Key Indicators:
T&T GDP multiplier, T&T employment multiplier, T&T high-wage jobs, T&T labour gender parity
Note: This pillar measures the economic and social impact of T&T, including induced economic contribution, the provision of high-wage jobs and workforce gender equality.
As reported by the World Economic Forum, T&T Development Index 2024, Pakistan is ranked 62 out of 119 countries in the Travel and Tourism Socio-economic Impact pillar, with a score of 4.31 on a scale of 1 to 7,[191] indicating a moderate performance with a slight improvement compared to previous data.
The T&T GDP multiplier, reflecting the sector’s economic impact, positions Pakistan at 17, showing a notable rise with a value of 2.36 and a score of 5.66, both indicating significant improvements. In terms of the T&T employment multiplier, Pakistan ranks 10, with a value of 2.83 and a score of 6.79, demonstrating its notable effect on job creation. Despite these high trends, the percentage of T&T high-wage jobs stands at 24.23%, positioning Pakistan at 62, with no change in value or score, which remains at 3.24.
If we look at the World Travel & Tourism Council (WTTC) “Travel and Tourism Economic Impact Report 2024”,[192] Pakistan’s travel and tourism sector contributed 5.8% to the GDP in 2023, with projections showing an increase to 6.1% in 2024 and a forecasted rise to 8% by 2034. The sector employed 4.73 million people in 2023, with projections reaching 4.79 million in 2024 and an anticipated 6.49 million by 2034.[193]
Overall, while Pakistan’s travel and tourism sector is experiencing growth in both GDP contribution and job creation, the relatively low proportion of high-wage jobs suggests a need for further development in high-paying roles within the sector.
The indicator T&T labour Gender parity is a critical issue, with Pakistan ranking last at 119.
The absolute difference in employment percentages between males and females stands at 90.68%, reflecting a stark gender disparity, with a score of 1.56, both unchanged from previous data. In comparison, globally, the T&T sector has seen positive trends for women, with nearly 40% of the workforce comprising females.[194] From 2010 to 2019, there was a 24% increase in direct female employment, rising from 38.6 million to 47.8 million.[195] Hospitality emerged as a leading sector for female employment, accounting for 52% of the total in 2019.[196] This contrasts sharply with Pakistan’s situation, where gender parity in the tourism labour market remains critically low, reflecting broader systemic gender disparities in economic and political spheres.
Gender Gap Index 2024 ranks Pakistan 145th, second to last, having closed only 57% of its gender gap despite a female population of over 119 million.
According to the ranking of the “Gender Gap Index 2024”,[197] Pakistan with a female population exceeding 119 million ranks second to last, at 145, having closed only 57% of its gender gap.[198] This represents a decline of three ranks and a 0.53 percentage point drop from 2023, primarily due to regressions in Political Empowerment, although there was a slight improvement in Educational Attainment. This low performance highlights significant gender gaps in economic and political parity, and slow progress in Educational Attainment and Health and Survival subindexes, where many other economies are more advanced.[199]
This data collectively underscores the growing yet uneven impact of travel and tourism on Pakistan’s socio-economic landscape.
Tourists often face difficulties obtaining visas for Pakistan due to safety concerns and geopolitical instability, particularly for travelers from India. This, combined with a lack of collaboration and integration between related sectors like forestry, environment, wildlife, and transportation, hinders tourism growth and economic potential. Additionally, the shortage of skilled workers affects service quality, which is critical for customer satisfaction and loyalty, impacting the overall development of the tourism industry in Pakistan.[200]