Travel & Tourism - Pakistan | Statista Market Forecast

Pakistan's Travel & Tourism market is projected to reach a revenue of US$3.74bn in 2024, with an expected annual growth rate of 8.16% from 2024 to 2029, resulting in a projected market volume of US$5.53bn by 2029.
The market's largest market in Pakistan is the Package Holidays market, with a projected market volume of US$1.67bn in 2024.
By 2029, the number of users in this market is expected to amount to 22.17m users, with a user penetration of 10.5% in 2024 that is expected to hit 14.6% by 2029.
Moreover, the average revenue per user (ARPU) is expected to be US$145.70.
Pakistan's Travel & Tourism market is also estimated to generate 66% of total revenue through online sales by 2029.
In global comparison, United States is expected to generate the most revenue in this market with an estimated value of US$214bn in 2024.
Pakistan's travel and tourism industry is growing rapidly, with an increase in domestic and international tourists exploring the country's cultural and natural attractions.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Pakistan's Travel & Tourism market has been experiencing significant growth in recent years, attracting both domestic and international travelers to explore its diverse landscapes and rich cultural heritage.

Customer preferences: Travelers in Pakistan are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. There is a growing interest in adventure tourism, eco-tourism, and cultural exchanges, driving the demand for specialized tour operators and sustainable accommodation options.

Trends in the market: One notable trend in the Pakistani Travel & Tourism market is the rise of domestic tourism, with more locals choosing to explore their own country. This trend can be attributed to improved infrastructure, increased disposable incomes, and a desire to support the local economy. Additionally, the digital revolution has made travel planning more accessible, with online booking platforms and social media influencing travel decisions.

Local special circumstances: Pakistan's unique geographical location, nestled between South Asia, Central Asia, and the Middle East, offers a diverse range of experiences for travelers. From the snow-capped peaks of the Himalayas in the north to the pristine beaches of the Arabian Sea in the south, Pakistan has something to offer every type of traveler. The country's rich history and cultural heritage also attract history buffs and cultural enthusiasts from around the world.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Pakistan can be attributed to several macroeconomic factors, including government initiatives to promote tourism, infrastructure development projects, and increased international connectivity through new flight routes. Additionally, a stable political environment and improved security measures have helped boost confidence among travelers, both domestic and international, leading to a positive impact on the tourism industry.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.