Pakistan Tourism and Hotel Market Size (2024 - 2029)

The hospitality industry in Pakistan is poised for significant growth, with the market size expected to expand as the country becomes a key investment destination for hotel and tourism development. Despite setbacks due to the COVID-19 pandemic, which led to substantial losses and temporary closures of major hotels, the sector is rebounding. The government's initiatives to promote tourism, such as relaxing visa restrictions and launching the Salam Pakistan brand, are contributing to the recovery and growth of the market. The increasing occupancy rates and the rise in online bookings further indicate a positive trajectory for the industry, making Pakistan an attractive destination for travelers and investors alike.

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Market Size of Pakistan Tourism and Hotel Industry

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Pakistan Tourism and Hotel Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 6.56 %
Market Concentration Low

Major Players

Pakistan Tourism and Hotel Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Pakistan Tourism and Hotel Market Analysis

The Pakistan Tourism and Hotel Market is expected to register a CAGR of greater than 6.56% during the forecast period(2024-2029).

Pakistan is emerging as an important investment destination for new hotel & tourism industry development. The hotels in Pakistan are witnessing a substantial increase in occupancy and are expected to continue further in the upcoming years. In the long to medium term, the market is expected to gain momentum, with the country emerging as one of the most sought-after tourist destinations, making it an attractive tourist destination for travelers. With major initiatives towards promoting the hospitality industry, the country expects tourism to contribute more than USD 3.5 billion over the coming period.

With the advent of the COVID-19 pandemic, Pakistan's tourism and hospitality industries suffered losses, as people were unable to visit Pakistan amidst safety measures and various lockdowns imposed by the government. The administration announced plans to develop and promote tourism with the relaxation of visa restrictions for foreign travelers during the period. Hotels in the country witnessed severe losses, with 3 out of 7 big hotels in Karachi being closed due to the pandemic.

Post-COVID-19, with the opening of the economy for tourism activities, the revenue of the hotel industry in Pakistan is observing continuous growth with an increase in the number of bookings made through online channels. With its efforts towards reviving the country's tourism, the government launched the Salam Pakistan brand, indicating the country’s commitment to promoting its diverse tourism sector. In addition to this, package holidays in the country are observing steep growth, creating opportunities for various sectors and agents involved in the hospitality industry.

Pakistan Tourism and Hotel Industry Segmentation

Hospitality means extending a welcome to travelers or offering a home away from home. The hospitality industry is a vast sector that includes all the economic activities that directly or indirectly contribute to or depend upon travel and tourism. The hospitality industry in Pakistan is segmented by type of tourism (inbound tourism and outbound tourism) and by type of hotel (economy and budget hotels, mid-scale hotels, upper-scale hotels, premium and luxury hotels, and other types of hotels (shared living spaces, rented apartments, service apartments, etc.)). The report offers market size and forecasts for the hospitality industry in Pakistan in USD for all the above segments.

By Type of Tourism
Inbound Tourism
Outbound Tourism
By Type of Hotel
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.)
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Pakistan Tourism and Hotel Market Size Summary

The hospitality industry in Pakistan is poised for significant growth, driven by an increasing number of tourists and substantial investments in hotel and tourism development. The country is becoming a key destination for travelers, with a focus on enhancing its appeal through various government initiatives and relaxed visa policies. The post-COVID-19 recovery has seen a resurgence in hotel bookings, particularly through online channels, as the economy opens up to tourism activities. The government's efforts, including the launch of the Salam Pakistan brand, aim to revive and promote the diverse tourism sector, contributing to the country's economic development. The northern regions, known for their natural beauty, have become particularly popular among international tourists, with a notable increase in visitors from the United Kingdom, United States, India, and China.

The hotel industry in Pakistan is experiencing continuous expansion, with both domestic and international hotel chains establishing a strong presence. This growth is supported by the increasing use of online sales channels, making it easier for tourists to plan their trips. Major hotel chains such as Avari, Pearl Continental, Nishat, Serena, and Faletti’s have played a crucial role in promoting tourism. The market is characterized by a fragmented landscape with numerous players offering a variety of tourism packages to attract customers. Recent developments include the signing of new hotels by Radisson Hotel Group and the operation of Hyatt Regency Lahore by Valor Hospitality Partners, highlighting the region's potential for further growth and investment in the hospitality sector.

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Pakistan Tourism and Hotel Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Share Of Inbound Tourism

      2. 1.2.2 Rise In Number of 3 Star and 5 star Hotels

    3. 1.3 Market Restraints

      1. 1.3.1 Major Share Of Tourism Is Concentrated Domestically

      2. 1.3.2 Decline in business travel in the region affecting the market

    4. 1.4 Market Opportunities

      1. 1.4.1 Demand for Luxury Tourism Driving the Market

      2. 1.4.2 Consumer-specific demand and facility for Expensive Western Tourist

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Technological Innovations in Pakistan Hotel and Tourism Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Tourism

      1. 2.1.1 Inbound Tourism

      2. 2.1.2 Outbound Tourism

    2. 2.2 By Type of Hotel

      1. 2.2.1 Economy and Budget Hotels

      2. 2.2.2 Mid-Scale Hotels

      3. 2.2.3 Upper Scale Hotels

      4. 2.2.4 Premium and Luxury Hotels

      5. 2.2.5 Other Types of Hotel (Shared Living Spaces, Rented Apartments, Service Apartments, etc.)

Pakistan Tourism and Hotel Market Size FAQs

The Pakistan Tourism and Hotel Market is projected to register a CAGR of greater than 6.56% during the forecast period (2024-2029)

Cox & Kings Pakistan (Pvt) Ltd, ClickPakistan, Karachi Marriott Hotel, Avari Towers Karachi and Islamabad Serena Hotel are the major companies operating in the Pakistan Tourism and Hotel Market.

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