‘Share of foreign tourists increasing in Pakistan despite turmoil’

GoZayaan Pakistan Managing Director Muhammad Komail Abbas has said that despite prolonged economic and political turmoil, tourism is gradually increasing in Pakistan and international travellers are heading towards the country in high numbers

GoZayaan is a Bangladesh-based travel startup that acquired Pakistan’s FindMyAdventure for $3.5 million a year ago. FindMyAdventure was founded by Muhammad Komail Abbas, who is now GoZayaan Pakistan’s MD.

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In its first year in Pakistan, GoZayaan facilitated over 80,000 travelers, with 12,000 foreign travelers and 68,000 domestic travelers. The company says that it has contributed $20 million to the local hotel industry and has been able to generate a revenue of $4 million.

Challenges faced by domestic tourism industry

The industry faces a large amount of challenges stemming from economic, political and security issues that impact the number of tourists visiting the country each year.

Terrorist attacks, violence and political instability have resulted in negative media coverage, making it difficult for Pakistan to attract international tourists.

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In addition, the inadequate infrastructure and lack of reliable accommodation, including poor transportation network and limited access to basic amenities further deter tourists from visiting the country.

Surge in tourism

Despite all of these challenges, the industry has seen a surge in tourism following the end of Covid-19 protocols, say people associated with the industry.

“With the depreciation of rupee, Pakistan is becoming a cheaper option for international tourists, and hence, the number of tourists visiting Pakistan is rising every year,” Abbas told Business Recorder.

“From the data available, approximately 12-15% tourists are foreign travelers, while the remaining 85% are domestic travelers. There is an increase in international travelers post Covid which was previously somewhere around 5-6%.”

“Rupee depreciation caused an increase in domestic tourism as international travel became expensive. Travelers prefer spending in rupee given the current economic environment.”

Meanwhile, Rocket Tourism CEO Fahd Vohra said the change in tourism policy such as ease in getting visas in 2019 has been the prime reason behind the uptick in international tourism.

“Since Covid-19 surfaced soon after the policy came into effect, we couldn’t see its results but as soon as pandemic protocols were lifted, there was a significant influx of tourists – both domestic and international,” Vohra told Business Recorder.

Tourism growth may trim amid high inflation

Vohra stated that tourism has so far shown a growing trend but he was now skeptical whether people would continue to travel following spike in high fuel price and unprecedented inflation.

Meanwhile, Abbas also said this will be the first tourism season where they will observe a proper impact of inflation on the market.

“Last year, fuel prices did affect travel plans for a lot of tourists, but generally did not impact other cost items. This year, the overall impact of inflation is expected to hit the domestic industry with increase in prices in almost every commodity, from electricity, gas to food and beverage items.

“The only factor that might mitigate a worse impact is the exchange rate climbing, which means tourists who are less impacted by inflation will choose to travel locally,” Abbas added.