Literature Review on South Asian Tourism Industry: Strengths and Weaknesses

Abstract

The purpose of this study is to evaluate the state of the tourism industry in South Asian nations. This study aims to examine the tourism potentials of South Asian countries, as well as the vulnerabilities and strengths of this industry. For analysis, the available literature was reviewed. According to the results, this region has the potential to attract both regional and international spiritual tourists. Researchers have identified a number of negative aspects, including inadequate transportation, infrastructure, service facilities, and untrained tourist personnel. To promote interregional tourism, it is necessary to revise visa and passport policies.

1. Introduction

South Asian nations include Bangladesh, India, Pakistan, Nepal, and Sri Lanka. These SAARC nations have common frontiers, cultures, and religions. Before 1947, the three significant countries Pakistan, India, and Bangladesh were united and known as the subcontinent. This region has been ruled by the Indus Valley Civilization, the Mughal, Sikh, and colonial empires. Every era has contributed a substantial number of historical and religious monuments, which now serve as tourist attractions. In 1947, the subcontinent was divided into India and Pakistan, and in 1971, East and West Pakistan were separated, giving rise to Bangladesh. These three nations, along with Sri Lanka and Nepal, are developing nations with similar economic, political, and social issues. The tourism industry in these regions had been neglected for years, and COVID-19 made the situation even worse. Travel restrictions and health and safety situations discourage both international and domestic tourism. The following statistics illustrate COVID-19’s effect on South Asian nations (Table 1).

Country	GDP loss in COVID-19 US$	Job losses
Bangladesh	2.03 billion	420,000
India	43.4 billion	9 million
Nepal	460 million	230,000
Sri Lanka	1.99 billion	200,000
Pakistan	3.64 billion	880,000

Table 1.

Potential GDP and job losses in south Asian countries [1].

According to a report by the world bank, the graph above depicts the GDP and employment declines of South Asian nations during COVID-19. Efforts are made to discover methods for reducing these losses in the years following the COVID outbreak.

This chapter’s objectives are:

• South Asia’s tourism potential are examined.

• Evaluate the region’s tourism industry’s strengths and weaknesses.

These objectives will be accomplished by reviewing the relevant literature.

2. Literature review

A comprehensive literature review was conducted to evaluate the various characteristics of the tourism industry in South Asian nations. Following tourism categories were identified:

• Spiritual tourism

• Tourism revolving around thrill-seeking activities.

2.1 Investigations of spiritual tourism

The authors [2] wrote a book advocating for the promotion of spiritual tourism between India and Pakistan as a means of fostering regional harmony and economic development. They recommend that these two nations integrate spiritual tourism into their curricula, given the presence of a variety of religious minorities and their shared cultural and economic conditions. It is believed that by harnessing the force of spiritual tourism, terrorism can be mitigated and peace can be fostered in the region. In addition, the study [3] illuminates the significance of the Kartarpur corridor in attaining peace through tourism. It emphasizes the significance of cross-border encounters between visitors and their shared heritage sites in fostering regional harmony. Another study [4] offers a comprehensive overview of the Kartarpur corridor’s development and economic contributions. It demonstrates that Pakistan is a popular tourist destination due to its renowned Sikh, Hindu, and Christian religious sites. In 2019, Pakistan’s domestic tourism alone contributed substantially to the country’s gross domestic product (GDP), which totaled $3.5 billion. This number was recorded before the Kartarpur corridor was opened. According to the research, the inauguration of the corridor will increase foreign exchange, trade, and employment opportunities. The study recommends the establishment of a federal department and provincial subdepartments to provide transportation facilities, promote local handicrafts, and increase religious tourism awareness. The authors suggest utilizing the tourism models of Nepal and the Philippines as benchmarks and guides. Another research study [5] conducted during the COVID-19 pandemic emphasizes the concerns of international tourists visiting India such as hygiene, safety, and security. These worries have caused substantial losses in the tourism industry. Therefore, the authors investigate the potential for religious sites to attract Indian domestic visitors. As a strategy for addressing crises in the tourism industry, the study suggests implementing Faulkner’s (2001) crisis management model. It identifies the Swadesh Darshan and Spiritual Enhancement Drive (PRASAD) as tourism initiatives with the potential to attract domestic tourists. This innovative study offers valuable insights into tourism strategies post-COVID.

In addition, Pakistan has created a pilgrimage site for the Sikh community, and the government has constructed the Kartarpur route to facilitate the pilgrimage [6], used indicators such as perceived value (PV), sensation seeking (SS), low congestion (LC), as well as pilgrim satisfaction and behavioral intentions (BI), the study measures the level of satisfaction among these pilgrims. The findings indicate that PV, SS, and LC have a positive effect on BI and pilgrim satisfaction.

2.2 Investigations of adventure tourism

In an article [7], the author provides an in-depth analysis of Chitral Valley, an alluring tourist destination situated in the Hindu Kush Mountains near Trich Mir in Chitral, Pakistan. However, the Pakistani tourism department appears to be overly focused on the Northern regions, resulting in planning faults. These faults include insufficient seasonal security measures to mitigate seasonal disasters, limited foreign exchange benefits for the tourism sector, insufficient integration of local communities, insufficient funding, substandard service quality, and inadequate transportation facilities. Moreover, management flaws are evident, including an exclusive focus on the Northern region, poor infrastructure in terms of roads and railways, a lack of telecommunication facilities, high consumer goods prices, the absence of tourism courses in curricula, inadequate civic amenities, a lack of participation from local communities, and an absence of sports, beach, and cultural tourism initiatives.

An additional article [8], analyses briefly the dangers associated with tourism in the Himalayan mountains of India and Nepal. These regions attract visitors in search of hiking, sports, and adventure opportunities, but the climate poses a serious risk. On mountain slopes, additional dangers include rockfall, avalanches, and the flow of ice and/or snow. In these regions, roads are frequently eroded by severe weather conditions. Along with a rise in the number of commercial and sporting events, the number of tourists has increased dramatically over the years. This research indicates that the governments of these nations should maintain vigilance regarding the climate in these regions. In addition, tourist escorts and their families should be insured, and roads should be constructed in accordance with standards for mountainous terrain.

In a further article [9], the author concentrates on environmental management in tourism destinations, especially in developing communities such as South Asia. Rapid environmental changes are affecting these regions, necessitating the implementation of effective measures and policies by the governments of these nations in order to combat these changes and create sustainable environments. Due to political instability, inadequate institutional frameworks, and unequal social and economic structures, green tourism poses a significant challenge in this region. The paper suggests that the government, nongovernmental organizations, private sector policymakers, and the local community should collaborate to develop adaptable and simple strategies to promote green tourism.

2.3 Researches on tourism and economic growth

Javed and Tuckova [10] in an article presented at a conference examines the calculation of South Asian countries’ competitive tourism advantage. In comparison to India and Bangladesh, the research indicates that Pakistan has emerged as a tourism destination, primarily due to its natural destinations and improved law and order situation over the past 4 years. Using the travel and tourism competitive index (TTCI) as an evaluation instrument, the study provides a comprehensive assessment of the region’s tourism industry’s strengths and weaknesses. It is suggested that Pakistan and India focus on environmental sustainability, Bangladesh prioritizes travel and tourism. Pakistan becomes more open to the international community, and Pakistan and Bangladesh focus on all aspects of infrastructure, while India focuses on service infrastructure.

Another analysis [11] focuses on the Bangladesh Tourism Board’s (BTB) performance in obtaining a competitive edge in the region. While BTB policies have effectively increased domestic tourism over the past decade, attracting international tourists requires the translation of all marketing campaigns into English, the inclusion of hotels and restaurants in marketing initiatives, and the acquisition of international sponsorship. The BTB should re-evaluate its policies on a regular basis, improve the planning and management of tourist destinations, and identify barriers and obstacles to attracting international travelers.

In their research, the authors [12] note that the tourism volume of South Asian countries is significantly lower than that of other nations, accounting for only 1% of global tourism. This is primarily due to the lack of government involvement in providing infrastructure and facilities, which ultimately discourages private sector investment. The authors argue that the growth of the tourism industry is crucial to the prosperity of the people in this region. Using their shared borders, cultural heritage, and transportation resources, these nations can earn foreign currency, generate employment opportunities, and improve their economic well-being by promoting tourism.

Manandhar et al. [13] an additional comprehensive research describes the current state of the tourism industry in South Asian nations. Despite their shared borders, cultural heritage, and transportation resources, these nations’ economies are hampered by geopolitical circumstances. Due to poor infrastructure, insufficient facilities and services, and safety and security concerns, including the threat of terrorism, the tourism industry in this region struggles to reach its full revenue potential. Complicated cross-border travel procedures, insufficient transport facilities, and a lack of coordinated travel policies are impeding the development of tourism in this region. The research suggests that these nations address these issues, revise their cross-border travel policies, and endeavor to maximize the economic benefits of the tourism industry.

During the COVID-19 pandemic, this study [14] provides a policy framework for policymakers in six South Asian nations. During the pandemic, tourism declined in these areas as it did in other nations. The study highlights the significance of information and communication technologies (ICT) in tourism growth. Due to the reluctance of international tourists to travel, the SAARC nations should waive visa requirements and offer discounts on travel and lodging costs for interregional tourists. During this pandemic, the importance of ICT in various facets of society, such as healthcare, education, and commerce, makes its active incorporation into the tourism industry crucial. With their export potential in fisheries, the research also suggests that Nepal and Bhutan should collaborate with regional and international commercial interests. In addition, another article by the same authors [15] supports the idea that, while tourism positively contributes to economic development, it can also have negative effects if not managed properly.

The authors [16] discuss the significance of private sector involvement in the tourism industry, as advocated by tourism scholars, especially in developing nations. The article [6] examines five policy options for South Asian nations, including public versus private participation, domestic versus international tourism, class versus mass tourism, centralized versus decentralized tourism, and integrated versus enclave tourism. Instead of rigorously adhering to the policies mentioned, these nations have taken a tourism-centric approach.

Munir and Iftikhar [17] studied the relationship between foreign direct investment (FDI) and exchange rate on tourism of five South Asian countries, India, Pakistan, Bangladesh, Nepal, and Sri Lanka. The role of FDI is proven from other researches also, and this research also validates that increase in FDI contracts tourism and decrease in it expands it in long run in all five countries in long run. Appreciation and depreciation in exchange rate have asymmetrical relationship with tourism. The analysis of individual countries showed that FDI has a negative and significant impact on tourism in India, Pakistan, and Bangladesh and has a positive and significant impact on tourism in Nepal and Sri Lanka. The exchange rate of all countries negatively effects tourism, increase in exchange rate decreases it and vice versa. FDI, according to this research, can increase tourism if it is spent on the improvement of tourism industry but unfortunately, these countries spend it on microeconomics challenges. It is highly recommended for these countries to spend FDI on the improvement of infrastructure, security and safety, and other facilities in tourism sector to gain economic prosperity.

Richter [18] describes the role of countries pollical conditions for the development of the tourism industry. The Philippines, Siri Lanka and Pakistan are facing problems of political instability and threats of war from neighboring countries. The study suggested risk analysis or political audit to devise appropriate tourism policies. It further commented that no matter how much tourism industry invests for new proposals, marketing, and services; if there will be political instability and threat of war, international tourist will not attract.

3. Discussion

This study’s primary objective was to assess the tourism industry’s potential in South Asia. A review of the literature revealed that South Asian countries are exceptionally abundant in art, architecture, and culture, which can attract tourists from around the globe. For instance, the Sikh community from India frequently traveled to Pakistan in search of spiritual fulfillment. Researchers concurred that these regions can generate foreign currency by promoting interregional/cross-border tourism. The researches of [2, 3, 4] supported the above description.

The second objective of this study was to assess the regional industry’s strengths and deficiencies. This region’s strong cultural, spiritual, and economic interregional connections make it a tourist-friendly destination. In Sri Lanka and Nepal [14], a variety of products, such as fish, have not only commercial value but also provide attractive fishing spots for tourists. Unfortunately, research identifies a lengthy list of vulnerabilities in this industry. First, the political situation [18] of these countries along COVID-19 is a significant barrier for international travelers. The law-and-order situation influences not only the decisions of international tourists but also those of interregional tourists. The countries are developing and have multiple microeconomic issues, so they invest little in the development of tourist destinations. Secondly, health and hygienic situations of these countries discourage international tourists. Interregional rivalries of these nations are third major issue in terms of biased visa policies for local tourists.

4. Conclusion

Literature review on tourism industry of south Asia indicated many important aspects of south Asian tourism industry. To understand characteristics of tourism industry this part is divided into two subheadings.

1. Strength of tourism industry

2. Weaknesses of tourism industry

4.1 Strength of tourism industry

The researchers agreed that these areas have large potential for tourism because of their beautiful sceneries, rich heritages, and culture. The strengths of the tourism industry are as follows:

• Spiritual tourism is one of the major sources of income for these areas as in the case of Kartarpur in Pakistan [4] and in different areas of India [5] and Bangladesh. The affluent class of these countries prefers spiritual journeys, just such as Muslims visit Mecca.

• These areas have great potential for cross-border tourism because of shared borders, resources, and cultures. In post-COVID-19 situations, these areas regional tourism can support their economy. So, they are not totally dependent on international tourists.

• Sri Lanka and Nepal are known for their fisheries industry. Fishing spots are attractive tourist points also [14].

• The currency rate of these areas are low in the international market so for international tourist, it will be economical, and for cross-border tourists, it will be affordable [17].

4.2 Weaknesses of tourism industry

The literature review identifies a number of weak points of South Asian Tourism Industry:

• This industry was neglected in the past [12] and became the center of focus specially in Pakistan in the last 4-5 years.

• All these countries need to revise their travel and tourism policies as mentioned by Mehraj Din Wani [6, 11] for Bangladesh T&T board.

• The infrastructure, safety and security, and hygiene of these areas are not up to international standards.

• The political situation in these countries, such as martial law and war-like conditions, is a major hindrance for international tourists [18].

• The complicated cross-border visa and passport procedures discourage regional tourists

• FDI (foreign direct investment) earned through tourism is spent on microeconomic issues rather than on the development of transport, infrastructure, service structure, and security of tourist points [17].

• Commercialization of hilly areas is creating problems of pollution and climatic safety [8].

• Climatic safety and security are a major issues for tourists in hilly areas [8].

• Information communication system is poor and unable to address target clients [14].