The Competitiveness of Tourism Industry of Pakistan and India in the World Market: A Comparative Analysis

Muhammad Shahid Maqbool; Furrukh Bashir; Altaf  Hussain

doi:10.52700/assap.v3i1.183

Authors

Muhammad Shahid Maqbool Assistant Professor, Department of Economics, Government Graduate College, Gojra, Pakistan
Furrukh Bashir Assistant Professor, School of Economics, Bahauddin Zakariya University, Multan, Pakistan
Altaf Hussain Assistant Professor, Department of Economics, The Islamia University of Bahawalpur, Pakistan.

DOI:

https://doi.org/10.52700/assap.v3i1.183

Keywords:

Competitiveness, Comparative advantage, Tourism exports, RCA, Services

Abstract

The current study aims at measuring the competitiveness and comparative advantage of the tourism industry which is one of the most profitable non-technology-based economic sectors of Pakistan and India. This study applied several indices of revealed comparative advantage to examine competitiveness in travel and tourism industry experts and the data have been taken from International Trade Center (ITC) during 2005-2020. The results of RCA, RSCA, LnRCA and RCA# highlight that both Pakistan and India had a comparative disadvantage from 2005-2020. Travel and tourism imports from India and Pakistan had a comparative advantage, according to RMA index data, during the analysis. From 2005 to 2020, India and Pakistan had a net competitive disadvantage in this sector, according to the Relative Trade Advantage index. Moreover, the results of TBI portray that both countries were net-importer in the travel and tourism industry. The results of this study suggest that these countries should improve tourism businesses by investing more in tourism and increasing promotional activities.