Gilgit Baltistan (GB) Pakistan, is one of the most scenic parts of the world, which is blessed with unique natural resources. The major income of the people of the region is derived from tourism which is growing exponentially. However, no consistent and reliable data is available about the contributions of the tourism sector to the socioeconomic development of the area, both at local and national level. To address, this problem a research was initiated in the Hunza-Negar districts of GB. The standard Tourism Satellite Accounting (TSA) procedure and Tables were used for the purpose. A questionnaire survey was used to collect data for various inputs to the TSA. The respondents included inbound tourists, domestic tourists, day tripper, hotels and restaurants, passengers Transport Service providers, retailers etc. A total of 428 questionnaires were filled from various segments of respondents randomly selected from various cluster, and the response rate was 78.96%. The study was unique in its nature both at the regional and national levels. The study revealed that, there is high leakage of the revenue from tourism and hence the trickle down effects of the tourism sector is minimal. Huge investment has been made in last two decades in the construction of concrete structures with no regulation from building control authorities, leading to high unsustainable built environment in the region. The heavy influx of tourists and subsequent construction of new hotels and restaurants, has created heavy pressure on the land and trend of rapid urbanization. The local productivity has not been linked with the tourism sector and hence the socioeconomic development of the region is not happening in line with the expansion of the tourism sector. Based on the findings and observations of the study, policy recommendations have been made to the provincial and federal governments.