Economic strain deepens as tourism industry struggles with fee hikes in PoGB

The steep rise in royalty and mountaineering fees in Pakistan-occupied Gilgit-Baltistan (PoGB) has sparked concern among tour operators, who fear the region’s growing adventure tourism industry could collapse, Dawn reported.

Members of the PoGB Tour Operators Association (GBATO) and the Pakistan Association of Tour Operators (PATO) have written to federal authorities, PoGB Chief Minister Haji Gulbar Khan, and other key stakeholders, urging them to reverse the hike.

PoGB, home to some of the world’s highest peaks like K-2 and over 100 mountains above 7,000 meters, has long been a prime destination for both domestic and international adventurers.

This thriving tourism sector has benefited not only the government but also local businesses, including tour operators, lodging providers, transporters, high-altitude porters, and rescue teams. For instance, a single foreign expedition to K-2 alone can generate around USD 60,000.

However, the government’s recent hike in trekking permits and royalty fees has made PoGB one of the most expensive locations for adventure tourism. As a result, the region has seen a sharp drop in visitor numbers, causing significant job losses, particularly in industries that heavily depend on tourism. Tour operators warn that the livelihoods of thousands of residents are at risk due to the financial strain caused by these changes.

Further exacerbating the situation, a 2023 report by Dawn revealed that PoGB raised the price of subsidised wheat from PKR 20 to PKR 36 per kilogram, following pressure from the federal government, which had originally proposed a 70 per cent increase to PKR 52.

While the increase was moderated to balance public unrest and federal directives, it has nonetheless placed a heavy burden on household budgets in an area where many rely on subsidised wheat for basic nutrition.

The government actions have led to a combination of lower earnings and rising living expenses, fueling public demonstrations. The residents of PoGB now find themselves in a precarious situation, with both their daily survival and the region’s tourism sector at stake, Dawn reported.

As a result of these policies, PoGB’s economic marginalisation continues to deepen, despite the region’s potential to thrive through adventure tourism.