Pakistan becomes the first country in the world to adopt the Global Travel and Tourism Development Index to improve the industry standards on competitiveness and sustainability standards. Global industry experts are looking at the “Pakistan model” to seek guidance on standardization.
Pakistan is home to ancient civilizations such as the Indus Valley Civilization, Gandhara Civilization and Mughal Empire, which have left behind a rich cultural heritage in the form of historical sites, museums, and monuments. Pakistan is also blessed with natural beauty, ranging from high mountain peaks to stunning beaches, and a vast range of wildlife. The northern areas of Pakistan are particularly famous for their scenic beauty, with the Himalayas, Karakoram, and the Hindu Kush ranges offering breathtaking views. Some of the popular tourist destinations for natural beauty include valleys of Gilgit-Baltistan (GB), Swat Valley, Chitral, Kaghan Valley, and Neelum Valley in Azad Jammu and Kashmir (AJK).
Despite these unique tourism offerings, Pakistan has not been very successful in positioning itself as the preferred destination for global tourism. Pakistan hosts almost 965,000 international tourists every year. The tourism industry has a 1.2% share of the total employment in the country, contributing USD 3,214.9 million or 1.2% to the gross domestic product (GDP) of Pakistan through direct and indirect way. Domestic travel and tourism spending is almost 90.8% of total tourism spending. On average, a tourist spends USD 300-400 per visit for one week in Pakistan.
Measuring Pakistan’s tourism ecosystem through the international benchmark is being done through the Travel and Tourism Competitiveness Index (TTCI). The TTCI is a report published biennially by the World Economic Forum (WEF) that ranks countries based on their tourism competitiveness, taking into account factors such as infrastructure, safety and security, visa regime, connectivity, government priority, environment sustainability, and cultural and natural resources. TTCI was first published in 2007 by WEF.
In the 2021 edition of the WEF, the Report asked the countries to look at tourism from a development and sustainability perspective, instead of a competitiveness approach only. The WEF changed its Travel and Tourism Competitiveness Index in 2019, renaming it “the Travel and Tourism Competitiveness Report” and changing the index structure to include three new sub-indices. One of these sub-indices is the Travel and Tourism Development Index (TTDI), which measures the development of the travel and tourism sector in a country.
Pakistan was ranked 83rd out of 117 countries, after improving its ranking six places in the Travel TTDI Report-2021 of the WEF.
The new report uses a different methodology to measure travel and tourism competitiveness, with a greater emphasis on subjective measures such as business surveys and expert assessments. The new methodology also places more weight on environmental sustainability and social inclusiveness.
Similarly, the new approach places greater emphasis on the role of technology in travel and tourism competitiveness, including the use of digital platforms to improve the travel experience and the development of smart infrastructure. This also includes the use of social media to promote tourism, the availability of tourist information centers, and the ease of visa processes.
In the 2003 edition of the TTCI, Pakistan was ranked 103rd out of 133 countries. In the subsequent 2005 edition of the index, Pakistan's ranking dropped to 116th out of 124 countries. In the 2007 edition of the index, Pakistan's ranking improved to 99th out of 124 countries.
Since then, Pakistan's ranking on the TTCI has been somewhat inconsistent. The country's lowest ranking on the index was in the 2013 edition when it was ranked 133rd out of 140 countries. Pakistan's highest ranking on the index was in the 2017 edition when it was ranked 124th out of 136 countries.
Pakistan's performance on the TTCI over the last 20 years has been mixed, with the country's ranking and score fluctuating over time. While Pakistan has made some improvements in recent years, it was realized that Pakistan needs to work smartly to improve the country's tourism competitiveness.
Pakistan's decision to create its own National Tourism Competitiveness Index (NTCI) is motivated by several factors. The country realized that its travel and tourism industry was not fairly represented in the global TTCI rankings, which is dominated by the developed countries. The availability of the data in a timely manner was also a big challenge that reflected the disconnects in the industry.
With the new index, Pakistan wants to use the TTCI as a tool to assess the effectiveness of its policies and regulations related to the travel and tourism industry. By measuring its performance, Pakistan could identify areas for improvement and develop strategies to enhance its competitiveness in the global market. This has made Pakistan one of the leading countries in the world to adopt the new TTDI of the WEF as a policy tool to design its travel policy and improve its tourism competitiveness.
The new NTCI provides a framework for assessing the effectiveness of policies and programs aimed at promoting tourism. By tracking progress over time, Pakistan can identify areas for improvement and adjust its approach as and when needed.
The provinces will contribute to the NTCI by providing accurate data on their tourism sector, which could be used to identify the current status of tourism development, gaps, and opportunities. This data would help identify the areas that need improvement and can be used to develop policies and strategies for tourism development.
The NTCI will help the provinces collaborate and network with each other, and with other stakeholders in the tourism sector such as hotels, tour operators, and transport companies. This can help create synergies and can help the provinces learn from each other's experiences and best practices.
With the new mechanism created by PTDC, the NTCI also provides a way to benchmark Pakistan's performance against other countries in the region and around the world. By identifying the areas where it can improve its competitiveness, Pakistan can attract more visitors and generate more revenue from tourism.
The World Bank Group has played a significant role in helping Pakistan improve its tourism competitiveness and develop the NTCI. The Bank has provided technical assistance, financing, and knowledge-sharing to support the country's tourism industry.
In 2018, the World Bank partnered with the PTDC to develop the NTCI. The Index was developed on the lines of the WEF's TTDI, which ranks countries based on various indicators of tourism competitiveness.
Other than World Bank, several other donors have supported Pakistan in its efforts to improve the tourism sector. The Asian Development Bank (ADB) has also provided funding for tourism development in Pakistan, including the Tourism Development Project, which aims to improve tourism infrastructure and services in selected areas of the country.
The United States Agency for International Development (USAID) has also supported several initiatives aimed at promoting sustainable tourism development in Pakistan, including the Competitiveness Support Fund, the FIRMS Project, and the Pakistan Sustainable Tourism Standards. The European Union (EU) has also provided funding for several projects aimed at promoting sustainable tourism development in Pakistan, including the Chitral Integrated Area Development Program, which aims to improve tourism infrastructure and services in the Chitral region. The Japan International Cooperation Agency (JICA) has provided technical assistance and funding for several tourism development projects in Pakistan, including the Northern Areas Development Program, which aims to promote tourism and improve tourism infrastructure in the Northern Areas.
These donors have provided critical support to Pakistan in its efforts to improve its tourism sector, including funding for infrastructure development, capacity building, and marketing and promotion of Pakistan's tourist attractions.
The NTCI will change the tourism scene in Pakistan as it will provide a benchmark for measuring Pakistan's competitiveness in the global tourism market. This will enable the government and industry stakeholders to identify the strengths and weaknesses of the tourism sector and take measures to improve competitiveness. It will also be the source for the global Travel and Tourism Development Index of the WEF.
The NTCI will also help public policy professionals to identify priority areas for intervention and investment. For example, if the index shows that Pakistan's tourism infrastructure is weak, the government can prioritize investment in infrastructure development to improve competitiveness. This also indicates how private sector engagement in the tourism industry should be encouraged. By providing a clear understanding of the strengths and weaknesses of the industry, the index will attract private-sector investment and help to create partnerships between the public and private sectors.
The NTCI will help improve Pakistan's tourism products and services by providing a roadmap for developing high quality, competitive offerings. This will help attract more domestic and international tourists and increase tourism revenue. The China-Pakistan Economic Corridor (CPEC) initiative will be dovetailed into the overall tourism ecosystem, increasing the potential manyfolds, and impacting grassroots-level prosperity.
The NTCI will provide the government with a better understanding of the target market for Pakistani tourism products and services. This will enable the policymakers in the government to develop targeted marketing campaigns that appeal to the interests and preferences of different segments of the tourism market.
The National Tourism Competitiveness Index will be aiming to change the tourism scene in Pakistan by providing a framework for measuring and improving the competitiveness of the tourism industry. This will enable the government and industry stakeholders to take targeted interventions to improve Pakistan's position in the global tourism market, attract private sector investment, and enhance the quality and appeal of Pakistan's tourism products and services.
The author is a global competitiveness, risk, and development expert. He is a leading strategic communication specialist.
Email: [email protected]
Twitter: @amirjahangir.
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