As Global South countries search for post-pandemic recovery models grounded in local assets, Pakistan’s hospitality sector offers both a challenge and an opportunity. In the quest for economic resilience and international prominence, nations in the Global South are progressively utilizing their cultural identity and hospitality sectors as potent instruments of soft power. Pakistan, a nation abundant in history, culture, and geographic variety, has significantly underexploited the potential to transform cultural wealth into economic benefits via the hotel sector. In a context where perception influences policy and tourism fosters economic growth, reconceptualizing hospitality as a strategic economic and diplomatic resource might elevate Pakistan's position both regionally and globally.

Beyond Rooms and Meals: Hospitality as an Economic Engine

Hospitality is sometimes misconstrued as solely a service-oriented sector, centered on hotels, restaurants, and event spaces. In fact, hospitality is a multi-sectoral juggernaut with deep interconnections to tourism, culture, small businesses, transport, agriculture, and even international relations (Zhuk & Bukhta, 2023). Nations such as Thailand, Turkey, and Malaysia derive considerable portions of their GDP, employment, and foreign exchange earnings from tourism. These countries have successfully incorporated hospitality into their national branding campaigns, not only attracting visitors but also fostering international goodwill and investment.

In Pakistan, the hospitality industry mainly consists of an informal sector of cheap lodges, local restaurants, and small family businesses. Even so, it is highly untapped. Iqbal et al. (2024) demonstrated that the development of the tourism sector in Pakistan is positively correlated with the increase in the country’s GDP, thus providing greater profits. As evidence, in 2019 alone, the World Travel & Tourism Council (WTTC) estimates that Tourism directly and indirectly supported 3.5 million jobs in Pakistan, accounting for 5.8% of total employment (Ahmed et al. 2024). However, these figures fell drastically during the COVID-19 pandemic in light of the lack of institutional support, blasting revealing the industry’s exposure.

The positive news? Alongside the recovery of international travel and the increase in domestic tourism, Pakistan has a unique opportunity to not only revive but also transform its hospitality industry—not only as a business, but also as a tool for economic diplomacy and cultural storytelling.

Cultural Capital: A Sleeping Giant

Pakistan's most significant and least recognized asset is its diverse and rich culture. The country holds a historical legacy that includes ancient archaeological sites such as Mohenjo-Daro, contemporary Himalayan mountains, the mysticism of Sufi shrines, and majestic Mughal era mosques. Additionally, the mosaic of languages, vibrant arts, music, festivals, and rich cuisine adds to Pakistan's international appeal and identity.

Despite having a rich cultural heritage, Pakistan has yet to integrate cultural tourism into a coordinated development strategy as the hospitality infrastructure surrounding heritage sites is insufficient (Maryam et al., 2020). Visitors to Taxila, a UNESCO world heritage site, often experience a shortage of well-trained guides and adequate accommodation options. The Underdeveloped investment in religious tourism infrastructure remains a major challenge for the country’s Buddhist, Sikh, Hindu, and Sufi pilgrimage sites. The ‘commendable’ Kartarpur Corridor that was launched in 2019 is one of the few sustained efforts that the country has made, but, as with the country’s other initiatives, it is integrative.

Countries like India, Nepal, and Iran have always included cultural tourism into their comprehensive economic policies while recognizing the area as an economic opportunity. In order to move forward, Pakistan needs to change their heritage into customized experiences accompanied by hospitable services.

Hospitality as Soft Power

As Joseph Nye (2005) defines it, soft power is a nation's ability to shape the preferences of others through appeal and attraction rather than coercion. Ang, et al. (2015) argues that this diplomacy of culture is enabled through hospitality and personal meetings that change fundamental stories to more believable ones. The broadest three aspects are one’s culture, values, and the genuineness of foreign policies. In many countries, the hospitality industry, in particular tourism serves as a channel for soft power. It fosters intercultural relations, challenges stereotypes, and entrenches the spirit of global citizenship.

In Pakistan, a foreign tourist's interaction with local charity, communal life, and cultural hospitality serves as a counterbalance to negative media portrayals and facilitates a more sophisticated understanding of the country. The tourism experience transforms into a diplomatic undertaking that no amount of embassies or press releases can replicate.

This soft power can also take the form of economic diplomacy. Improved global perception brings in not just tourists but also foreign investments, collaborations with educational institutions, and even exports. The impact is sustainable: good hospitality helps to promote the country’s brand and a good brand promotes the economy on all fronts.

The Role of Public and Private Stakeholders

To support this strategic role in hospitality, policy alignment and innovation within the private sector is very important. The Pakistani government needs to begin the exercises by mapping the hospitality assets, undertaking tourism product development, and creating sustainable, heritage-driven, and friendly hospitality development incentives. Services Standardization, experts training, and expansion of tourism zones could be handled by a Hospitality Development Authority, as seen in Turkey or UAE.

However, equally important is the role of entrepreneurs and SMEs, who enhance local difference and flexibility. The possibility of transforming Pakistan’s image from the bottom up rests with the new digital trip planning startups, home-stay networks, and culinary experience companies. Pakistan’s famed cultural hospitality and its beautiful landscapes are now being featured by local guides on FindMyAdventure and Manaky, which offer custom designed tours.

Without doubt, collaboration with diaspora could improve the country’s heritage tourism, and collaboration with the cinema and media can project Pakistan’s soft power culture beyond its borders.

Gender, Youth, and the Informal Sector

The hotel industry stands out as a gateway sector for disadvantaged groups due to its low-skill available positions in both urban and rural settings. In countries like Sri Lanka and Indonesia, women’s guest houses, youth guiding services, and handicraft cooperatives serve as engines for local economic uplift.

In Pakistan, there is opportunity to increase empowerment for women and youth in the hotel industry through targeted microfinance, internet access, and vocational education. These initiatives could increase social inclusion and income generation. The informal sector which shapes the domestic tourism industry in Pakistan needs more attention and should be supported with skills training, proper certifications, and business networks.

Learning from the Global South

Pakistan is not alone in its attempts. Countries from the Global South are attempting to find a balance between historical preservation, local economic development, and international relations. Culturally sustainable tourism has been a central economic rebranding pillar in national development for countries like Bhutan, Morocco, and Colombia which serves as best practice examples (Hitchcock et al., 2009; Richards, 2019). In Morocco, boutique hotels are carved from historic riads. Bhutan showcases ‘high value, low volume’ tourism that is culturally sustainable. Colombia is developing once forgotten regions into tourist destinations through cultural tourism.

These countries show us that hospitality goes beyond an economic recovery tool; it can be a catalyst for national revitalization.

Conclusion: Hospitality as a Strategic Frontier

Pakistan is uniquely situated where culture meets economic challenges. The hospitality industry, if well cultivated, has the potential to change international perception, investment, tourism, and even patriotism in the country. In this increasingly fragmented world, the strongest statement a country can make is not through weapons or words, but through welcoming gestures, shared meals, and stories told across cultures. As a country Pakistan needs to consider hospitality not only as a service, but as a means to achieve strategic objectives.