Since early July, unrest and uncertainty have taken a heavy toll on the economy, causing severe disruptions to regular life and various sectors. Businesses have been struggling to maintain regular operations, with stakeholders across the economy, including traders, entrepreneurs, producers, and exporters incurring heavy losses. Many expected normalcy to return immediately following the massive student protest that led to the fall of Sheikh Hasina regime on August 5 last. The overall situation, however, remains far from normal and insecurity is lingering in the air. Law and order has largely broken down, miscreants have resorted to vandalism, looting, intimidation, and violence in some places. Now that an interim government led by Nobel Laureate Muhammad Yunus has taken charge and is working in co-operation with the Bangladesh Army to reopen police stations across the country, people are hopeful law and order will quickly improve.
The economic repercussions of the prolonged unrest are profound. As in the case of most sectors, tourism sector is seriously affected. For over a month, the once-vibrant and booming tourism industry of Bangladesh has been paralysed in a state of fear and uncertainty. Reports of vandalism, attacks on innocent bystanders, and killings have driven away domestic and international tourists and dealt a severe blow to businesses that depend on the steady influx of visitors. According to the Tour Operators Association of Bangladesh (TOAB), the domestic tourism sector, which generates an annual turnover of approximately Tk 200 billion, is facing a severe downturn. The popular tourist destinations of Sunamganj Haor, Cox's Bazar, and Sylhet, which usually teem with visitors during the monsoon season, now stand eerily empty. The ripple effects are felt far and wide, from hotel operators to small businesses that rely on tourism for their livelihoods. Reportedly, many of the entrepreneurs in the tourism sector are struggling to stay afloat. Some have been forced to lay off staff, and in some cases, close their operations entirely.
The tourism sector could take months, if not years, to fully recover from the impact of this unrest. Many nations have branded Bangladesh a risky destination and advised their citizens not to come here, or to be careful if they do. This could have long-term consequences that extend well beyond the immediate crisis. The authorities need to take immediate measures to repair the damaged done to the tourism sector, rebuild the image of Bangladesh as a safe, secular-friendly, welcoming destination as it once was, and invest in infrastructure to ensure the safety and comfort of travellers.
The collapse of tourism is not just an isolated issue; it is a stark indicator of the broader economic instability gripping the country. When law and order break down, the first casualty is often the economy. Investors lose confidence, businesses retreat and the public's ability to engage in daily economic activities is severely compromised. The longer the state of uncertainty persists, the deeper get the economic wounds. So, the interim government must restore law and order and provide the security that citizens and businesses desperately crave for. Economic stability depends on a solid foundation of safety and trust and until that is regained, the country's economy will continue to bleed.
