Investor Presentaiton
FINANCING SUSTAINABLE TOURISM IN KHYBER PAKHTUNKHWA
Hospitality Sector Revenue in KP
over the last 5 years
400
350
300
250
214
200
165
162
(Rs in million)
150
100
0
2015-2016
2016-2017
2017-2018
2018-2019
Source: KPRA Annual Reports 15 (various years)
309
2019-2020
370
The Excise and Tax department charges a
tax on hotels which is levied and collected
annually. The tax is payable by the owner or
management of an establishment at the rate of
10% of room rent per day, on the basis of fifty
percent of the total number of rooms available
in the concerned hotel. However, in accordance
with constitutional provisions this money also
goes into the collective provincial pool.
Although the revenue from the tourism
industry going to the Provincial Consolidated
Fund cannot be ring-fenced in a way that the
proceeds are invested back into the tourism
sector, the various Development Authorities
operating within the province have the
mandate to do that. The Tourism Act of 2019
establishes a Tourism Authority for KP and sets
up a Tourism Fund which is managed by the
Authority and can be spent directly on tourism
development in the region. Additionally, the
more localized acts such as the Galliyat
Development Authority, Kaghan Development
Authority and the upcoming Upper Swat
Authority follow similar models. These
authorities have the autonomy to decide how
and where to spend the revenue generated
through various instruments at their disposal,
described in Annex A (a).
15 Khyber Pakhtunkhwa Revenue Authority, KPRA. Annual Report (Various Years).
20
20View entire presentation