TOURISM AND HOTEL INDUSTRY OF PAKISTAN

Pakistan has become an important destination for people looking to invest in new hotel development. Hotels in Pakistan have grown exceedingly after almost 5 years, with regards to how many people choose to occupy them and what the average rates are, and this growth is expected to further increase. Hotels are expected to perform better in yields by being consistently occupied and having higher average rates since Pakistan is on the rising curve of this trend cycle.

The feasibility of the development of a new hotel depends on the relationship between replacement costs and existing values for hotels. The cities in Pakistan have been ranked based on what the hotel value is per room and the cost-benefit ratio associated with them. The rankings can be used as a reference and they can enable investors to choose the city that requires development.

The Tourism and Hotel Industry of Pakistan is segregated by the type of tourism – Inbound and Outbound Tourism, where elsewhere the hotel industry is divided by certain standards classifying it as Economy and Budgeted Hotels, Mid-Scale and Upper-Scale Hotels, Premium and Luxury Hotels. On the other hand, the rest of the types of hotels are classified as Shared Living Spaces, Rented Apartments and Services Apartments, etc. This blog offers the market size and forecast of the Tourism and Hotel Industry in Pakistan.

Market Overview


The Pakistan Tourism and Hotel Industry was valued nearly at 20 billion USD in 2020 and the market is expected to witness a growth of 3% by the end of 2026.

Due to the current situation, Pakistan’s Tourism and Hospitality Industries are suffering and continue to be at risk, as people are not currently planning vacations because of the safety measures and various lockdowns imposed by the government throughout the country. The travel industry contributed almost 7.1% to the GDP (Gross Domestic Product) of Pakistan in 2019. In any case, attributable to the pandemic, the market is seeing serious misfortunes. The Pakistani government and individuals trusted the advancement would draw in greater interest in the travel industry subsidiary organizations and assist with making better-paying positions. The organization had likewise reported designs to create and advance the travel industry and loosen up visa limitations for unfamiliar explorers. The beginning of Coronavirus and limitations on overall travel have wrecked the public authority’s arrangements; consequently, the nation couldn’t execute the public authority’s travel industry system in 2020.

Nonetheless, in the long to medium term, the market is relied upon to acquire energy. Pakistan has arisen as perhaps the most pursued vacationer location in recent years. Besides, the South Asian country has additionally beaten a few worldwide travel records, making it an appealing vacationer location among voyagers. The Pakistan government’s travel industry crusade has additionally helped raise the nation’s profile in the worldwide market. People are investing increasingly in roads, airports, and other infrastructure in the country, which has only helped with traveling ease for everyone.

Pakistan is additionally arising as a significant speculation objective for new inn advancement. The lodgings in Pakistan are seeing a considerable expansion in development, both as far as inhabitance and normal rate, and this pattern is relied upon to proceed with further in the impending years. Be that as it may, amid the CoronaVirus pandemic, the inns in the nation have seen serious misfortunes.

Key Market Trends

Increased Foreign Travelers in Pakistan

The Government of Pakistan has facilitated the nation’s visa strategy, which played a key role in drawing in an enormous number of unfamiliar vacationers. By and large, 60,070 outsiders have visited vacation spots in the country during the previous six years, particularly to the exciting spots situated in the northern areas of the country. Following the approaches of the current government’s measures to advance the homegrown and worldwide travel industry, the nation hopes to see an ascent in the number of guests by almost 30% until 2030.

In 2019, the global travel industry receipts for Pakistan were almost 948 USD million. Although in Pakistan the travel industry receipts have varied generously lately, they expanded through the 2015-2019 period.

Flourishing Hotel Industry in Country

The Hotel Industry in Pakistan is going about as an energizer for the advancement of its economy, and the area is ceaselessly developing and thriving. There have been different extensions in the business. For example, Movenpick Lodging Centaurus Islamabad was opened in 2020 in Pakistan as a point of convergence of another upscale blended-use advancement.

Moreover, hotels likewise play a vital part in the advancement of the travel industry, and in the evolving climate, more hotels are being set up in the country. With this the Wyndham Hotels and Resorts and Avari Hotel Groups have set up new lodgings in Multan, Faisalabad, Islamabad, Rawalpindi, and Lahore, hence resulting in a great advancement towards Hotel Industry Development.

Competitive Landscape

This blog covers significant players working in the travel industry and hotel industry in Pakistan. As far as brand mindfulness, hardly any players are dominating the market. Multiple inbound and international travel packages are being offered by travel companies in Pakistan with the intent to attract as many customers as they can so they have a bigger advantage compared to their competitors in the market. As Pakistan is arising as a vacationer location among voyagers, different global and public lodging networks have made a solid presence in the market as far as their administrations and contributions.

Recent Developments

  • Hilton signed an agreement with Dhabi Hospitality in March 2021 to build an upscale Doubletree by Hilton brand. It is expected to launch in Islamabad, Pakistan, by 2025. The hotel will be featuring 167 guest rooms, including 10 suites and it will be located west of the Islamabad city center. The property will form part of residential and commercial development.
  • Radisson Hotel Group signed a deal with Radisson Blu Serviced Apartments in Islamabad, Pakistan, in August 2020 to open the country’s first internationally branded serviced apartments.
  • In the coming tenure, Wyndham Hotels and Resorts is launching its variety of Projects in all three metropolitans of Pakistan.

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