Yes that is the case at least with northern europeans like germans. Their worldview is very different than pakistanis', these foreign tourists know pretty well that they are travelling to 3rd world countries, they don't really want or expect to see a new "germany or german standards" while visiting 3rd world countries in Asia, Africa or Latin America, even the Italy and Spain are also very "exotic" and "chaotic" places for germans yet they travel there frequently for their holidays just to experience sunny beaches and genuine Mediterranean cusine. But there is a deep sense of insecurity and inferiority complex among "kalay angraiz" running the affairs of Pakistani state since the last 7 decades, they think that "foreign tourists" don't visit pakistan because pakistan lacks "first world facilities", that is ridiculous argument. The only thing that matter for european or american tourists is that there is at least a minimum standard of organized travel, food and accommodation. And off course there is no compromise on security whether they are roaming in their own country or a foreign country. These tourists will always choose a "more secure" 3rd world country over a "less secure" 3rd world country if there is a competition between the two.
One thing that I have noticed is that Pakistani government advertises "mountains" of northern pakistan as some kind of unique "tourist attractions" for foreign tourists. Northern European landscape is far more better looking than any mountains anywhere in pakistan including hunza or gilgit etc. Majority of European tourists have no interest to see "mountains" when they visit a foreign country, they are more interested to experience some unique culture and traditions of their destination countries. Warm beaches are far more popular among european/american tourists than sh1tty mountains. "Basant" kite flying festival that we used to have in Lahore and other cities of Pakistan is far better cultural experience for marketing the tourism in Pakistan than the sh1tty mountains that pakistan tourist department is marketing since decades without any success. Even big village cultural and local sports "Melas" in Punjab will attract a lot of foreign tourists if marketed than mountains. For god sake most foreign tourists have no interest in seeing mountains in other countries, they have abundance of them in their own countries.