FPCCI Unveils Comprehensive Research on Pakistan’s Tourism Sector Tourism Sector Exports at $1.15 Billion

Major Structural Reforms Needed

Karachi:The Policy Advisory Board of the Federation of Pakistan Chambers of
Commerce & Industry (PAB-FPCCI) today released a pivotal new study titled, "Mapping
Pakistan's Tourism Potential: A Comprehensive Export Analysis."

The research explores the immense opportunities the tourism sector offers as a driver of
exports, economic growth, and employment generation – while identifying the structural
challenges currently constraining its international competitiveness.

Despite Pakistan's extraordinary natural beauty, rich cultural heritage, religious landmarks,
and adventure tourism potential, the sector requires strategic intervention to fully capitalize
on its global appeal.

The comprehensive study by PAB-FPCCI, built on primary data from 213 stakeholders –
including tourists, tour operators, the hospitality sector, and government representatives –
underscores the strategic economic importance of the Travel and Tourism (T&T) sector.

Key economic indicators highlighted in the report include; GDP and employment as
tourism currently contributes approximately 5.9% to Pakistan's GDP and supports 4.7
million jobs. Whereas, export earnings contribution of the sector in 2024 was USD 1.15
billion as tourism export earnings. Additionally, trade share of tourism exports accounted
for 2.9% of Pakistan’s total exports and 14% of its services exports in 2024.

PAB-FPCCI has mapped Pakistan’s tourism demand across eight major categories:
Adventure (45%), Religious (22%), Historical (11%), Business (6%), Education (6%),
Sports (5%), Dark (3%), and Cruise (2%).

The FPCCI report identifies a substantial imbalance between inbound and outbound
tourism spending. While Pakistan earned USD 1.15 billion from foreign tourists in 2024,
Pakistani outbound tourists spent an estimated USD 2.4 billion abroad.
Spending behaviors further illustrate the economic potential of attracting international
visitors. Foreign tourists spend an average of USD 12.5 per day, with a typical
four-to-five-day trip injecting between USD 1,500 and USD 1,750 into the local economy.
In contrast, domestic tourists spend an average of USD 8.5 per day, totaling approximately
USD 500 per trip.

To bridge this gap and boost foreign inflows, the study isolates critical barriers stifling
industry growth as Demand-Side Constraints which refer to inadequate road infrastructure,
limited basic amenities, weak digital connectivity, and ongoing safety and security
concerns. Whereas, Supply-Side Bottlenecks include unplanned construction, visa
complexities, poor international marketing and branding, inconsistent government policies,
and severe regulatory hurdles – most notably the requirement of No-Objection Certificates
(NOCs) for foreign tourists.

To unlock new avenues for tourism-driven economic growth and improve Pakistan’s
standing on the global Travel and Tourism Development Index (TTDI), the FPCCI Policy
Advisory Board recommends the immediate implementation of targeted strategies as
Regulatory Reforms to simplify visa procedures and ease NOC requirements for foreign
visitors.

PAB-FPCCI emphasized digital integration to introduce digital governance systems for
surveillance and complaint management, and aggressively promote digital payment
infrastructure across tourist hubs. Infrastructure Development stressed to invest in
climate-resilient infrastructure and expand roadside facilities to ensure safety and
convenience. Whereas, Quality Control mechanism is required to standardize and improve
food quality, hygiene, and robust waste management systems in tourist zones.

The effective implementation of these measures is essential for Pakistan to transition from
a domestic-heavy tourism market to a competitive global destination, ultimately driving
substantial export revenue and economic stability.

Brig Iftikhar Opel, SI (M), Retd.

Secretary General