Fate of PTDC

As 2011 draws to a close, a year which was declared "Year of Tourism", it is but an irony that the Pakistan Tourism Development Corporation (PTDC) is seeking help from government to keep it afloat. The PTDC has unfortunately joined the ranks of other state-owned enterprises (SOEs) with negligible revenue generation and extended delays in its employees' salaries. The problem with PTDC, according to news reports, is that the Ministry of Culture and Tourism, under which the corporation operates, has been devolved with the 18th Amendment. Yet the matter of devolving the PTDC and its assets is still stuck in the Inter-Provinces Co-ordination Division. Various reports being published since September suggest that the provinces and the federal government are more interested in the 39 motels, hotels and restaurants of the PTDC which are built on some prime real estate across the country. The federal government wants to retain these assets, which by some estimates amount to more than Rs 35 billion, while the provinces are seeking to get them under provincial control. This misplaced interest of policymakers on the corporation's real estate rather than on its operations is indicative of the malaise that has seeped in all public departments, where long-term national progress becomes secondary to power hogging and self-serving interests. The PTDC had already been struggling with decreasing revenues since the post-9/11 war on terrorism. Even before that, regional events such as the Iranian revolution and the first Afghan war closed doors on western tourists reaching Pakistan via land routes. Earlier this year, the managing director of the PTDC revealed that the corporation had lost revenues worth Rs 550 billion. Though the period during which these losses were incurred was not specified, it is still a staggering amount which has undoubtedly placed a burden on the corporation's operational capacity. The militancy in the north, the prime spot for tourism, has been one of the biggest reasons for the dwindling number of tourists. Additionally, devastating floods during the last two years and the 2005 earthquake have also added to the growing problems, with damage to PTDC's operations in Gilgit-Baltistan and Khyber-Pakhtunkhwa. Thus at a time like this, when the government's focus should be on a comprehensive strategy to expand the tourism industry in order to boost local economies, the myopic tussle of the federal and provincial governments is shameful. Instead of improving the already dismal governance record, the government is bent on repeating its past mistakes running the risk of driving this industry to the ground as well. It is imperative that the Rs 400 million bailout sought by PTDC should be given to manage the immediate crisis. The corporation has been asking for the much-needed funds since September when it asked only half the current amount. However, it must be realised that this is not a permanent solution to the problem. Wholesale changes on policy level are mandatory to revive this crippling industry. For short-term measures, till Pakistan's internal situation becomes more stable to attract foreign tourists, focus should be on promoting domestic tourism. Many former militancy-ridden areas in the north, like Swat and Chitral, have now been cleared and the situation has improved. But there is no mass media campaign on part of the tourism ministry to project their image as such. Additionally, the PTDC needs to shift its north-centric policy and focus on other tourist destinations in the country. The relics of our past, legacies of our Mughal and Indus Valley civilisation heritage are strewn across the country. Not to forget the majestic Khewra Salt Range, which in itself, is a natural wonder and a choice tourist destination. The newly-created provincial ministries of culture and tourism must focus on restoring and promoting these local tourist destinations. Such places would hold great attraction for already entertainment-deprived public, especially for those who cannot afford extended sojourns in the country's mountainous north. The policymakers are required to rise above their petty politics to develop a sustainable tourism industry in the country which is only possible through co-operation between federal and provincial governments while involving major public and private stakeholders. Copyright Business Recorder, 2012