ISLAMABAD, Sept 30: Pakistan and India are losing $900 million share in international tourism market due to the ongoing conflict in Kashmir and political unrest , and the mountain communities of the two countries are the most affected especially after the 9/11 incidents, says a report.

The tourism authorities of the two countries are not serious in promoting regional tourism despite the confidence-building measures taken by the two governments to resolve the conflict and tension in the region, the report says and suggests promotion of regional and international tourism through co-branding of destinations and cross-border tourism.

"South Asia is losing its share in world tourism constantly since September 11 tragedy and the most disadvantaged nations are India, Pakistan and Nepal due to political unrest.

Poverty is increasing in mountainous areas of all the three countries since the local communities are deprived of financial benefits from tourism activities being generated in their respective areas," says the report released by Ecotourism Society Pakistan (ESP).

The report says in the absence of international tourism activities, the three countries must work on domestic as well as regional tourism and co-branding of destination to sustain in tourism market.

The report indicates that the tourism authorities of India and Pakistan despite having three meetings during the last one year failed to announce co-branding (offering international tours of both countries in one tour) which shows that they are not seriously working to boost regional as well as international tourism in the region due to political tensions.

The report maintains that there is a hope that India and Pakistan while following confidence-building measures (CBMs) may go to a position where they can activate regional cooperation despite their ongoing conflict on Kashmir as both countries are missing a share of more than $900 million a year from international tourism market due to tense situation in the region.

The report which has been prepared with the help of data collected from Indian, Nepalese and Pakistani tourism experts also observes that the share of communities in tourism revenue in India and Pakistan is practically zero and geo-political positioning of Himalayas has affected poor communities of this area that could have been the best available and the best possible tourism destination for the entire world.

Increasing poverty in mountain areas of both countries indicates that financial activities are remote, resulting in brain drain situation. Recreation tourism tends to be concentrated in pockets and controlled by external investments. Economic gains for the local populations tend to be limited. The potential for economic gains can be fully realized by dispersing tourism destinations.

The places where the tourists stay and have their meals are now concentrated in small towns, instead of being in villages. It will be important to evolve strategies for dispersing tourist destinations if gains for local communities are to be maximised.

The experience in Nepal has shown that tourism and conservation can reinforce each other especially if strategies and processes to ensure gains to local communities are put in place.

In Indo-Pakistan border areas, over the centuries, the villagers developed sustainable systems of livelihood that encompassed farming, animal husbandry, trading and providing hospitality to tourists.

"Historic trails of travelling are now occupied by border forces which are even trying to shoot down birds crossing man- made borders". Therefore, tourism trend has changed in this region and cross-border tourism has been denied due to fear of "cross-border terrorism".

Tourist activities in the region can be classified into three broad categories: recreational, mountain tourism and pilgrimages. There are inevitable overlaps but by and large each area tends to have a distinct focus.

A fourth category, which could also be classified as a sub-category of recreational tourism is just beginning to emerge and may represent a new growth area with a high potential; enjoying the mountains with a prolonged stay in a mountain village without the strain of treks or rushed tours.

In all the three categories, the gains for the local communities have come from the informal sector and from linkages rather than from the formal sector. In Nepal, the direct gains have come from lodges and guesthouses run by self-employed villagers and from providing transport and carrying luggage and goods needed for tourists.

The indirect gains have come from an increased demand for food products and from crafting and selling of handicrafts. However, in Pakistan tourism agencies located mostly in the major cities like Karachi, Lahore, and Islamabad control a major segment of domestic tourism as well as the international tourism. They compete fiercely with each other to the advantage of the international agencies.

They are experts at driving down the prices of their suppliers, especially the middle range of hotels and the lodge owners, both of whom are often competing with each other to get an adequate share of the market. This is especially the case during the lean season.

The tour and travel agencies form a strong alliance when it comes to defending or promoting common interests. The ultimate result is the less money for porters, drivers and other local stakeholders.