In recent years, Pakistan has emerged as a popular tourist destination for international travellers. In the post-COVID-19 era, the rate of local tourism increased exponentially. As a result, new hotel chains, lodges, and tourism corridors are now becoming a government priority, providing a good source of revenue for the government. Providing accommodation to people in tourist destinations and ensuring their safe mobility falls under the ambit of real estate development. Thus, the real estate sector derives much relevance from this growing sector of the economy.
Potential of Tourism in Pakistan
Pakistan’s tourism potential is posting record growth. According to the World Travel and Tourism Cooperation, more than a billion people travel internationally, with around half of these journeys destined for developing countries. Pakistan is uniquely placed to take advantage of this trend. Besides being a host to some of the oldest civilisations globally, such as the Indus Valley civilisation, Pakistan is also host to several other religious tourist destinations that hold significance for Hindus, Sikhs, and Buddhists. It is also host to some of the tallest mountains and serene resorts in its northern region. In the south of Pakistan, the country has pristine beaches that add to the value of the land. Currently, Pakistan derives 793 billion PKR from its tourism economy along with millions of employment opportunities. If the existing tourism infrastructure is upgraded, the government predicts to derive 1 trillion PKR in the future.
Why Real Estate Matters for Tourism
Pakistan has emerged as a popular location for investing in new hotel projects and tourism-related real estate. Recently, hotel prices in Pakistan have risen dramatically, owing to the rise in domestic and foreign tourists in several country regions. This fact determines how many people want to stay or spend their vacation in a given place at what particular time of the year. This can also help investors realise the average price the consumer is willing to give. As Pakistan is currently observing a growing trajectory in its tourism sector, hotels, the hospitality industry, and real estate investors can tap into this potential. It must be added that these stakeholders need to realise that sustainable development in the tourism sector will ensure that there is minimum environmental cost associated with the rising number of tourists in a given region. The country’s northern areas are a national asset, and no government investment can bring back the beauty and serenity of these regions once it is lost due to over-tourism or environmental degradation.
Real Estate Responsibility
Real Estate has massive economic and social significance for the economy in general and tourism in particular. The sector is responsible for the provision of accommodation to the influx of domestic and foreign tourists. The nexus of the tourism sector and land development demonstrates how the real estate sector and hospitality industry cannot function in isolation. The two sectors need to work closely to accommodate the expanding inflow of sightseers in the country. Both sectors need to explore creative ways to make the best of Pakistan’s tourism potential. Moreover, the closely linked hospitality sector can help the government create a talented labour force equipped with modern technology and up-to-date knowledge of tourism practices.
Available Spaces and Amenities
Pakistan has an abundant land resource that can be explored and exploited to get a better tourism infrastructure. Vast tracts of land are underutilized and can be utilised to increase returns for the owners and benefit the industry strategically. Terrains that are state property can be rented or leased out for tourism infrastructure development like hotels and resorts.
Globally, tourism practices have evolved. Integration of technology, social media, and millions of tourism applications have made it easy for travellers to travel to distant and unknown places worldwide. Travel companies like Airbnb are symbolic of how real estate and tourism can go hand in hand and become a sustainable source of income for real estate owners and economic growth for the region. Pakistan needs to implement a comprehensive plan to tap the potential of its relatively new tourism sector. This is possible by bringing real estate and tourism together to provide the best accommodation to the increasing number of domestic and foreign tourists.