CPEC is a cross-cutting phenomenon transcending various sectors of Pakistan’s economy and posing unique set of challenges and opportunities for each. One may think of at least three ways CPEC may impact tourism: Firstly, CPEC is likely to improve the security situation in the country and will raise the global tourist community’s confidence in Pakistan as a safe destination. Secondly, CPEC will expose the sector to Chinese outbound tourist market due to increased social, economic, and infrastructural connectivity. Third, it may attract the Chinese investments in Pakistan’s tourism industry. To an extent tourism may benefit from CPEC will depend largely on how the sector re-organizes itself. The intricate and fragmented nature of tourism industry demands a high degree of stakeholders’ collaboration to reap this opportunity. Such collaboration is more likely if key stakeholders are fully aware of the opportunity and have plausible plans to get maximum benefit from this opportunity. The required information was collected through 22 in-depth semi-structured interviews representing persons and groups, neighborhoods, organizations, institutions, societies, and natural environment. Integrated framework of modified stakeholder salience and Ladder of participation was used for identification and prioritization of stakeholders and their salience. Findings suggest that current policy and practice is dominated by state actors with very small room for the private entities. CPEC externalities may positively impact tourism development due to infrastructure connectivity but may negatively impact tourism because of the way the security set up has been installed. Furthermore, given the lack of information available on various aspects of CPEC including the negotiations on tourism investments with Chinese investors, low capacity of local investors, markets and communities to understand and adopt emerging global trends in tourism and respond to the market demand and may bar their economically beneficial participation in the GB tourism market. The study findings have useful policy implication for a socially acceptable development of local and national tourism industry. Policymakers in both countries, Chinese and Pakistani investors and tourism developers may utilize these findings to workout practical ways to engage local stakeholders. Supervisor: Dr. Junaid Alam Memon