Economic, Environmental and Socio-cultural impact of Tourism in Gilgit-Baltistan: Evidence from primary survey

Abstract

Tourism is an important activity that can bring many benefits to the host country or a city, such as creating jobs, employment, and additional income for the residents and improving their living standards and quality of life. Therefore, this study aims to analyze the economic, sociocultural and environmental impact of tourism eventually affecting the residents of Gilgit-Baltistan (GB). GB is one of the main tourist destinations of Pakistan and is famous for its beautiful landscapes, culture and hospitality of the people. This study is based on four districts of GB that include Gilgit, Hunza, Skardu and Ghizer. The primary data using two-stage stratified sampling was collected from tourists and residents of GB. The sample size was 385 based on the Cochrane’s method. Two separate questionnaires were developed for the respondents (residents and tourists). The data is then used for structural equation modelling (SEM). Results revealed that the economic impact positively and significantly affects the quality of life (QOL) of residents. Alternatively, the environmental impact has a significantly negative effect, and the socio-cultural impact has no effect. Furthermore, descriptive statistics showed that tourist spending xiv generates revenue and provides economic benefits to the residents of GB. This study also provides recommendations for policymakers and researchers to develop effective strategies that promote sustainable tourism and enhance residents' QOL.