During the past few years, Pakistan has seen a significant boost in the hospitality industry. During 2020 when the pandemic broke out, almost every sector of the economy started collapsing, yet tourism was the only industry that saw a dramatic increase in the country.
There are a lot of factors involved that allowed the country to achieve this feat, and one of them is the advancement in technology. In this blog, Graana.com has compiled all the relevant information to help you understand the concept of the resurgence of Pakistan’s hospitality sector.
Hospitality Industry of Pakistan | Past Vs Present
Pakistan’s hospitality sector dates back to its inception, with the sector developing further throughout the course of the country’s existence. The sector has developed manyfold during all these years, and today, there are many international and domestic chains of hotels operating within the country that has elevated both the hospitality and tourism industry.
Back in 2019, during the pre-covid era, Pakistan’s tourism industry was on the rise as it was also declared the best holiday destination by international travel websites.
The industry saw an influx of both local and foreign tourists, which further got accentuated as various dignitaries from all over the world visited Pakistan.
Currently, the government is formulating policies to facilitate tourism from all around the world by offering relaxation in visa restrictions for foreigners. The aim was to boost the tourism business, curate more job opportunities, and bring foreign investment to the country.
Consequently, multiple international hotels announced plans to open their chains in Pakistan to comply with this increase in demand.
The resurgence of Pakistan’s Hospitality Sector | Market Overview
In 2020 the value of Pakistan’s tourism and hospitality industry was declared to be around USD 20 billion. Moreover, there was an expected Compound Annual Growth Rate (CAGR) of 3% by the year 2026.
As the pandemic enters its third year, it has become a constant threat to the hospitality sector of the country. Safety measures and SOPs have been set in place to allow people to visit their favourite tourist destinations, yet the impact of the pandemic is still quite evident.
Back in 2019 when tourism in Pakistan was on the rise, the industry contributed nearly 7.1 % to the Gross Domestic Product(GDP) of the country.
Potential of Hospitality Industry of Pakistan
The market is anticipated to gain more momentum in the long run, which would allow the industry to return to its former glory days. During pre-covid years, Pakistan made a name for itself as one of the most popular travel destinations. The country has also ranked first on numerous global travel lists, making it a popular tourist destination.
According to Condé Nast Traveller’s list of 20 best holiday destinations for 2020, Pakistan ranked No. 1. Forbes also ranked Pakistan as one of the top “10 Coolest Places to go in 2019.”
The British Backpacker Society declared Pakistan as the 3rd best potential adventure destination in the world for the year 2020.
The government of Pakistan’s tourism promotion has also helped in increasing the country’s visibility on the international level. Roads, airports, and other infrastructure are receiving increased investment in the nation, which has facilitated international travellers.
Pakistan is also emerging as a significant investment spot for the construction of new hotels. Both in terms of average rate and occupancy, Pakistani hotels are currently experiencing a significant expansion, and this trend is anticipated to continue in the years to come.
Scope of Pakistan’s Hospitality Sector
Pakistan’s economy heavily depends on tourism, which also provides a sizable chunk of the country’s foreign exchange revenue.
The Pakistani tourism industry is subdivided into inbound and outbound tourism, while the hotel industry is further divided into mid-scale to luxury hotels. Other than that, there are various other kinds of hotels, which include restaurants, rented apartments, guest houses, etc.
For each of the aforementioned market categories, the study provides market size and projections in value (USD million).
| Tourism Sector | – Inbound Tourism – Outbound Tourism |
| Hotel Sector | – Economy and Budget Hotels – Mid-Scale Hotels – Upper Scale Hotels – Premium and Luxury Hotels – Other Types of Hotel (Shared Living Spaces, Rented Apartments, Service Apartments, etc.) |
Prominent Participants in the Hotel Industry of Pakistan
The major participants in the hotel and accommodation sector include Movenpick Hotels, Nishat Hotels, Avari Hotels, Marriott Hotels, and Pearl Continental. Due to the services and the products they offer, these few competitors control a vast portion of the industry.
Thanks to their well-known brands and attractive international and inbound travel packages, they fiercely compete against one another to draw in more clients. These hotels are obtaining more competitive advantages and profiting from economies of scale.
Another major player in the hospitality industry is Imarat Group, which has taken remarkable steps to revive the tourism and hospitality sector in Pakistan.
A revolutionary feat has been achieved in Pakistan’s hospitality sector with the signing of a franchise agreement between the IMARAT Group of Companies and Marriott International to launch Residence Inn and Courtyard by Marriott in various places around the nation.
These hotels will be built in the capital city of Islamabad, offering luxury accommodations as well as international standard facilities and services.
Marriott International was brought to Pakistan as a result of the tenacious attempts of the IMARAT Group’s management. It is only due to the success of the previous projects of IMARAT and Marriott International that they signed new projects with the company.
IMARAT Group’s previous hospitality projects include G-11 Hotel, Residence Inn by Marriott, Four Points by Sheraton, and Fairfield by Marriott.
Role of Technology in the Resurgence of Pakistan’s Hospitality Sector
One of the factors that have greatly influenced tourism in Pakistan is the advancement of technology. There is no doubt that social media has played a role in improving the country’s tourism industry, as it has given the opportunity to people from all across the world to see the beauty of Pakistan.
Utilising advanced tools and technologies effectively helps increase revenue in Pakistan’s hospitality sector. Websites, online advertisements, articles, social media, and informational databases all aid in persuading clients to choose a destination or a company.
Other than that, the role of renting apps has made it easier for people to travel to places. They can easily reserve a room for them in advance, which makes it easier for them to travel to far-off destinations.
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