Draft National Tourism Policy 2010

Government of Pakistan Ministry of Tourism Islamabad

CONTENTS
S.#. 1. 2. 3. 4. 5. Contents Foreword Scope Vision, Mission and Objectives Potential Challenges 5.1 Coordination at all Levels of Government 5.2. Numbers versus Yield 5.3 Industry Quality 5.4 Aligning Product with Market Needs 5.5 International Visitor Dispersal and Niche Products 5.6 Skills Base 5.7 Tourism Infrastructure 5.8 Aviation Services 5.9 Research and Statistics 5.10 Other Challenges Constraints Strategy 7.1 Marketing Strategy 7.2 Development Strategy a. Coordinating Tourism Development within a National Framework b. The Federal Government c. The Provincial Governments d. Role of Public Sector in Tourism Development e. Role of Private Sector in Tourism Development f. Public Private Partnership International Obligations 81 Bi-lateral Relations 82 Multi-lateral Relations 8.3 Regional Relations 8.4 International Obligation on Environmental Sustainability Legal and Regulatory Framework of Tourism Sector Incentives and Concessions Conclusion Statistical Annexures Table I Tourism Arrivals 2000-2009 Table II Non-Indian Tourist Arrivals 2000-2009 Table III Tourism Foreign Exchange Receipts 2000-2009 Table IV Actual/Projected Tourism Growth and Earnings 2000-2009 Table V Actual/Projected Impact of Tourism on Employment Generation Table VI Actual/Projected Public Revenues from Tourism Table VII Actual/Projected Additions to Hotel Rooms and Restaurants seats Table VIII Actual/Projected Tourism Contribution to the GNP Table IX Comparative Arrivals of Tourists from Abroad Table X International Tourism Receipts Annexure I Types of Projects which can be declared as Tourism Projects. Annexure II A) Measures for the Promotion of Tourism in Kaghan Valley B) Measures for the Promotion of Tourism in Swat Valley C) Development of Coastal Highway D) Development of Palas Valley E) Medical Tourism Annexure-III Action Plan Page No 1 2 3-4 5-7 7-9 7 7 8 8 8 8 8 9 9 9 9 10-11 12-17 12 12 12 13-14 14 15-16 17-18 17 18 18 18 19-20 21-22 23 24 24 24 25 25 26 26 27 27 27 28 29-30 31 32-33 33-34 35 35-40

6. 7.

8.

9. 10. 11. 12.

NATIONAL TOURISM POLICY OF PAKISTAN 2010

1.

FOREWORD
Tourism has emerged as the largest global industry of the 21st century. It has become the

mainstay of many developing economies in the world and is considered a relatively better option for earning foreign exchange, creating jobs, stimulating sluggish economies, reducing economic disparities, promoting good-will and intra-regional harmony besides being a benign activity both socially and culturally. Pakistan possesses splendid tourist attractions: lofty mountains, beautiful valleys, ancient civilizations, living oldest and modern cultures, natural tourist attractions, sacred places of worship of almost every religion, places of historical interest, virgin beaches, deserts, fertile plains and a lot more. Pakistan is a land of adventure, nature, culture and history where every tourist has something to get himself entertained, enjoy, explore and experience. These potentials remained to be harnessed well so that the country can get maximum benefits through development of tourism. The first National Tourism Policy, adopted in 1990, promoted investment in Tourism Sector through introduction of fiscal incentives and concessions. However, major targets regarding tourist arrivals & earnings, domestic tourist traffic, employment etc. could not be achieved due to security issues, negative country image, travel advisories issued by foreign governments, inadequate funding and implementation snags. Realizing the importance of tourism for strengthening our national economy, to promote employment, create national harmony, enhance mutual understanding among our own people as well as with the peoples of other countries, National Tourism Policy 2010 is being launched by the present Government. The Policy defines the role of the Government and the Private Sector in Tourism, provides strategies to achieve the long and short terms goals for the next 10 years. The Policy has been formulated after thorough consultations with all stake-holders in public and private sector and their valuable input has been incorporated in the Policy. Efforts have been made to make the Policy direction-oriented and acceptable to all stake-holders by devising an implementation mechanism to achieve its goals and targets.
Atta-ur-Rahman Minister for Tourism

2.

SCOPE
Pakistans macroeconomic environment has been affected by intensification of war on terror and deepening of the global financial crisis which penetrated into domestic economy. Pakistans economy continues to remain exposed to the vagaries of international developments as well as internal security environment. Despite support from bilateral and multilateral donors, Pakistans external account remains exposed to a host of uncertainties. The dependence on external inflows needs some rationalization and to this end additional domestic resource mobilization is instrumental. Like many other developing countries of the world, Pakistan can also reap economic and social benefits of tourism besides promoting its image as a peace-loving nation. Tourism as a priority sector has the potential to truly underpin our National Development Strategy and sustainable long-term economic development. However, following key principles set the guidelines for responsible development of tourism sector for the benefit of all. While the leading role in tourism promotion and development will remain with

the public sector, the private sector shall be facilitated by the Government to create an attractive investment environment for the tourism industry to flourish. The Government will aim to foster a climate of competitiveness and innovation in the tourism industry, whilst promoting Human Resource Management, Poverty Alleviation and Marketing of the sector. Efforts shall be made to promote domestic and international tourism through

improvement in security arrangements.

Tourism development will be managed to ensure sustainability and the

conservation of the countrys environment and natural resources. Tourism development will promote active participation by all in the sector as entrepreneurs, suppliers of goods and services and tourism clientele. Community-based tourism will be encouraged. Whilst promoting Pakistani culture and participation, care will be taken to avoid or mitigate negative impacts.

The tourism industry will aim to develop a marketable identity focusing on

selected niches and products in order to attract visitors to the country. 2

3.

VISION, MISSION AND OBJECTIVES

Pakistans diverse tourism products need to focus on national attractiveness, rather than

on a single feature, thereby necessitating a clear vision, stated objectives and a collaborative approach. Pakistan is strategically placed to gain significant advantage from various regional tourism initiatives, which are expected to result in a major boost to the tourism industry in the region.

i) Vision The Vision is to develop the tourism sector as a national priority in a sustainable and acceptable manner, taking full advantage of regional and international trends and developments so that it can significantly contribute to the improvement of quality of life in Pakistan whilst promoting the countrys cultural and natural heritage. ii) Mission To create an enabling environment for Pakistans tourism industry by providing world-class facilities that commensurate with our rich cultural heritage, rare archaeological treasures and exquisite environmental beauty in close partnership and coordination between the public and the private sector while preserving and protecting our cultural and moral values and projecting tourist friendly image of the country.

iii) Objectives The Policy has the following broad objectives for the development of tourism sector: a) To establish tourism as a national priority sector for the future development of the country, and to achieve cooperation within the public & private sector as well as all other stakeholders to facilitate appropriate investment and promote tourism. This will lead to a significant, substantial and sustainable increase in the contribution of tourism to the national economy in terms of increased employment and income, investment and foreign exchange earnings.

b)

To develop an effective marketing strategy linked with regional initiatives through a collaborative process to project a positive identity of Pakistan in the international tourism markets as a unique and desirable country to visit.

c)

To identify and promote new opportunities for the future development of the tourism products of Pakistan through market research and analysis of the countrys competitive advantages.

d)

Domestic tourism provides the base for promotion of international tourism, all-out efforts shall be made to promote domestic tourism.

e)

To strengthen the cultural aspects of tourism products by promoting communitybased tourism, to spread the benefits more widely amongst the local population. In this process, care will be taken to avoid or mitigate negative impacts on the local culture and environment.

f)

To deliver quality service at all levels in the tourism industry through the establishment of minimum standards and participatory regulation, and by supporting training and human resource development.

g)

To make the tourism industry in Pakistan a leader in responsible environmental practices, and to recognize inter-dependence between environmental conservation and tourism through adherence to environmental legislation and to encourage the conservation and sustainable usage of natural resources.

h)

To participate actively and take full advantage of strategic regional initiatives, launched by different international and regional organization.

i)

To identify and strengthen existing best practices in tourism development. These best practices will be used to formulate guidelines and standards for appropriate tourism development as well as criteria for investment incentives.

4.

POTENTIAL
Pakistans great tourism potential is hidden in its diverse natural and cultural heritage. This

potential can be exploited by focusing on traditional products as well as launching new products through a well-laid out marketing strategy. Tourism products are listed below; i) Adventure, Nature and Sports a. Mountaineering, Trekking, Rock Climbing and Hiking b. White Water Rafting & Mountain Biking c. Skiing and extreme sports (Snow-kiting, Polo, Paragliding etc.) d. Eco-tourism (e.g. Indus Blind Dolphin, Mohanas of the Indus, Brown Bears of Deosai, Marin Turtles and Mangrove Forests, Wetlands and the historical sites of the Salt Range, ancient juniper forests, Community-based tourism etc.) e. Yak Safaris, Pony Trekking and Mountain Jeep Safaris f. Camel and Desert Jeep Safaris g. Heli Safaris and Air Safaris h. Wildlife Safaris, National Parks and Nature Reserves i. Trophy Hunting, Wild-boar Hunting and game-shooting j. Bird-watching, Angling, Rivers and Lakes of Pakistan k. Modern Sporting events like Golf, Squash, Cricket, Hockey, etc. l. Water sports and scuba-diving, kayaking, yachting m. Cave-explorations, fossils, rock formation and geological expeditions ii) Culture, Religion, Heritage and Archaeology a. Gandhara Heritage b. Indus Valley Civilization & Mehrgarh c. The Silk Route (Karakoram Highway) and its unique culture d. Muslim Architecture and the Mughal Treasure e. Colonial Heritage f. Discover your roots g. Sikh Holy shrines and Gurdwaras h. Hindu Temples and sacred places h. Muslim Shrines i. Shopping, culture, cuisines and city tours j. In the Footsteps of Alexander k. Forts of Pakistan l. Fairs, Festivals, Folklore, cultural events and traditional sports, Wandering Entertainers iii) New Products a. Health / Medical Tourism b. Meetings, Incentives, Conferences and Exhibitions (MICE) c. Agriculture and Rural Tourism d. Coastal & Beach Tourism

a. Health / Medical Tourism: Health Tourism is a rapidly-growing practice of traveling across international borders to obtain Health Care. Health or Medical Tourism is becoming an increasingly popular choice for people all over the world. The healthcare travel industry is growing at 15 to 20 per cent annually and its estimated total gross revenue will rise from US$ 56 billion today to US$ 100 billion by 2012. The travel and hospitality sectors shall have to realize the wide array of opportunities in this emerging market. Travel agencies, hotels, health resorts, spas, hospitals, airlines and other related businesses need to fully understand their role in this market. Up-gradation of basic amenities and hospitals infrastructure and co-ordination between the health and tourism sectors is required. Creating a resource pool of highly skilled and cordial manpower and standardization of services and accreditation of hospitals is another area for improvement. By working together for promotion of Health Tourism, Health and Tourism Sector could compliment each other for over-all improvement of the economy.

b.

Meeting, Incentives, Conferences & Exhibitions (MICE) International conventions and conferences have emerged as a specialized business of

modern times and constitute an integral part of the tourism industry. It is believed that conventions and conferences account for about 10 percent of the world tourist activities. Pakistans tourism sector requires coordinated efforts in attracting international organizations and multi-nationals to hold their conferences, seminars, symposia and annual meetings in our country. Presently, requisite facilities are available at Karachi, Lahore and Islamabad and there is huge potential for development of MICE Tourism in Pakistan.

c.

Agriculture and Rural Tourism Any village can be a tourist attraction, and most villagers are very hospitable across the

globe. Rural Tourism focuses on participating in a rural lifestyle. It allows the creation of an alternative source of income in the non-agricultural sector for rural dwellers. The added income from rural tourism can contribute to the revival of lost folk art and handicrafts. It is an ideal and natural method of rural and urban economic exchange. It is particularly relevant to Pakistan wherein farmland has become fragmented due to population growth. The product requires to be developed 6

through coordination between tourism and agricutural organizations in public and private sector besides motivation and involvement of local communites. d. Coastal & Beach Tourism The virgin costal belt stretched along the coastal highway in Sindh and Blochistan have a great potential for development of Coastal & Beach Tourism. A three-pronged development strategy will be followed to fully tap the potential; a. Luring international investors and beach developers through a transparent and attractive investment policy. b. Development of basic infrastructure and provision of utilities c. Implementing a well-coordinated beach tourism development plan by the Federal and Provincial tourism organizations.

5.

CHALLENGES
Tourism in Pakistan is a fragmented industry characterized by a large number of small

businesses, a small number of big businesses and by a significant involvement of government agencies at the Federal and the Provincial level. The following are major issues and challenges confronting sustainable growth in the future: 5.1 Coordination at all Levels of Government There is significant involvement of numerous Federal and Provincial government agencies which play a substantial role in the development of the tourism sector. Coordinating joint or overlapping responsibilities can often be challenging. Working towards an agreed framework amongst different levels of government on the national coordination of tourism development can assist in clarifying the roles and responsibilities. Effective coordination among Federal and Provincial governments for implementation of a joint marketing and development strategy is recognized as a real challenge. The Federal government is addressing this issue by holding interMinisterial meetings of Provincial Tourism Ministers at regular intervals.

5.2.

Numbers versus Yield The recent series of shocks to the industry mean that growth in inbound visitor numbers

will be slower than anticipated. Policy formulation, therefore, gives greater emphasis to yield and high revenue tourists by offering sustainable quality products to maximize profitability from international tourists. 7

5.3

Industry Quality The Government is working with the industry to develop a sustainable national system of

best practice accreditation, getting stakeholders on board to share information and cooperate in the delivery & promotion of industry quality programs.

5.4

Aligning Product with Market Needs As markets become more and more segmented having various groups within a single market

seeking different experiences, the need to better align tourism products and experiences with consumer demand becomes an increasingly significant challenge for the tourism industry.

5.5

Tourists Dispersal and Niche Products Currently, there is a low level of dispersal of tourists to non-traditional tourist destinations

across Pakistan. In order to address this issue, it is essential to develop new niche tourism products and enhance the attractiveness of local tourism infrastructure. It is also necessary to generate greater awareness about non-traditional tourism product.

5.6

Skills Base There is acute shortage of skilled personnel in Pakistans tourism sector. Overall tourism

employment growth may widen these gaps that could impede tourisms growth in the future. This is particularly a concern when industry moves to high yield and niche markets that require higher level skills. A key challenge will be the capacity of the institutional framework to deliver these skills.

5.7

Tourism Infrastructure Planning and funding for the provision of infrastructure often presents difficulties in both the

public and private sectors. This is due to lack of coordination between different levels of government and the private sector, relatively modest returns and the inability of a private infrastructure provider to capture all the benefits of an investment. The Government and the industry need to address this issue by working towards an agreed framework for the national coordination of tourism infrastructure development.

5.8

Aviation Services Competitive international aviation access is critical to prospects of tourism growth. Pakistan

has adopted a permissive and pro-competitive approach vis-a-vis its air services policy, which has supported significant inbound tourism growth. The Aviation Policy allows negotiation for open skies agreements, keeping the national interest intact, to seek the most liberal arrangements possible.

5.9

Research and Statistics A sound research and statistical base is essential to improve the tourism sectors

competitiveness and to make informed public policy decisions. Government provides a wide range of public research sources for tourism industry data, benefiting both public and private sector. However, information gaps have been identified within the current statistical collections. These include regional demand and supply side data and forecasts, and tourism yield data at national and provincial levels.

5.10

Other Challenges There is a range of additional challenges confronting Pakistans tourism sector. Significant

amongst them are changing international consumer patterns towards shorter holidays and the growing tendency to choose destinations closer to home. These trends, in particular, present significant challenges for destination such as Pakistan, and require effective marketing approaches as well as adequate and efficient air services to ensure market share is not eroded.

6.

CONSTRAINTS
Following are major constraints being faced by tourism industry; i. ii. iii. iv. vi. vii. Security concerns Underdeveloped civic, communication and tourism infrastructure Financial constraints Non-implementation of a well-laid and well coordinated marketing strategy Trust deficit between public and private sector tourism stake-holders. Negative country image abroad

7.

STRATEGY
7.1 Marketing Strategy The responsibility of promoting Pakistan's tourist image abroad is jointly shared between Public and Private Sectors. A marketing plan is to be speedily implemented within our own resources, focused on a strategy for image building of the country as a tourist destination. The initial promotional efforts are to be directed at pooling of resources of all stake-holders to prevent waste and duplication. Current global economic melt-down, enhanced security concerns, biased media coverage and negative travel advisories require a major change in our tourism marketing strategy. In the past, we pursued a strategy of marketing adventure and culture based tourism targeting mainly European Markets. We have to market diversified products like religious tourism, heritage tourism, medical tourism, MICE, family holidays, study tours, home-coming tours, shopping tours focusing on market segments like domestic tourists, expatriate Pakistanis, Buddhists, Hindus, Sikhs etc. a. Using New Technologies Tourism is a highly competitive industry offering highly substitutable products. It has become impossible to think about the promotion and distribution of tourism products without considering the new information technologies, particularly the Internet. Starting with the core tourism product the destination - the influence of the Internet on the claim of tourism supply has become important and relevant. Internet has facilitated tourists seeking information about different tourist destinations. b. Unique Selling Points (USP) Keeping following Unique Selling Points (USP), Pakistan has to market itself as a value for money destination catering to adventure, heritage, religious tourism and niche markets. i. ii. iii. iv. v. vi. Undiscovered, value-for-money destination Friendly and hospitable people History and World Heritage Sites World-class mountaineering, climbing and hiking areas
Sacred religious sites of significance to Muslims, Sikhs, Hindus and Buddhists

Niche market 10

c.

Products & the Target Markets: i. Adventure: Countries of the Alps (Germany, Austria, France, Italy, Switzerland); Spain, Japan, Korea, Poland, Czech Republic, Hungary, Russia, UK, China, USA, Mexico, Canada, Australia and Scandinavian countries. ii. Discover Your Roots: Overseas Pakistanis, Indian origins people living in India and overseas, British. iii. Silk Road: Japan, Korea, Germany, UK, Spain, China, Hong Kong, other European countries Singapore & Taiwan. Expatriates in Middle East, iv. Short Breaks (Shopping, Value for Money): UAE, India, China, Japan, Korea, ASEAN (Dragon Countries), Middle East, SAARC, Central Asia, Turkey, Iran, Jordan, Thailand, Singapore, Malaysia & Hong Kong. v. Religious Tourism: Sikhs: India, ASEAN, Europe, UAE, USA, Canada and Australia, Sufis: India, UAE, Turkey, Egypt, Iran and Syria etc. Hindus: India, ASEAN, UK, UAE, East Africa, Sri Lanka. Buddhists: Japan, Korea, China, Hong Kong, ASEAN and SAARC. vi. Domestic Tourism - Summer/Winter Vacations, Family Tours, Youth Tourism, MICE etc. Major commercial and industrial cities like Karachi, Hyderabad, Sukkur, Multan, Bahawalpur, Lahore, Sialkot, Gujranwala, Gujrat, Rawalpindi/Islamabad, Peshawar, Quetta, Schools, colleges, universities, multinationals etc. vii. Sports Tourism: India, UK, UAE, Australia, Sri Lanka, New Zealand, South Africa, Pakistanis. viii. Conferences and Conventions (MICE): SAARC countries, ASEAN, UAE and the Middle East, Iran, Turkey, Jordan, Egypt & South Africa. ix. Health/Medical Tourism: UK, Europe, USA and the Middle East, SAARC, ASEAN. x. ECO Culture & Heritage: Pakistanis, Europe, ASEAN, SAARC, Middle East,

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7.2

Development Strategy

a.

Coordinating Tourism Development within a National Framework: There are numerous factors influencing planning and coordination of tourism

policy. Some are related to the nature multi-faceted and composition of the industry while others are influenced by the division of policy roles and responsibilities between Pakistans two main tiers of government, i.e. the federal and the provincial.

b.

The Federal Government The Federal Parliament is responsible for areas including customs, defence,

taxation, telecommunication, finance, national corporations, copyrights & patents, international trade and investment, social security, immigration, foreign affairs, the territories and industrial relations that cover more than one province. The Federal Government aims to create an optimum policy environment for tourism development, particularly in international marketing of Pakistans tourism products, industry sustainability and profitability, air services arrangements, tourism infrastructure, visa processing, investment, skill development and standards, the interface between tourism and the environment, and building upon the sectors information base.

c.

Provincial Governments Provincial governments are responsible for education, transport, housing, In areas specifically

utility services, industrial relations, urban planning etc.

affecting tourism, the provinces provide services and support for tourism promotion, information services, provision of recreational facilities, construction and maintenance of roads and parks etc. Provincial governments also have a significant influence on the tourism sector through decisions concerning planning and infrastructure development, transport issues, business taxes and charges, business and consumer law, and environmental policies & regulations etc.

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d.

Role of Public Sector in Tourism Development: Development of tourism infrastructure requires heavy investment in wide-

ranging and diverse activities. Many of these activities are in the form of public utilities like power, water, gas and transport etc. These services are so vital to the society that government intervention is considered inevitable even in those countries which follow "free market" policies. Due to its diversity, tourism has to inter-face with several other sectors of the economy. i. The Government has to play a major role in channeling of funds to various

Federal and Provincial departments for undertaking development and maintenance of Roads, Highways, Motorways, Bus Terminals, Railways, Air-services, Sea-ports etc. Provision of land at concessional rates and supply of utilities in the tourism priority areas is also essential. In the absence of these basic requisites, private sector initiatives would not sprout, let alone grow. Therefore, comprehensive long and short term plans for development of tourism super-structure are to be identified, coordinated and implemented by the Government. ii. Apart from investing in provision of basic services, the Government

identifies tourism products, preserves heritage, environment and ecology. Market forces cannot be expected to ensure that environmental degradation will not occur. Public funds are to be provided for launching awareness programmes, and for undertaking requisite preservation efforts. iii. In order to achieve integration of policies between Provinces, and the

Federation, an apex body, Pakistan National Tourism Council headed by the Federal Minister for Tourism is being re-activated. This Council would inter-alia formulate guidelines for monitoring and supervision of the progress of Tourism Sector in the country. iv. Public Sector tourism organizations at the Federal and the Provincial levels

shall continue to play leading and catalyst role in development of tourism infrastructure (e.g. hotels, restaurants, road-side facilities, resorts, amusement parks, 13

theme parks, etc.) in the areas where private sector is either shy to invest or where Government desires to bring the benefits of tourism development to local population. vi. Encourage foreign and domestic investors by facilitating and providing

incentives but at the same time by regulating them to save ecology, environment, religious & cultural traditions and ideological limits of the country besides ensuring that locals are being benefited from such investment. vii. Rationalize taxation and land policies in the tourism sector in all the

federating units. viii. Introduce regulations ensuring social, cultural & environmental

sustainability, safety and security to tourists.

e.

Role of Private Sector in Tourism Development: The opportunities for Travel & Tourism in Pakistan are well-rewarding. The private

sector has to work with the government to develop plans for sustainable and profitable growth. It will have to play a pivotal role in rehabilitating and accelerating the pace of tourism development in Pakistan, mainly in the following target areas; 1. 2. 3. 4. 5. 6. 7. Building and managing the required tourist facilities at all places of tourist interest. Assuring collective responsibility for laying down industry standards, global code of ethics and best practices. Involving the local community in tourism projects and ensuring that the benefits of tourism accrue to them in right measure. Undertaking industry training and manpower development for achieving excellence in quality of services. Participating in the preparation of investment guidelines and marketing strategies and assisting in database creation and research. Facilitating safety and security of tourists. Ensuring preservation and protection of tourist attractions.

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f.

Public Private Partnership in Tourism Development Public-Private Partnership in tourism is to be employed with a combination of policy

reforms, institutional support, incentives and financing modalities to encourage the private sector participation in financing, constructing, managing infrastructure and other related development projects. It provides an alternate to budgetary constraints, enables the tourism industry to build assets, and maximizes the use of private sector skills. For government, the potential benefits of PPP can include: Access to new sources of capital: The private sector has access to capital (e.g., both debt and equity markets) that might not be available directly to government. Access to these markets, and other forms of third party and innovative financing, can increase the availability of capital. Accelerated development of infrastructure: The private sector is not subject to the same capital rationing that affects the management of public sector capital budgets, and may be able to complete a project in advance of government. Risk sharing: By its very nature, PPP involves the sharing of project risks (e.g., operating and/or financial risks inherent in the project). Maintain or improve service levels: A private sector partner may bring economies of scale or new technologies to improve service delivery. Access to a wider range of skills in planning, management, and service delivery. Government may gain access to expertise and/or management support tools that may not be available within government. Realize value of under-utilized assets: PPP can provide an opportunity to realize the value of assets that may be under-utilized. Creative development projects, combined with creative financing techniques and/or intensified marketing efforts, can provide substantial financial benefits to the government. Realize economic development opportunities: Large infrastructure projects, for example, can provide an opportunity to develop new skills in the labour force and/or encourage private sector investment in local communities.

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 a.

PPP Opportunities in Pakistans Tourism Sector Event Sponsorship Events like cultural fairs, festivals, traditional and modern sports, adventure and

extreme sports, conference, seminars, exhibitions etc. being held around the year in Pakistan present best opportunities for Private-Public Partnership.

b.

Provision of foodservices and entertainment facilities at a tourist attraction Development of a chain food and entertainment facility on franchise or leasing basis

along-with allied services, at a main tourist attraction or at a prominent location can be the best example.

c.

Development of Hotels, Resorts and Theme Parks The Federal and Provincial Tourism Organizations have to earmark suitable land

across the country, for development of tourism projects. Local and international investors may be invited to construct and develop hotels, resort, theme parks, recreational and parks facilities on Public Private Partnership basis.

d.

Leasing-out of existing tourism facilities Leasing out of hotels, motels, restaurants, resort already established by public sector

tourism organizations is another solution to management issues typically attached to public sector organizations involved in commercial activities. However, we have to recognize that instead of taking liability of sick and un-viable units, the private sector would only go for commercially viable and profit generating units. Getting highest bids with best terms and later-on, monitoring standards are areas of extreme care. There are solutions like clubbing of profit-making units with sick units, luring international chains of hotels & resorts in order to ensure quality management and continuous tourist in-flow to the country.

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8.

INTERNATIONAL OBLIGATIONS
International cooperation is needed to facilitate tourism development in developing

countries. The national tourism policy requires closer international co-operation, especially in terms of liberalization, sustainable development, consumer protection and joint marketing through international organizations, economic blocs, and multi-country and bilateral relations. International decision makers from the tourism industry have an important role in initiating or developing tourism industry through proper business partnerships.

As an active member of United Nations, Pakistan is a signatory to many UN conventions and protocols on every political, social and economic aspect. From tourisms point of view, UN Conventions on Millennium Development Goals (MDGs), Conservation of Environment, Sustainable Tourism Development etc. are relevant. Pakistan is a member of United Nations World Tourism Organizations (UNWTO) since its inception and participates in most of the events and programmes of the UNWTO. Pakistan supports the global code of ethics on tourism and best practices on conservation of environment and natural resources. However, greater coordination, involvement and participation of Pakistan in different initiatives, training programmes, economic and technical support programmes being extended by UNWTO, are required. Ministry of Tourism and PTDC are members of Pacific Asia Travel Association (PATA) and the Indian Ocean Tourism Organization (IOTO), which are important regional fora of the tourism industry. Participation in PATA and IOTO activities, conferences, seminars, exhibitions and support programmes is to be enhanced and sustained. 8.1 Bilateral Relations Pakistan has signed bilateral agreements, MoUs and protocols on tourism cooperation with friendly countries around the world. However, the progress on implementations on these MoUs / Agreements remains slow mainly due to limited coordination and financial constraints. An internal mechanism is to be evolved by the Ministry of Tourism for speedy implementation of the same. Priority areas especially for tourist generating countries are to be identified besides focusing on friendly countries.

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8.2

Multilateral Relations Many countries have included cultural diplomacy and image-building through promotion of tourism as essential part of their diplomatic moves. Pakistan has also to focus on projection of its unique and diverse cultural and natural heritage and friendliness of its people through a well-coordinated effort of celebrating cultural events at home and abroad. Funds for the purpose are to be pooled by the Ministry of Culture, Ministry of Foreign Affairs, Ministry of Tourism and all other stakeholders.

8.3

Regional Relations Pakistan has been actively participating in regional organizations like SAARC, OIC, ECO, ASEAN, EU etc. to jointly work toward economic cooperation and regional development. Tourism has always been a part of main initiatives being launched by these organizations. An increased level of participation with funds allocation is what is needed today.

8.4

International Obligation on Environmental Sustainability: Given the Pakistan tourism sectors reliance on the natural and cultural environment, the

sustainable use by the industry and others, is essential. In that context, the tourism sector and protected area managers are natural partners in the protection of the environment, for its presentation to the broader community, and for the generation of resources to facilitate sustainable management practices. The Federal government is a signatory to a range of international conventions relating to environment and trade issues on the protection and conservation of tourism resources. International co-operation on these emerging issues, in collaboration with provincial, national, and international institutions would be taken into account.

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9.

LEGAL AND REGULATORY FRAMEWORK OF TOURISM SECTOR There are more than twenty federal and provincial legislative acts, orders, rules and other

statements concerned with tourism and associated activities and involvements. These are in addition to three main acts covering the hotels, travel agents and tourist guides. There are legal disciplines covering: Immigration regulations Environment Police registration of foreigners Movement and entry of foreigners in Gilgit-Baltistan Mountaineering and trekking regulations Porters Hunting of Wildlife and fishing Foreign Currency regulations Foreign Investment Regulations prohibiting cultural/recreational/shows/dances etc. in public places. Movement and entry of foreigners in Azad Kashmir Prohibiting foreigners from visiting areas such as the Khyber Pass Regulations for foreigners visiting various places in Balochistan province, Other regulations pertaining to foreigners visiting restricted areas of the country. Restriction on dress for foreign women. Granting visas to various nationalities Foreigners staying in hotels

19

Three Acts i) The Travel Agencies Act, 1976 and Rules, 1977. The Act is intended to regulate the travel trade and almost all the travel agents are licensed by the Department of Tourist Services (DTS) which was established by the Federal Government to attain the objects of the regulation. The Travel Agencies Regulatory Committee is advisory body, under the Act. All the travel agents, licensed under this act, have to meet certain service standards for protecting consumer particularly against financial failures of licensed travel agents. Haj Umra Tours, despite part of religious tourism, are not regulated under the Pakistan Travel Agencies Act 1976 (sub-section c of Section 5). Due to this anomaly, Ministry of Religious Affairs has taken over the assignment. Traveling as well as arranging of accommodation/local transport etc., for

religious/pilgrimage tours or for any other business is an integral part of travel trade all over the world. As such, being a complication, Section 5-C from the Pakistan Travel Agencies Act 1976 warrants to be deleted. ii) The Pakistan Hotels & Restaurants Act, 1976 and Rules, 1977. This legislative

instrument is intended to control the standards of service and amenities provided in Hotels or Restaurants. Every owner of a Hotel and a Restaurant is under obligation to get his respective establishment registered/categorized with the Department of Tourist Services. Presently the law is being amended to re-invent a better mechanism for regulation of hotel trade in Pakistan.

iii)

Pakistan Tourist Guides Act, 1976 and Rules, 1996. The Tourist Guides Act was

enacted to regulate the profession of tourist guides in the country. The recent developments include benefits extended by the Federal Government to the adventure tourist guides of GilgitBaltistan by lowering the educational and professional qualification alongwith remissions in the registration and annual fee structure. The Tourist Guides Rules were amended and educational criteria were lowered from B.A. to Intermediate while conditions of professional experience and of a Diploma from Government Institutes were deleted from the criteria. 20

10.
i.

INCENTIVES AND CONCESSIONS

Tourism has been declared as an Industry. All tourism facilities would be treated as industrial concerns and would qualify for the same benefits, concessions and treatment as is extended to other recognized industries. Plant, Machinery & Equipment (PME) and other items required for setting-up, up-gradation and expansion of tourism projects are allowed on duty-free import duty and zero percent sales tax. 100% foreign equity is allowed in infrastructure, services and manufacturing industry. Equal treatment is offered to foreign and domestic investment. Permission is not required for setting up of Tourism Projects in Private Sector. Initial depreciation is available @ 50% in addition to normal depreciation allowable @ 10% on all depreciable assets. This incentive practically operates as universal tax holiday as income may not generally be liable to tax for a period of five to six years because of carry forward of unadjusted depreciation loss. Payment of withholding tax at import stage in respect of plant machinery, equipment and parts - concessionary treatment of withholding tax @ 1% is available under clause (9) of Part-II of the Second Schedule to the Income Tax Ordinance, 2001 for the goods/items falling under sales tax zero rated regime. Permission of the State Bank of Pakistan is not required for repatriation of profits from tourism projects. Full repatriation of capital, capital gains, dividends and profits is allowed. However, the share of non-residents is required to be registered with State Bank of Pakistan. Foreigners/local and Overseas Pakistanis can open foreign exchange accounts. Foreign investment is welcome. However, it is the prime responsibility of all parties concerned to ensure that foreign exchange has been raised through legitimate transactions and not through money laundering etc. Chartered flights are allowed on point-to-point basis from Karachi, Lahore, Islamabad and Peshawar. Helicopter chartered flight service is allowed anywhere in Pakistan. Work visas are granted to foreign technical and managerial personnel for the purpose of transferring skills and know-how, the work visas can be issued for a period up to 5 years. Visa On Arrival (VOA) to tourists from 24 tourist friendly countries for one month validity and multiple entry is allowed. 21

ii.

iii. iv. v. vi.

vii.

viii.

ix. xi.

xii. xiii. xiv.

xv.

xvi. xvii.

Pakistani missions abroad have been authorized to grant tourist/visit visa for 3 months validity and stay with double entry.

Gwadar has been declared as tax free zone. Gwadar Development Authority would identify areas for Beach Tourism Resorts. xviii. Due to longer gestation period of tourism projects, 10 years tax exemption is given to tourism projects throughout the country. xix. Tourism is essentially a service industry requiring highly trained human resources Tourism training Institutes/Tourism Departments of Universities are considered as Tourism projects and are allowed all relevant benefits. Taxes levied on hotel industry have been abolished, rationalized and simplified as under; a. b. c. Bed tax levied on hotels by Provincial Governments has been abolished. Sales tax on hotel industry has been reduced to 10%. All other taxes and fees currently being charged by Federal, Provincial, Local Governments and Public Sector Organizations have been rationalized and clubbed into following three categories; xxi xxii. Federal Hospitality Tax (FHT) Provincial Hospitality Tax (PHT) Local Hospitality Tax (LHT)

xx.

Where government land is available it would be provided on soft terms for establishment of Tourism related Projects. Finance/Loans would be provided for tourism related projects at reduced mark up rates and period for carry forward of business losses has been increased from 6 years to 10 years.

xxiii. Electricity and Gas to tourism projects would be provided at industrial tariff. xxiv. Revolving Credit Line of Rs. 50 billion has been created. xxv. All incentives and concessions shall be equally applicable to both the Public and Private Sector tourism organizations, establishments and projects.

22

11). CONCLUSION
Pakistan has a long way to go before it can tap its fullest potential to become nationally and internationally popular tourist destination. The tourism potential is marred by inadequate and substandard tourism facilities. There is also lack of integrated approach to tourism potential. Ministry has undertaken the vital function of coordinating tourism development efforts of provinces, stakeholders Ministries and private sector. With a view to create an enabling environment, the Ministry has proactively offered a package of fiscal, monetary, support and facilitation incentives to encourage private sector to come forward and join hands with public sector organizations for the creation of tourist facilities. Tourism being a multi-dimensional industry the role played by indirectly related organizations dealing with electricity, water supply, sanitation, communication, roads and protection of tourists is no less important. These organizations are also being taken on board to create a synergetic approach for all encompassing development of tourism in the country.

*****

23

TABLE NO. I TOURIST ARRIVALS 2000-2009 S. No 1 2 3 4 5 6 7 8 9 10

Source:

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(Figures in Thousand) 556.7 499.7 498.1 500.9 648.0 798.3 898.4 839.5 822.8 872.9

Immigration, Ministry of Interior, Government of Pakistan -

TABLE NO. II NON-INDIAN TOURIST ARRIVALS 2000-2009 S. No 1 2 3 4 5 6 7 8 9 10

Source:

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(Figures in Thousand) 490.6 441.3 495.4 493.8 628.3 738.7 828.2 791.3 768.7 831.3

Immigration, Ministry of Interior, Government of Pakistan

TABLE NO. III TOURISM FOREIGN EXCHANGE RECEIPTS 2000-2009 S. No 1 2 3 4 5 6 7 8 9 10

Source:

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
State Bank of Pakistan.

(Figures in Million US$) 84.4 92.2 105.4 135.6 185.6 185.3 260.1 276.1 243.5 207.7

24

TABLE NO. IV ACTUAL/PROJECTED FOREIGN TOURISM GROWTH AND EARNINGS (2004-2013)

Arrivals excluding Indian & Afghan Nationals (Figures in Million) (a) Foreign Exchange Earnings (In Million US $) (b)

YEAR

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0.511 0.661 0.743 0.711 0.778 0.742 (P) 0.794 0.858 0.944 1.048

185.6 185.3 260.1 276.1 243.5 207.7 (P) 222.2 240.0 264.0 293.0

Source: (a) The 2009 non- Indian foreign tourists, 0.742 (P) million are estimated to grow at 7 percent in 2010, 8 percent in 2011,
10 percent in 2012, 11 percent in 2013 will occur due to major structural changes which will give boost to tourism such as, introduction of charter flights, five years tax holiday to tourism industry through out the country, granting of Industry status to tourism sector, Deemed Export status to tour operators and travel agents, effective marketing, setting-up of Tourism Investment Corporation, safeguards to foreign investment, relaxation in liquor sale, importation of built up factory-fitted air-conditioned coaches, importation of equipment for adventure sports activities free of custom and sale tax and finally liberalization of visa policy. Source: (b) Foreign Exchange Earnings US $ 207.7 (P) million are during 2009 are estimated to grow at 7 percent in 2010, 8 percent in 2011, 10 percent in 2012, 11 percent in 2013 on account of structural changes in the nature and type of foreign tourism expected as a result of implementation of this policy e.g. ease in restriction and entertainment, enclave tourism and price increases, etc.

TABLE NO. V ACTUAL/PROJECTED IMPACT OF TOURISM ON EMPLOYMENT GENERATION (Nos.000) Projected job 590 625 667 718 724 746 771 798 832 871

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Note:

The employment in tourism sector has been estimated using average G.N.P. per job in the overall economy. During 2000,the countrys G.N.P. at current factor cost was Rs. 3546839 million while employed labour force was 38.80 million as given in the Economic Survey 2004-05. It yields average G.N.P.per employed labour equal to Rs.91413. Using this quotient we have worked back employment in tourism from G.N.P.generated by this sector.

25

S. No

1 2 3 4 5 6 7 8 9 10
Note: a) b)

TABLE NO. VI ACTUAL/PROJECTED PUBLIC REVENUE FROM TOURISM (Rupees in Million) Year GNP Generated Projected Tax by Tourism Revenue (a) (b) 2003-2004 53952 3830.592 2004-2005 57167 4058.857 2005-2006 60931 4326.101 2006-2007 65593 4657.103 2007-2008 66147 4696.437 2008-2009 68205 4842.555 2009-2010 70447 5001.737 2010-2011 72982 5181.722 2011-2012 76064 5400.544 2012-2013 79593 5651.103
Taken from Table No. VIII The average national tax rate as given in the Economic Survey 2005-06 is 7.1 percent of the G.N.P The same quotient has been used here to work out estimates of public revenues from Tourism.

S. No 1 2 3 4 5 6 7 8 9 10

TABLE NO. VII ACTUAL/PROJECTED HOTEL ROOMS & RESTAURANT SEATS. (Nos) Year Hotel Rooms Restaurant Seats (A.C) 2004 37391 20639 2005 38183 22989 2006 41146 25814 2007 43499 27616 2008 41221 40272 2009 44106 43091 2010 47635 46538 2011 52398 51192 2012 58162 56823 2013 64560 63074

Note: The rates of increase are assumed at 7 percent in 2009, 8 percent in 2010, 10 percent in 2011, 11 percent in 2012 & 2013 (2004 to 2008 is actual data)

26

S. No 1 2 3 4 5 6 7 8 9 10

TABLE NO. VIII ACTUAL/PROJECTED TOURISM CONTRIBUTION TO THE GNP (Rupees in Million) Year Foreign Tourism Domestic Tourism Overall GNP from Tourism 2004 9825 44127 53952 2005 10759 46408 57167 2006 13199 47732 60931 2007 16906 48687 65593 2008 16486 49661 66147 2009 17551 (p) 50654 68205 2010 18780 51667 70447 2011 20282 52700 72982 2012 22310 53754 76064 2013 24764 54829 79593

Assumptions: 1) While calculating the contribution of Tourism to the G.N.P expenditure approach has been used. 2) Foreign Tourism contribution to GNP is Rs.17551(p) million in 2009 and is estimated to grow at 7 percent in 2010, 8 percent in 2011, 10 percent in 2012 and 11 percent in 2013. 3) Domestic tourism contribution to G.N.P from 2001 to 2006 is taken from the report, Tourism Gross Domestic Product and Public Sector Revenue, Ministry of Tourism, March 2001, which is prepared on the basis of goals and targets given in Tourism Master Plan-2000. The figures beyond 2006 have been projected at the rate of 2 percent per annum as given in the Tourism Development Master Plan.

S. No 1 2 3 4 5
Source:

TABLE NO. IX COMPARATIVE ARRIVALS OF TOURISTS FORM ABROAD (In Thousands) Nationality 2003 2004 2005 2006 2007 India 2726 3457 3919 4447 5082 Malaysia 10577 15703 16431 17547 20973 Sri Lanka 501 566 549 560 494 Turkey 13341 16826 20273 18916 22248 Thailand 10082 11737 11567 13822 14464
Year Book of Tourism Statistics, UNWTO-2009 Edition.

S. No 1 2 3 4 5
Source:

TABLE NO. X INTERNATIONAL TOURISM RECEIPTS (In Million US$) Nationality 2003 2004 2005 2006 2007 India Malaysia Sri Lanka Turkey Thailand 4463 5901 441 13203 7856 6170 8203 513 15888 10043 7493 8846 429 18152 9577 8634 10427 410 16853 13393 10729 12905 385 18487 16667

Compendium of Tourism Statistics, UNWTO, 2009 Edition

27

Annexure - I

TYPES OF PROJECTS WHICH CAN BE DECLARED AS TOURISM PROJECT

1. Tourist Accommodations: Hotels, motels, lodging houses, log cabins, tourist hunts, guest houses, chalets, camping grounds, mobile caravans, rest houses and youth hostels. 2. Tourist Transport: A. Surface Transport: i. Tourist Coaches and Buses equipped with luxury seats, mike system and wide view windows and preferably space on the lower side of vehicles for luggage. B. Air Transport i. Air transport such as helicopters/small planes ii. Chartered flights. C. Sea/River Transport i. River transport such as speed boats, passenger launches, small ships and yachts. ii. Fiber glass boats. (The Ministry of Industries has pointed out that transport has already been declared as an industry) 3. Entertainment and Recreation: Play-land/Fun-land projects, Chairlifts and Disney-land type parks. 4. Convenience & Facilitation for Tourists: Manufacturing tents and mountaineering equipment (already covered as industry) Handicrafts manufacturing and handicraft villages, tinned food, trekking and mountaineering food manufacturing. 5. Other Projects: a. Restaurants b. Bowling Alleys c. Athletic and health clubs d. White water sports e. Amusement Parks (Minimum size and areas as designated by the Ministry of Tourism)

28

Annexure-II
A) MEASURES FOR THE PROMOTION OF TOURISM IN KAGHAN VALLEY

Kaghan Valley is regarded as Switzerland of Pakistan. Balakot is the gateway of this Valley. The natural beauties of this Valley start from Balakot and stretch upto Babusar Top. The livelihood of 60 percent of the population of this Valley is linked with tourism. The devastating earthquake of 8th October, 2005 had badly affected this Valley and particularly its Balakot Tehsil. People had lost not only their near and dear ones and dwellings but also their shops, hotels and business houses. This devastation had, as such, adversely affected the entire economy and the tourist industry of this Valley. In order to properly rehabilitate the affected persons and families attached with this industry, the Government of Pakistan has adopted Area Specific Measures for this Valley in its National Tourism Policy with following set of measures: i) INFRASTRUCTURE a) The area is rich in lakes and meadows. On priority basis tourism facilities at Lake Saiful Muluk and Lake Lulusar and Meadows Lalazar and Sari paya will be upgraded and modern boating facilities will be provided at Lake Lulusar. b) Proper approach roads will be provided to at least three other lakes and six other meadows of the Valley. c) Trekking trails at Ansoo Lake, Hansgali, Kachgali, Musa Ka Musala, Paya and Makra would be developed to attract adventure tourism in Kaghan Valley. d) Chairlifts / Cable-cars would be installed at two properly identified areas in the Valley and skiing and winter tourism in the valley will be promoted. e) Medical services. telecommunication link, public transportation will be improved and upgraded and generation of local hydel power would be encouraged. f) Trout fishing would be encouraged through improved breeding and regulation. ENVIRONMENT, CONSERVATION, ADVENTURE AND ECO-TOURISM a) Preservation of natural assets of the Kaghan Valley should be ensured through proper land use planning and creating tourism development zones at suitable locations.

ii)

29

b)

c)

d)

The existing bareness and gloom prevailing between Balakot and Lulusar / Gittidas will be eliminated through a large scale reforestation project in Kaghan Valley. Development of proper sewerage and waste-management system need to be developed for all the main towns and settlements in the Valley. Government should provide grants and soft loans to start River rafting, rock climbing, mountain biking, jeep safaris, and paragliding enterprises at suitable locations to encouraged activity based tourism.

iii)

MARKETING PROMOTION a) Through press and electronic media, efforts will be made to market Kaghan Valley in the affluent large cities of Pakistan; and short documentaries and celebrities' observation about tourist attractions will be highlighted. b) Proper coordination between PTDC, STC, TDCP and tour operators will be made in up-grading their services for tourists and promoting at domestic and in international markets the Kaghan Valley as nature and adventure tourism destination through proper marketing.

iv)

HUMAN RESOURCE DEVELOPMENT Mobile tourism and hotel management institute will be set up by the Ministry of Tourism at Naran and Balakot for conducting short duration courses for the local youth for training and skill development in trades related with hotel industry, tourist guides, trekking/fishing and nature guides and jeep drivers. INVESTMENT / INCENTIVE a) The Government of Pakistan will declare tax holiday from all taxes for at least five years for this Valley to compensate losses caused due to earthquake of 2005 and to encourage new investment in Kaghan Valley. b) Banks will be motivated to provide soft loans for renovation, upgradation and building of new hotels and other facilities in Kaghan Valley. TOURISTS SECURITY Tourists security will be ensured by creating institutional framework to deal emergencies and to improve law and order condition in the valley.

v)

vi)

30

B)

MEASURES FOR THE PROMOTION OF TOURISM IN SWAT VALLEY

1) Immediate Measures i. Compensation may be provided for losses suffered by the Hotel Industry in Sawat Valley during last three years i.e. 2007-2009. ii. Interest free loans be provided for up-gradation of Hotels in Sawat. 2) Roads i. Steps be taken for repair, widening and metalling of damaged roads. ii. Roads leading to tourist attractions in Swat valley be constructed. 3) Wild Life Park i. In order to attract tourists in the area a wild life park will be established in Swat. 4) Park in Mingora i. A good quality Park be established in Mingora. 5) Picnic and View Points i. Picnic points at be established at various locations. 6) Status of Industry to Hotels i. Status of Industry be given to Hotels in Swat. 7) Walking Treks and Trekking i. Walking treks be built to attract trekkers in the area. 8) Air Service i. Air Service to the Area be restored. 9) Chair Lift & Cable Car i. Chair Lift and Cable cars be installed in Swat Valley. 10) Cultural Sites i. There is a need for publicity and promotion of cultural sites of Swat. 11) Tourist Information Centre i. A Tourist Information Centre be established in Mingora.

31

C)

DEVELOPMENT OF COASTAL HIGHWAY

The virgin coastal belt stretches along the coastal highway in Sindh and Balochistan and have a great potential for development of coastal and beach tourism. The Coastal Highway is also referred to as National highway 10 or N10. The length of this Highway is 653 Km with 2 lane facility. The journey time with construction of Highway has been reduced to six to seven hours. 2. The main tourist attractions on Coastal Highway are: Gaddani Beach: It is a beach on the Arabian Sea near the Hub river in Gadani, Lasbela District of Balochistan Province. Gadani is at about two hours drive from Karachi. The beach is sandy, the sand is white and sea water is clean and pure blue. View of the beach form the near Rocks is spectacular. Kund Malir (Hingol National Park):- is the largest National Park of Pakistan. It is on the Makran Coast in Balochistan and is spread over 6,000 sq. km (619,049 hectares).. It extends over 3 Districts viz. Lasbella, Gwadar and Awaran. It was designated as a national park in 1988. The park has long stretch along the coastline on its southern boundary. Most of the areas of the park are hilly with valley some of which have a few agriculture fields. In the southern parts of the park, there is a desert between seacoast and hills. The shrine of Devi Hinglaj, the holiest among the 51 Shakti Peeths of Hinduism is situated in the park. It is located 15km from the main road. Thousands of pilgrims visit the site each year to pay homage to the Devi. The park forms an excellent habitat to wild Sindh Ibex, Afghan Urial and Chinkara Gazelle. Ibex is found in all steep mountain ranges and numerous in the Hinglaj and Rodani Kacho Mountain areas. Ormara:- is a port city (250 16 29N 640 35 10E) located Makran Coastal Highway in Balochistan. It is located 240 km west of Karachi and 230 km east of Gwadar on the Arabian Sea. Ormara is an old coastal town. Its historical routes are linked with Alexander the Great, who stayed here with his army for a few days on his way back from Indus in 400 BC. One of his generals Ormoz died here and the present day Ormara was named after hi. Being an isolated town, it remained undeveloped, however with the naval presence around, life has taken a positive change for the locals with many local industries and the resultant increase in jobs available for the locals. It has a population of about forty thousand people and still offers a traditional look at how the ancients lived. Ormara is one of the most beautiful and blessed with nature and tourism venture town on the coastal highway. A beautiful long beach around the edge of Ormara makes it really amazing for tourist to come and experience the beautiful outings. Amazing blue Green beaches, Golden sand, and incredible natural beauty and fauna, Ormara is the unseen tourist attraction of Pakistan, through out the year. Hospitality of the local people and the beach hut at Ormara Beach Resort city makes this destination just perfect for tourists. Pasni :- is a medium-size town and a Fishing Port located around 300 km from Karachi on Makran Coastal Highway. The topography of the area is marked by low jagged hills of the Makran Coastal Range, while flat land is more common towards the coast. The un-spoilt and pristine beaches of Pasni offer some of the most enchanting sceneries along the Arabian Sea. Shadi Kaur (river) fed by adjoining rain water streams, drains into the Arabian Sea just north of the town. Vegetation is sparse and consists mostly of hardy desert shrubs. The town houses a modern fish harbour and Port of Pasni, with fishing being the main occupation of the town dwellers. 32

Gwadar:- is located on the south-western coast of Pakistan, on the Arabian Sea. It is located between three increasingly important regions: the oil-rich Middle East, heavily populated south Asia and the economically emerging region of Central Asia. Gwadar has a long historical background. Until 1958 Gwadar was part of Oman but was transferred to Pakistan on 8 September 1958. It is integrated within the Balochistan (Pakistan) on 1st July 1977 and became a full sub-division of the Gwadar District. Gwadars location and history have given it s unique blend of cultures. The Arabic influence upon Gwadar is strong as a consequence of the Omani era and the close proximity of other Arab-majority regions. Jiwani:- is a town and commercial port that is located along the Arabian Sea in the Gwadar District of the Balochistan. It is located near the Pakistani border with Iran. The town has a total population of 25,000 and is expected to become a major commercial center in performance with the development of the port Gwadar located nearly 100 km to the east. The area around the Jiwani bay includes an important mangrove forest extending across the international border, and is an important habitat for a wide variety of wildlife, especially the endangered Olive Ridley and Green Turtles.

A three-pronged development strategy is proposed to fully tap the potential of the area: a. Luring international investors and beach developers through a transparent and attractive investment policy. b. Development of basic infrastructure and provision of utilities c. Implementing a well-coordinated each tourism development plan by the Federal and Provincial tourism organizations. D)

DEVELOPMENT OF PALAS VALLEY

Palas is a valley in Kohistan District and is 335 KM from Islamabad on Karakurum

Highway (KKH). The Palas Valley is located on the left bank of the river Indus falling under the jurisdiction of Tehsil Palas and Kohistan Forest Division. The locality of the tract varies from 34-52' to 35-16' north latitude and 72-52' to 73-35' east latitude. It is bounded on the north and north-east by Jalkot valley, on the east by Kaghan, on the south by Allai and on the West by the river Indus. The most important habitat for 11 bird species is West Himalayan temperate forest; the Palas Valley includes the largest single tract of this habitat in Pakistan, much of which is relatively undisturbed. Eight of the 11 characteristic species of the Western Himalayas birds occur in the Palas valley, and the population of Western Tragopan in the Palas valley is believed to be the largest remaining in the world. Palas also contains many rare and/or threatened mammal species, and is a centre of plant endemism and diversity. Palas is the only valley in Pakistan where four pheasants species occur in one forest tract.

33

2. i.

The main places for tourist attraction in Palas alley are:Sherakot:Sherakot is located on the first route of the valley this place is 335 KM from Islamabad on Karakoram Highway (KKH) to Gilgit and 25 KM from Pattan City. The road from Pattan to Sherakot is single and jeep-able. However construction works is in progress and expected to be completed by December, 2010. The height (from the sea level) of Sherakot is 7000 feet, the top of the Sherakot is full of thick and lush green forest the weather is pleasant in summer and the average snow fall in winter is about 4 to 5 feet. This place is suitable for Tourist Resort. This place is located on the same road and is 15 KM away Barsheryal:form Sharakot toward Moro Mali. The construction of road is in progress and expected by the end of 2010. This place is like a Base Camp for Moro Mali. Barsheryal is surrounded by thick and lush green forest. Track from Barsheryal to Moro Mali is covered by thick and lush green forest. There are beautiful water falls and springs on Barsheryal to Moro Mali track. Moro Mali is a lush green area of about 30 sq. KM Moro Mali :surrounded by a necklace of beautiful forest at an height (from the sea level) of 9500 feet. The place is ideal for development of Tourist Resort. There are two tracks to reach Moro Mali i) Pattan to Barsheryal via Sherakot, and ii)Pattan to Paro and Paro to Moro Mali via Dam Singh road.

ii.

iii.

34

E)

Medical Tourism

Traveling far and wide for health care that is often better and certainly cheaper than at home appeals to patients with complaints ranging from heart ailments to knee pain. Medical Tourism is a new term but not a new idea. Patients have long traveled in search of better care. Today, constraints and long waiting lists at home, as well as the ease of global travel, make medical tourism more appealing. Medical Tourism is a rapidly-growing practice of traveling across international borders to obtain Health Care. 2. The healthcare travel industry is growing at 15 to 20 per cent annually. The travel and hospitality sectors have still not realized the wide array of opportunities in this emerging market. Travel agencies, hotels, resorts, hospitals, spas, airlines and other related businesses need to fully understand their role in this market and how they can tap on these untouched opportunities. 3. Key Issues for Medical Tourism in Pakistan: a. Upgradation of Existing Infrastructure/Facilities: Government of Pakistan and Financial institutions should invest in medical tourism. Up gradation of basic amenities and hospitals infrastructure, co-ordination between the health care and tourism sectors required. Creating a resource pool of highly skilled and cordial manpower and standardization of services and accreditation of hospitals is another area for improvement. b. Medical Tourism bring benefits for everybody: Pakistans travel and hospitality sectors are currently facing an acute drop in their business due to the adverse affect of terrorism, negative travel advisories and hostile media coverage all over the world. They have been working desperately to find other avenues to keep their business going. However, even they have not yet explored the lucrative market of Medical Tourism, mainly due to lack of information and motivation. By working together for promotion of Medical Tourism, Health and Tourism Sector could support each other and reap the benefits for over all improvement of the economy. c. Cooperation between Tourism and Health Sectors: A National Conference on Medical Tourism should be organized jointly by the Ministry of Tourism, Ministry of Health and Pakistan Medical Association. The conference be attended by all stake-holders travel agents, tour operators, hoteliers, airlines, Medical and Tourism/travel Associations, hospitals, doctors, marketing professional, officials from the Ministries of Tourism and Health etc. Cooperation and coordination between Tourism and Health Sectors is essential for promotion of medical tourism.

35

ANNEXURE-III ACTION PLAN

A) Marketing Action Plan 1. The success of any Marketing action plan depends upon following factors; a. Political will and ownership at the highest level b. Sustainable allocation of government funds c. Pooling of resources and sharing of responsibilities between public and private sector stake-holders d. Resource mobilization through sponsorships to be supported by multinationals and media groups, leading travel agents, tour operators, hoteliers etc. 2. Creation of Pakistans National Tourism Logo, slogan, punch line, tagline mantra and theme video song to give a strong brand image and identity to Pakistan. These should be subsequently launched on international and domestic level simultaneously. (Ministry of Tourism/PTDC) 3. Appoint dedicated marketing agency to help execute entire marketing action plan. (Ministry of Tourism/PTDC)

4. Enhanced and professional participation in leading Trade Fairs and Exhibitions i.e. ITB Berlin; WTM London, BITE Beijing; JATA Tokyo, PATA Travel Mart, SATTE New Delhi; ATM Dubai, Vakantiebeurs, Utrecht, The Netherlands, FITUR Madrid, KOTFA Seoul, ASTA Travel Mart USA. Pakistan Pavilion to feature entertainment elements like folk music, dances etc. to attract crowds and represent a soft image. Provincial tourism organizations, PIA and private sector should also join in as co-exhibitors A Pakistan Tourism Day (Festival) should be held before the major trade shows and it should be opened to public. Cultural troupe exchanges should be undertaken to promote interregional travel. (Ministry of Tourism, All Stakeholders) 5. Participation in internationally recognized tourism promotional events is categorized as under; a. Obligatory: World Tourism Organization (WTO) General Assembly. (Already Declared) Meetings of WTOs Commission for South Asia. (Already Declared) Annual Islamic Conference of the Ministers of Tourism of the OIC member States. (Already Declared) Pacific Asia Travel Association (PATA)-PATA Annual Conference(Already
Declared)

IOTO Annual General Meeting (Proposed) PATA Board Meeting and PATA Travel Marts (Proposed) ITB Berlin, BITE Beijing (Proposed) SATTE New Delhi, WTM London, JATA World Travel Fair Tokyo Vakantieburs, ATM Dubai (Proposed)

b.

Desirable: All other international tourism promotional events. 36

(Ministry of Tourism) 6. Participation in the financial, development and technical assistance programmes, special projects and initiatives launched by the UNWTO, PATA and other international donors would henceforth be considered mandatory. (Ministry of Tourism) 7. Mobilizing of PIA offices and Pakistani Missions aboard to establish tourism desks and promotional racks to be displayed in other markets. (PIA, Pakistani Mission Abroad) 8. Commercial and Press Counsellors posted in Pakistani missions abroad and PIA Officers should undergo pre-posting training and orientation sessions on tourism products of Pakistan and their responsibilities in marketing and investment in tourism sector. A proactive marketing approach and better coordination between these key positions and Pakistans public and private sector tourism organizations shall bring the desired results. (Ministry of Foreign Affairs/PIA) 9. Free Tourism Booth in all trade fairs being participated by Trade Development Authority of Pakistan (TDAP). (TDAP) 10. Active role by TAAP, PHA, PATO and PATA Pakistan Chapter and Public Sector Tourism Organizations (PSTOs) to arrange tourism & travel exhibitions in Pakistan. (TAAP/PHA/PATO/PATA/PSTOs) 11. Federal Government, Provincial Governments, Gilgit-Baltistan and Azad Jammu & Kashmir would pool resources for production of unified, standardized and quality tourist literature to economize expenses and to make consolidated efforts. (All Federal and Provincial Tourism Corporation & Departments) (Ministry of Tourism, PTDC) 12. Groups of leading travel agents, tour operators, travel trade media, TV teams, travel writers, travel-photo journalists, scholars and the world celebrities from the target markets/countries will be invited to Pakistan on familiarization trips on a regular basis in coordination with, and support of all stake-holders. (Ministry of Tourism/ PTDC/ Provincial Tourism Organizations Pakistani Missions/PIA) 13. Redesign and introduce new user-friendly / interactive website highlighting all products and related services. PIA and other airlines to provide links on this website for online bookings and inquiries. Prepare e-marketing campaign. (Ministry of Tourism, PTDC) 14. Mass-production and liberal distribution of high quality publicity material like video documentaries, interactive CDs, information leaflets, product brochures, posters, view-cards, maps, guidebooks give-away items in multiple languages. Provision of high quality printed 37

and electronic tourist kit, travelogues, brochures and audio/video material on tourism to Pakistan Missions Abroad. (Ministry of Tourism/PTDC/Provincial Tourism Organizations /Pakistani Missions /PIA) 15. A single page consolidated pictorial calendar of events would be published showing the dates of various festivals like Sibi Mela, Horse and Cattle Show, Shandur Polo, Mela Chiraghan, Basant, Death Anniversary Celebrations (Urs) of the many saints etc. (Ministry of Tourism/ PTDC/Provincial Tourism Organizations) 16. Market tourism domestically using state run TV and Radio as a medium. PTV, PTV World, GEO TV etc would broadcast travel documentaries on Pakistan on a regularly featured weekly show in order to project tourism. This is especially important in a regional context and using PTV World as medium. (Ministry of Tourism/ PTDC/Provincial Tourism Organizations/PIA) 17. Liberal policy of granting visas to SAARC, ASEAN and Chinese nationals if traveling in groups and operated by licensed tour operators in Pakistan is being adopted. (Ministry of Foreign Affairs / Ministry of Interior) 18. Special discounted air and train fares for tourists are being introduced to promote domestic and intra regional travel within the SAARC and ASEAN. (Ministry of Defence, PIA, Ministry of Railways / Pakistan Railways / PRACS) 19. Prominent national and international celebrities are being appointed as Tourism Ambassadors of Pakistan. Positive comments about Pakistan will be sought and utilized for marketing campaigns from international celebrities. (Ministry of Tourism/ Ministry of Foreign Affairs) 20. Launching of regular, sustainable, targeted and result-oriented advertising campaigns on national and international print and electronic media. Use of Cable Network, E-marketing, FM Radios, SMS, handbills, hoarding, banners, city branding would also be used for effective marketing. (Ministry of Tourism/ PTDC/Provincial Tourism Organizations/PIA) B) Development Action Plan i. PTDC, in coordination with Balochistan Government and Gwadar Development Authority, would prepare and implement a Beach Development Plan along the Coastal Highway. Ministry of Tourism/PTDC/ Govt. of Balochistan/GDA Establishment of Tourist Facilitation Centers at all provincial and Regional capitals, furnished with latest office equipment including telephone, fax, computers, UPS, internet facility managed by professional, trained, smart and willing workers. Ministry of Tourism/PTDC For promotion of youth tourism, Pakistan Tourism Development Corporation (PTDC) and Pakistan Youth Hostels Association would assume the responsibility of 38

ii.

iii.

establishing youth hostels and camping grounds. Ministry of Tourism/Ministry of Youth Affairs/PTDC/PYHA iv. Hospitality and tourism training institute(s) will be up-graded by getting them affiliated with the Boards of technical educations of the provinces, foreign and domestic universities etc. Similarly the existing universities will be persuaded to establish their own hospitality and tourism management departments as has been done by the universities of Punjab and Hazara. Ministry of Tourism, Provincial Tourism Departments and Universities Through better coordination and interaction between the Federal and Provincial Tourism entities, tourism development projects would be implemented so as to avoid duplication, overlapping and wastage of resources. Ministry of Tourism, Provincial Tourism Departments

v.

C)

Action Plan for Tourist Facilitation i. In order to improve facilitation and handling of tourists at airports and entry points, periodic training and education of personnel from immigration, security and health checks will be carried out. Ministry Interior, CAA, Pakistan Customs, Ministry of Tourism ii. Facilitation counters at the airports would be taken care of by professionally trained personnel of PTDC and Provincial Tourism Corporations. PTDC, Provincial Tourism Corporations/Departments iii. iv. v. A tourist would be allowed to photograph or film tourist attractions. Ministry of Tourism and Provincial Tourism Departments The security of tourists is to be accorded greater emphasis. Ministry of Tourism, Ministry of Interior and all Stakeholders Immigration officials at airports and entry points and Counselor Sections in our Missions abroad will display updated visa rules at prominent places. Visa issuing authorities would exhibit greater courtesy and hospitality. Visa Officers would undergo training from the approved Tourism Institutes. Ministry of Tourism, Ministry Interior, Ministry of Foreign Affairs Permits to visit places of tourist interest and historical forts and museums etc. will not be cancelled without a notice of minimum 15 days in advance. Ministry of Tourism, Ministry of Culture and Provincial Tourism & Culture Departments Separate counters would be established inside the International Arrival Lounges for issuance of Visa on Arrival (VOA). Ministry of Interior, Ministry of Tourism

vi.

vii.

39

viii.

Tour operators will arrange insurance cover for the tourist groups handled by them. The existing requirement of police registration and restriction of movement of foreigners (including stay in cantonment area hotels) would be minimized except where specifically required under security obligations. Ministry of Interior, Foreign Affairs, Defence and Ministry of Tourism Tourists coming in groups of 10 or more individuals shall be entitled to 50% concession in Visa fee, provided they had applied on Group Visa application form specifically designed for this purpose. Ministry of Interior, Ministry of Tourism At every tourist destination, soft-loans will be provided to qualified physicians for setting-up standardized medical clinics. Ministry of Finance, Ministry of Tourism Tourist Police shall be established for the tourist destinations. Ministry of Interior, Provincial Home & Tourism Departments, Ministry of Tourism Provision of public utilities especially pray area, washrooms and toilets at tourist attractions would be made obligatory for all gas stations and wayside hotels and keep these open for the tourists. Punitive clauses may be evolved by the concerned Ministry on the complaints, admitted by the Ministry of Tourism. Ministry of Petroleum & Natural Resources, Ministry of Tourism, Provincial Government Remuneration charged by M/S Askari Avaiation (Ltd) to carry out rescue operations for mountaineers are exorbitantly high, therefore, these should be made realistic. Ministry of Tourism, Askari Aviation Online help centres would be established by our foreign missions abroad and a report in this regard would be sent to the Ministries of Tourism and Foreign Affairs regularly. Ministry of Foreign Affairs, Ministry of Tourism

ix.

x.

ix. x.

xi.

xii.

40