Sustainable Tourism Development in Pakistan: Economic Opportunities and Environmental Challenges

Abstract

The tourism sector in Pakistan has gained immense importance due to country’s rich cultural heritage, natural beauty, and famous religious sites. The tourism industry is required to be environmentally sustainable because it causes challenges of increased energy consumption, capital investment, waste generation, and CO2 emissions. The instant study was meant to evaluate the relationship between development of tourism industry and the degradation of environmental quality in Pakistan with a particular focus on trade and infrastructure development. The time series data from 1991 to 2023 was derived from World Development Indicators and secondary data sources from Household Integrated Economic Survey. A mixed-methods approach was employed which blended numerical data analysis and thematic insights. The ARDL model was deployed to look for the long-and short-term relationship between environmental quality, trade, tourism, and Gross Fixed Capital Formation (GFCF). The effectiveness of environmental regulations and practices prevailing in Pakistan were evaluated for environmentally sustainable tourism. The results indicated that the dependent variables of trade, tourism, and GFCF had negative relationship with environmental quality in Pakistan. It was further evaluated that there was severe deficit of enforcement of effective regulations and practices for environmentally sustainable tourism development in the country. It was concluded that the sustainable development strategies e.g.  environmentally friendly trade policies, climate resilient infrastructure, and sustainable tourism practices may be prioritized by the government and the policy framers for mitigating the adverse impacts of tourism development.