ISLAMABAD: In a major setback to the country’s drive to expand tourism, Serena Hotels announced on Wednesday the impending closure of its Swat Valley property, bringing an end to nearly four decades of operations in a region once hailed as a key tourism destination. The decision, effective 1 January 2026 – a grim start to the new year – has raised significant concerns about the viability of both federal and provincial governments’ tourism revival plans, casting serious doubt on their ability to turn long-touted ambitions into reality. The Swat Serena Hotel, one of Khyber Pakhtunkhwa’s premier luxury accommodations, will cease operations on 1 January 2026. Strikingly, the hotel management has provided no clear explanation for the closure, fuelling speculation about the underlying causes. In an official statement, Serena Hotels, a key player in the hospitality sector across Asia and Africa, expressed regret, thanking guests, partners, and staff for their years of support. “After nearly four decades of hosting our honoured guests,” the statement read, “we regret to announce the closure of Swat Serena Hotel’s operations.” For Khyber Pakhtunkhwa – already struggling with political instability, security issues, and insufficient infrastructure – the closure represents a major blow to the provincial government’s attempts to revive the tourism sector. Swat had been marketed as a flagship destination in the province’s tourism strategy, with reforms designed to attract both domestic and international visitors. However, Serena Hotels’ exit – long seen as a barometer for foreign investment – casts a shadow over the future success of these plans. Sources close to the matter cite a mix of economic and security issues as key factors behind the decision. “The ongoing instability and security challenges have made it increasingly difficult for hospitality businesses in the region to remain financially viable,” said one industry insider, speaking on condition of anonymity. Despite the closure, Serena Hotels reassured that its operations in other regions would remain unaffected, with 33 hotels across Asia and Africa, including 10 in Pakistan, continuing to operate. “While this chapter comes to an end, Serena Hotels continues to welcome you all to our 33 hotels across Asia and Africa, including 10 in Pakistan,” the company said. However, for many in Swat, the closure signifies more than just a business decision. Since opening in 1986, the Swat Serena has been a symbol of hope and stability for a region battered by conflict. The closure exposes the fragile foundation of the province’s tourism aspirations, raising serious questions about the federal and provincial governments’ ability to deliver on promises of revitalisation. For local businesses and residents, the closure is a bitter wake-up call, underscoring the failure of long-promised improvements. While both federal and provincial governments continue to promote tourism as a cornerstone of their economic strategy, the closure of a major international hotel chain is a stark reminder that these lofty aspirations remain, for now, unfulfilled. Sources within Serena Hotels have blamed local management – particularly the individual at the helm for years – accusing them of mismanagement that led to the closure of the Kabul property last year, followed by the abrupt shutdown of the Swat property. This pattern of failure raises serious questions about the competence of those in charge, damaging the brand’s reputation. Senior leaders at the Aga Khan Fund for Economic Development (AKFED), which owns Serena Hotels, are calling for an immediate change in top management to salvage what is left. Copyright Business Recorder, 2026