Pakistan’s hospitality sector, like many others worldwide, has been hit hard by the COVID-19 pandemic, resulting in significant job losses and financial hardship for workers in the industry.
However, there is hope for recovery as the tourism and hotel market in Pakistan was estimated to be worth around USD 20 billion in 2020, with a projected compound annual growth rate of 3% until 2026.
Prior to the pandemic, the hospitality sector in Pakistan was growing and providing employment opportunities to many people, contributing 5.9% to the country’s national GDP and creating 3.8 million jobs in 2019. Despite the pandemic, the global travel and tourism industry is showing a steady recovery, with a recent report by the World Travel & Tourism Council (WTTC) projecting a $9.5tn sector in 2023, only 5% lower than pre-pandemic levels.
However, the hospitality sector in Pakistan is also facing issues related to the working conditions of its employees, including not being paid minimum wage, working long hours, and not having access to benefits such as health insurance and paid leave. There are also concerns about harassment and discrimination against female workers in the industry.
The government of Pakistan has taken some steps to address these issues, including introducing minimum wage laws, improving Labour protections for workers, and enhancing female Labour force participation.
However, more needs to be done to ensure fair and equitable working conditions for employees in the hospitality sector.
On this Labour Day, Tourism Insights urges the hotel industry to give its workers their statutory rights with regard to the minimum wages, appointment letters, various types of leaves, registration with employees old-age benefit institutions, and social security institutions. A protective worker is a productive worker, and it is important to recognize and appreciate the hard work and dedication of hospitality workers who provide essential services to customers, such as food service, housekeeping, front desk services, and more.
