Tourism has proven to be an engine of the country’s economic growth. Tourism can reduce the current account deficit by relieving the Balance of payment crisis. Many countries in the Global South are facing current account deficits mainly due to imbalanced trade.
Tourism ensures the flow of foreign exchange that can be used to import capital goods for the countries. It has been found in various studies that tourism and the economy have a profound link. Countries with meager exports can stabilize their foreign exchange reserves by embarking on a journey in the tourism sector.
Pakistan is blessed with all kinds of weather and mountains, and its rich heritage culture is paving the way toward investment in the tourism sector. So, Pakistan can rationally use the potential of tourism if the state wants to resolve its economic problems.
Pakistan witnessed an impressive 115℅ increase in the tourism industry in 2023, leading to a substantial 1.3 billion foreign exchange revenue. I think this is a good asset for Pakistan’s economy, but there are still a few challenges to reviving Pakistan’s tourism sector.
The first challenge to the Pakistan tourism industry is the negative perception and image of Pakistan in front of the international community. Although the country has done a lot to appease the Western leaders, it is still unable to reset the Reputational damage caused by the War on Terror and its participation in the Afghan war in 1979. Furthermore, Pakistan’s foreign policy in the contemporary world is passive because our leaders are more involved in political engineering.
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Second, security concerns always deter domestic and international investors from Pakistan. So, the tourism industry is also affected by the resurgence of terrorist activities in Pakistan. The rise of militancy perished thousands of lives of civilians since the Taliban took over. It is difficult for politicians to carry out their political campaigns as political leaders are intimidated by the militants and receive threat calls from the maximalist elements.
Third, the debilitated infrastructure is another potential resistance to promoting the tourism industry, as the state lacks transportation, accommodation, and facilities infrastructure.
Pakistan can promote its tourism industry by taking the following measures.
First, the state should invest in marketing to showcase its unique cultural heritage. Utilizing social media influencers can help reach a wider audience.
Second, the state should build new infrastructure, including new hotels and resorts.
Third, the state should preserve and maintain cultural heritage as this is the only way towards the revival of the tourism industry in Pakistan.
Pakistan can follow Türkiye’s model as Türkiye has heavily invested in infrastructure projects such as building modern airports and resorts. Türkiye also implemented effective marketing campaigns showcasing its rich history and cultural heritage. Pakistan can take help from Türkiye.
The dependence on an anachronistic economic model bitterly failed to revive the economy of Pakistan. As the state of Pakistan is grappling with the dreaded specter of stagflation and economic crunch, tourism is the only sector that can bring positivity to Pakistan’s economy.
Author Sanan Hassan is an MPhil scholar in International Relations at Punjab University, Pakistan.
