Investigating the Impact of Tourism Development on Socio-Economic Development in Aj&K, Pakistan
Total Page:16
File Type:pdf, Size:1020Kb
International Journal of Management (IJM) Volume 12, Issue 6, June 2021, pp. 189-200, Article ID: IJM_12_06_017 Available online at https://iaeme.com/Home/issue/IJM?Volume=12&Issue=6 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.12.6.2021.017 © IAEME Publication Scopus Indexed INVESTIGATING THE IMPACT OF TOURISM DEVELOPMENT ON SOCIO-ECONOMIC DEVELOPMENT IN AJ&K, PAKISTAN Dr. Sabahat Akram Associate Professor at Department of Economics, University of Kotli Azad Jammu & Kashmir, Pakistan. Muhammad Waseem Shahzad Lecturer at Department of Economics, University of Kotli Azad Kashmir, Pakistan. Annam Khalil MS Scholar at Department of Economics, University of Kotli Azad Jammu & Kashmir, Pakistan. Waqas Younis Lecturer at Department of Economics, University of Kotli Azad Jammu & Kashmir, Pakistan. Midhat Shahzad Secretary Tourism, Government of Azad State of Jammu & Kashmir, Pakistan. Dr. Faheem Ghazanfar Associate Professor at Department of Public Administration, University of Kotli Azad Jammu & Kashmir, Pakistan. ABSTRACT Even though this is a generally recognized that tourism development can positively effect on employment, income and education and impact the countries socio-economic development, the empirical research on the tourism development and socio-economic development are limited, specifically in case of state of AJ&K which largely depends upon tourism. The current research intends to add to the literature on tourism development and socio-economic development through empirical examining the connection among tourism development and socio-economic development in Azad Jammu & Kashmir, Pakistan. This research was based on social exchange theory. The data for this study was primary and collected through a questionnaire-based survey in three districts of AJ&K. The current study used SPSS version-21 for data analysis. The https://iaeme.com/Home/journal/IJM 189 [email protected] Investigating the Impact of Tourism Development on Socio-Economic Development in AJ & K, Pakistan study used correlation and regression for analyzing data. This study findings confirmed that a considerable association exists among tourism development and socio-economic development in AJ&K, Pakistan. This research also validates the proposed tourism development and socio-economic development hypothesis. The present study increases the literature about tourism and socio-economic link, specifically for tourism dependent in AJ&K. The study findings are valuable for tourism officials, policymakers, entrepreneurs, and non-governmental organizations working for tourism development as well as economic development in AJ&K. Future researchers can base their research on the findings of this study. The current research is a primary data-based research conducted in a state which is having countless tourism potentials. The study is unique in the sense that to the best of authors’ knowledge it is probably the first of its nature in AJ&K. Key words: Tourism development, socio-economic development, education, income, AJ&K Cite this Article: Sabahat Akram, Muhammad Waseem Shahzad, Annam Khalil, Waqas Younis, Midhat Shahzad and Faheem Ghazanfar, Investigating the Impact of Tourism Development on Socio-Economic Development in AJ & K, Pakistan, International Journal of Management (IJM), 12(6), 2021, pp. 189-200. https://iaeme.com/Home/issue/IJM?Volume=12&Issue=6 1. INTRODUCTION Tourism industry is emerged as an imperative field of economy in this era of rapid growth and globalization. It has significant effect on GDP and economic share of employment in many countries. It provides strength to the state by offering inside preference to tourist. Moreover, it has various optimistic effects on economy such as assorted education, improved employment ratio; refine hoteling, cultural altercations and recovering currency exchange rate [1, 2]. The studies in many developed and developing countries prove that tourism is one of the most impactful sectors of economy which effect the exchange rates, substantial capacities of external currency influxes, substructure expansion, and thus impacts the social and economic growth of the nation. The impact of tourism on economic and social equity is depicted in economies of many developed countries like Austria, Switzerland, and France. It has a share of 10percent in world’s GDP and one out of tenth employment ratio of the universal labor force. Tourism is considered as a connote to stable foreign trade by rapid growth of foreign exchange reserves [3-5]. Tourism can contribute directly by job creation. Standard of living can be improved by job creation, thereby improving socio economic development of nation. In the past, Pakistan tourism industry was affected by terrorism and unstable political situations. However, from 2015 onwards things settle to change for better. Visitor exports created 3.6% of overall exports in 2016, the over-all input of T & T to GDP was PKR 2,349.0 bn in 2017 this is 7.4% of GDP and is predictable to raise by 5.8% to PKR2,486 in 2018. In 2017, T&T generated 1,493,000 jobs; this is the 2.5% of overall employment in 2018. In 2018, the predicted growth rate of the sector was 7%. In 2017, and Travel & Tourism investment was PKR410.4bn, 9.1% of over-all investment[6]. Azad Kashmir is a remote area in northern Pakistan. It is a disputed area between India and Pakistan, and a bone of contention for many decades now. Because of its disputed nature tourism activities were not possible here for long time but after 2004 ceasefire and CBM initiatives tourism stated to evolve here as it has many tourist potentials attractions. Studies revealed that the Sate of Azad Jammu and Kashmir having area of 13,297 km is blessed with https://iaeme.com/Home/journal/IJM 190 [email protected] Sabahat Akram, Muhammad Waseem Shahzad, Annam Khalil, Waqas Younis, Midhat Shahzad and Faheem Ghazanfar magnificent valleys, rivers, lakes, and waterfalls. It is known for its beauty as “heaven on earth” and “Switzerland of East”. It is a place of attraction for almost half millions of tourists around the world. The area of AJK is covered with pine forests, snow covered peaks, green meadows. Research studies revealed that AJK earmarked 250 million for tourism in 2016-17 and earning from tourism was 67.378. There is a continuous growth in tourism related activities in the region of AJK. This research study is aimed to display the part of the tourism industry in the socio-economic growth of AJK. The number of tourists in the state is continuously increasing day by day. In 2015, it was 1.143 million whereas in 2016 and 2017 , this number was increased to 1.562 million and .752 million respectively [7, 8]. Khan and Callanan [9] revealed that tourism plays a significant role in the socio-economic growth of any country. It is essential to point out that it exerts a strong positive influence on the economic growth rate of local community by creating job opportunities. Very rare research studies are available on this topic with special reference to Pakistan. In case of AJK this dearth is more acute. Kashmir is a point of conflict between India and Pakistan. In this region tourists were not allowed to enter till 2005. This area was opened to tourism after CBM (Confidence building Measure) between India and Pakistan. There are few studies conducted on the dynamics of socio-economic impact of tourism in this region. Therefore, the aim of this study was to explore and analyze the impact of tourism on socio-economic development of Azad Jammu & Kashmir. 2. LITERATURE REVIEW Some studies have reported on the contributions of tourism commerce to socioeconomic growth, such as an increase in job opportunities and the expansion of shops for minor occupations. These studies emphasize the strategies developed by tourism shareholders to support the tourism industry. These studies revealed that tourism has a negative impact on the people who live in tourist areas [10, 11]. A study demonstrates the socioeconomic development of ecotourism objects in Lampung province, Indonesia. This study indicates that the investment opportunities surrounding Mutun Coast Tourism Magnetisms are of the heightened type. Tourism affects the surrounding people's trade, employment growth, and advancement in boat rental service. Mutun Beach Tourism has seen as the enhancement in tourist numbers following a makeover. The increase in revenue is being attributed to a large number of tourists. [12, 13]. Kim [14] demonstrates that the effects of tourism have an influence on the Greatness of Living of members of the community. This study investigates how the effect of tourism enhances people's life satisfaction. The results indicate that tourism varies depending on the stage of development. Andereck and Vogt [15] study illustrates residents' attitudes and support for tourism development. The findings of this study show that civilizations differ in terms of residents' attitudes toward tourism and the availability of resources to support sustainable tourism. In general, people pay attention to tourism and particular kinds of development. While each community's type of relationship is unique. Schubert, Brida [16] highlights the fundamental relationship between benefit after tourism and interest in developing and tourism support. According to the major objectives, host residents benefit more from tourism than they disadvantage. The economic impact of tourism proves that the tourism industry provides economic value. The findings related to socio-cultural effects revealed uncertain attitudes.