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The Resurgence of Pakistan’s Hospitality Sector

November 18, 2023

Pakistan’s hospitality sector has experienced tremendous growth in the last few years. When the pandemic struck in 2020, practically every industry in the nation began to collapse, except for the tourism sector, which saw a sharp rise.

The development of technology is one of the elements that contributed to the nation’s achievement of this milestone. Al Sadat Group has gathered all the necessary data in this blog post to assist you in comprehending the idea of Pakistan’s hospitality industry’s comeback.

Pakistan’s Hotel Sector

A Comparison of the Past and PresentThe history of Pakistan’s hospitality industry begins with its founding and has continued to grow throughout the nation. The business has grown significantly over the years, and the number of domestic and foreign hotel chains operating in the country has improved the hospitality and tourism sectors. 

Pakistan’s tourist business was booming in 2019, before the COVID-19 pandemic, as foreign travel websites named it the top holiday destination. Both domestic and foreign tourists flooded the industry, and this trend was further amplified when international leaders paid Pakistan visits. 

The government is now developing strategies to ease international tourism by relaxing visa requirements for visitors from other countries. The objectives were to increase foreign investment, provide more job opportunities, and grow the tourism industry.

As a result, in response to this surge in demand, many foreign hotel chains declared their intention to establish branches in Pakistan.

The revival of the hospitality industry in Pakistan – Market Synopsis

Pakistan’s tourism and hospitality sector was estimated to be worth USD 20 billion in 2020. Furthermore, by 2026, a Compound Annual Growth Rate (CAGR) of 3% was anticipated. 

As the pandemic approaches its third year, it poses a continual danger to the nation’s hotel industry. Even while SOPs and safety precautions have been implemented to let people visit their favorite tourist spots, the pandemic’s effects are still very much felt. In 2019, during a period of increased tourism in Pakistan, the sector made up approximately 7.1% of the nation’s GDP. 

Pakistan’s Hospitality Industry’s Potential

Long-term market growth is predicted to enable the industry to reclaim its former heyday and reach new heights. Pakistan established itself as one of the most sought-after tourism destinations in the years before the COVID-19 pandemic. Additionally, the nation consistently ranks #1 on international tourism rankings, making it a well-liked tourist destination. 

Pakistan first appeared in Condé Nast Traveler’s list of the top 20 vacation spots for 2020. Pakistan was listed as one of the “10 Coolest Places to Go in 2019” by Forbes.

Pakistan is ranked as the third-best potential adventure destination in the world for 2020 by the British Backpacker Society. 

Promoting tourism by the Pakistani government has also contributed to the country’s increased international visibility. The country is investing more in its roads, airports, and other infrastructure, making traveling abroad easier.

Pakistan is also becoming a major destination for hotel construction investments. Pakistani hotels are expanding significantly in terms of both average rate and occupancy, which is expected to continue in the next few years. 

Range of the Hospitality Industry in Pakistan. Pakistan’s economy is reliant primarily on tourism, which also contributes significantly to the nation’s foreign exchange earnings.

Both inbound and outbound travel make up Pakistan’s tourist business, and the country’s hotel sector is further split into mid-scale and luxury lodging options. Apart from that, there are numerous types of hotels, such as eateries, vacation rentals, guest houses, etc. 

The report offers market size and value estimates (USD million) for each of the market as mentioned earlier segments. 

Inbound Tourism in the Tourism Sector

  • Travel Outside
  • Hotel Sector: Low-Cost and Economy Accommodations
  • In-between-size hotels
  • Upmarket Hotels
  • High-end and opulent lodgings
  • Other Hotel Types (Service Apartments, Rented Apartments, Shared Living Spaces, etc.)

Well-known Players in Pakistan’s Hotel Industry

The Movenpick Hotels, Nishat Hotels, Avari Hotels, Marriott Hotels, and Pearl Continental are some leading companies in the hotel and lodging industry. These few rivals dominate a large chunk of the market because of the goods and services they provide.

Because of their well-known brands and alluring inbound and international travel packages, they are in a tough rivalry to attract more customers. These hotels are benefiting from economies of scale and gaining more tremendous competitive advantages.

Lakeshore City, a significant player in the hotel sector, has made impressive strides in reviving Pakistan’s travel and hospitality business. 

The Al Sadat group of Companies and Marriott International have signed a franchise deal to open Residence Inn and Courtyard by Marriott locations across Pakistan, marking a groundbreaking achievement in the country’s hospitality industry.

The capital city of Islamabad will host these hotels, providing opulent lodging along with amenities and services that meet international standards. 

The management of the Lakeshore City and Al Sadat group made persistent efforts to bring Marriott International to Pakistan. They signed new deals with the corporation because IMARAT and Marriott International’s prior initiatives were successful. 

Previous hospitality projects by Al Sadat group include the Fairfield by Marriott, G-11 Hotel, Residence Inn by Marriott, and Four Points by Sheraton.

Technology’s Contribution to Pakistan’s Hospitality Sector’s Recovery

Technology improvement is one of the factors that has significantly impacted Pakistan’s tourism. Undoubtedly, social media has contributed to the growth of Pakistan’s tourist sector by enabling individuals from around the globe to appreciate the country’s natural beauty. 

Effective use of cutting-edge instruments and technologies contributes to higher earnings in Pakistan’s hotel industry. Websites, online ads, articles, social media, and informational databases are all valuable tools for influencing customers to select a business or a destination.

Apart from that, people’s ability to travel has been facilitated by the availability of rental apps. It’s simple for them to book a room in advance, which enables their travel to distant locations. 

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