STRATEGIC BUSINESS AND MANAGEMENT PRACTICES FOR ENHANCING TOURISM UNDER CPEC: A CROSS-BORDER PERSPECTIVE

Abstract

This study quantifies how strategic business and management practices can unlock tourism potential along the China–Pakistan Economic Corridor (CPEC). Using a 2015-2023 panel of 378 district-year observations and a cross-section of 1,822 tourism SMEs, we estimate a Spatial Durbin Model and double-hurdle revenue equation. Results show that a 1 % increase in road density raises district tourist arrivals by 0.46 % and spills over 0.21 % to neighbours (p < 0.01), while heritage density amplifies the total effect to 0.49 %. PPP intensity, visa facilitation and digital-platform adoption exert significant positive elasticities. Stakeholder surveys reveal that 54 % of SMEs cite regulatory uncertainty and 82 % of Chinese operators demand one-stop digital licensing, whereas 63 % of local communities insist on KPI-linked revenue sharing. Two pilots confirm policy impact: a tri-sector governance board in Gilgit-Baltistan lifted satisfaction by 18 % and cut poaching by 35 %, while a Gwadar Blue-Economy PPP achieved 72 % occupancy and created 400 local jobs. Simulations indicate that joint visa and PPP reforms could raise arrivals 12.8 % and yield a USD 2.3 billion net present value over five years. The study concludes that CPEC hardware must be complemented by governance software—digital platforms, heritage-linked PPPs and community revenue-sharing—to generate inclusive, sustainable tourism growth.