102538680 tourism-investment

TOURISM

Government of Pakistan Ministry of Investment & Board of Investment

Poject Profile

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CONTENTS

MOUNTAIN AIR SAFARI

SIKH PILGRIMAGE & TOURISM

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CO

NTEN

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INTRODUCTION

MARKET / NEED ASSESSMENT

Pakistan is a land of many splendours. The landscape changes from high mountain ranges i.e. the Himalayas, Karakoram and Hindu Kush, to Potohar and Balochistan plateaus, Sind and Punjab plains, and onwards to the Arabian Sea. On the northeast and northwest, Pakistan has high mountain ranges. There are over 43 giant peaks, each above 7,500 meters high. In total, there are 181 mountain peaks that are higher than 7,000 meters, some of which have not even been named as yet. The highest peak in Pakistan is the Mount K-2 (Goodwin Austin). Out of the world's fourteen highest peaks, thirteen are shared by Pakistan and Nepal. These mountains provide a wide choice to mountaineers and adventurers.

Most of the passes through these mountains remain ice-covered almost throughout the year. These include the Babusar Pass and Khunjrab Pass. Some of these passes are more than 5,500 meters above sea level. The Karakoram Highway, which has been constructed on the ancient silk route between China and Pakistan, is the highest trade route in the World.

Vast glaciers, large lakes and green valleys abound in the area and several enchanting tourist resorts have sprung up. These valleys include Gilgit, Hunza, Skardu, Chitral, Dir, Kaghan and Swat. The southern slopes of the mountains are covered with thick forests of junipers, pines, deodar, poplar and willows. Some of the glaciers like Siachen (72 km), Hispar (61 km.), Biafo (60 km.), Baltoro (60 km.), Batura (64 km.), Yenguta (35 km.), Chiantar (34 km.) and Trich (29 km.) are the largest snow masses outside the polar region.

Pakistan last year (2006) achieved record growth in tourist arrivals from all major tourist generating markets. Efforts of the Government of Pakistan and Ministry of Tourism to promote Pakistan as an important tourist destination, has helped surpass tourist arrivals target of 615,000 for the year 2005 set by the WTO/UNDP in Tourism Development Master Plan. If this trend continues the tourist arrival target of 720,000 set for the year 2010 by the international development agencies, is likely to be achieved much before time.

Tourism is the main foreign exchange earner of Nepal. In Nepal there are six airlines operating seventeen air safaris that leave Khatmandu for the Himalayas each morning. Compared to Nepal, Pakistan has a lot more to offer to the international (and domestic) adventure tourists but currently PIA is operating only one weekly air safari to the mountains and the private sector has not yet ventured into this lucrative activity.

The existing PIA Air safari is a round trip from Islamabad to Skardu and back flying over and around the mountains. This doesn't satisfy the craving of the adventure tourist who is not thrilled by only flying around the mountains in a plane - the entire experience finishing in about 90 minutes. This round trip package of 90 minutes is difficult to sell to foreign tourist groups because a tourist group cannot come all the way to Pakistan simply for these 90 minutes. The adventure tourist wants to see the hundreds of mountain peaks through the aeroplane window and then enjoy the enchanting places, lakes and valleys of the Northern Areas of Pakistan through jeep safaris, hiking and/or trekking, with the real serious adventurers going for

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MOUNTAIN AIR SAFARI

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mountaineering.

The ideal package which can be marketed in the international market would, therefore, be a combination of air safari (to and from Skardu) combined with tourism itineraries covering different periods: short term (7 days), medium term (15 days) or longer durations providing the choice of duration, adventure and destination. The air safari from Islamabad to Skardu and back will continue as it will be very practical for foreigners who may be staying or working in Pakistan and also for the busy executives who cannot be away from their work for more than a couple of days. In addition, the existing PIA Mountain Safari needs to be promoted to domestic tourists more aggressively school and college students, family groups, business executives, etc.

The proposed mountain air safari will provide the tourists with their closest view of nature's grandest sculpted work of art the Nanga Parbat, K-2, Broad Peak, Rakaposhi, Concordia, Trango Towers, and huge glaciers such as Baltoro.

Taking off from Islamabad, the plane will fly over the beautiful Swat, Chitral, Kaghan, Naran, Gilgit and Hunza valleys before landing at Skardu. The route will be traversed back on the return flight from Skardu to Islamabad. The air safari from Islamabad to Skardu (as also the return safari) will be of seventy five minutes.

For adventure tourists, this mountain safari will be complemented by tourism itineraries of different periods: short term (7 days), medium term (15 days) or longer durations providing the choice of duration, adventure and destination.

This is a unique project where the existing assets and strengths of the airlines and tour operators will be used to produce a synergetic effect on the foreign exchange position of the country with the aim of bringing Pakistan in the limelight as a preferred tourist destination. The cost of aircraft (either in shape of depreciation or in shape of lease money) is included in the per hour flying cost. Similarly heavy capital investments are not envisaged by the Tour Operators, however, they will be required to improve their camping, trekking and other tools and transport equipment. The overall capital investment of the Tour Operators has been taken at Rs. 50 million for the purposes of this pre-feasibility. The hotels, restaurants and camping sites are available and they may require new investment. The cash flow of established tour operators depends on advances for tours from their customers. They will, however, need an additional working capital of about Rs. 10 million.

On the basis of five year financial projections based on conservative estimates, the project is feasible and will provide an IRR of over 30% for the tour operators.

PROPOSED PROJECT

FINANCIAL EVALUATION

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INTRODUCTION

MARKET / NEED ASSESSMENT

PROPOSED PROJECT

South Asia pocketed US$ 5.4 billion from 5 million tourists, that is approximately 1% of the global tourism market in terms of revenue and 5% in terms of tourist arrivals. India is the biggest tourist attraction in South Asia currently attracting 44% of the South Asia tourist share followed by Iran which attracts 22% of the visitors. Pakistan is on the third place attracting 10% i.e. 500,000 of the total South Asian market and earning US$ 135 million. Pakistan is an insignificant player on the stage of world tourism. Although it possesses diverse and precious tourism assets that range from the coastal zone along Arabian Sea to the hill stations in the north of country, it has yet to make a mark on the international tourism market.

Sikh pilgrims come to Pakistan for visiting the holy shrines and to celebrate the religious festivals as the most sacred and historically important Sikh shrines are situated in Pakistan. The current Sikh religious pilgrimage market can be divided into three distinct segments.

1. Pakistani / local pilgrims;2. Indian pilgrims; and3. Pilgrims coming from Europe, Canada, America and Middle East.

During 2005, almost 35,000 Sikh pilgrims, from all over the world, visited Pakistan. Sikh Pilgrims visit Pakistan and their sacred places and for various festivals including Baisakhi festival, Martyrdom of Baba Guru Arjun Dev Mar, Death Anniversary of Maharaja Ranjit and Birth Anniversary of Baba Guru Nanak. Sikhs visit frequently on these occasions because these are important festivals. It is apparent that they visit in large numbers mainly on Birth Anniversary of Baba Guru Nanak and Baisakhi festival.

Presently there are more than 150 Gurdwaras in Pakistan which are open to local Sikhs while the foreign visitors are only allowed to visit the Gurdwaras situated in Hassan Abdal, Nankana Sahib, Kartarpur, Eimenabad and Lahore. Nankana Sahib, Farooqabad, Hassan Abdal, Narowal, Eimenabad and Lahore are visited most frequently by the pilgrims as the major festivals and Gurpurbs are held in these Gurdwaras. Each city and location has its unique situation and dynamics.

Currently the foreign Sikh pilgrims are contributing approximately Rs. 180 million per year or US$ 3.0 million. If the local pilgrims are added, the number will reach approximately US$ 6 million. In five years time it is estimated that this market will increase to US$ 22 million.

The following table suggests a portfolio of projects that need to be initiated. The interventions / projects do not relate to a single sector rather these are the facilities that are required by the pilgrims and different categories of investors will be investing in these projects. The investors include public sector, private sector and some of the investments are envisaged to be initiated through the publicprivate partnership.

SIKH PILGRIMAGE & TOURISM

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S. N. Description

Governance and Management

Structure

RoadsFeroze Wattoowan to Nankana Sahib - 48 kms improvement and widening of the road

Farooqabad to Sacha Sauda -2 kms - improvement and widening of the road

Road from Hassan Abdal city to the hillock of Baba Wali Qandhari - 2 kms -construction of a jeep able road and erection of electric poles for beautification

Road access to Gurdwara Chakki Sahib

LibraryAt Nankana SahibAt Hassan Abdal

HospitalAt Nankana Sahib -50 beds

Public ParkAt Nankana Sahib

At Hassan Abdal

At Eimenabad

Tree plantation

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Incentives/ Support from public sector

Executing Agency

Total Investment

-- PKR

Investment Recovery

Public Sector

Public Sector

Public sector

Public Sector

Public sector / Community participation - institutionalized through local schools

Public Sector

Public Sector

Public Sector

Provincial Government




District Government


TMA

TMA

TMA

TMA

57,600,000

2,400,000

5,500,000

4,500,000

3,190,000

15,000,000

3,200,000

3,200,000

3,200,000

800,000

Toll tax Rs.10 per vehicle

Sign board rent Rs.10 per SQ.FT. P.M.





Community shall be mobilized to cooperate for the establishment of a library which may be leased to some professional in private sector

PSDP Fund

After construction of park, joy rides and a play land area may be leased out to private investors to increase revenue generation

Provision of land by ETPB

Provision of books and journals

Provision of computers

Land to be provided by ETPB

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S. N. Description


Structure

Publishing of books on history of Sikhs

Mosque at hillock of Baba Wali Shah Qandhari - Hassan Abdal

Media campaign

Renovation of Gurdwara Chakki Sahib

Uplifting the railway station - Nankana Sahib

Cultural shows / events

Handicraft shops

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Executing Agency

Total Investment

-- PKR

Investment Recovery

Public Sector

Public Sector

Public sector

Public Sector

Public Sector

Public - Private Partnership


Ministry of Tourism

Local Government

PTV / Pakistani Missions abroad

ETPB / PSGPC

Ministry of Railways

TMA

Private Investor / Punjab Small Industries Corporation

1,200,000

5,500,000

20,500,000

3,500,000

6,200,000

800,000 per event

2,500,000

Cost to be covered by advertisement

Cost to be covered by advertisement

Leasing to private sector

SecurityShowground

Training to local artisans on production, marketing and value addition techniques

Development of outlets

Agreement to purchase total production

Micro creditSupply of raw materials

Supply of machinery and equipment on loan recoverable in easy installments.

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S. N. Description


Structure

Documentary films

Capacity building programs for informal sector

Bus / Transportation Company at Nankana Sahib

Restaurants at Nankana Sahib

Hotel - Four Star, 60 room at Hassan Abdal

Hotel - Four Star, 60 room at Nankana Sahib

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Executing Agency

Total Investment

-- PKR

Investment Recovery


Private Sector

Private Sector

PTV / Private channels

Ministry of Tourism

Private Investor

Private Investor

Private Investor

Private Investor

2,650,000

43,600,000

5,530,000

90,000,000

79,000,000

Through advertisement

The government shall disseminate the documentary film through its resident missions abroad and air it on the TV channels

The government in collaboration with private sector shall initiate capacity building programs and information dissemination for informal sector

Land to be provided by ETPB on lease

Concessionary loans

Tax exemption for a certain period

Exclusivity rights

-do-

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CONCLUSION

There is a large potential in increasing both revenue as well as employment opportunities by promoting Sikh Pilgrimage to various important Shrines in Pakistan, mostly in Punjab.

Head Office

Regional Office (Karachi)

Regional Office (Lahore)

Regional Office (Peshawar)

Regional Office (Quetta)

Ministry of Investment & Board of Investment Attaturk Avenue, G-5/1, Islamabad.

Tel: (92-51) 9204339, 9207031, Fax: (92-51) 9207030,9218325Email:[email protected]

Ministry of Investment & Board of Investment Kandawala Building, M.A Jinnah Road,

Karachi - PakistanTel:(021) 9215069, Fax: (021) 9215078

Email:[email protected]

Ministry of Investment & Board of Investment

136-B, New Muslim Town, Lahore Tel: (92-42) 5843602 Fax: (92-42) 5843603

E-mail:[email protected]


Sarhad Chamber House, 2nd Floor, G.T. Road, PeshawarTel: (92-91) 9212743, 9212745

Fax: (92-91) 9212751E-mail: [email protected]


House 382/B, Hali Road, Quetta.Tel: 081-9203796, Fax: 081-9203818


102538680 tourism-investment

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