Abstract

This paper investigates the economic exploration of tourism earlier and afterwards the insurgency in district swat. For this purpose a data set of 72 hotels is selected from the valley in order to find the negative consequences of conflict on hotel industry in the valley using simple random sampling technique. The findings show that the sample hotels in the study area have negatively affected due to conflict having huge financial losses. Because, tourists’ flow and monthly revenues to this sector has been dropped extensively in urban, semi-urban and rural areas. Further, the t-test results clearly indicates that a significant difference exists in daily room occupancy, reduction in tourist arrival, monthly revenues and employment between the pre-conflict and post conflict scenario. Bank loans and other loans and private saving are identified as the major sources of financing for the purpose of rehabilitation of the affected hotels in the area. It is concluded that terror activities and conflicts do have an adverse effect on businesses and tourism. Therefore it is recommended that the government and non-governmental organizations should play their role in rehabilitation efforts and focus on financing the affected enterprises to ensure peace and security in the study area in order to promote the tourism industry in the area