MANSEHRA, Oct 27: The United Nations Industrial Development Organisation (Unido) will launch a project aimed at reviving the tourism industry, badly affected by the 2005 earthquake.

For the purpose a three-star hotel will be established in Mansehra, it is learnt.

A document of the UN agency, a copy of which has been obtained by Dawn, reveals that various projects will be launched in the earthquake-affected Mansehra district with a grant of 10.7 million euros from the European Union.

The project will be aimed at generating employment and enhancing income resources in the area. The revival of the tourism industry is important as the livelihood of the surviving families of Balakot depends on it.

In the tourism season ending on August 30 hotel owners and tour operators of Balakot, Naran, Kaghan, Shogran, Musada Musala and other tourist spots suffered huge financial losses and even could not get their investment back because tourists simply vanished.

Data of the ministry of the tourism revealed that in 2004 around 4.8 million domestic and 36,288 foreign tourists visited the Kaghan Valley and Battagram and Basham areas which number was reduced to thousands following the earthquake.

The data further revealed that the 60 per cent of the gross domestic products (GDP) of Mansehra district was derived from the tourism industry but following the tragedy the district had been deprived of the big financial chunk.

According to the document, Unido will not only revive the damaged infrastructure in the areas but a three-star hotel will also be establish in Mansehra which will be second after the Sirban hotel in Abbottabad as currently only 13 hotels are functioning with 10 to 25 rooms each following the earthquake.

The main objective of establishing a three-star hotel is to facilitate the internal and external tourists and provide them with the best boarding and lodging facilities and it will accommodate over 150 guests any time.