Recreational activities have positive effect on the mental and physical health of people. Pakistan has rich potentiality for tourism because of its rich heritage, culture, versatile geography, variable environment, diverse biological patterns, and history. To promote the tourism industry in Islamabad, the capital development authority (CDA) decided to revive a decade-old plan to install a chairlift in the Rawal Lake View Park, Islamabad. However, there is a need to investigate the response of visitors regarding chairlift. What are the socioeconomic factors affecting willingness to pay for chairlift and final bid for installing chairlift at Rawal lake view park? we have collected data from 178 visitors. A well-structured questionnaire was employed to collect data from the field. We used simple bidding game but in iterative way to find maximum willingness to pay of visitors. While survey 30% of the respondents were not willing to pay while 70% of the respondents were willing to pay for chairlift and the highest bid recorded during survey was Rs1000. Age, Family size, Education, Distance from home to RLVP, Number of dependents, working members, Public Transport, Previous experience and Using public transport or own transport were found statistically significant factors affecting WTP and final bid of visitors for installing chairlift at RLVP. It has been found through cost and benefit analysis that if government initiate this project, it will give positive benefits as revenues to government. Moreover, recreational activities promote tourism industry in the country. Supervisor:- Dr. Abedullah Anjum