Tourism sector in Pakistan witnessed the highest number of new company registrations in the year ended June 30, 2012. But the number of tourist arrivals to the country has barely inched up over the same period. So whats behind the growth in registered tourism firms?
The recently released annual report of the Securities and Exchange Commission of Pakistan (SECP) has highlighted that 547 new companies were registered in the tourism sector. Thats more new registered companies than any other sector in the country. As a result, there are now 6,173 registered tourism companies here.
Unfortunately, that doesn mean there are more tourists and business travellers arriving here. A spokesperson for the Travel Agents Association of Pakistan (TAAP) explained that a number of new requirements has emerged, pushing companies that were operating as partnerships and proprietorships, to register as private limited companies.
Firstly, the International Air Transport Association (IATA) recently mandated that any firm vying for membership in the Association, must be registered as private limited or public limited company.
Secondly, after deliberation with domestic banks over the provision of insurance to tour operators it was decided that the funds under a companys Accounts Receivables may be treated as collateral provided the firm is registered and its accounts are submitted to the SECP.
Thirdly, the Saudi Government is expected to increase the Hajj Quota for Pakistan in coming months. That quota has remained stagnant in the current Hajj Policy 2013, but may rise in 2014 or 2015.
Private tour operators expect their allocations to also be revisited once the countrys Hajj quota goes up. That expectation has enticed many tour operators to register themselves with the SECP, to become eligible to apply for the quota, when the time comes.
Hopefully these companies may now devote their collective attention towards promoting tourist attractions in the country, thus attracting international travellers here. The number of international tourists to the country has never reached one million; whats more, in recent years the total number of visitors arriving here has been steadily falling.