The document discusses the economic valuation of eco-tourism. It defines ecotourism as responsible travel to natural areas that conserves the environment, improves local welfare, and involves education. Ecotourism aims to support biodiversity conservation and sustainable development. The document outlines pros like economic improvement and cons like ecosystem degradation. It explains how ecotourism helps economic growth through job creation and increased tax revenue. The multiplier effect is described as additional income and spending stimulating further economic activity. Factors affecting Pakistan's eco-tourism potential and its contribution to GDP are also analyzed.

1. Economic Valuation of Eco-tourism

2. Presented By:
Ayesha Akhtar (1089)

3. What is ecotourism?
Responsible travel to natural areas which
 Conserves the environment
 Improves the welfare of local people
 Involves interpretation and education

4. Motives
Twin goals:
 Biodiversity conservation
 Sustainable development

5. Pros of ecotourism:
 Valuable biological Information
 Local economic improvement
 Positive impact on community culture
 Increased environmental awareness
 Financial benefits toward conservation
 Natural resource management

6. Cons of ecotourism:
 Ecosystem degradation
 Relocation of locals
 Threats to indigenous cultures
 Travel impacts on the environment

7. How ecotourism helps in economic growth?
• major benefit of tourism is economic growth
• increase in number of available jobs in the tourist destination
• Such as jobs involved In the direct administration of hotels,
restaurants, transportation and stores.
• This increase the standard of living among the local population

8. • Bring Important revenues to the State budget
• In the form of taxes and fees
• The process of increasing revenue occus in
following sectors
• sectors that provide investments sectors caring
out infrastructural facilities
• the commercial sector

9. MULTIPLIER EFFECT
• Every time there is an injection of new
demand into the circular flow of income there
is likely to be a multiplier effect. This is
because an injection of extra income leads to
more spending, which creates more income,
and so on. The multiplier effect refers to the
increase in final income arising from any new
injection of spending.

10. TOURISM MULTIPLIER EFFECT
• Tourism not only creates jobs in the tertiary
sector, it also encourages growth in the
primary and secondary sectors of industry.
This is known as the multiplier effect which in
its simplest form is how many times money
spent by a tourist circulates through a country's
economy.

12. Tourism Destination:
• A place or a geographical space where a tourists stops.
• It serves as a catalyst link that maintains tourism industry, which
contains food, accommodation, transport, entertainment etc.

13. In Pakistan:

14. Tourism Potential:
• It can be determined by the sum of all resources (natural, human,
cultural, historical, infrastructure).
• Also the transportation network enables the destination accessibility
for tourists.
• Transportation networks over land, sea and air should be quick and
comfortable enough for our tourists.
• It gives convenient facilities to the tourists to travel between
attractions and places of accommodations.

15. Tourists Destination Management:
• Economic development potential of tourism activity is determined by
the nature of environment.
• Also by the managerial decisions taken by the local administrators.
• And by the government of that particular destination.
Factors that effect Destination:
• Globalization, greatly influence potential development.
• At the same time, development of tourism itself create problems for
managers, administrators and authorities.

16. • These crisis can be managed by a representative model PATA (The
Pacific Area Travel Association).
• Development of the destination’s popularity is represented by the
marketing of that decision.

17. FACTORS AFFECTING ECO-TOURISM OF
PAKISTAN

18. 1) Unfavorable political conditions
2) Lack of proper infrastructure
3) Inability to cope with natural disasters
4) Inefficiency of airlines
5) Terrorism
6) Changing weather
7) Rising inflation
8) Lack government concern towards tourism
9) Negative factors

19. 1) Unfavorable political conditions
• Pakistan has been one the favorite place
for tourists but now people think it an
unsafe place after the killing of popular
political figures like Benazir Bhutto and
Salman Taseer
• Corrupt leaders don’t pay attention to the
tourism industry which can take the
economy to the highest peak

20. 2) Lack of proper infrastructure
• Infrastructure in Pakistan is a great
cause of the failure of profitable
tourism industry
• Tourists find it difficult to visit
different places in Pakistan
• Poor infrastructure is a hindrance

21. 3) Inability to cope with natural disasters
• Northern areas of Pakistan have been the
tourists’ favorite place but after earthquake
of 2005, those areas suffered incomparable
loss but nothing had been done for their re-
construction and re-development
• Poor disaster management caused a loss to
the tourism industry

22. 4) Inefficiency of airlines
• Transportation sector is most important
sector of any economy
• In Pakistan, it holds more than 10% share
in GDP
• There are some crashes which pull down
the image of Pakistan in the eye of others
and in result people found it unsafe to visit
Pakistan, which is effecting the tourism of
our country
• International Trade, tourism and socio-
economic condition of the country are
affected by aircraft industry

23. 5) Terrorism
• Pakistan has become an unsafe place due to
ever-increasing terrorist attacks
• Tourism is one of major revenue earners for
Pakistan, but persistent terror activities have
negatively impacted the tourism business
• Examples: 1) the Marriot Hotel attack
which left 60 people dead, 2) even
Pakistan's former Prime Minister Benazir
Bhutto was killed in 2007, 3) the
international cricket teams unwilling to play
in Pakistan
• Terrorism is a big detriment to Pakistan's
tourism industry

24. • Pakistan’s GDP has been one of the main
economic factors that have been affected by
terrorism exposed to the country

25. 6) Changing weather
• Global warming and pollution has
contributed towards change in climate and
weather
• The northern areas and snowy mountains
have started losing their beauty
• So tourists are now not attracted as before

26. 7) Rising inflation
• Inflation is another major cause of the
failure of tourism industry
• Increasing prices of the food due to
increase in the prices of goods has made
Pakistan a place that is beyond the reach
and affordability of tourists
• Tourism industry in Pakistan needs special
steps to be taken for its betterment
• A stable inflation not only gives a
nurturing environment for economic
growth, but also uplifts the poor and fixed
income citizens

27. 8) Lack government concern towards tourism
• As there are no proper roads, railway tracks made by government. So
tourists find it difficult to visit different places in Pakistan. Poor
infrastructure is a hindrance towards the development of tourism
industry. Northern areas of Pakistan have been the tourists’ favorite
place but after earthquake of 2005, those areas suffered great loss but
nothing had been done.
• It is very painful that most the Pakistani population does not know
about sites of their own country due to lack of marketing and
promotional activities. Tourism industry like all other industries
requires mass media campaigns to attract the tourist and let them know
about their to visit.

28. 9) Negative factors
• The negative factors include the views and
opinions of domestic and international tourists
obtained via questionnaire and interview
• the biggest problem they are facing while
travelling is security issues
• Second issue of tourists decline is the negative
image of Pakistan portrayed by media to the
outside world
• All previously discussed factors have negative
impact on tourists
• The tourism Ministry is not playing sufficient
role and tourist faces difficulties in getting timely
visa, other information's

29. Importance of tourism and touristic
resources in GDP
• Travel and tourism constitute a significant portion of the world´s
GDP. In fact, it represents 9,1% of global GDP
• Tourism is a burning engine for economy.
• Different economic activities are directly or indirectly involved with
this sector: food, transportation, hotels, construction materials and
services, linen and security are just some of direct suppliers of the
travel and tourism industries. In the same way, tourists ´ spending
makes the financial sector be more dynamic.

30. Tourism in world GDP
• Travel and tourism industry has contributed about 7 million US dollars
to worlds economy anually
• According to WTTC 9 of the 10 countries that have tourism are
islands
• such as the Maldives and the Seychelles in the Indian Ocean, and the
British Virgin Islands, the Bahamas, Aruba and Anguilla in the
Caribbean,
• Macau that relies more on foreign visitors than any other place, with
44 % of its GDP stemming from the tourism and travel industries.

31. • Though, according to the World Travel and Tourism Council (WTTC),
some of the fastest-emerging tourism destinations can be found in
Africa, with Namibia, Zambia and Angola.
• This is perhaps because of the realization of the benefits travel and
tourism can offer to a country’s economy, or maybe because of the
increasing popularity of fewer traveled destinations among international
tourists

32. Tourism in Pakistan GDP
• Pakistan is ranked 124th out of 136 countries which is very low
considering that there is an abundance of cultural resources.
• According to this index, Pakistan has 56th position for cultural
resources and business travel, which indicates a great potential for
Pakistan’s tourism .
• According to World Travel and Tourism Council Report, the direct
contribution of Travel and Tourism to GDP is expected to grow by 5.6
percent pa to PKR1,432.1bn (2.7 percent of GDP) by 2027

33. • The country's attractions range from the ruin of Mohenjo-daro and
Harappa, to the Himalayan hill stations, for those interested in winter
sports.
• Pakistan is home to several mountain peaks over 7000 m, which draw
adventurers and mountaineers from around the world, especially K2.
• The north part of Pakistan has many old fortresses, ancient architecture
and the Hunza, Chitral Valley, home to small Kalash people community
and Fairy Meadows, Diamer District of Gilgit Baltistan.

35. • The romance of the historic Khyber Pakhtunkhwa province is timeless
and legendary, Punjab province has the historic city Lahore, Pakistan's
cultural capital, with many examples of Mughal architecture such as
Badshahi Masjid, Shalimar Gardens,
• Tomb of Jahangir and the Lahore Fort. Before the global economic crisis
Pakistan received more than 500,000 tourists annually since 2000

36. • Tourism is a growing industry in Pakistan.
• With more and more foreign investment and funding, Pakistan was able
to build its major road and air networks to cater to mass movements of
cargo and inter-city travel.
• Roads are being developed by several consultants from the Northern
Areas all the way down to the Port of Karachi Statistics from the last
decade show tourism is a "market led industry and not supply driven"
which has led a large decline in travel to Pakistan.

37. Tourism in EU GDP
• The European Union's GDP was estimated to be $18.8 trillion in 2018 representing
22% of global economy
• Europe is the world’s number one tourist destination with a total market share of
51% in 2015.
• The tourism industry generates 9.9% of total EU28 GDP, a figure which is forecasted
to rise to 11% of GDP by 2026 and a number of 25.6 million of employees. Also,
Europe remains the area with the most worldwide arrivals per year, because in a part
to the rich cultural resources,

38. • . In 2014, international tourism arrivals recorded 1.133 billion (4.3%), of
which 582 million in Europe, 51% of the total
• . Thus, Europe confirms its position as the world's top tourist destination.
• In addition, a long-term prospective study of the (WTO) in 2030
provides for a more modest growth of tourism in Europe, estimated at 744
million tourists (1.8%), 41.1% of total.
• With an estimated growth of 3.9% in 2015, travel and tourism industry
will become one of the main engines of growth locally, regionally and
globally.