Tourism earned $1.15b, spent $2.4b

FPCCI report says policy, infrastructure bottlenecks blocking vast potential of sector

KARACHI:

Pakistan earned $1.15 billion from foreign tourists in 2024, but its citizens spent an estimated $2.4 billion abroad during the same period, highlighting the country's struggle to convert its vast tourism assets into foreign exchange earnings despite significant untapped potential.

The findings were revealed in a report, "Mapping Pakistan's Tourism Potential: A Comprehensive Export Analysis," released by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), which argues that tourism could become a major source of export revenue and employment if longstanding policy and infrastructure bottlenecks are addressed.

According to the report, tourism contributes nearly 5.9% to Pakistan's GDP and supports around 4.7 million jobs. However, tourism exports accounted for only 2.9% of Pakistan's total exports and 14% of services exports in 2024, far below the levels achieved by regional competitors. The report notes that Pakistan earned $1.15 billion from inbound tourism in 2024, while outbound tourism expenditure reached approximately $2.4 billion, creating a substantial foreign exchange gap.

Former Managing Director of the Pakistan Tourism Development Corporation (PTDC), Salman Javed, said Pakistan has vast tourism potential which can be realised by removing regulatory hurdles, centralising fragmented governance and strengthening weak international promotion.

Speaking to The Express Tribune, he stressed the need for comprehensive visa reforms to facilitate foreign visitors.

"Pakistan must significantly relax its visa regime and ensure visas are issued through efficient electronic systems," he said. "Modern travellers expect quick and hassle-free visa processing, and delays or complicated procedures discourage many potential visitors."

Javed argued that Pakistan also faces a lack of an integrated regulatory mechanism for tourism-related businesses, resulting in varying standards across provinces after the 18th Amendment. The government should come up with a solution without harming the amendment's spirit. There should be a centralised national system to regulate, certify and rate restaurants, guest houses, resorts, hotels and other tourism-related entities. At present, different provincial laws and regulations create inconsistencies and confusion for both investors and tourists, he said.

The FPCCI report also identifies visa complexities, weak international marketing, inadequate road infrastructure, poor digital connectivity, security concerns and fragmented governance as major obstacles to tourism growth.

Pakistan ranked 101st on the Travel and Tourism Development Index (TTDI) in 2024, significantly behind India, which ranked 39th, and the UAE, which secured the 18th position.

The report estimates that Pakistan attracted around 2.1 million inbound tourists in 2024. The UK remained the largest source market, accounting for 36% of international arrivals, followed by the US, Canada and Australia.

Adventure tourism dominates Pakistan's tourism landscape, accounting for 45% of tourism activity, followed by historical tourism at 22% and religious tourism at 11%.

Javed believes religious tourism offers one of the biggest opportunities for Pakistan to attract foreign exchange and improve its global image.

"There is tremendous potential for religious tourism, particularly for Buddhists, Sikhs and Hindus. Pakistan hosts some of the world's most important Buddhist heritage sites as well as sacred Sikh and Hindu religious destinations. These assets should be promoted aggressively in international markets," he said.

The report also highlighted strong performance by the Kartarpur Corridor, which attracted more than 45,000 Indian pilgrims in 2025, while Sikh yatrees from the UK, Canada and the US continued to visit religious sites across Pakistan.

According to Javed, Pakistan's diplomatic missions abroad should play a much larger role in tourism promotion.

"Our embassies and missions overseas should actively market Pakistan as a tourism destination. Tourism promotion should become an integral part of economic diplomacy, just as countries such as Türkiye, Malaysia and the UAE have successfully done," he said.

He also called for greater public investment in tourism marketing and destination branding.

"Pakistan allocates very limited resources for international tourism promotion. More funds should be earmarked specifically for marketing campaigns, participation in international tourism exhibitions and digital promotion initiatives," he added.

The FPCCI report notes that Pakistan possesses more than 335 tourism destinations across adventure, religious, historical, educational, sports and business tourism categories. However, weak branding, insufficient infrastructure and inconsistent policies continue to limit the country's ability to attract high-spending international visitors.

The study projects Pakistan's tourism receipts could rise to nearly $1.5 billion by 2030 under current growth trends. However, researchers argue that substantially higher earnings are achievable if reforms are implemented in visa facilitation, infrastructure development, destination management and international marketing.

The report concludes that Pakistan's challenge is not a lack of tourism assets but an inability to effectively monetise them. With global tourism exports reaching nearly $2 trillion annually, policymakers are being urged to treat tourism as a strategic export sector capable of generating foreign exchange, creating jobs and supporting broader economic growth.