• Management Accountant (Jul-Aug 2007)

 Monthly
Estd. 1951
National Council of ICMAP Volume : 16.4 July-August 2007
President The only Professional Journal in Pakistan with a circulation of over 15,000 copies per issue
Sher Afgan Malik
Vice President
Mutee-ur-Rehman Mirza
Honorary Secretary Contents
Mohammad Arif Nara
Divine Wisdom : Translation from the Holy Qur-’an and Commentary 2
Honorary Treasurer
Mohammad Azam Khan Shad
From the Desk of President 3
Members
Muhammad Abdullah Yusuf From the Chief Editor 4
Arif Mansur
M.H. Asif Interview: Mr. Aziz Boolani, Chief Executive Officer Serena Hotels Pakistan 5
Rashid I. Malik
Muhammad Rafi Focus: – Hotels in Pakistan 10
Kashif Mateen Ansari
Hasan A. Bilgrami
Mirza Munawar Hussain – ‘Hospitality Industry’ by Khalil Ahmed, Director Publications & Administration ICMAP 11
Karachi - Head Office – ‘5 Star Hotel Industry – An Insider’s Viewpoint’ 13
ST-18/C, Block-6, Gulshan-e-Iqbal,
By Assad Mahmood, FCMA, Manager Accounts Islamabad Serena Hotel
Karachi-75300.
Ph. : (021) 9243900-01-02 & 04
Fax : (021) 9243342 – ‘The Hotel Industry - An Overview’ by Asif Hussain Siddiqi, APA 15
E-mail : ed@icmap.com.pk
Web Site : http://www.icmap.com.pk
– ‘Exploiting Tourism Potential’ by Zafar Mehdi 17
Islamabad Centre
Plot # 16, Sector H/9, Islamabad. Article of Merit: A Case study on Organisational Performance Measurement Systems for 22
Tel : (051) 9257345-6, 9258870-1
Fax : (051) 9259103 Customer Intimacy by Suresh Cuganesan
E-mail: isb@icmap.com.pk
Article: – ‘Textile in Focus’ by Abid M. Anwer, FCMA, Executive Director NICHE 31
Lahore Centre
42, Ferozepur Road, Lahore.
Tel : (042) 7578494, Fax : (042) 7589185 – ‘Cattle Farming in Pakistan’ by Rehana Shehzad, ACMA 35
E-mail: lhr@icmap.com.pk
– ‘A Comparative Analysis of Changing Operating Costs of Fixed Line 42
Multan Centre
ICMAP Street, Shalimar Colony, Telecom Operators of Sub-Continent’
Toyota Motors, Bosan Road, Multan. by Rao Nisar A. Khan, Chairman, Department of Accounting and Law, IBA Karachi
Tel : (061) 9210249-50, Fax : (061) 9210248
Economic Horizons 48
E-mail: mul@icmap.com.pk
Faisalabad Centre
ICMAP Centre, 549-B, Peoples Colony # 1 Global Socio-Economic Briefs 50
Satiana Road, Faisalabad.
Tel: 041-9220103
Email: fsd@icmap.com.pk Research & Technical Update : IFAC, IASB, IAASB, CBR and other News 52
Peshawar Centre
Frontier College of Business Education,
Information Technology 55
Saddar Road, Peshawar.
Tel : (091) 5277662 & 5272662
Fax : (091) 5276663
E-mail: peshawar@cecos.com
Quetta Centre
Our Vision
Railway Accounts Academy,
Zarghoon Road, Quetta. To be the Preference in Value Optimization for Business.
Tel : (081) 2824317
Fax : (081) 2838207
Other Centres
Our Mission
Hyderabad
Kohat
Abottabad
To develop strategic leaders through imparting quality education
Sargodha and training in Management Accounting, to continually set and
Overseas Examination Centre
Dubai, UAE & Toronto, Canada
upgrade professional standards and to conduct research
Contact: Director Examination, ICMAP Head Office bringing value-addition to the economy.
Journal is also available on ICMAP Website : www.icmap.com.pk
 Divine Wisdom
FROM THE HOLY QUR-'ÃN
Translation :
In the Name of Allah,
the most Magnificent, the most Merciful
Diverse institutions have
passed away before you;
journey in the land and
behold how was the end of
those that cried lies.
Surah 3 : Ale-Imran (Verse 37)
Commentary :
This verse invites the people specially the disbelievers – to travel about and see for themselves the ruins of
the cities inhabited by hardened unbelievers and to ponder the end that awaits all those who refuse to con-
form to the needs of their super ego. This is a mode typical to Quran. The book presents before its address-
ees different spectacles-parched land brought to life by the rains; the miracle of the renewal of life – the
vegetation, the flowers and the fruits – the rising sun and its first rays, the setting sun, the sea in storm, wa-
tering holes in barren deserts.
For a true heart, a soft tiny bud blossoming and leaves sprouting out of a hard twig is a miracle which takes
him to the Miracle Maker. The historical reference in these verses is to the ruins in the Arabian Peninsula
of the dwellings of ancient people – the Ad and the Samud, who were destroyed by earthquakes and sand-
storms. Honest men are asked to visit the ancient sites and see for themselves how people who deviate
from the path of truth and righteousness are destroyed by their addiction to evil
2 Management Accountant, Jul-Aug, 2007
 From the Desk of the President
Prior to 1980s, it was hard to find institutes for business management education,
but now one finds many of business management institutes almost in all big cities
of our country. Hotel industry is growing everywhere in the world and so is the
case in our country. This is something which would lead to the mushroom growth
of the institutes which would offer education in hospitality in our country.
One could come across hotels in Karachi and Islamabad which understand the
finer points of hospitality and luxury. While on official/business visit, one could
indulge in a lifestyle of luxury at 5 star hotels and the unparalleled comfort they
offer. There are some hotels where one could enjoy the architecture and interiors
which reflect the expression and cultural heritage of Pakistan. In addition, these
hotels feature all the modern conveniences as well. As we all know that Pakistan is
pursuing a liberal foreign exchange regime with no limits on remittances and
provides a level playing field for foreign and local investors, there is every reason
to believe that we would be able to see the hotels like Burj Al Arab in Pakistan very
soon.
Luxury hotel rates in India are up to $500 a day however the rates are
comparatively cheaper in Thailand, Malaysia, Singapore, Indonesia and Sri
Lanka. Luxury hotel rates in Pakistan are below $200 a day which is an attraction
for the tourists. However, due to security reasons, we do lose a handsome share of
revenue in tourism which should be a concern and should be addressed with
priority. The travel and hotel industry all over the world felt the effects of the 11
September attacks, with many tourists putting off long-haul trips. This left a
burden on the hospitality industry that contributes revenue to the economy of a
country in the shape of taxes. Tourism and hotel businesses thrive in case
economic conditions of a country are sound and there is no law & order problem.
Since our economy has been performing well, particularly during last five years
our hospitality industry has made amazing progress and the average occupancy in
the hotels has remained above 70 %. Our government needs to improve
hospitality infrastructure and security which would eventually lead to
skyrocketing enhancement in the number of tourists and ultimately our economy
in general and the hospitality industry in particular would get benefit
Sher Afgan Malik, FCMA
President
Management Accountant, Jul-Aug, 2007 3
 Editorial
From the Chief Editor
The world is a global villa not a global village any more these days because of technology
revolution. There were times when people did not know much about the countries other
than that of theirs. However, due to media revolution, almost every individual knows
what is happening all over the world. This ever-increasing awareness has brought about a
wave of interest among the people to experience what is happening in other parts of the
world and consequently people do spare time to visit other countries, provided that they
could afford. This phenomenon has given rise to hospitality industry all over the world
and our country is no exception.
You would be able to read analytical articles in this issue about the hospitality industry
and this would give you an insight about it. FDI and remittances have helped the industry grow manifold. Mr. Aziz
Boolani, Chief Executive Officer Serena Hotels Pakistan, was interviewed for this issue. According to him foreign
investment, both direct and portfolio based, brings in international business travelers, consultants, government officials
etc. The vibrant economy always translates into enhanced business for Airlines and Hotels. In this issue, you could get
information about occupancy percentage of hotels in our country, impact because of security reasons, impact on
hospitality industry because of high land prices, forthcoming hotels, various taxes and so on. There is an unprecedented
growth in roadside restaurants in all big cities of Pakistan. This rapid growth of the restaurants reveals that in future too
many restaurants will be vying for too few patrons. Hospitality industry contributes millions of rupees each month to the
Government Exchequer in terms of General Sales Tax, Excise Duties and income taxes. The concerned authorities need
to offer incentives to the hospitality industry which in turn would help our economy grow due to increasing number of
tourists as well as people from the corporate world visiting our country
Mohammad Arif Nara, FCMA
Our Next Issue
ManagementAccountant September-October, 2007
M.I.S. and SOPs in industries/organisations
Journal and Publications Committee would welcome articles on the above topic before August 25, 2007.
Journal & Publications Committee
Chairman Members Correspondence Address
Mohammad Arif Nara, FCMA Director Publications and Administration
Abid M. Anwer, FCMA Institute of Cost and Management
Attaullah A. Rasheed, FCMA Accountants of Pakistan
ST-18/C, Block-6, Gulshan-e-Iqbal, Karachi-75300.
Akhtar Ali, FCMA Ph : (92-21) 9243900-01-02 & 04, Direct: 9243551
Fax : (92-21) 9243342
Asif Ansari, ACMA
E-Mail : khalil.ahmed@icmap.com.pk
Website : http://www.icmap.com.pk
4 Management Accountant, Jul-Aug, 2007
 Interview
An exclusive interview of
Mr. Aziz Boolani
Chief Executive Officer
Serena Hotels Pakistan
MANAGEMENT ACCOUNTANT: Please brief
us about Serena Hotels Pakistan?
MR. AZIZ BOOLANI: Operating under the brand
name Serena, Tourism Promotion Services (Paki-
stan) Limited (TPS) currently operates five Serena
Hotels in Pakistan i.e. Islamabad, Faisalabad,
Quetta, Swat and Gilgit. Since the early 1980s, TPS
operates hotels in Gilgit, Hunza and Swat, in the
mountainous northern region. TPS was the only ho-
tel company to build international-class hotels in the
secondary cities of Pakistan i.e. Faisalabad and
Quetta. Serena facilities in remote locations often
become important centers of local community ac-
tivity. Mr. Aziz Boolani has been associated with the
hotel industry since 1986 and has worked in
In 2002, the company commissioned the operations various capacities including General Manger,
of its flagship hotel, a member of the Leading Ho- Executive Director and Chief Executive Officer.
tels of the World, the Islamabad Serena in the capi-
Before joining Serena Hotels Pakistan, he was
tal city which positioned Serena as the preeminent
the Executive Director for Marriott and Pearl
luxury hotel chain in the region. After successful
Continental Hotels Pakistan. He recently retired
operations coupled with strong economic growth in
Pakistan, the Aga Khan Fund for Economic Devel- as the Chairman Pakistan Hotels Association
opment, the sponsors of Serena Hotels Pakistan, ap- after completing a three year tenure. Before
proved the expansion of the Islamabad Serena by joining the hotel industry, he worked for various
acquiring 7.85 acres of land adjacent to the existing multinational oil and pharmaceutical companies.
hotel.
After joining Serena Hotels in 2000, he was
Set amongst landscaped gardens, the expansion instrumental in the construction and
consist of 213 state-of-the-art guestrooms including commissioning of the Islamabad Serena Hotel
Presidential Suites, Executive & Junior Suites, with Pakistan in March 2002 and the Kabul Serena
3 new restaurants, additional banquet and meeting Hotel, Afghanistan in November 2005. Currently,
facilities and a rooftop lounge. Also planned is a he is actively involved in the expansion of the
full-service spa and a state-of-the-art health facility.
Islamabad Serena and construction of Dushanbe
The new business center will have private meeting
Serena & Paschid Serena Hotels in Tajikistan.
rooms and latest communication technology.
He has completed the General Manager’s
The architectural influence of the expansion and its
program from Holiday Inn University, Memphis,
interiors will take a lead from the existing hotel, in-
USA and is a Fellow Member of the Institute of
corporating the local history, heritage and culture.
Cost & Management Accountants of Pakistan.
The hotel will also focus on environmental preser-
Management Accountant, Jul-Aug, 2007 5
 Interview
vation and shall consist of gar-
dens, water bodies, and land-
scaped areas to uphold Sere-
na’s commitment to its sur-
roundings. Every effort is be-
ing made not to leave an opera-
tional footprint on the already
fragile environment by utiliz-
ing environmentally and
energy-efficient technologies.
The hotel is in its advanced
stages of construction and is
expected to welcome guests
during second half of 2008.
MANAGEMENT ACCOU- Mr. Shahazad Ahmed Malik, Chairman Islamabad Branch Council ICMAP and
NTANT: New hotel projects Mr. Khalil Ahmed, Director Publications & Administration ICMAP conducting interview of
Mr. Aziz Boolani, CEO Serena Hotels Pakistan.
are coming up in Islamabad.
How do you see the hotel in-
Pakistan is helping the hotel industry as well, di-
dustry shaping up in the medium to long term? Your
rectly or indirectly?
comments, please.
MR. AZIZ BOOLANI: Absolutely, Foreign In-
MR.AZIZ BOOLANI: Yes, in all, five new proj-
vestment, both direct and portfolio based, brings in
ects have been announced of which only two proj-
ects have made good progress so far and I hope international business travelers, consultants, gov-
other projects are also put on fast track. I truly be- ernment officials etc. The vibrant economy always
lieve competition helps hotels to constantly enhance translates into enhanced business for Airlines and
their service standards, product and facilities and Hotels.
with the commissioning of new hotels, we will be
MANAGEMENT ACCOUNTANT: It is said that
able to raise the benchmark in all areas of operation.
From investor’s perspective I am not too sure if the around 700 foreign companies are in Pakistan
increase of 260% (almost 1300 rooms) in the inven- which enjoy 20 to 60 per cent profitability. Could
tory of 5 Star hotel rooms in the capital city that too you please tell us about the foreign investment in
in next 2 to 3 years will be sustainable. These rooms hotel sector and about the hotels owned by the for-
will certainly get utilized in the long term particu- eign companies?
larly when the new International Airport will be
commissioned. On a positive note, these new hotels MR. AZIZ BOOLANI: I wish Hotel Company’s
will provide opportunities to our young, talented profitability was near to what you have quoted for
and energetic Pakistanis to make their career in an foreign companies operating in Pakistan. From the
industry which advances man management skills, face of billing, one perceives that hotels are making
decision making and confidence building and will huge profits but in reality, due to very high cost of
contribute handsomely towards the national ex- operations in addition to maintenance and fixed
chequer. costs, they operate on marginal profits. Also the re-
turn on investment is quite low compared to any
MANAGEMENT ACCOUNTANT: Do you other industry. This is one of the main reasons that
think that higher influx of foreign investment in in Pakistan we do not have many five star hotels.
6 Management Accountant, Jul-Aug, 2007
 Interview
At present, there are only two
international hotel owning
companies operating in the
country with the brand name of
Sheraton and Serena and few
have recently initiated their
projects.
MANAGEMENT ACCOU-
NTANT: Hotel chains in In-
dia, which for years concen-
trated only on the up-market
segment of business and leisure
tourism – and invested their re-
sources in building 5-star ho-
tels – have discovered a new
growth segment: the mid-price
or economy one. What is the
situation in Pakistan?
MR. AZIZ BOOLANI: Paki-
stan is a growing market and
cannot be compared with India
in terms of volumes. The
number of hotels in either in
Mumbai or Delhi is far greater
L to R: Mr. Khalil Ahmed, Director Publications & Administration ICMAP; Mr. Aziz Boolnai, CEO
than in entire Pakistan. The ho- Serena Hotels Pakistan and Mr. Shahazad Ahmed Malik, Chairman Islamabad Branch Council ICMAP.
tel industry in our country is
growing and with the increase
MANAGEMENT ACCOUNTANT: Could you
in inventory of rooms over the years, we expect to
please tell us something about luxury taxes and sur-
see the growth in mid-price or economy segments as
charges for hotel sector?
well. At present, the high cost of project with low
returns does not encourage the investors to invest in
MR. AZIZ BOOLANI: Unfortunately hotels are
mid-price or economy hotels unless the Govern-
paying various types of taxes for which the Pakistan
ment makes the investment in hotels attractive by
Hotels Association (PHA) has been continuously
providing incentives/subsidies to the investors.
knocking the doors of various Government func-
tionaries with no success. PHA has been demanding
MANAGEMENT ACCOUNTANT: Could you
the withdrawal of bed tax which is a provincial tax.
please tell us about the prospects of moderately-
This tax is not only an irritant but also being ques-
priced hotels in Pakistan?
tioned by the guests as the same is not levied in most
MR. AZIZ BOOLANI: As I mentioned earlier, the other countries. In addition, couple of provinces
exorbitant cost of land in Pakistan makes the project have levied this tax on the capacity without consid-
cost phenomenally high with low return on invest- ering the actual occupancy resulting in payment of
ment. With the high cost of project, why one would differentials by the hotels. Though the revenue un-
be inclined towards building a mid-price hotel when der this head is negligible, the Government is not
the project cost differential is marginal and the oper- keen to remove this irritant. We have also requested
ating cost and maintenance are high. Government to club various other taxes under one
Management Accountant, Jul-Aug, 2007 7
 Interview
head to reduce unnecessary involvement of various MANAGEMENT ACCOUNTANT: Is insecurity
functionaries. one of the reasons for poor performance of some ho-
tels in Pakistan? What could be done in this regard?
MANAGEMENT ACCOUNTANT: Luxury ho-
tel rates in Indian metros range from $300 to $500 a MR. AZIZ BOOLANI: Security has become a
day. What is the scenario in Pakistan? world-wide issue and all measures are being taken
by hotels to make the hotels as secure as possible.
MR. AZIZ BOOLANI: Pakistan’s hotel rates are The hotel’s performance is sensitive to the law and
quiet competitive compared to India and other order situation of the country.
neighboring countries. Average rates for luxury ho-
tel in Pakistan hover around $150. For upcoming MANAGEMENT ACCOUNTANT: The hotel in-
new hotels the cost of the project is quite high due to dustry is paying 15 per cent general sales tax (GST)
increased real estate and development costs, as a re- which is considered too high by Pakistan Hotel As-
sult of which sustainability for them around $150 sociation (PHA). Your comments, please.
would be challenging.
MR. AZIZ BOOLANI: General Sales Tax is ab-
MANAGEMENT ACCOUNTANT: Pakistan’s sorbed by the guests and not the company; hence
tourism industry is growing at good rate. What con- any reduction in rate would encourage domestic
tribution has been made by the ministry of tourism tourism.
in promoting the hotel industry?
MANAGEMENT ACCOUNTANT: More and
MR. AZIZ BOOLANI: The Tourism Ministry is more five-star hotels are must for conducting
making reasonable efforts to promote tourism in the international-level sports events. Your views,
country despite adverse regional conditions and please:
current law and order situation. Tourism in the past
MR. AZIZ BOOLANI: I fully endorse your views,
has never been given due importance and I believe
however, for any international sports event, Gov-
if reasonable attention is paid towards promoting
ernment needs to take the initiative and hotels are
tourism and cultural assets, it would pave way for there to support the cause. We feel that Hotels, be-
the long term prosperity of the country including ing part of the community also need to have a Cor-
substantial contribution towards forex reserves. The porate Social Responsibility program and Serena is
Government needs to frame friendly policies for the very active in this field. Our hotels’ Corporate So-
tourists and business community and at the same cial Responsibility activities are governed by SEED
time work on projecting better image of the country program i.e. Serena Social, Environmental and
through local and international media. Any effort Educational Development program.
from the Government needs to be supported fully by
the private sector. MANAGEMENT ACCOUNTANT: Which de-
partments of hotel could get benefit from the
MANAGEMENT ACCOUNTANT: Do you ICMAP graduates?
think that future growth would be in the budget and
MR. AZIZ BOOLANI: ICMAP graduates could
economy segment of the hotel sector?
contribute their expertise in the financial and corpo-
rate sections of the hotel. The yield management,
MR. AZIZ BOOLANI: A lot is associated with the
process evaluation, cost control, financial analysis,
economy and law and order situation of the country.
time and motion studies are the areas that are moni-
I hope Government encourages private sector to
tored by the management for hotel’s effective per-
build budget hotels by providing land on long term
formance and I am sure our graduates can learn and
lease and financing at subsidized rate and imple-
contribute in these areas
ments tourism friendly policies.
Management Accountant, Jul-Aug, 2007 9
 Focus
Hotels in Pakistan
Hotels in Rawalpindi Hotels in Peshawar
Pearl Continental Hotel Rawalpindi Pakistan Pearl Continental Hotel Peshawar Pakistan
Shalimar Hotel Rawalpindi Pakistan Hotel Grand Peshawar Pakistan
Hotel Akbar International Rawalpindi Grand Mercure Karachi Airport Hotel
Heavens Inn Motel Rawalpindi
Flashman’s Hotel Rawalpindi Hotels in Nothern Areas
Hotel De Mall Rawalpindi Ayubia Motel Ayubia Muree
Pearl Continental Hotel Bhurban Muree
Hotels in Islamabad Shangrila Resort Hotel Muree
Serena Hotel Islamabad Pakistan Gilgil Motel Gilgit
Marriott Hotel Islamabad Pakistan Hunza Motel Gilgit
Hotel Crown Plaza Islamabad Gilgit Serena Lodge
Best Western Hotel Islamabad Hunza Baltit Inn Serena Gilgit
Holiday Inn Islamabad Pakistan Hunza Marcopolo Inn Hotel Hunza
Envoy Continental Hotel Islamabad Chitral Motel
Islamabad Regency Hotel Hindukush Heights Hotel
Pak Palace Hotel Islamabad Naran Motel
Dream Land Motel Islamabad Balakot Motel Back to Top
Hotel Marina International Islamabad Swat Serena Hotel
Hotel Ambassador Islamabad RockCity Resort Swat
Royal Inn Hotel Islamabad Kalam Motel
Hotel De Papae (Inti) Islamabad Pakistan Malam Jabba Motel
Hotels in Lahore Miandam Motel
Avari Hotel Lahore Pakistan Shangrila Pines Hotel Nathia Gali
Pearl Continental Hotel Lahore Pakistan Khaplu Motel Baltistan
Leaders Inn Hotel Lahore Pakistan Shangrila Skardu Hotel & Resort
Holiday Inn Lahore Pakistan
Hotel Sunfort Lahore Hotels in Balochistan
Lahore Country Club Hotel Pakistan Ziarat Motel
Quick Continental Motel Lahore Quetta Serena Hotel Quetta
Hotel Ambassador Lahore
Hotels in Faisalabad
Hotel Crowne Plazza Lahore Pakistan
Faisalabad Serena Hotel Faisalbad
Amer Hotel Lahore Pakistan
Prime Hotel & Restaurant Faisalabad
The Residency Hotel Lahore Pakistan
Best Westen Shalimar Hotel Lahore Pakistan Hotels in Multan
Regency Inn Hotel Lahore Pakistan Holiday Inn Multan
Hotels in Karachi Sindabad Hotel Multan
Peral Continental Hotel Karachi Pakistan Dubai Palace Hotel
Sheraton Karachi Hotel and Towers Pakistan
Avari Towers Hotel Karachi Pakistan Hotels in Hyderabad
Marriott Hotel Karachi Pakistan Indus Hotel Hyderabad
Dream World Hotel & Resort Karachi Pakistan
Regent Plaza Hotel & Convention Centre Karachi Hotels in Sialkot
Carlton Hotel Karachi Pakistan Back to Top Hotel Taj Palace Hotel Sialkot
Mehran Hotel Karachi Pakistan RT Hotel Sialkot
Grand Mercure Airport Hotel Karachi
Hotels in Gawadar
Days in Hotel Karachi
Zaver Pearl-Continental Hotels Pakistn
Beach Luxury Hotel Karachi Pakistan
Metropole Hotel Hotels in Mirpur
Liberty Inn Hotel Mirpur Regency Hotel
Faran Hotel
Bloom Luxury Hotel
10 Management Accountant, Jul-Aug, 2007
 Focus
Hospitality Industry
By Khalil Ahmed
Director Publications & Administration ICMAP
P akistan is a country where stay at luxury hotels is not
expensive as compared to other countries across the
globe. The usual daily rate in luxury hotels ranges at least
the 15 per cent sales tax rate to 7.5 per cent. One finds al-
most the same scenario today. Before the recent budget,
the concerned authorities were requested to reduce the
between $400 and $600 in many countries around the GST and bed tax however nothing seems to have been
world however in Pakistan one could avail the same fa- achieved substantially. It is to be known that in 2002 the
cility at as low price as $175. Apart from it, one could Sindh government was charging bed tax at the rate of 7.5
have the pleasure of staying at budget hotels as well per cent on 70 per cent room occupancy as capacity tax
which is the preference of those who cannot afford ultra- on the 4 and 5 star hotels which was considered very high
luxury. Here, it must be noticed that the experts and the by some circles. Lower taxes might bolster tourism in-
businessmen in the realm believe that there is no possibil- dustry. India’s tourism industry is growing at between 15
ity that budget hotels will be established in Pakistan to at- and 20 per cent annually however the tourism growth in
tract the tourists and the reason for this is skyrocketing Pakistan could increase exponentially incase proper in-
prices of land in Pakistan. A businessman cannot afford centives are offered for the betterment of the industry.
to purchase extremely expensive land
and begin the business for lower re- Along with the progress of the hotel in-
turns. This has given the boost to the Analysts believe that hotel dustry, one could notice excellent
establishment of luxury hotels and now growth in the roadside restaurants in
we know that a good number of five industry’s luxury sector Pakistan. Let’s look at the restaurant
star hotels is in the pipeline. There is sector of Karachi. Looking at the for-
substantial growth momentum in the needs to score at least 40 per eign front, we see that roadside restau-
growth of the mid-price or economy rants are part and parcel of the Western
cent occupancy to cover culture. People in the West prefer go-
hotels in India whereas this situation
does not prevail in our country where operating costs. ing for ease in terms of getting food.
the focus is on the five and seven star The trend was and is that since both
hotels. For the stakeholders, insecurity husband and wife work, they prefer
prevailing in the country is a concern. Suicide bombers having food outside to avoid hassle of cooking. Well,
have endeavored many times to inflict havoc however well, well! What about our country. Since majority of the
not much damage has been incurred by the five star ho- population lives in villages and is poverty-stricken, the
tels due to their extraordinary security measures. It is the question of eating out is LUXURY. Is eating out a
onus of the incumbent government to make every possi- LUXURY? Yes it is, particularly for those who are not
ble effort to improve the situation which would benefit from the big cities of our country. And it is all the way
the economy in the long run. different in big cities like Karachi. Looking back in