From the south to northern areas of Pakistan, the country is blessed with gigantic mountain ranges, iconic plains, and mystic shrines. These all are nonetheless an asset of Pakistan which contributes in a great manner to the economic development. The hospitality sector is one of the allied components of the tourist sector, if it goes unnoticed it can act as a missing puzzle. Most people have a very narrow view of the real estate sector, they often restrict the real estate sector only to the buy and sale of plots.
Graana.com, through this blog, takes a different path and establishes that the real estate and hospitality sector have an inextricable link. The hospitality sector can be one of the factors that can bring in the commercial real estate investment along with providing employment opportunities to the many. While traveling to the famous tourist destinations in the country, it can be observed that the hospitality sector has yet to be given a formal shape and there is great room for improvement.
The real estate and hospitality sectors are inextricably linked in the following manner
Why Hospitality Sector Matters
The concept of the hospitality sector has a very wide scope, and it is observed that the real estate and hospitality sector can not operate in isolation. To reap out maximum benefits both sectors correspond to each other and with the increasing inflow of tourists in the country, the mutual relation between the two sectors should be explored. Moreover, Bringing the hospitality sector into the limelight which had remained out of mainstream sectors to create a skilled workforce equipped with modern techniques is the
Vacant Spaces and Services
Real estate is all about optimising the land value. A state, be it Pakistan or any other has ample area of vacant land which can be used for the purpose of maximizing the utility of land. It has been seen that many states lease their lands to gain maximum returns. Hence, the vacant lands which are the property of a state can be leased out to establish hotels, or start a business activity that can benefit foreign and domestic tourists. This strategy will add to the revenues of the government along with attracting Foreign Direct Investment (FDI) in the country. Across the globe, renowned hotel brands have adopted this business model and are creating ripples in the hospitality sector.
Invigoration of Allied Industries
In 2019, the number of tourists in the country increased by 12.19pc as compared to 2018, with increasing tourist influx, industries associated with the hospitality sector will also get a new vigor which will contribute to the GDP growth. This fact can be illustrated from a very basic example that the construction industry will be one of the beneficiaries if the hospitality sector acts as a precursor to stimulating the output of the industries. In this whole supply chain, the associated sectors particularly private businesses will benefit the most. In short, it can be said that the allied industries are the major stakeholders in the consort of the hospitality and real estate sector.
Replicating Airbnb Models
The Airbnb case studies are of particular interest to those who have kept a thorough eye on the real estate sector. The business model was started by two friends who had difficulty paying their rents. Replicating this model at the local level can prove fruitful for the residents who have free spaces in their homes which can be rented out. The use of technology can prove beneficial in this aspect as the residents can upload their listings on a particular application which can be explored by the tourists. This strategy will be a means for the local population to earn from the existing resources.
Strengthening SMEs
One of the major portions of Pakistan’s economy is dependent on the contribution of Small and Medium Enterprises and they pool in 30% of the total GDP. In the case of tourism, the mode of earnings for many locals of tourist destinations are dependent on the Small and Medium Enterprises simultaneously, they are also a medium of self-sustenance of many households. By remodeling the real estate in the major tourist destinations, the SMEs can become a major tool for revamping the tourism industry. Moreover, the hospitality sector will be given a new dimension.
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