New fees and regulations strain battered tour operators in Pakistan

Political unrest, terror attacks and the global economic crisis are putting a heavy burden on Pakistan tourism – mostly based on trekking and climbing. A new set of guarantee & renewal fees now make survival even tougher for local expedition outfitters. 

The Department of Tourist Services (DTS) of Pakistan Ministry of Tourism is passing a new set of guarantee & renewal fees for tour operators – which could prove unattainable for some and force others to increase their price, further discouraging tourism. 

New regulation = increased fees 

In a series of amendments to the previous 1977 law, the ministry of tourism is increasing mantainance costs for outfitters. 

The new regulation has increased the number of operations demanding a license: from organizing tours and booking plane tickets to arranging transfers or accommodation for visitors. Also, all agencies must back each operation with bank guarantee funds ranging from 75,000 to 500,000 rupees. 

The annual fee required to have a validating license has also increased, both to get a new license, and to renew an already existing one. These fees are also arranged according to each particular operation performed by the agency (check scanned notifications with exact figures illustrating this story). 

Tour operators rebelling 

“It’s shocking news for the tour operators of Pakistan,” ExWeb Pakistan correspondent Karrar Haidri stated. “They have been facing very tough times since 9/11.This year seems to be a particularly bleak season for tour operators; specially for Adventure outfitters: Up to now, only 29 expeditions have applied for climbing permits!” 

In fact, Pakistan Association of Tour Operators (PATO) has refused to accept the increased fees. “You are requested to not renew your licenses with DTS until further notice,” PATO General Secretary Naiknam Karim wrote in a letter to all members, stating that PATO will take responsibility. 

The association also points out, "please note that the renewal fee is applicable to both new & old licenses.” 

Climbing permits still reduced 

The new fees will not affect climbing permits which remain reduced. Pakistan 8000ers are at 50% discount in royalty fee, while mountains up to 6,500m are free. Mountains located in Chitral, Gilgit and Ghizer (except for the popular Spantik) are only 10% of the regular royalty fee, while winter ascents are almost free at a “symbolic” 5% fee required.

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