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Punjab Tourism for Economic Growth Consortium for c d p r Development Policy Research w w w . c d p r . o r g . p k c d p r Report R1703 State June 2017 About the project The final report Punjab Tourism for Economic Growth has been completed by the CDPR team under overall guidance Funded by: World Bank from Suleman Ghani. The team includes Aftab Rana, Fatima Habib, Hina Shaikh, Nazish Afraz, Shireen Waheed, Usman Key Counterpart: Government of Khan, Turab Hussain and Zara Salman. The team would also +924235778180 [email protected] Punjab like to acknowledge the advisory support provided by . Impact Hasaan Khawar and Ali Murtaza. Dr. Ijaz Nabi (IGC and With assistance from CDPR) provided rigorous academic oversight of the report. CDPR, Government of Punjab has formulated a n d a p p r o v e d k e y principles of policy for tourism, providing an In brief anchor for future reforms Ÿ Government of Punjab is keen and committed to and clearly articulating i t s c o m m i t m e n t t o developing a comprehensive strategy for putting p r o m o t e t o u r i s m , tourism on a solid footing. e s p e c i a l l y h e r i t a g e Ÿ CDPR has been commissioned by the government to tourism. Government of help adopt an informed, contemporary, view of tourism Punjab has been closely involved in formulation of and assist in designing a reform program to modernize www.cdpr.org.pk f o l l o w - u p the sector. recommendations and Ÿ Pakistan's low tourism competitiveness provides proactively highlighting tremendous room for improvement and capacity to internal challenges and constraints faced in this contribute towards economic growth. regard. Pakistan: Cultural and Heritage Tourism Project TABLE OF CONTENTS LIST OF ACRONYMS & ABBREVIATIONS 5 LIST OF FIGURES 7 LIST OF TABLES 8 LIST OF BOXES 9 ACKNOWLEDGMENTS ERROR! BOOKMARK NOT DEFINED. EXECUTIVE SUMMARY 10 1 BACKGROUND AND CONTEXT 17 1.1 INTRODUCTION 17 1.2 PAKISTAN’S TOURISM SECTOR 17 1.3 TRAVEL AND TOURISM COMPETITIVENESS 22 1.4 ECONOMIC POTENTIAL OF TOURISM SECTOR 24 1.4.1 INTERNATIONAL TOURISM 24 1.4.2 DOMESTIC TOURISM 25 1.5 ECONOMIC POTENTIAL HERITAGE / RELIGIOUS TOURISM 26 1.5.1 SIKH TOURISM - A CASE STUDY 28 1.5.2 BUDDHIST TOURISM - A CASE STUDY 34 1.6 DEVELOPING TOURISM - KEY ISSUES & CHALLENGES 36 1.6.1 CHALLENGES FACED BY TOURISM SECTOR IN PUNJAB 36 1.6.2 CHALLENGES SPECIFIC TO HERITAGE TOURISM 38 2 EXISTING INSTITUTIONAL ARRANGEMENTS & REGULATORY FRAMEWORK FOR TOURISM SECTOR 42 2.1 CURRENT INSTITUTIONAL ARRANGEMENTS 42 2.1.1 YOUTH AFFAIRS, SPORTS, ARCHAEOLOGY AND TOURISM DEPARTMENT (YASA&T) 43 2.1.2 TOURISM DEVELOPMENT CORPORATION OF PUNJAB (TDCP) 45 2.1.3 EVACUEE TRUST PROPERTY BOARD (ETPB) 46 2.1.4 PAKISTAN SIKH GURDWARA PRABANDHAK COMMITTEE (PSGPC) 48 2.1.5 AUQAF DEPARTMENT 49 2.1.6 WALLED CITY LAHORE AUTHORITY 50 2.1.7 ENVIRONMENT PROTECTION AGENCY (EPA) 51 2.1.8 LAHORE DEVELOPMENT AUTHORITY 51 2.1.9 INSTITUTE OF TOURISM AND HOTEL MANAGEMENT (ITHM) 52 2.2 NEED FOR INSTITUTIONAL REFORMS 53 2.3 CURRENT REGULATORY FRAMEWORK 53 2.3.1 CONSTITUTIONAL MANDATE AND LEGISLATIVE SPACE 53 2.3.2 CURRENT LAWS IN PLACE 54 3 POLICY FRAMEWORK FOR TOURISM DEVELOPMENT 57 3.1 TOURISM IN THE CONTEXT OF THE PUNJAB GROWTH STRATEGY 57 3.2 PRINCIPLES OF POLICY FOR TOURISM SECTOR IN PUNJAB 59 Consortium for Development Policy Research 3 Pakistan: Cultural and Heritage Tourism Project 4 PRIVATE SETCOR AND OTHER STAKEHOLDERS’ PERSPECTIVE 62 5 GLOBAL INSIGHTS 67 6 PROPOSED INSTITUTIONAL & REGULATORY REFORMS 76 6.1 KEY PRINCIPLES FOR INSTITUTIONAL REFORMS 76 6.2 PROPOSED INSTITUTIONAL STRUCTURE 77 6.2.1 FEDERAL-PROVINCIAL COORDINATION AND ALIGNMENT 77 6.2.2 STRENGTHENED PUBLIC SECTOR CAPACITY FOR TOURISM SECTOR MANAGEMENT 78 6.2.3 SPECIALIZED INSTITUTIONAL CAPACITY FOR MANAGING HERITAGE SITES 83 6.2.4 INSTITUTIONAL CAPACITY TO IMPLEMENT RELIGIOUS, CULTURAL & HERITAGE TOURISM PROJECT 85 6.2.5 PROMOTING PRIVATE SECTOR-LED GROWTH 86 6.2.6 STRENGTHENING PRIVATE SECTOR CAPACITY 88 6.3 PROPOSED LEGAL & REGULATORY REFORMS 91 6.3.1 LEGAL FRAMEWORK TO SUPPORT INSTITUTIONAL REFORMS 93 6.3.2 EASING THE PAKISTAN-INDIA VISA REGIME 93 7 PRIVATE SECTOR PARTICIPATION FRAMEWORK FOR TOURISM SECTOR 95 7.1 CONSTRAINTS TO PRIVATE INVESTMENTS 95 7.2 COMPONENT I – PROMOTING PPPS FOR TOURISM SECTOR 96 7.3 COMPONENT II - INVESTMENT POLICY FOR TOURISM INVESTMENTS 98 7.3.1 USE OF PUBLIC ASSETS AND LAND 99 7.3.2 APPROVAL FOR ALL PERMITS / DEVELOPMENT PLANS 99 7.3.3 ONE-WINDOW FACILITATION 99 7.3.4 FINANCIAL ARRANGEMENTS 99 7.3.5 TAX POLICY PREDICTABILITY 100 7.3.6 ALTERNATIVE DISPUTE RESOLUTION 100 7.4 PRIVATE SECTOR PARTICIPATION IN HOSPITALITY & TOURISM SKILLS DEVELOPMENT 100 7.4.1 INVESTOR CONFERENCE FOR TOURISM SKILLS 101 7.4.2 PUBLIC PRIVATE COLLABORATION FOR ESTABLISHMENT OF A HOSPITALITY SCHOOL 101 8 CONCLUSION 102 ANNEXURE 103 ANNEX A: LIST OF STAKEHOLDERS CONSULTED 104 ANNEX B: CULTURAL HERITAGE OF PUNJAB, PAKISTAN 106 ANNEX C: CULTURAL HERITAGE OF PUNJAB, PAKISTAN 118 ANNEX D: COMMUNICATION STRATEGY 120 ANNEX E: LIST OF DESTINATIONS IN PUNJAB FOR DOMESTIC TOURISM 122 ANNEX F: ILLUSTRATIVE TOURISM PRODUCTS FOR PUNJAB 134 ANNEX H: MATRIX OF PROPOSED TOURISM PRODUCTS 135 ANNEX G: DATA COLLECTION STRATEGY FOR EVIDENCE-BASED DATA COLLECTION 138 ANNEX H: MAJOR SUFI TOURIST SITES 139 ANNEX I: MAJOR SIKH TOURIST SITES 140 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 SGPC Shiromani Gurdwara Parbandhak Committee SLTDA Sri Lanka Tourism Development Authority STO State Tourism Organization TDCP Tourism Development Corporation of Punjab Consortium for Development Policy Research 5 Pakistan: Cultural and Heritage Tourism Project 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 .... 18 Figure 1.2 GDP Growth and Growth of Tourist Arrivals in Pakistan (%) ......................... 19 Figure 1.3 International Tourism: Number of Arrivals and Receipts ............................... 20 Figure 1.4 Receipts as a Percentage of GDP ........................................................................... 20 Figure 1.5 Receipts for Tourism Exports 2014 ....................................................................... 21 Figure 1.6 Receipts from International Tourism versus Service Exports, Pakistan 2015 .................................................................................................................................................... 21 Figure 1.7 International Tourism Receipts compared with Top Exports 2015, ............ 22 Figure 1.8 Travel and Tourism Competitiveness ................................................................... 23 Figure 1.9 Current and Potential Contribution of International Tourism in Pakistan 25 Figure 1.10 Distribution of Annual Visitors to Historical / Religious Sites in Punjab .. 25 Figure 2.11 Map of key sites of Religious Significance ........................................................ 27 Figure 2.11 Map of main Gurdwaras in Punjab, Pakistan ................................................... 29 Figure 2.12 Sikh Religious Tourism in Pakistan, Number of Visitors ............................... 30 Figure 2.13 Expenditure Patterns of Sikh Tourists ................................................................ 31 Figure 2.14 Map of Buddhist Sites in Punjab .........................................................................
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