Testing Employment Growth in the Tourism Industry via Regional Connectivity in Pakistan under CPEC

Shujaa Waqar; Sonia Shabbir; Baber Amin

Authors

Shujaa Waqar Lecturer, Department of Economics Forman Christian College (A Chartered University), Lahore, Pakistan Author
Sonia Shabbir PhD Scholar, Department of Economics University of Oklahoma, United States of America Author
Baber Amin Lecturer, International Institute of Islamic Economics International Islamic University, Islamabad, Pakistan Author

Keywords:

Road Infrastructure, Travel and Tourism, Employment Generation, Hospitality, Tourist Spots

Abstract

The bilateral relationship between Pakistan and China became zealous after the agreement of the China-Pakistan Economic Corridor. Among countless benefits, CPEC will flourish avenues for trade and tourism. It is estimated that CPEC will provide 5 million jobs in the tourism industry. Therefore, timely preparation from vocational training centres will reduce the prevailing skill gap. The study aimed to identify potential tourist spots, explore the effect of CPEC road projects on tourism and identify job trades and future required skill sets in the tourism industry. This study utilizes primary data to identify trades and future skill sets in the tourism industry of Pakistan. Furthermore, secondary data has been used to investigate the impact of road infrastructure investment on tourism development with the help of the Autoregressive Distributive Lag Model (ARDL) model. The study concludes that CPEC road projects will develop tourism by boosting robust connectivity. This is subject to a peaceful atmosphere in the territory and good governance. The study also finds various job trades and required skill sets and suggests means to fulfil the skill gap and future employment generation.