Report

Pakistan Tourism Market Analysis

Pakistan tourism market size in 2026 is estimated at USD 4.91 billion, growing from 2025 value of USD 4.42 billion with 2031 projections showing USD 8.31 billion, growing at 11.08% CAGR over 2026-2031. Continued policy reforms, connectivity upgrades under CPEC, and rapid digital adoption position the Pakistan tourism market as one of South Asia's most compelling growth arenas. Government e-visa facilitation, improved security metrics, and an expanding middle class are lifting both the frequency and average spend of leisure and business trips. Infrastructure projects such as the New Gwadar International Airport and multilane northern highways are shrinking travel times, enabling multi-destination itineraries and raising the ceiling for average length of stay. Simultaneously, mobile-first booking habits among Gen-Z travelers are encouraging operators to overhaul legacy distribution, while the rupee's weakness is enhancing destination price competitiveness for dollar-based visitors.

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.

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.

Other drivers and restraints analyzed in the detailed report include:

USD 10 Billion CPEC-Linked Infrastructure UpgradesDigital Booking Penetration among Gen-Z TravelersPerceived Security Risks in Certain Provinces

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

International arrivals are forecast to expand at a 12.05% 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 90.85% 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 2031 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.

The Pakistan Tourism Market Report is Segmented by Origin (Domestic, International), Type (Accommodation Services, Travel Services), Purpose (Leisure, Business, Visiting Friends & Relatives, Religious, MICE, Other Purposes). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

Pakistan International Airlines (PIA) Airblue SereneAir Hashoo Group (Pearl-Continental & Marriott Pakistan) Serena Hotels Avari Hotels International Jovago.pk SastaTicket.pk Daewoo Express Faisal Movers PTDC Motels & Flashman's Fly Jinnah Pristine Adventures Pakistan Hunza Explorers Rahgeer Pakistan Pakistan Railways Tourism Trains Marco Polo Travels Rekodiq Desert Safaris Discover Pakistan TV Karakoram Club

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support