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Hotel industry moving towards a bright future

Researchers revealed that hotel industry in any country is a significant sector offering comfort to the customers in the form of shelter, food and refreshment but the operations of the hotel impact environment in many ways like CO2 emissions, water pollution and waste generated. No doubt, hotels are the biggest and popular way of residence among local and international visitors. They have also revealed that the tourism industry has a great impact on hotel industry and both industries are interconnected because of their mutual benefits. The hotel industry of any country is a sign of its cordial reception for foreigners and how their experience in a new environment. It is also said that Malaysia is recognized for its beautiful honeymoon resorts and Egypt is recognized for its historical locations, mainly the Pyramids of Giza.

Since 1947, the hotel industry has been working in Pakistan and also offering a large margin to the Pakistan’s economy. The hotel industry leads a large proportion of Pakistan’s revenue. In the beginning there were not many hotels but after lapse of time, the development of local and international hotels in an decline. For example, one of the early local hotels are international brands in hotel industry in the country appear as dominant hotel chain present in largest domain like Karachi, Lahore, Islamabad and Dubai.

Studies revealed that before 2008, the hotel industry avail tremendous progress because of fuel by the Pakistani tourism industry. Pakistan’s hotel industry is acting as a stimulant for the development of economy. The industrial sector is in the phase of fast moving economy of Pakistan mainly in industrial cities like Karachi, Lahore, Faisalabad and Rawalpindi have many domestic and international companies which are engaged in meetings, conferences and seminars in the hotels.

Various foreign investors are observed in the hotel industry which range from two to five stars hotel. The local and foreign hotels chains are operating in Pakistan for example Avari, Marriot, Carlton, Regent, Mövenpick Hotel Karachi, Pear Continental and Ramada Plaza etc.

Researchers identified that the growth in this industry was slow in the decade of 80s, during the early 90s the growth in the hotel industry attained some improvement. Statistics showed that the total number of hotels in the Pakistan has grown from 945 during 1991 to 1250 during 1996, explained an improvement growth of greater than 26 percent during 1993 which reduced to 2.4 percent in 1995 before again raise during 1996. During August 2008, the occupancy rates of hotels decline, an alerting condition given to Pakistani hotels. In the start of fourth quarter 2008, THL sector (Tourism, Hospitality and Leisure) of the country was starting to see main consequences of the economic challenges that impact the negativity in the hotel industry. This industry also faced a major setback in the late 2010 when Marriot Islamabad was under the attack through terrorist bombing that took the life of 50 people and injured severely 250 people, this incident brought the fall in the hotel industry as many international and local customers feel uncomfortable in staying in any hotel in the country and even visiting Pakistan. Unluckily various print and electronic media highlighted the feared faced by the people in the country and the act of terrorism that was being increased created the impact of bringing down the visiting foreigners in Pakistan, many foreign operating company declines and restricted their visits to Pakistan hence reducing the occupancy rate in the hotel from 60 to 70 percent.


In order to survive in those circumstances statistics showed that the hotel industry declined their rates to 10 to 20 percent to gain the target market. In 2011, studies showed that the development in economy of the country contributed an alter in the industry of hotel and tourism. It was seen that sudden improvement in foreign visitors and meetings were scheduled in the country chiefly in Karachi, by which the rates of occupancy of the hotels increase from 65 percent as compared to the previous year rate. The improvement of occupancy rate raised the demand of the hotels, as demand increased, so the charges of hotels were increased from average Rs. 10000, Rs. 11000 to Rs 12,000 and Rs 13,000 per night.

Researchers also believed that fast food restaurants like McDonald’s, KFC, Subway and Hardees are the main competitor of the hotel industry, which have relative high prices than the fast food items. Local and foreign visitors to Pakistan prefer staying with family and friends because of security challenges. The upcoming hotels have not changed much in terms of new projects since their formation.

Statistics also showed that in Pakistan with each passing year this industry is growing and flourishing, the hotel industry contributes 3 percent to GDP. From 2012-2014 the hospitality industry growth rate was 7 percent. Furthermore, Gwadar airport received the highest number of passengers as compared to all the airports in Pakistan. It is also said that the rise is a number of passengers were 73 percent which has led Gwadar authorities to start building new hotels. It is predicted that 10 major hotel chains will be landing in the country very soon. As for leisure traveling, it was expected to grow by 2.7 percent in 2016 and is now expected to increase by 5.4 percent yearly.

Furthermore, present Government of Pakistan stated that Pakistan has a lot of potential for hospitality industry, and thousands of foreign tourists are visiting Pakistan yearly. The government is taking more initiatives to encourage tourism by measures such as e-visa and visa-on-arrival and development of new tourism sites.


To improve and become competitive in the worldwide market, hotel owners and operators must invest in staff training now. Service remains the number one ingredient of a successful hotel operation, and training helps deliver better service. It is predicted that Pakistan’s hotel industry has a bright future and would help in economic progress.

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