Tourism and Hotel Industry in Pakistan - Growth, Trends , COVID 19 Impact and Forecasts (2022 - 2027)

Tourism and Hotel Industry in Pakistan - Growth, Trends , COVID 19 Impact and Forecasts (2022 - 2027)

The Pakistan tourism and hotel market was valued nearly at USD 20 Billion in 2020, and the market is expected to witness a CAGR of 3% by 2026.

Amidst the current COVID-19 pandemic, Pakistan's tourism and hospitality industries are at great risk, as people are unable to visit Pakistan amidst safety measures and various lockdowns imposed by the government. Tourism contributed nearly 7.1% to the gross domestic product (GDP) of Pakistan in 2019. However, owing to the pandemic, the market is witnessing severe losses. The Pakistani government and people hoped the development would attract more investment in tourism-affiliated businesses and help create better-paying jobs. The administration had also announced plans to develop and promote tourism and relax visa restrictions for foreign travelers. The onset of COVID-19 and restrictions on worldwide travel have derailed the government's plans; hence, the country could not implement the government's tourism strategy in 2020.

However, in the long to medium term, the market is expected to gain momentum. Pakistan has emerged as one of the most sought-after tourist destinations over the past few years. Furthermore, the South Asian nation has also topped several international travel lists, making it an attractive tourist destination amongst travelers. The Pakistan government's tourism campaign has also helped raise the country’s profile in the global market. Increased investments are being made in the country in roads, airports, and other infrastructure, which have helped ease travel.

Pakistan is also emerging as an important investment destination for new hotel development. The hotels in Pakistan are witnessing a substantial increase in growth, both in terms of occupancy and average rate, and this trend is expected to continue further in the upcoming years. However, amidst the COVID-19 pandemic, the hotels in the country have witnessed severe losses, and 3 out of 7 big hotels in Karachi have closed since March 2020 due to the pandemic.

Key Market TrendsIncreasing Foreign Travelers in Pakistan

The Government of Pakistan has eased the country's visa policy, which has played a key role in attracting a large number of foreign tourists. Overall, 60,070 foreigners have visited tourist attractions in the country during the past six years, especially to the enthralling places located in the northern parts of the country. Following the policies of the current government and measures taken to promote domestic and international tourism, the country expects to see a rise in the number of visitors by nearly 30% until 2030.

In 2019, the international tourism receipts for Pakistan were nearly 948 USD million. Although Pakistan tourism receipts fluctuated substantially in recent years, they increased through the 2015-2019 period.

Flourishing Hotel Industry in the Country

The hotel industry in Pakistan is acting as a stimulant for the development of its economy, and the sector is continuously growing and flourishing. There have been various expansions in the industry. For instance, Movenpick Hotel Centaurus Islamabad was opened in 2020 in Pakistan as a focal point of a new upscale mixed-use development. The property boasts an ideal location opposite the Pakistan Institute of Medical Sciences and the city’s two international airports.

Furthermore, hotels also play a very important role in the promotion of tourism, and in the changing environment, more hotels are being set up in the country. Avari Hotels Group also set up new hotels in Multan, Faisalabad, Marri, and two more hotels in Lahore in 2019.

Competitive Landscape

The report covers major players operating in the tourism and hotel industry in Pakistan. In terms of brand awareness, few players currently dominate the market. The travel and tourism companies in the country are offering various international and inbound tourism packages to attract a large number of customers and gain a more competitive advantage. As Pakistan is emerging as a tourist destination among travelers, various international and national hotel chains have created a strong presence in the market in terms of their services and offerings.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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