Assignment 2_removed
Assignment 2_removed
General Information
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Table of Contents
Introduction.................................................................................................................................04
Define Tourism.........................................................................................................................04
Types of Tourism....................................................................................................................05
Indicators......................................................................................................................................07
Tourism in Pakistan..............................................................................................................07
The role of Federal Government in Tourism.....................................................09
Tourism Trade Bodies operating in Pakistan...................................................11
Key Challenges faced by Pakistan Tourist Industry...................................11
Comparison with other Countries..............................................................................12
India........................................................................................................................................12
Vietnam................................................................................................................................12
Uzbekistan..........................................................................................................................13
Bangladesh........................................................................................................................14
Causes of Tourism................................................................................................................14
Impacts...........................................................................................................................................15
Solution...........................................................................................................................................15
Conclusion...................................................................................................................................15
References...................................................................................................................................16
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Tourism
INTRODUCTION
Tourism is a significant contributor to the global economy, generating trillions of dollars
in revenue and employing millions of people worldwide. As a multifaceted industry,
tourism encompasses various sectors, including transportation, hospitality,
entertainment, and retail, among others. Understanding the economic impact of tourism
is crucial for policymakers, businesses, and researchers alike. In this research paper, we
will explore the mathematical and economic aspects of tourism, providing insights into
the industry's influence on economic growth and development.
Define Tourism
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Tourism is a multifaceted industry that encompasses the activities and
experiences of individuals who travel to and stay in places outside their usual
environment for leisure, business, or other purposes (UNWTO, 2022). According
to the United Nations World Tourism Organization (UNWTO), tourism is
"a social, cultural, and economic phenomenon related to the movement of people to
places outside their usual place of residence, pleasure being the usual motivation"
(UNWTO, 2022). Similarly, Goeldner and Ritchie (2012) define tourism as
"the sum of the phenomena and relationships arising from the interaction
of tourists, business suppliers, host governments, and host communities in
the process of attracting and hosting these tourists and other visitors."
The tourism industry is closely linked to both mathematics and economics.
Mathematical models and techniques are used to analyze and optimize various aspects
of the tourism industry, such as demand forecasting, resource allocation, and pricing
strategies (Sheldon, 1993). For instance, econometric models are employed to estimate
the determinants of tourism demand, which can inform decision-making and policy
development (Song & Li, 2008). Additionally, game theory and optimization techniques
are used to study the strategic interactions between tourism stakeholders, such as
airlines, hotels, and tour operators (Candela & Figini, 2012).
From an economic perspective, tourism is a significant driver of economic growth and
development. The tourism industry generates employment, income, and tax revenue for local and
national governments (UNWTO, 2022). Furthermore, tourism can stimulate investment in
infrastructure, such as transportation and accommodation, which can have positive spillover
effects on other economic sectors (Dwyer et al., 2004). The economic impact of tourism is often
measured using various metrics, such as tourism's contribution to GDP, the number of jobs
created, and the multiplier effect on other industries (UNWTO, 2022).
Types of Tourism
Tourism can be classified into various types based on different criteria
such as purpose, duration, destination, and mode of transportation.
Here's a detailed exploration of some common types of tourism:
Leisure Tourism:
Purpose: This type of tourism is for relaxation, enjoyment, and recreation. People travel
to tourist destinations to unwind, explore new places, and engage in leisure activities.
Activities: Sightseeing, beach vacations, adventure tourism (like hiking, skiing, or zip-
lining), cultural tours, and shopping are common leisure tourism activities.
Examples: Families going on vacations, couples on romantic getaways,
and individuals seeking a break from routine life.
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Cultural Tourism:
Purpose: Focuses on experiencing the culture, heritage, arts, and traditions of a destination.
Travelers engage in activities that offer insights into local customs, history, and way of life.
Activities: Visiting museums, historical sites, attending cultural events, trying local cuisine, and
interacting with indigenous communities are part of cultural tourism.
Examples: Tourists visiting UNESCO World Heritage Sites, attending
festivals like Carnival in Brazil, or exploring ancient ruins in Greece.
Adventure Tourism:
Purpose: Appeals to thrill-seekers and adrenaline enthusiasts. It involves
challenging and exciting activities in natural or remote environments.
Activities: Trekking, rock climbing, white-water rafting, bungee jumping,
safari tours, and paragliding are common adventure tourism pursuits.
Examples: Backpackers exploring rugged terrains, wildlife enthusiasts on safaris
in Africa, and extreme sports enthusiasts seeking new experiences.
Ecotourism:
Purpose: Emphasizes responsible travel that promotes conservation,
sustainability, and respect for the environment and local communities.
Activities: Visiting national parks, wildlife sanctuaries, eco-lodges, and
participating in eco-friendly tours and activities like bird-watching or nature hikes.
Examples: Travelers interested in nature conservation, wildlife photographers, and
those seeking authentic experiences while minimizing their impact on the environment.
Medical Tourism:
Purpose: Involves traveling to another country to receive medical treatment,
surgeries, or wellness services that may be more affordable, accessible, or of higher
quality. Activities: Seeking medical consultations, undergoing procedures (like
cosmetic surgery, dental treatments, or fertility treatments), recuperating in wellness
resorts, and combining treatment with leisure activities.
Examples: Patients traveling abroad for surgeries, wellness retreats
focusing on holistic health, and individuals seeking specialized medical
procedures not available in their home country.
Business Tourism (also known as MICE Tourism - Meetings, Incentives, Conferences, and
Exhibitions):
Purpose: Involves travel for business-related activities such as meetings,
conferences, trade shows, corporate events, and incentive trips.
Activities: Attending business meetings, conferences, networking
events, seminars, and participating in team-building activities.
Examples: Business professionals attending international conferences, companies
organizing incentive trips for employees, and trade delegations participating in exhibitions.
Rural Tourism:
Purpose: Focuses on exploring rural areas, small towns, and villages to
experience local lifestyles, traditions, and natural beauty.
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Activities: Staying in farmhouses, participating in agricultural activities, learning
about rural crafts, enjoying local cuisine, and interacting with residents.
Examples: Tourists seeking peaceful getaways, cultural immersion
experiences, and eco-friendly stays in countryside locations.
INDICATORS
Tourism indicators help measure the tourism rate in any country. Although,
countries often measure the growth of tourism through historical change in
tourism receipts and tourist arrivals, these indicators, alone cannot account
entirely for the tourism industry’s strength, and performance relative to that of the
regional and global economy. Following are some indicators of tourism:
Tourism receipts.
Tourist’s arrivals and departures.
Percentage of exports.
Growth of tourism sector.
Tourism in Pakistan
Tourism is a vital component of Pakistan's economy, contributing significantly to
its Gross Domestic Product (GDP) and employment opportunities. In this research
paper, we will explore the mathematical and economic aspects of the tourism
industry in Pakistan. Pakistan is home to a diverse range of natural and cultural
attractions, from the majestic Karakoram and Himalayan mountain ranges in the
north to the sun-drenched beaches of the Arabian Sea in the south. These diverse
landscapes, coupled with a rich cultural heritage, make Pakistan an attractive
destination for both domestic and international tourists (Rehman et al., 2021).
The tourism industry in Pakistan has experienced fluctuations over the years, with
periods of growth and decline. However, in recent years, the government has
recognized the importance of the sector and has implemented various policies and
initiatives to promote and develop the tourism industry (Khalid et al., 2020).
One of the key economic contributions of the tourism industry in Pakistan is its
impact on employment. The tourism sector directly employs a significant number of
individuals, ranging from hotel and restaurant staff to tour guides and transportation
providers. Additionally, the industry indirectly supports a wide range of ancillary
businesses, such as retail, handicrafts, and local artisans (Rehman et al., 2021).
From a mathematical perspective, the tourism industry in Pakistan can be analyzed using
various statistical models and techniques. For instance, researchers can use econometric
models to estimate the relationship between tourism demand and factors such as exchange
rates, political stability, and infrastructure development (Khalid et al., 2020). These models
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can help policymakers and industry stakeholders make informed decisions
and develop strategies to optimize the tourism industry's performance.
Furthermore, the tourism industry in Pakistan can be studied from a spatial perspective,
using geographic information systems (GIS) and spatial analysis techniques. These tools
can help identify the spatial distribution of tourist attractions, infrastructure, and the impact
of tourism on local communities (Rehman et al., 2021). This information can be used to
develop targeted marketing strategies and improve the overall tourism experience.
In conclusion, the tourism industry in Pakistan is a significant contributor to the country's
economy, providing employment opportunities and generating revenue. The industry's
performance can be analyzed using various mathematical and economic techniques, which
can inform policymaking and strategic decision-making. As Pakistan continues to develop
and promote its tourism sector, it is essential to ensure sustainable and responsible
practices that benefit both the local communities and the visitors (Khalid et al., 2020).
Pakistan tourism statistics for 2020 was 765,000,000.00, a 22.88% decline from 2019.
Pakistan tourism statistics for 2019 was 992,000,000.00, a 17.4% increase from 2018.
Pakistan tourism statistics for 2018 was 845,000,000.00, a 2.31% decline from 2017.
Pakistan tourism statistics for 2017 was 865,000,000.00, a 9.49% increase from 2016.
Foreign Tourism
In 2019 there were 1.458 billion international tourist arrivals worldwide. Total number of
foreign visitorscome to Pakistan in 2017 were 1.225 million. Hence Pakistan’s share in the
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global tourism market in 2017 was only 0.08%; which is way below its potential.
While in India, more than 10 million foreign tourists visited. It is to be noted that
foreign visitors who came on tourist visa were only about 28000 in 2019 and does
not include pilgrim visa, business visa or family/spouse visa etc.
Contribution to Economy
According to World Travel & Tourism Council, the direct contribution of Travel &
Tourism to GDP was PKR 930.9bn (USD8,832.1mn), 2.9% of total GDP in 2017.
Moreover, Travel & Tourism directly supported 1,493,000 jobs (2.5% of total
employment) in 2017. While total investment of PKR 410.4bn, 9.1% of total
investment (USD3,893.4mn) was made in the travel and tourism sector.
Tourism sector acts as a generator of quick and broad based economic activity. It is a
major source of employment generation in the area. It is an important source of
government’s income through taxes; collected mainly from hotel sector. An increase in
the number of tourists coming to a certain area leads to increase in activity in multiple
sectors; including hotels, restaurants, wholesale trade, retail trade, road transport, air
transport, communications, specific tourist sectors like tourist guides, porters, etc.
Economic activity is enhanced as the tourist spends money on various
services like hotel accommodation, meals, transport, shopping, etc.
Department of Tourism Services (DTS): Established in 1976 after promulgation of three acts
to ensure the standard and quality of facilities to be provided by the hoteliers, tour operators
and travel agents. DTS has been mainly responsible to enforce these acts in the country as a
whole and to ensure that tourists are provided the facilities/services which are promised
them through its one federal and four provincial offices. DTS has been functioning based on
totally outdated laws which are not acceptable either here in Pakistan or internationally. This
is compounded by the fact that those responsible for licencing, standards and enforcement
are unqualified in their task. They are basically untrained or experienced in what is now a
highly professional and international sub-sector of the
tourism industry. After the 18th amendment in the constitution of Pakistan, DTS
regional offices in all the four provinces were handed over to provinces are now
working under respective tourism departments and they do not have any formal link
with the DTS office working at federal level. This situation has further deteriorated
the performance of DTS. As a result there is no standardization or quality control of
the tourism product and the travel agents, tour operators and hotels in private
sector are dissatisfied and unresponsive to the meaningful involvement with the
public sector tourism organizations in the areas of promotion and cooperation.
Pakistan Tourism Development Corporation (PTDC): it is a public limited company
registered under the Companies Act in April 1970. It was created to be the government’s
arm and thrust for tourism development in Pakistan with objects to develop tourism
infrastructure on an all over Pakistan basis, to promote and market Pakistan as
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tourism destination in foreign as well as domestic markets, to act as a catalyst to
encourage to private sector to play a more active role in tourism development and
to undertake tour operations and provide ground handling facilities.PTDC is
governed by a Board of Directors. The chairman is either appointed by the
government or the position is held by the Minister of Tourism in the absence of an
appointed chairman. The chief executive is the Managing Director who is the
principal reporting officer to the Board. In most of the cases the appointment of
Managing Directors has been as per the discretion of Prime Minister of Pakistan.
Over the years PTDC established a chain of hotels/motels at various tourist spots
throughout Pakistan and also established 20 Tourist Information Centers (TICs) in different
parts of the country. It established TDCP Motels Ltd. which undertakes the management of
all the hospitality units operated by PTDC and also established Pakistan Tours Ltd. which
acts as inbound tour company and provides ground handling and transport facilities for
international and domestic tourists.After the devolution of Federal Ministry of Tourism as a
result of 18th Amendment in the constitution of Pakistan in 2010, the funding to PTDC from
Federal government reduced to the level that it has now become difficult for the
management to pay even the salaries of its staff and meet overhead expenses.
On the other hand provincial tourism authorities are demanding the devolution of
PTDC to get the control on the properties managed by PTDC in respective provinces.
Pakistan Institute of Hotel & Tourism Management (PITHM) at Karachi:
The Pakistan Institution of Hotel & Tourism Management (PITHM) was set up in 1967 at
Karachi with an aim to train personnel for hotels, restaurants, airlines and tour operations.
Some initial funding was provided by UNDP, ILO and the government of Pakistan. In 1972 it
was registered as a society under the Societies Registration Act 1860, Since then the institute
has been functioning as an autonomous body administered by a Board of Governors
including representatives of the travel trade, hotel industry, PTDC
and Department of Culture and Tourism Government of Sind. Till 2010 it was
working under the auspices of Federal Ministry of Tourism and after the 18th
Amendment in the constitution of Pakistan it has been working under the
supervision of Department of Culture and Tourism Government of Sind.
The main function and activity of the institute is to impart knowledge by training
manpower for the hospitality, travel and tourism industry in Pakistan. This is done
by regular certificate and diploma courses offered by the institute on time to time
basis. Although PITHM is the oldest instate of its kind in Pakistan but still its
standard is far below the required international standards of hospitality and tourism
industry and as a whole it has failed to meet its aims and objectives.
Pakistan Austrian Institute of Hotel and Tourism Management (PAITHM)
Swat: This institute was established in 2001 at Gulibahar Swat under the deliberation of
Vienna Agreement between that time Federal Ministry of Tourism and Austrian Development
Agency, Austria with a mission to promote tourism and hospitality education through
establishing a teaching hotel and to attract youth towards a splendorous career in tourism
industry. The state of the art institute building includes admin and institute block, four
student hostels, 26 rooms hotel with conference hall and two restaurants. It started its
operation in May 2006 and conducted few courses and later on after the Talban’s
insurgency in Swat it remained closed for few years. After re-gaining control of Swat from
Talban in 2009, Pak Army occupied the institute building and used it as a detention
cell/rehabilitation center. The building of the institute is still under the use of Pak Army.
After the 18th Amendment, the institute was transferred to KP Tourism Department and now
it is operating in a small rented building in Saidu Sharif Swat and only running some short
courses for the hospitality sector with the
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support of NAVTTC.
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Tourism in Pakistan related different departments and ministries; such as ministry of interior,
foreign office, planning and development, trade and commerce, environment, wild life,
forestry, civil aviation, railway, local governments, road and highways, provincial tourism
departments etc. However, all these ministries and departments keep working in isolation
without taking into account the synergies which may be developed with Tourism. This results
in missing out on many opportunities through which tourism development can take place
without incurring much cost.
INDIA
India tourism statistics for 2020 was 13,413,000,000.00, a 57.64% decline from 2019.
India tourism statistics for 2019 was 31,661,000,000.00, a 8.64% increase from 2018.
India tourism statistics for 2018 was 29,143,000,000.00, a 4.54% increase from 2017.
India tourism statistics for 2017 was 27,878,000,000.00, a 20.63% increase from
2016.
VIETNAM
Vietnam tourism statistics for 2020 was 3,232,000,000.00, a 72.68%
decline from 2019.
Vietnam tourism statistics for 2019 was 11,830,000,000.00, a 17.36%
increase from 2018.
Vietnam tourism statistics for 2018 was 10,080,000,000.00, a 13.39%
increase from 2017.
Vietnam tourism statistics for 2017 was 8,890,000,000.00, a 4.59%
increase from 2016.
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UZBEKISTAN
Uzbekistan tourism statistics for 2020 was 395,000,000.00, a 76.47%
decline from 2019.
Uzbekistan tourism statistics for 2019 was 1,679,000,000.00, a 27.78%
increase from 2018.
Uzbekistan tourism statistics for 2018 was 1,314,000,000.00, a 57.37%
increase from 2017.
Uzbekistan tourism statistics for 2017 was 835,000,000.00, a 44.21%
increase from 2016.
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BANGLADESH
Bangladesh tourism statistics for 2020 was 217,899,993.90, a 44.27%
decline from 2019.
Bangladesh tourism statistics for 2019 was 391,000,000.00, a 9.52%
increase from 2018.
Bangladesh tourism statistics for 2018 was 357,000,000.00, a 2.59%
increase from 2017.
Bangladesh tourism statistics for 2017 was 348,000,000.00, a 62.39%
increase from 2016.
Causes
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Impacts
The impact of tourism on the economy extends beyond generating income and
employment. It acts as a growth engine, stimulating investment in infrastructure,
promoting sustainable development, and fostering the conservation of cultural and
natural heritage. This multifaceted influence demonstrates how tourism is
fundamental to global economic development.
Contribution to Global GDP
Exploring the impact of tourism on the economy requires a detailed look at its contribution to
the global GDP. This contribution is not only a direct reflection of tourist spending but also
an indicator of how tourism stimulates the economy through job creation, infrastructure
investment, and a boost to related industries.
Job Creation
In 2022, the tourism industry supported over 22 million jobs. When people
think of tourism-related jobs, they usually think of travel agents, hotel staff,
and workers at tourist attractions. However, there are also millions of people
around the world who work in tourism and related industries.
Solution
Increasing tourism in a country involves a combination of strategic
planning, investment, marketing, and infrastructure development. Here are
several strategies that can help boost tourism:
Promote the country's unique attractions, cultural heritage, natural beauty,
and experiences through targeted marketing campaigns. Utilize social
media, travel blogs, and influencers to reach a wider audience.
Improve transportation networks, including airports, roads, and public transportation, to
make it easier for tourists to access different regions within the country.
Encourage private and public investment in tourism infrastructure, such as
hotels, resorts, restaurants, entertainment venues, and tourist attractions.
Streamline visa processes or introduce visa waivers for tourists from key
markets to reduce barriers to entry and encourage more visitors.
Ensure safety and security for tourists through effective law enforcement,
emergency response systems, and measures to prevent crime and terrorism.
Develop cultural programs, festivals, events, and heritage sites to
showcase the country's unique traditions, arts, cuisine, and lifestyle.
Conclusion
Pakistan is blessed with great natural beauty, cultural diversity and rich historical
background. It is the need of the day that focus is shifted to this high potential sector and an
integrated approach based on international best practices is adopted for using the sector as
an engine of economic growth and employment generation. The image building of Pakistan at
the international forums as a tourist destination is not properly being done as no department
is taking its responsibility. There should be a statutory body NTCB for structured approach
for tourism development. It should have its members from all the relevant departments and
ministries such as all the provincial tourism departments, AJK Tourism Department, GB
Tourism Department, private sector trade bodies/associations and key federal government
departments such as Planning 21 Commission, Ministry of Commerce, Ministry of Interior,
Civil Aviation, Pakistan Railways and Ministry of Foreign Affairs.
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Refrences
Economic impacts of tourism. Illinois Bureau of Tourism,
Department of Commerce and Community Affairs.
World Economic Forum, ITTCI 2019. Punjab Tourism Development
Corporation. Macrotrends . Investopedia. The Pakistan Hotel and
Restaurants Act 1976 . The Travel Agencies Act 1976 and rules
1977 .The Pakistan Tourism Guides Act and rules 1977 . World Bank.
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