Punjab Tourism for Economic Growth Final Report Consortium for Development Policy Research

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Punjab Tourism for Economic Growth Final Report Consortium for Development Policy Research Punjab Tourism for Economic Growth Final Report Consortium for Development Policy Research ABSTRACT This report documents the technical support provided by the Design Team, deployed by CDPR, and covers the recommendations for institutional and regulatory reforms as well as a proposed private sector participation framework for tourism sector in Punjab, in the context of religious tourism, to stimulate investment and economic growth. Pakistan: Cultural and Heritage Tourism Project ---------------------- (Back of the title page) ---------------------- This page is intentionally left blank. 2 Consortium for Development Policy Research Pakistan: Cultural and Heritage Tourism Project TABLE OF CONTENTS LIST OF ACRONYMS & ABBREVIATIONS 56 LIST OF FIGURES 78 LIST OF TABLES 89 LIST OF BOXES 910 ACKNOWLEDGMENTS 1011 EXECUTIVE SUMMARY 1112 1 BACKGROUND AND CONTEXT 1819 1.1 INTRODUCTION 1819 1.2 PAKISTAN’S TOURISM SECTOR 1819 1.3 TRAVEL AND TOURISM COMPETITIVENESS 2324 1.4 ECONOMIC POTENTIAL OF TOURISM SECTOR 2526 1.4.1 INTERNATIONAL TOURISM 2526 1.4.2 DOMESTIC TOURISM 2627 1.5 ECONOMIC POTENTIAL HERITAGE / RELIGIOUS TOURISM 2728 1.5.1 SIKH TOURISM - A CASE STUDY 2930 1.5.2 BUDDHIST TOURISM - A CASE STUDY 3536 1.6 DEVELOPING TOURISM - KEY ISSUES & CHALLENGES 3738 1.6.1 CHALLENGES FACED BY TOURISM SECTOR IN PUNJAB 3738 1.6.2 CHALLENGES SPECIFIC TO HERITAGE TOURISM 3940 2 EXISTING INSTITUTIONAL ARRANGEMENTS & REGULATORY FRAMEWORK FOR TOURISM SECTOR 4344 2.1 CURRENT INSTITUTIONAL ARRANGEMENTS 4344 2.1.1 YOUTH AFFAIRS, SPORTS, ARCHAEOLOGY AND TOURISM DEPARTMENT (YASA&T) 4445 2.1.2 TOURISM DEVELOPMENT CORPORATION OF PUNJAB (TDCP) 4647 2.1.3 EVACUEE TRUST PROPERTY BOARD (ETPB) 4748 2.1.4 PAKISTAN SIKH GURDWARA PRABANDHAK COMMITTEE (PSGPC) 4950 2.1.5 AUQAF DEPARTMENT 5051 2.1.6 WALLED CITY LAHORE AUTHORITY 5152 2.1.7 ENVIRONMENT PROTECTION AGENCY (EPA) 5253 2.1.8 LAHORE DEVELOPMENT AUTHORITY 5253 2.1.9 INSTITUTE OF TOURISM AND HOTEL MANAGEMENT (ITHM) 5354 2.2 NEED FOR INSTITUTIONAL REFORMS 5455 2.3 CURRENT REGULATORY FRAMEWORK 5455 2.3.1 CONSTITUTIONAL MANDATE AND LEGISLATIVE SPACE 5455 2.3.2 CURRENT LAWS IN PLACE 5556 3 POLICY FRAMEWORK FOR TOURISM DEVELOPMENT 5859 3.1 TOURISM IN THE CONTEXT OF THE PUNJAB GROWTH STRATEGY 5859 3.2 PRINCIPLES OF POLICY FOR TOURISM SECTOR IN PUNJAB 6061 Consortium for Development Policy Research 3 Pakistan: Cultural and Heritage Tourism Project 4 PRIVATE SETCOR AND OTHER STAKEHOLDERS’ PERSPECTIVE 6364 5 GLOBAL INSIGHTS 6869 6 PROPOSED INSTITUTIONAL & REGULATORY REFORMS 7778 6.1 KEY PRINCIPLES FOR INSTITUTIONAL REFORMS 7778 6.2 PROPOSED INSTITUTIONAL STRUCTURE 7879 6.2.1 FEDERAL-PROVINCIAL COORDINATION AND ALIGNMENT 7879 6.2.2 STRENGTHENED PUBLIC SECTOR CAPACITY FOR TOURISM SECTOR MANAGEMENT 7980 6.2.3 SPECIALIZED INSTITUTIONAL CAPACITY FOR MANAGING HERITAGE SITES 8283 6.2.4 INSTITUTIONAL CAPACITY TO IMPLEMENT RELIGIOUS, CULTURAL & HERITAGE TOURISM PROJECT8586 6.2.5 PROMOTING PRIVATE SECTOR-LED GROWTH 8687 6.2.6 STRENGTHENING PRIVATE SECTOR CAPACITY 8889 6.3 PROPOSED LEGAL & REGULATORY REFORMS 9192 6.3.1 LEGAL FRAMEWORK TO SUPPORT INSTITUTIONAL REFORMS 9293 6.3.2 EASING THE PAKISTAN-INDIA VISA REGIME 9394 7 PRIVATE SECTOR PARTICIPATION FRAMEWORK FOR TOURISM SECTOR 9495 7.1 CONSTRAINTS TO PRIVATE INVESTMENTS 9495 7.2 COMPONENT I - PROPOSED PRIVATE SECTOR PARTICIPATION FRAMEWORK FOR TOURISM 9596 7.2.1 NEED FOR A TOURISM PPP FRAMEWORK 9697 7.2.2 THE PROPOSED PPP FRAMEWORK 99100 7.2.3 PROPOSED INSTITUTIONAL FRAMEWORK FOR TOURISM PPPS 100101 7.2.4 PROPOSED TOURISM INFRASTRUCTURE FUND 102103 7.3 COMPONENT II - INVESTMENT POLICY FOR TOURISM INVESTMENTS 103104 7.3.1 USE OF PUBLIC ASSETS AND LAND 103104 7.3.2 APPROVAL FOR ALL PERMITS / DEVELOPMENT PLANS 103104 7.3.3 ONE-WINDOW FACILITATION 103104 7.3.4 FINANCIAL ARRANGEMENTS 104105 7.3.5 TAX POLICY PREDICTABILITY 104105 7.3.6 ALTERNATIVE DISPUTE RESOLUTION 104105 7.4 PRIVATE SECTOR PARTICIPATION IN HOSPITALITY & TOURISM SKILLS DEVELOPMENT 104105 7.4.1 INVESTOR CONFERENCE FOR TOURISM SKILLS 105106 7.4.2 PUBLIC PRIVATE COLLABORATION FOR ESTABLISHMENT OF A HOSPITALITY SCHOOL 105106 8 CONCLUSION 107108 ANNEXURE 108109 ANNEX A: LIST OF STAKEHOLDERS CONSULTED 109110 ANNEX B: CULTURAL HERITAGE OF PUNJAB, PAKISTAN 111112 ANNEX C: CULTURAL HERITAGE OF PUNJAB, PAKISTAN 122123 ANNEX D: FURTHER DETAILS ON PROPOSED TOURISM PPP FRAMEWORK 124125 ANNEX E: COMMUNICATION STRATEGY 126127 ANNEX F: LIST OF DESTINATIONS IN PUNJAB FOR DOMESTIC TOURISM 128129 ANNEX G: ILLUSTRATIVE TOURISM PRODUCTS FOR PUNJAB 140141 ANNEX H: MATRIX OF PROPOSED TOURISM PRODUCTS 141142 ANNEX I: DATA COLLECTION STRATEGY FOR EVIDENCE-BASED DATA COLLECTION 144145 ANNEX J: MAJOR SUFI TOURIST SITES 145146 ANNEX K: MAJOR SIKH TOURIST SITES 146147 4 Consortium for Development Policy Research Pakistan: Cultural and Heritage Tourism Project LIST OF ACRONYMS & ABBREVIATIONS ADP Annual Development Plan ASCOT Australian Standing Committee on Tourism ASMET Association for Small & Medium Enterprises in Tourism ATEC Australian Tourism Export Council C & W Communication & Works Department CCI Council for Common Interests CDPR Consortium for Development Policy Research COTHM College of Tourism and Hotel Management CNT National Council for Tourism CPT Tourism Promotion Council DGE Directorate General for Enterprise DTS Department for Tourism Services EPA Environment Protection Agency EIA Environmental Impact Assessment ETPB Evacuee Trust Property Board GDP Gross Domestic Product JTA Japan Tourism Agency ICT Information & Communications Technology IPC Interprovincial Coordination IT Information Technology ITDC Indian Tourism Development Corporation ITHM Institute of Tourism and Hotel Management KPK Khyber Pakhtunkhwa LDA Lahore Development Authority MNC Multi-National Corporations MOTC Ministry of Tourism & Culture MoTS Ministry of Tourism & Sports MOU Memorandum of Understanding MyTQA Malaysia Tourism Quality Assurance NEASC New England Association of Schools and Colleges NOC Non-Objection Certificate NTA National Tourism Alliance NTO National Tourism Organization OTBLS Online Tourism Business Licensing Service P & D Planning & Development PATO Pakistan Association of Tour Operators PGS Punjab Strategy Growth PHA Pakistan Hotels Association PILDAT Pakistan Institute of Legislative Development and Transparency PITHM Pakistan Institute of Tourism and Hotel Management PPP Public Private Partnership PSGPC Pakistan Sikh Gurdwara Parabandhak Committee PTDC Pakistan Tourism Development Corporation RMU Risk Management Unit SGPC Shiromani Gurdwara Parbandhak Committee Consortium for Development Policy Research 5 Pakistan: Cultural and Heritage Tourism Project SLTDA Sri Lanka Tourism Development Authority STO State Tourism Organization TCI Tourism Investment Committee TDCP Tourism Development Corporation of Punjab TEPA Traffic Engineering & Planning Agency THE – ICE International Centre of Excellence in Tourism and Hospitality Education TMC Tourism Ministers Council TTF Tourism and Transport Forum UNESCO United Nations Educational, Scientific and Cultural Organization WAPDA Water & Power Development Authority WASA Water and Sanitation Agency WCLA Walled City Lahore Authority WTO World Tourism Organization WTTC World Travel and Tourism Council YASA & T Youth Affairs, Sports, Archaeology & Tourism 6 Consortium for Development Policy Research Pakistan: Cultural and Heritage Tourism Project LIST OF FIGURES Figure 1.1 Tourism and Travel Contribution to GDP and Employment in Pakistan ............ 1918 Figure 1.2 GDP Growth and Growth of Tourist Arrivals in Pakistan (%).............................. 2019 Figure 1.3 International Tourism: Number of Arrivals and Receipts ................................... 2120 Figure 1.4 Receipts as a Percentage of GDP ........................................................................ 2120 Figure 1.5 Receipts for Tourism Exports 2014..................................................................... 2221 Figure 1.6 Receipts from International tourism versus Service Exports, Pakistan 2015 ..... 2221 Figure 1.7 International Tourism Receipts compared with Top Exports 2015, ................... 2322 Figure 1.8 Travel and tourism competitiveness .................................................................. 2423 Figure 1.9 Current and Potential Contribution of International Tourism in Pakistan ......... 2625 Figure 1.10 Distribution of Annual Visitors to Historical / Religious Sites in Punjab .......... 2625 Figure 2.1 Map of key sites of Religious Significance .......................................................... 2829 Figure 2.2 Map of main Gurdwaras in Punjab, Pakistan ......... Error! Bookmark not defined.31 Figure 2.3 Sikh Religious Tourism in Pakistan, Number of VisitorsError! Bookmark not defined.32 Figure 2.4 Expenditure Patterns of Sikh Tourists .................... Error! Bookmark not defined.33 Figure 2.5 Map of Buddhist Sites in Punjab ......................................................................... 3638 Figure 2.6 Reasons for Lack of Interest in visiting Pakistan amongst Buddhists ................. 4139 Figure 3.1 Existing Institutional Mapping for Tourism Sector ............................................. 4341 Figure 3.2 Organizational Structure of TDCP ....................................................................... 4744 Figure 7.1 Proposed Institutional Structure for Tourism Sector ......................................... 7876 Figure 8.1 Proposed Private Sector Participation Framework for Tourism Sector ............. 9593 Consortium for Development Policy Research
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