The ‘travel and tourism’ industry is a crucial global sector,[24] playing a significant role in economic growth, employment generation, and regional development worldwide.[25] Over the past few decades, it has rapidly emerged as a key driver of economic progress, fostering employment and stimulating the growth of related industries like hospitality, transportation, and entertainment.[26]
In the wake of the pandemic, the global tourism sector is gradually recovering[27] and is forecasted to grow by 5.8% annually from 2022 to 2032, outpacing global GDP growth.[28]
Pakistan, with its diverse landscapes[29] ranging from towering mountains and deserts to coastal plains,[30] is rich in scenic beauty, cultural heritage,[31] and historic landmarks.[32] As one of the world’s oldest civilizations,[33] [34] Pakistan has the potential to attract both domestic and international travelers, boosting economic growth through its unique tourism offerings.
Nevertheless, Pakistan’s Travel and Tourism sector presents a mixed picture of challenges and opportunities. Ranked 101 out of 119 economies with a score of 3.41 in the Travel and Tourism Development Index 2024,[35] the country faces significant hurdles. The report also categorizes Pakistan within the Lower-Middle-income Economies group,[36] further highlighting the need for strategic efforts to unlock the sector’s potential for growth and improvement.
According to the United Nations World Tourism Organization (now known as UN Tourism)[37] data, the number of international tourist arrivals was 965,000 in 2014, while international inbound receipts amounted to USD 738.1 million in 2022.[38]
Taking the World Travel and Tourism Council (WTTC) Economic Impact Report 2024 into consideration, the global travel & tourism (T&T) sector contributed 9.1% (USD 9.90 trillion) to the global GDP in 2023 with an estimation to reach 10% (USD 11.10 trillion) in 2024.[39] The Pakistan T&T sector’s contribution to GDP was 5.8% (PKR 5.59 trillion) in 2023 and is expected to grow to 6.1% (PKR 5.91 trillion) in 2024.
The contribution of T&T to international employment was 10% (330 million jobs) globally in 2023, with an estimated rise to 10.4% (348 million jobs) in 2024. In Pakistan, the sector accounted for 6.7% (4.73 million jobs) of employment in 2023, with projections indicating an increase to 4.79 million jobs by 2024. International visitor spending was PKR 459.5 billion in 2023 and a projected rise to PKR 561.5 billion by 2034. Meanwhile, domestic visitor spending was PKR 3.85 trillion, in 2023 with an expected increase to PKR 4.12 trillion in 2024 and further growth to PKR 6.91 trillion by 2034.[40]
South Asia is expected to remain the world’s fastest-growing region, with growth projected at 6.0% in 2024 and 6.1% in 2025, driven by strong performance in India and recoveries in Pakistan and Sri Lanka. However, the region faces challenges like insufficient job creation, slowing private investment, high inflation, and climate vulnerability. Pakistan’s economy is forecasted to grow 2.3% in Fiscal Year (FY) 24/25 as business confidence improves, but structural issues may limit long-term growth.[41]
The above data highlights the significant economic impact of the travel and tourism industry in Pakistan not only in terms of GDP contribution but also employment. The data also highlights the potential for future growth as the sector expands.
In 2024, this profile will provide insights into Pakistan’s current position in tourism by examining the country’s status according to key indicators affecting its tourism sector. The analysis will be based on the Travel & Tourism Development Index 2024 (TTDI), which assesses policies and factors enabling sustainable growth in travel and tourism. The report will focus on indicators derived from secondary sources by the World Economic Forum.
