Pakistan’s travel and tourism industry is poised for significant growth, with projected revenue surpassing $4 billion by 2025, according to a report by Statista Travel and Tourism Pakistan. The sector is expected to expand 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, anticipated to generate $1.92 billion in 2025. The number of users in this category is expected to increase to 22.17 million by 2029, with user penetration rising from 11.3% in 2025 to 14.6% by 2029. Additionally, the average revenue per user (ARPU) is forecasted to be $150.66. Online sales are projected to contribute 66% of total revenue in the travel and tourism sector by 2029.
Pakistan has witnessed a surge in both domestic and international tourism, with travelers exploring its diverse cultural heritage and natural landscapes. A key driver of this growth is the increasing popularity of domestic tourism, as more locals opt to visit destinations within the country. This trend is fueled by improved infrastructure, rising disposable incomes, and a growing sense of supporting local businesses.
The digital transformation has also played a crucial role in shaping travel habits, with online booking platforms and social media influencing travel decisions. Government-led initiatives, infrastructure development projects, and expanded international flight routes have further boosted the sector.
Statista attributes this growth to macroeconomic factors such as political stability, enhanced security measures, and tourism-friendly policies. These efforts have strengthened confidence among travelers, ensuring a promising outlook for Pakistan’s tourism industry in the years ahead.