Abstract
This study is aimed to analyze the role of tourism in affecting the local economy of Hunza. The Structural Equation Modeling was applied for knowing the local people perception about CPEC projects and their effect on tourism economy development. In addition, descriptive statistics tools using STAT 12 have been used for the data analysis and prior to analysis, Cronbach’s alpha test was used to check reliability of various items of the questionnaire. The data werecollected from students, retailers, hotel owners, tour operators and travel agents. Results reveal that according to the respondents, CPEC is a game changer for the economy. In addition, there is significant effect of CPEC projects on the tourism development in Hunza. Results of the study also revealed that CPEC projects have negative effect on environment and local culture.
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