USAID Support to Tourism in Swat

Kargal Hotel

Swat has traditionally been a prime tourist attraction for domestic and international tourists in Pakistan.

Peace in the picturesque valley of Swat was disrupted in 2007 after a law and order situation broke out. Most businesses remained closed from then until late 2009. Damages to the infrastructure, civic amenities and businesses ensued along with social unrest in the district. One of the key economic sectors, tourism, was directly influenced & suffered enormous losses.

Erum Hotel

The Provincial Relief and Rehabilitation Settlement Authority (PaRRSA) and the U.S. Agency for International Development (USAID) selected tourism as a priority sector to help with the rehabilitation and revitalization of Swat economy. USAID conducted a census of Swat hotels in April 2010, which reported capital losses of Rs. 86 m (US$1 million) and 3-year revenue losses of Rs. 2.29 billion (US$27 million). A higher than expected turnout during the early 2010 summer tourism season offered some hope, however, the recovery effort suffered a major setback in late July 2010 when the heavy monsoon rains caused unprecedented flooding and ravaged Swat’s tourism centers like Kalam and Madyan. Roads, bridges and 24 hotels were completely washed away, while others were partially damaged.

In the wake of this disaster, USAID’s private sector recovery efforts in collaboration with the Provincial Relief, Rehabilitation and Settlement Authority (PaRRSA) of Government of Khyber Pukhtunkhwa are focusing on direct support in the form of grants, technical assistance and in-kind procurement to the conflict and flood affected businesses in Swat tourism sector. This assistance from the American people will help in rehabilitating businesses directly and indirectly related to tourism. The program is providing construction materials, operating equipment, production inputs, grant funds, and technical assistance to help the businesses recover. A total of US$5.25 million in direct assistance will be provided to the businesses. As a result of this support, more than 1,000 jobs are likely to be restored this year in the hotel sector alone, with direct benefit to more than 10,000 people. The effect to the region as a whole will be exponential. A total of 410 jobs were created in Lower/Middle Swat hotels during the last one year, which includes 23 temporary jobs (construction/rehabilitation works related) and 387 regular/permanent jobs.

Erum Hotel

As of June, 2011, working capital and rehabilitation cash grants worth USD 1,158,162 have been disbursed to 261 beneficiary businesses (239 hotels and 22 fish farms) under USAID’s Malakand Grants Program. A total of US$5.25 million has been earmarked for these two sectors, of which US$1.4 million is direct cash assistance in the form of post-conflict and post-flood rehabilitation grants to be released up to 287 beneficiaries on satisfactory completion of their deliverables. The commitment is apparent, and the program is showing great impact.

As of June 2011, construction material, fish feed, fish eggs, hotel supplies, and equipment worth USD 958,654 has been provided to 112 hotels and 35 trout fish farms, out of which 15 are Swat based, while 20 are from other areas of KPK region. The program is expected to provide post-flood reconstruction procurements worth USD 1.7 million to 261 businesses in tourism and aquaculture sectors.

The grants and procurements are supported by technical assistance at the firm and industry level. Firm-level support initiated to date includes the following:-

• Developed 239 business recovery plans and schedules for partner hotels.

• USAID in collaboration with Pakistan Austrian Institute of Tourism and Hotel Management (PAITHOM) organized eight training workshops (2 days each) for managers of hotels in Swat during March and April 2011 on improved hotel management techniques for better service delivery to tourists. A total of 223 participants/businesses were trained on techniques for better front office management, food and beverage handling, housekeeping and room service. These trained managers will further train their staff on relevant areas of hotel management.

• USAID’s experts developed a hotel readiness tool to assess conditions of the hotel readiness, cleanliness and health hygiene to receive the tourists.

• USAID’s experts supported 98 partner hotel owners from Kalam to develop action plans for improvement of cleanliness, health, hygiene and readiness conditions of their respective hotels.

Hotel Meezan

At the industry-level, Swat tourism recovery and development strategy has been developed and Swat Tourism Advisory Group (STAG) has been formed to influence the post-flood recovery and a longer-term sector development plan. USAID in collaboration with Khyber Pukhtunkhwa Chamber of Commerce and Industry (KPCCI) and other key stakeholders has developed a vision document and implementation plan for tourism in Khyber Pukhtunkhwa. Through the partnership with KPCCI, USAID is providing technical assistance to help boost and revitalize economic growth in the region. USAID is also launching a media campaign to promote Swat as a viable tourist destination.

Swat is waiting with open arms to welcome the visitors back to its serene valleys!
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