Due to its diversity, tourism has to inter-face with several other sectors of the economy. The Government has to play a major role in channelling of funds to various Federal and Provincial departments for undertaking development and maintenance of Roads, Highways, Motorways, Bus Terminals, Railways, Air-services, Sea-ports etc. Provision of land at concessional rates and supply of utilities in the tourism priority areas is also essential. In the absence of these basic requisites, private sector initiatives would not sprout, let alone grow. Therefore, comprehensive long and short term plans for development of tourism super-structure are to be identified, co-ordinated and implemented by the Government.
Apart from investing in provision of basic services, the Government identifies tourism products, preserves heritage, environment and ecology. Market forces cannot be expected to ensure that environmental degradation will not occur. Public funds are to be provided for launching awareness programmes, and for undertaking requisite preservation efforts.
In order to achieve integration of policies between Provinces, and the Federation, an apex body, 'Pakistan National Tourism Council' headed by the Federal Minister for Tourism is being re-activated. This council would inter-alia formulate guidelines for monitoring and supervision of the progress of Tourism Sector in the country.
Public Sector tourism organisations at the Federal and the Provincial levels shall continue to play leading and catalyst role in development of tourism infrastructure (eg hotels, restaurants, road-side facilities, resorts, amusement parks, theme parks, etc) in the areas where private sector is either shy to invest or where Government desires to bring the benefits of tourism development to local population.
Encourage foreign and domestic investors by facilitating and providing incentives but at the same time by regulating them to save ecology, environment, religious & cultural traditions and ideological limits of the country besides ensuring that locals are being benefited from such investment.
Rationalise taxation and land policies in the tourism sector in all the federating units.
Introduce regulations ensuring social, cultural & environmental sustainability, safety and security to tourists.
Role of Private Sector in Tourism Development:
The opportunities for Travel & Tourism in Pakistan are well-rewarding. The private sector has to work with the government to develop plans for sustainable and profitable growth. It will have to play a pivotal role in rehabilitating and accelerating the pace of tourism development in Pakistan, mainly in the following target areas;
1. Building and managing the required tourist facilities at all places of tourist interest.
2. Assuring collective responsibility for laying down industry standards, global code of ethics and best practices.
3. Involving the local community in tourism projects and ensuring that the benefits of tourism accrue to them in right measure.
4. Undertaking industry training and manpower development for achieving excellence in quality of services.
5. Participating in the preparation of investment guidelines and marketing strategies and assisting in database creation and research.
6. Facilitating safety and security of tourists.
7. Ensuring preservation and protection of tourist attractions.
Public Private Partnership in Tourism Development
Public-Private Partnership in tourism is to be employed with a combination of policy reforms, institutional support, incentives and financing modalities to encourage the private sector participation in financing, constructing, managing infrastructure and other related development projects. It provides an alternate to budgetary constraints, enables the tourism industry to build assets, and maximises the use of private sector skills.
For government, the potential benefits of PPP can include:
-- Access to new sources of capital: The private sector has access to capital (eg, both debt and equity markets) that might not be available directly to government. Access to these markets, and other forms of third party and innovative financing, can increase the availability of capital.
-- Accelerated development of infrastructure: The private sector is not subject to the same "capital rationing" that affects the management of public sector capital budgets, and may be able to complete a project in advance of government.
-- Risk sharing: By its very nature, PPP involves the sharing of project risks (eg, operating and/or financial risks inherent in the project).
-- Maintain or improve service levels: A private sector partner may bring economies of scale or new technologies to improve service delivery.
-- Access to a wider range of skills in planning, management, and service delivery: Government may gain access to expertise and/or management support tools that may not be available within government.
-- Realize value of under-utilised assets: PPP can provide an opportunity to realize the value of assets that may be under-utilised. Creative development projects, combined with creative financing techniques and/or intensified marketing efforts, can provide substantial financial benefits to the government.
-- Realize economic development opportunities: Large infrastructure projects, for example, can provide an opportunity to develop new skills in the labour force and/or encourage private sector investment in local communities.