Submitted by

Shariq Ejaz

Roll No.
142199

Analysis & Strategies for Emerging Markets

Submitted to
Sir Nabeel Younas
 Impact of CPEC on the Tourism Industry of Pakistan

CPEC (China-Pakistan Economy Corridor) is one of the mega project that consist of highways,
railways and pipelines. CPEC is a 3,218 kilometer long route, to be built over next several years.
CPEC will transfer Pakistan into a regional economic hub and it will boost the confidence of
investors not only from China but also from other parts of the world. CPEC will also provide
telecommunications and energy infrastructure to Pakistan to overcome the power crisis.

The CPEC project has been divided into phases, the first phase being the completion of Gawadar
International Airport and major developments of Gawadar Port. This phase is expected to be
completed by the year 2017. The project also includes the expansion of Karakoram Highway- the
road that connects China with Pakistan and placement of fiber optics line ensuring better
communication between the two countries. CPEC is lucrative for and make conspicuous effect on
tourism industry in Pakistan.

Furthermore reinforced roads, infrastructure and pipelines will make the pure tourist spots
accessible. With more of the feasibilities, there will be a massive increase in the visitor to explore
the spectacular landscapes. Proactively the Government of Azad Jammu and Kashmir has declared
to make a tourism corridor in the valley. This Rs. 22 billion project is part of the CPEC. Pakistan
is home of most stunning Himalayan peaks, including K-2 and various magnificent valleys. It has
beautiful Arabian Sea, deserts, Indus valley, ancient Buddha’s civilization carved in its mountains
and historic forts. With all this it is supposed to be one of the world’s greatest tourist destinations.

Development of CPEC will lead to development of infrastructure, which will also positively
impact the tourism in Pakistan. As Pakistan is full of natural beauty of Swat, Naran, Kaghan,
Murree, Deosai etc. As more and new infrastructure of railways and roads will be developed it will
not only enhance the trade but also boast the other things such as employment, tourism,
development of rural areas and connection of rural areas to urban parts.

Extracting from different references Gilgit Baltistan is the hub of tourism industry in Pakistan and
attract millions of local and outland tourist. 2.5 million Tourists both domestic and international
travelled to northern areas in Pakistan last year, tourism which is an important industry that will
also see an immense boost as a result of CPEC in Pakistan. Pakistan has the range of some of the
highest mountains in the world, including K2, highly rich in landscape, mountains, glaciers, lakes,
and valleys, and also boasts another five peaks above 8,000 meters, in addition to the more than
50 other mountains over 7,000 meters.

Mountaineers from around the globe will flock to Pakistan as soon as CPEC is operational.
Hence as a concluding fact it can be said that CPEC will open doors to immense economic
opportunities not only to Pakistan but will physically connect China to its markets in Asia, Europe
and beyond. It’s a huge project that will lead many different ways for different sector especially
on tourism. With improving security situation in the rest of the country and better infrastructure,
tourism is expected to grow. CPEC is a worthwhile opportunity for tourism industry of Pakistan.
Tourism opportunities through CPEC (from Khunjrab Pass to Gawadar) via
Silk Road
Beside other advantages, tourism which is an important industry that will also see an immense
boost as a result of CPEC in Pakistani. Pakistan has the range of some of the highest mountains in
the world, including K2, highly rich in landscape, mountains, glaciers, lakes, and valleys, and also
boasts another five peaks above 8,000 meters, in addition to the more than 50 other mountains
over 7,000 meters. Mountaineers from around the globe will flock to Pakistan as soon as CPEC is
operational. Increased Chinese investment in tourism sector of Pakistan via CPEC, after the
building of road and railways to connect the two countries, this projects will generate new
investment opportunities; “We are planning consultations with Pakistani companies on developing
joint tourism products,” said by president of Yema Group Company Limited, Mr. Chen Qiang.
Recently in 2015, more than 30 million tourists traveled to the Xinjiang province of China,” he
said. From Xinjiang province, a group of people visited the Gilgit Baltistan to explore the
opportunities for joint tourism and mutual businesses. “Special efforts are being made to set up a
Pakistani pavilion in the park where individuals, including cooks, singers and artisans will be
brought from Pakistan and given employment.” 2.5 million Tourists both domestic and
international travelled to northern areas in Pakistan last year. The tourism destinations could be
extended to Xinjiang and other destinations both in China and Pakistan via CPEC. The 700-
kilometre long coastal areas of Arabian Sea can be made accessible to the tourists via Kashgar-
Gwadar road. A bus service is working from the Chinese border to Gilgit-Baltistan. Later on,
transportation would be available for other cities of China like Kashgar and Urumqi, while both
cities are already connected via air route. Urumqi is considered to be the first stop for goods coming
from Central Asia to China, as a large number of people from Pakistan, especially businessmen
visit Xinjiang daily. Being a tourism paradise CPEC is expected to boost the tourism industry in
Pakistan, especially in Gilgit-Baltistan. The region is considered to be a mountaineer’s paradise,
since it is home to five of the ‘eight-thousands’ (peaks above 8,000 meters), as well as more than
50 mountains over 7,000 meters. It is also home to the world’s second highest peak K2 and the
Nanga Parbat. Gilgit-Baltistan, also known as ‘The Jewel of Pakistan’, and rightly so, the region
holds some of the most breath-taking views in the world, from the highest peaks in the world and
the most number of glaciers in the world, to the most magnificent lakes in the world. Apart from
the beauty, the region holds significant strategic importance, it borders Pakistan with China and
will act as a gateway for the rest of Pakistan once China-Pakistan-Economic-Corridor is
completed. With improving security situation in the rest of the country and better infrastructure,
tourism is expected to grow. “For a few years now, between 10,000 and 20,000 tourists would visit
Gilgit-Baltistan each year but in 2015, over 600,000 people visited Gilgit-Baltistan and this year,
it is expected that around one million people will travel to GB,” GB Tourism Secretary Jehanzeb”.

Pakistan Government Role in Boosting Tourism in Country

The tourism industry anywhere can be improved by providing safety to the people (foreigners as
well as the locals) who wants to visit a specific location. That's the very basic step. Secondly, by
positive publicity of the places where people will definitely want to go. There comes the Tourism
Department in Pakistan, they must work for it and run advertisements on television and
newspapers. Pakistan is blessed with beautiful landscapes and has a lot to offer for the tourists.
But from the past two decades, we lost this tourism industry due to the war on terror, and so many
beautiful places and buildings have been destroyed. The Tourism department must work now to
improve the infrastructure over there and work on the tourist-visiting spots, to counter the losses
been done.

Conclusive Remarks
Pakistan is home of most stunning Himalayan peaks, including K-2 and various magnificent
valleys. It has beautiful Arabian Sea, deserts, Indus valley, ancient Buddha’s civilization carved in
its mountains and historic forts. With all this it is supposed to be one of the world’s greatest tourist
destinations. But due to weak travel and tourism framework, low branding and marketing
effectiveness and deduced priority given to the travel and tourism industry by the government,
Pakistan had left behind among other countries around the globe. By improvising the ongoing
projects, and also focusing ton preserving the natural environment like many other countries, will
not only attract more tourists but also would play a role model in the world as a cause in support
on global issues.