SO far, Khyber Pakhtunkhwa is the only province to have formulated its draft tourism policy, with incentives to attract at least Rs50bn investment in the sector over the next five years.

The draft policy gives the provincial government the powers both of a regulator and a facilitator, but not that of an implementer.

Rich in tourism spots, KP has been enabled to evolve its own tourism policy as a result of the devolution under the 18th amendment.

The PTI-led coalition government has prioritised tourism as a key engine of provincial economic growth. KP wants to become a preferred tourism destination for domestic as well as foreign tourists.

The main pillars of the tourism policy are: attractions (the flora fauna, landscape); accessibility (roads); accommodation (hotels, youth hostels); activities to keep people engaged; amenities (telephone service, banks, hospitals); laws (that regularise the system to increase the quality of services); and actors (stakeholders) in both the private and the public sector.

But there are many challenges in the execution of the policy, including poor law and order situation and dilapidated and destroyed infrastructure. Besides, there is a lack of a sound marketing strategy and trained workforce.

KP’s total annual earnings from tourism are estimated at around Rs12.26bn, but there is a huge potential for increasing this number

Another problem is to work out the timely procedures for the implementation of the draft policy, which is yet to be finalised.

KP’s tourism secretary, Muhammad Azam Khan, says the new policy is a comprehensive document that addresses all matters pertaining to tourism in the province in a holistic and coordinated manner. This is unlike in the past, when all decisions and interventions were done on an ad-hoc basis.

He says multiple departments, such as district governments responsible for municipal services and road maintenance and clearance, will need to work in tandem to promote tourism.

“Various departments are being sensitised to align their goals in line with the needs of tourism promotion.” He adds that the provincial government recently handed over 15 rest houses to the Tourism Corporation Khyber Pakhtun­khwa (TCKP) for commercial use.

Official statistics put domestic tourists visiting KP in a year at about 8.8m, putting the province’s share in the total national domestic tourist traffic at 19pc. The tourism policy aims to increase this traffic by 10pc annually over the course of five years.

KP’s total annual earnings from tourism are estimated at around Rs12.26bn, but there is a huge potential for increasing this number.

The policy identifies four areas that have prime importance in promoting tourism in the province. It states that tourism has a huge growth potential with high returns and revenue for investors. Hotels and other related projects hold great promise following the concessions extended by the government.

Under the new policy, the KP government will provide land on long leases at subsidised rates for tourism projects. It will also fast-track the clearance for investment proposals, such as those for chairlift/cable car resorts, and four or five star hotels. A public-private partnership law to facilitate the private sector to invest in tourism will also be enacted.

Making investment-friendly laws is another important area where the provincial government needs to work effectively. The Tourist Services Wing is responsible for enacting and ensuring minimal standards for the hospitality industry — comprising hotels and restaurants, tour operators, guide services etc.

There is a need to remove lacunae and revise the laws. The department has so far only introduced minimum changes in the federal laws.

The building of the Pak-Austrian Institute of Tourism and Hotel Management in Swat was taken over by the security forces in the wake of the military operation sometime ago. As a result, there is no formal institute to train and develop human resource for tourism services.

The KP government needs to have a specialised team of market strategists who can market tourist sites and packages.

Presently, there is no institution or department at the federal level to coordinate with the provinces in promoting tourism at the international level. This responsibility can be entrusted to the Trade Development Authority of Pakistan.

Malaysia and Dubai both have one organisation (the Malaysian Tourism and Exports Development Board and the Dubai Commerce and Tourism Marketing Board) that are responsible for marketing tangible products and tourism services. This model may be perhaps replicated in Pakistan as well.

Pakistan has more than 52 commercial attaches in the world’s leading capitals to promote local products. They can be entrusted with the promotion of tourism as well, which also falls under the ambit of GATS.

In order to reap the benefits, the policy says the KP government will have to develop tourism-related infrastructure, ensure quality services, develop a tourism-specific workforce, introduce new products and new areas for visitors, ensure security and safety of visitors, and create an enabling business environment for investment.

Published in Dawn, Business & Finance weekly, November 16th, 2015