Tourism is an important sector of local economy of Kaghan Valley in NWFP, Pakistan. Around 180,000 mainly domestic tourists were visiting Kaghan Valley each year before the earthquake hit the area in October 2005. The total direct economic impact of tourism in Kaghan Valley before the earthquake is estimated to have been USD 18.8 million per year. The earthquake which brought large scale devastation to lives and properties and also heavily impacted tourism. Considering the importance of this sector, the Improving Livelihoods and Enterprise Development Project (I-LED) has adopted a systematic approach to help establish a solid development base for economic growth with expanded enterprise and employment opportunities in the tourism sector.