Pakistan Tourism Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Pakistan Tourism Market Trends and Insights

Revival of Inbound Travel after E-Visa Rollout

Pakistan’s digital visa system replaced cumbersome consular procedures with a user-friendly online gateway in late 2024. Within three quarters, inbound arrival growth turned positive for the first time since the pandemic, and Chinese leisure visits rose after Beijing introduced reciprocal visa-free entry for Pakistani business travelers. ASEAN carriers added seasonal capacity, while Gulf hubs leveraged fifth-freedom rights to funnel South-Asian diaspora traffic into Islamabad and Lahore. The streamlined process also slashed tour-operator lead times, enabling dynamic packaging that appeals to short-notice Gen-Z travelers. Private guides report that approval turnaround now averages 48 hours, down from 4-6 weeks previously, removing a long-standing deterrent for spontaneous holidaymakers. These lower frictions are widening the source-market funnel, especially among mid-haul segments that once defaulted to Sri Lanka, Nepal, or Georgia. 

Government-Led “Explore Pakistan” Branding Campaign

Launched in early 2025, “Explore Pakistan” unifies tourism messaging that was previously fragmented across provincial boards. The campaign features cinematic storytelling, influencer partnerships, and a multilingual portal that maps 480 attractions, including 120 religious sites. National-airline seat-back screens host dedicated destination shorts, while ride-hailing apps push hyper-local offers to arriving passengers. The strategy leans on diaspora emotional resonance by highlighting ancestral heritage trails and gastronomic nostalgia, thereby stimulating repeat visits and longer stays. Early analytics show a 19% rise in website traffic from Canada and the United Kingdom during the first two quarters of 2025. Provincial tourism boards synchronize social calendars, ensuring that marquee festivals do not overlap and cannibalize visitor flows. By embedding the brand across consular, aviation, and digital channels, the initiative strengthens identity coherence and fuels informal word-of-mouth marketing. 

USD 10 Billion CPEC-Linked Infrastructure Upgrades

The second phase of CPEC earmarks USD 10 billion for roads, rail, energy, and airports, extending commercial corridors into high-altitude valleys and coastal deserts^{[2]The Express Tribune, “Phase 2 of CPEC accelerated with new economic corridors,” tribune.com.pk}. The New Gwadar International Airport, while still underutilized, sets the stage for chartered leisure flights and cruise-linked fly-and-cruise products once auxiliary infrastructure is complete. The Karakoram Highway realignment reduces Islamabad-Hunza drive time from 15 hours to around 10, making weekend escapes feasible for domestic urbanites. Railway upgrades on the ML-1 corridor promise overnight sleeper services that compete with low-cost carriers on price and carbon footprint. Importantly, fiber-optic backbones laid alongside highways deliver 4G coverage deep into Gilgit-Baltistan and Balochistan, enabling always-on digital payments and content sharing that modern tourists expect. The multiplier effect spans beyond transport, as reliable power and broadband de-risk hotel investments and encourage branded operators to enter secondary cities. 

Digital Booking Penetration among Gen-Z Travelers

Mobile wallets reached 16 million active users by mid-2025, and average monthly e-commerce spend on travel apps grew 27% year on year^{[3]NayaPay, “Ant Group partnership on International Consumer Friendly Zones,” nayapay.com}. Platforms such as SastaTicket.pk and Bookme.pk now accounts for over one-third of domestic bus and airline ticket sales, compressing distribution costs and improving inventory visibility. Gen-Z consumers use short-video platforms to discover destinations and are drawn to flexible, cancellable packages, pressuring suppliers to adopt dynamic pricing engines. Hotels that integrate real-time inventory APIs report occupancy gains of 8-10 percentage points, particularly during shoulder seasons. Online reviews are raising service standards, as properties face instant reputational consequences for cleanliness, Wi-Fi speed, or sustainability lapses. These transparency gains reduce perceived risk for international visitors who historically questioned service consistency. Altogether, digital confidence accelerates conversion and lifts overall spend, reinforcing the upward trajectory of the Pakistan tourism market. 

Currency Volatility Elevates Package Prices

The rupee weakened from 175 to beyond 280 per USD between 2024 and 2025, unsettling margins for operators reliant on imported fuel, food, or hotel fittings. Tour operators report that fuel now represents about 35% of escorted-tour cost structures, forcing either price hikes or itinerary trimming. Hoteliers renegotiated supply contracts quarterly instead of annually, and some switched to locally manufactured linens and toiletries to contain costs. Conversely, international visitors enjoy outsized purchasing power, spending more on adventure add-ons and artisanal souvenirs, partially offsetting forex pain for suppliers. Larger chains hedge currency risk through forward contracts and USD-denominated room rates, but small lodges rely on informal cash flows and thus remain vulnerable. This mixed impact underlines the need for financial literacy programs within the Pakistan tourism market ecosystem. 

Perceived Security Risks in Certain Provinces

Although the National Counter Terrorism Authority reports a multi-year decline in major incidents, high-profile attacks in Balochistan perpetuate outdated perceptions abroad^{[4]Jamil Nagri, “Over 11,000 foreign climbers visited GB in 2023,” Dawn, dawn.com}. Media amplification magnifies localized events into generalized country-risk narratives, discouraging group-tour charters and school expeditions. Insurers apply premium surcharges, inflating tour costs and complicating visa letters of guarantee. Yet, Gilgit-Baltistan welcomed more than 11,000 foreign mountaineers in 2023, its best season in two decades, illustrating a gap between perception and reality. Public-private security task forces now escort convoy sections on the Karakoram Highway during peak months, reassuring operators without imposing onerous checkpoints. Effective storytelling through influencer treks and live-streamed festivals is gradually reshaping sentiment, but long-term success hinges on sustained incident-free seasons and transparent crisis-management protocols. 

Segment Analysis

By Origin: International Momentum Builds on Diaspora Links

International arrivals are forecast to expand at a 12.24% CAGR, outpacing domestic growth and tilting the Pakistan tourism market toward greater foreign-exchange earnings. Diaspora travelers from the GCC, the United Kingdom, and North America drive much of this surge, combining family visits with leisure add-ons to the northern highlands. Visitor-spending studies by the State Bank show that VFR travelers allocate roughly 35% of their budgets to shopping, twice the share of pure leisure segments, boosting urban retail receipts. Domestic trips still dominate with 91.3% of visits, providing a stable demand floor that shields the Pakistan tourism market from global shocks. Women-only tour companies have proliferated, signaling rising safety confidence and unlocking new cohorts of domestic explorers. Low-cost airlines introduced weekend shuttle flights linking Karachi and Skardu, shortening travel time from 30 hours by road to under 3 hours, and thus catalyzing short-break culture among urban professionals. 

The Pakistan tourism market size attributed to international visitors is expected to more than double by 2030 as e-visa efficiencies, diaspora marketing, and additional bilateral air-service agreements converge. Airlines such as Fly Dubai and Saudia have up-gauged equipment on Pakistan routes, citing load-factor improvements following visa relaxations. Provincial boards run roadshows in Toronto and Birmingham, pitching heritage packages timed around school holidays to maximize family participation. Meanwhile, community-based homestays in Hunza and Swat are curated via verified digital platforms, allowing overseas Pakistanis to book culturally immersive stays with convenient online payments. These developments point to a virtuous circle where increased arrivals justify further air capacity and product development, sustaining momentum. 

Note: Segment shares of all individual segments available upon report purchase

By Type : Accommodation Capacities Catch Up With Demand

Travel services captured 56.2% of the Pakistan tourism market share in 2024, a legacy of transport-centric itineraries that prioritized bus charters and trekking logistics. However, the accommodation segment is on track for a 14.29% CAGR as international brands such as IHG, Radisson, and Valor Hospitality inject pipeline depth in Islamabad, Murree, Karachi, and Skardu. Pakistan Services Limited swung back to profitability in 2024, posting a gross margin of 39.37%, underscoring the earnings recovery potential once occupancy climbs. New-builds increasingly incorporate solar arrays and heat-pump water systems to mitigate rising utility costs and appeal to eco-conscious guests. Boutique eco-lodges cluster around trekking trailheads, bundling guided hikes and culinary classes to raise average daily rate without large-scale capital outlays. 

Pakistan tourism market size gains in accommodation hinge on balancing branded-hotel influx with community-lodging authenticity. Tier-2 cities such as Multan and Sukkur attract midscale chains that rely on modular construction to curtail build times. Domestic investors form joint ventures with asset-light operators that contribute brand, distribution, and training while avoiding heavy balance-sheet exposure. At the budget end, hostel networks leverage renovated heritage buildings, offering coworking corners that cater to digital nomads escaping high-cost hubs in Southeast Asia. Collectively, these moves diversify lodging inventory, smooth seasonality, and keep spending onshore. 

By Purpose: MICE Ascends as a Growth Engine

Leisure remains the backbone at 46.3% of 2024 revenue, yet business events and conferences are charting the fastest route to scale, with the MICE slice projected at 15.24% CAGR. Karachi Expo Centre’s Phase III expansion adds 0.7 million square feet of column-free space, while Lahore’s International Convention Centre edges toward completion, elevating Pakistan’s attractiveness for regional trade fairs. Airlines coordinate group-fare blocks, and hospitality chains bundle meeting packages with mountain or coastal post-tours, melding business and leisure in line with global “bleisure” trends. The Pakistan tourism market benefits as midweek MICE occupancy fills gaps between weekend leisure peaks, stabilizing cash flow for hotels and ground handlers. 

Religious tourism provides counter-seasonal demand, anchored by year-round traffic to the Kartarpur Corridor, Sufi shrines, and Buddhist heritage sites. Government-facilitated pilgrim visas and infrastructure grants helped service providers expand dormitory capacities near key temples and gurdwaras. Development partners such as UNDP support eco-camping villages in Khyber Pakhtunkhwa, delivering entrepreneurship training that integrates conservation and visitor services. These complementary niches diversify the purpose mix, reducing overreliance on any single segment and enhancing resilience during economic cycles. 

Note: Segment shares of all individual segments available upon report purchase