector. For this a number of steps have been suggested by different people and organizations in Pakistan. Some of these include: creative and talented people, providing attractive incentive by the government to the tourism sector in the form of basic infrastructures such as a high-quality transportation system, roads, airports, and tax incentives to the tourism-related industries, like hotels and other recreational facilities, availability of modern amenities such as high-speed internet and cashless banking, clean and modern toilette facilities and proper Basic Health Unit, relaxation of the strict ban on consumption of alcohol even by foreigners, commitment of the government to create employment opportunities, income sources, and revenue for the local inhabitants as well as economic activities, maintain political stability, ensure the security of all tourists and formulate sustainable tourism policies. This will certainly contribute towards ensuring a stable, secure, and steady tourism demand for the country.
16. We also need to follow the lead of our other Muslim brethren. A large number of Muslim countries that are very attractive and enjoyable tourist destinations and have largely relaxed their strict societal norms, particularly with regard to the consumption of alcohol by foreigners. Here the example of Maldives is very pertinent as it is a strictly Muslim country but one of the most attractive tourist destinations of the world as they have developed a good system where within the compound of the tourist resort, opened to foreigners only, alcohol and entertainment facilities are allowed. By relaxing their policies to portray a more tourist-friendly image, Maldives has become a tourist haven.
17. UAE, Malaysia, Indonesia are also excellent examples where tourism is booming. Pakistan can study the systems and regulations of these prominent Muslim countries and emulate their model for tourism development. Mechanisms can easily be put in place that are cater to our religious and cultural sensitivities. In Pakistan a lot of effort is still required for encouraging internal tourism. If proper facilities of transport accommodation, food recreational facilities for children and adults are made available, there is no dearth of internal tourists in Pakistan.
18. While we focus on promoting tourism in Northern areas, and it is an encouraging sign to see the beginning of adventure tourism, we have grossly ignored other forms of tourism. There is no utilization of our coastal areas although it is said that Ormara in Baluchistan has the best sunset of the world, we never get to hear of the mud volcanoes nor have we promoted the Thar Desert as a tourist destination. Similarly there are no proper educated well-trained tourist guides with translation kits to guide and help tourists understand the real value, history and architectural details of our historic sites or the Mughal and British buildings.
19. Like with other industries, tourism too cannot flourish without proper planning, investment, marketing and progressive and long-term enabling government policies. I would suggest forming a high-level commission with all relevant stake holders on board, to thoroughly investigate and give a road map to the government for reviving of the Tourism industry in Pakistan. Half-hearted and nominal action will produce no meaningful results.
20. Therefore, in order to move forward the government needs to take a comprehensive approach to develop the tourism industry. This should include investing in infrastructure and tourism facilities, improving safety and security, and promoting the country as a tourist destination. We need to ensure that tourism is sustainable and does not harm the environment. With the right strategies and investments, the tourism industry in Pakistan has the potential to be a major driver of economic growth and development for the country.