Investor Presentaiton
FINANCING SUSTAINABLE TOURISM IN KHYBER PAKHTUNKHWA
3.1
Tourism Act, 2019 an Khyber Pakhtunkhwa
Tourism and Culture Authority (KPCTA)
The Tourism Act, 2019 establishes the Khyber
Pakhtunkhwa Tourism Authority (KPCTA)
which is responsible for administrative,
financial and regulatory control over all
activities undertaken with the approval of the
Provincial Tourism Strategy Board (also
formed under the Tourism Act). The KPCTA is
responsible for framing licensing regulations
for tourism products, activities and services
and may, by regulation, require a payment of
a tourism levy from persons engaged in
tourism services or from tourists. The Act also
establishes a tourism fund which is to be kept in
a scheduled bank and spent with the Board's
approval. Sources of income for the fund
include grants from the government, rents and
profits, gifts and grants from private entities,
proceeds of charges, fees and taxes levied by
the Authority, funds generated from tourism
activities (for a detailed list refer to Appendix-
A. 16
(a) The fund is intended to be used to finance
research, development and marketing of
tourism in the province. It will also be used to
finance the development of Integrated
Tourism Zones and for training and capacity
building of the hospitality sector (for a detailed
list refer to Appendix A(b)).
The most significant program of KPCTA is the
demarcation and establishment of Integrated
Tourism Zones (ITZ). Once an area has been
demarcated as an ITZ, it is to be governed by
the rules and provisions of the Act and the laws
and regulations of other departments (such
as the Forest Ordinance, Environmental
Protection Act, Local Government Act) are no
longer applicable to the area designated as an
ITZ. The ITZ has been envisioned as providing a
one window service to the private sector to
reduce the regulatory burden of seeking
permits, licenses etc. from various government
departments by the private sector. To ensure
that environmental and cultural integrity is not
compromised, the Authority aims to maintain a
healthy balance between the objectives of
promoting tourism and preserving forest,
wildlife, biodiversity, and local cultural
heritage.17
Integrated
Tourism Zones
(ITZ)
One Window Solution
FOR PRIVATE SECTOR INVESTMENT
16The Khyber Pakhtunkhwa Tourism Act (2019).
17The removal of all external regulations from ITZs in areas which are natural forest and wildlife reserves is problematic and can potentially cause
de-forestation, loss of wildlife and environmental damage and degradation - going against the basic objectives of sustainable or eco-tourism.
This particularly applies to the planned Thandiyani ITZ which is in Ayubia National Park - a protected forest reserve. It is imperative to conduct a
rigorous base-line analysis of the forest and natural habitat of these areas and assess the degree of damage caused by the ITZ on the natural
environment and habitat. Such a baseline assessment should be done through an external organization and not conducted internally by KPCTA
or ITZS consultants etc.
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