Key Indicators:
Hotel room density, Short-term rental listing density, Labour productivity in hotels and restaurants, T&T capital investment intensity
Note: This pillar measures investment in, and the availability and productivity of, tourist services and infrastructure
As evaluated by the World Economic Forum, the Tourist Services and Infrastructure pillar for Pakistan offers insights into the country’s readiness and quality of services for tourists. According to the T&T Development Index Report 2024, Pakistan’s overall ranking in this pillar is 93 out of 119 countries, with a corresponding decrease in score to 1.67,[137] indicating challenges in providing adequate tourist services and infrastructure.
One notable area of serious concern is the availability of hotel rooms, with Pakistan ranking 119 out of 119 in this indicator reflecting limited accommodation options with a value of 0.00, though there’s a slight increase in score to 1.01, suggesting efforts to address this shortage.
Pakistan’s northern regions offer some of the world’s most stunning landscapes, but their tourism potential is hampered by inadequate infrastructure. Despite the area’s natural beauty, neglected hospitality services make many attractions difficult to access.
Financial constraints and corruption have further weakened the country’s transportation infrastructure, particularly in remote areas, limiting tourism growth.[138]
KPCTA has announced free registration for hotels in Swat to support hoteliers and enhance tourism in the region
Radisson Hotel Group is expanding in Islamabad with two new hotels: Radisson Blu Hotel & Residences near Islamabad Airport, offering 432 rooms, and Radisson Hotel Islamabad Multi Gardens, with 165 rooms. Both are set to open within three years.[139] The Signature Rotana Hotel launched in Islamabad offers 522 accommodations, including 378 hotel rooms and 144 branded residential apartments.[140] The addition of high-quality accommodations will attract more tourists and help meet the growing demand for upscale lodging options.
Similarly, the number of short-term rental listings experiences a decrease in ranking to 112, despite an increase in listings per 10,000 population to 0.16, resulting in a higher score of 1.02, showcasing potential growth in alternative accommodation options. Labour productivity in hotels and restaurants also faces challenges, with Pakistan ranking 66, though there is an increase in productivity to US $20,033.60 per capita, leading to an improved score of 2.50, indicating potential for economic gains in the tourism sector.
However, the T&T capital investment intensity remains a concern, with Pakistan ranking 81 and experiencing decreases in investment intensity to US $2.65 per employee, resulting in a lower score of 2.14, highlighting the need for increased investment to improve infrastructure and services.
Recently, The Khyber-Pakhtunkhwa Culture and Tourism Authority (KPCTA) has announced free registration for hotels in Swat to support hoteliers and enhance tourism in the region.[141] KPCTA Director General Tashfeen Haider urged hoteliers to provide top-quality facilities and services to tourists, which would help boost Swat’s appeal to both domestic and international visitors.[142] [143]