Pakistan’s travel & tourism market expected to surpass $4 billion by 2025

Pakistan’s travel and tourism industry is projected to generate over $4 billion in revenue by 2025, according to a Statista Travel and Tourism.

The sector is expected to grow at an annual rate of 6.75% from 2025 to 2029, potentially reaching a market volume of $5.53 billion by the end of the forecast period.

The report identifies ‘Package Holidays’ as the leading segment, with estimated revenues of $1.92 billion in 2025. The number of users in this category is anticipated to rise to 22.17 million by 2029, with user penetration increasing from 11.3% in 2025 to 14.6%. Additionally, the average revenue per user (ARPU) is expected to be $150.66.

The digital transformation of the industry is also gaining momentum, with 66% of total revenue projected to come from online sales by 2029.

Pakistan’s tourism industry has witnessed significant growth, fueled by rising numbers of both domestic and international tourists exploring the country’s cultural and natural attractions.

A key trend driving this growth is the surge in domestic tourism, as more Pakistanis opt to explore their own country. This shift is attributed to improved infrastructure, increased disposable income, and a growing preference for supporting the local economy.

The digital revolution has also played a crucial role, making travel planning more convenient through online booking platforms and social media influences.

According to Statista, the growth of Pakistan’s tourism sector is linked to several macroeconomic factors, including:
✔ Government initiatives to promote tourism
✔ Infrastructure development projects
✔ Expanded international connectivity through new flight routes

✔ A stable political environment and improved security measures

These factors have collectively boosted traveler confidence, driving both domestic and international tourism, and contributing to a positive outlook for Pakistan’s tourism industry.