Investor Presentaiton
FINANCING SUSTAINABLE TOURISM IN KHYBER PAKHTUNKHWA
4.6
Lack of Skills and
Revenue Leakages
The recent surge in domestic tourism in KP, low
services tax rates and tax havens in tourist areas
of Swat and Chitral, have resulted in a palpable
increase in investment in the hospitality sector
in KP. Most of these investors are large groups
and quite a few are from outside KP such as
Hashoo (Pearl Continental - Malamjaba) and
Hilton (Nathiagali). Due to their holding
companies not being based in KP there is
significant leakage of revenue generated
out of KP. Furthermore, these areas generally
have low levels of economic activity and
development and lack a skilled workforce.
Hence the extent of local involvement in
tourism and hospitality industry is likely to
remain small for the near future. For long term
sustainability of such investments, it is
imperative that economic benefits from such
large private sector investments accrue to the
local population also.
Leading causes of
revenue leakages
are due to their holding
companies not being based in KP
For sustainable tourism there is a need to
focus on capacity building and skills training
programs in hospitality and tourism services
designed specifically for the local population.
This can be done through revenues
generated by the KPCTA and Development
Authorities matched with private sector
resources through Public-Private Partner-
ships and CSR programs. The Agha Khan
Rural and Education Support model in Gilgit-
Baltistan can be used as a framework to
engage and train the local population in
tourism and hospitality services.
4.7
Lack of Data on Tourism
There is a dearth of data on tourism, for
example on tourism flows at various sites within
the regionand 22 on the number and grading of
restaurants and hotels, in Pakistan and KP; this
was highlighted by stakeholders as a binding
constraint to evidence-based policy design and
management of the sector.
There needs to be a dedicated unit or
department within KPCTA with the sole
purpose of collecting and collating data on
tourism.
22 Pakistan Board of Investment and Trade, PBIT. Punjab Spatial Strategy: Tourism Development.
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