Do we need more? Experts question mushrooming resort development

Since 2000, many tourist resorts and hotels have begun cropping up on the outskirts of the capital, providing weary city-dwellers with a fleeting escape from the hustle and bustle of urban life.

With people's spending power on the rise and lifestyles evolving rapidly, Dhaka dwellers have also embraced the weekend and holiday exodus to these retreats. This trend is particularly pronounced during the winter season when they seek solace, renewal and participation in celebratory occasions such as Eid and puja festivals.

Among the sprawling tapestry of around 1,000 resorts countrywide, Purbachal, Sreepur, Gazipur, Narayanganj, Munshiganj, Keraniganj and Savar - typically within a one to two-hour drive from the capital city - have become the home to at least 200 resorts.

However, the symbiotic dance between demand and supply hasn't favoured all the tourist lodgings equally. Big resorts, spanning a vast 30 to 160 acres, regale in a bountiful clientele of corporate guests and international visitors.

On the flip side, small holiday cottages, spanning only 3 to 5 acres, find themselves struggling for survival around the year.

Except for the November-February period, the small and medium-sized tourist accommodations find themselves with a staggering 70 per cent of their rooms unoccupied.

Yet, this dreary scenario hasn't dampened the rush to establish more of these retreats, stoking concerns about the already scant agricultural land and patches of wilderness in Bangladesh's central region around the capital.

Let's take the case of Aronnobash Resort, spanning a scenic 5.0 acres of agricultural land in Pubail. This holiday haven unfurled its commercial banner in 2015.

Sabbir Ahmed, the manager of this establishment, said that the sustenance of a resort enterprise hinges on a minimum of 30 per cent net profit annually.

From November to February, Sabbir said their occupancy rate soars to around 100 per cent. However, during other periods, it dwindles to a modest 30 per cent, compelling them to clock a net profit of 10 to 15 per cent each year.

He also highlighted the increased competition in the sector at present. Particularly, he pointed out the emergence of substandard resorts that do not genuinely fit the tourism resort category.

In the face of rapidly diminishing arable lands and a competitive local tourism industry, experts advocate for safeguarding the forest and agricultural land while constructing resorts.

They said an assessment by the government should determine whether there is a necessity for such a high number of resorts.

Building resorts just for hobby, who are the clients anyway?

According to the Tourism Resort Industries Association of Bangladesh (TRIAB), nearly Tk 340 billion has already been invested in the country's resort industry. The association also said that about 1.4 million people are directly and indirectly involved in this sector.

The founding president of TRIAB, Khabir Uddin Ahmed, mentioned that attracting guests is challenging primarily due to road infrastructure issues.

Besides, competition has intensified with the proliferation of resorts in close proximity. He also highlighted that obtaining bank loans is a hurdle for resort business growth.

"Resorts do not receive guests as expected. Occupancy rates are usually high from November to February," he added. He further said that most resorts achieve a net profit of around 5 to 8 per cent annually.

Smaller resorts, sometimes established on residential properties, are being rented out as shooting locations and leisure spots.

Besides, many people construct resorts primarily to safeguard their land and have no intention of generating profit from them. Others build resorts resembling luxury villas for personal hobbies. Insiders note that these endeavours do not significantly contribute to the tourism sector.

YouTube-based channels, in particular, frequent these places for shooting various types of videos. Because of the lower rents, some individuals also visit for recreational purposes.

Resort businesses are contending with such uneven competition in the area, along with other challenges.

The bright side

While the smaller resorts are facing challenges, the larger ones are content with their turnover, as they receive guests throughout the year. They report the net annual profits hovering around 30 per cent.

Munshiganj, located to the south of the capital and emerging as a new tourist hub, hosts several resorts, including Dhali's Amber Nivaas. The resort, spanning about 25 acres, commenced operations around five years ago, according to its Chief Executive Officer Mehzuba Islam.

"We have been operating successfully by drawing guests from diverse backgrounds, including government and private sector executives," she stated.

She also said the resort's goal is to provide a safe and comfortable environment for all.

"We have a dedicated swimming pool for female guests," she added, mentioning that the resort even boasts the country's largest swimming pool, covering nearly 26,000 square feet.

As a future plan, they intend to establish a conference centre spanning 0.2 million square feet, given the positive responses they've received from guests, she said in response to a query.

Addressing the viability of establishing a typical industry there, she said, "You cannot compare a resort with a typical manufacturing unit. You can bring smiles to your guests and share in other people's happiness through this business."

Mushrooming resorts threaten arable lands, forests

Dr Mohammad Saidur Rahman, vice president of the Bangladesh Agricultural Economists Association (BAEA), said uncontrolled resort development, akin to mushroom sprouting, is undesirable. Such resorts are often built on agricultural and forest lands.

"There should be a government assessment regarding the necessity for such a multitude of resorts," he argued.

He also stressed that if a resort is established, it is crucial to allow for commercial agriculture production in that area to ensure its proper utilisation.

"If infrastructure is constructed there, but the remaining area is left unused or minimally landscaped, then the resort will fail to fulfil its economic or environmental role effectively," he noted.

Mr Rahman, also a professor in the Department of Agricultural Economics at Bangladesh Agricultural University, Mymensingh, mentioned that entrepreneurs should seek advice from consultancy firms, as is the practice in developed countries.

"Even if such institutions do not exist in Bangladesh, entrepreneurs can consult experts in this field."

Sharif Jamil, the general secretary of Bangladesh Poribesh Andolon (BAPA), highlighted that a major issue in the country is the lack of systematic development.

"Resorts can be developed while maintaining agricultural and forest lands, but this is not commonly practised in our country," he said.

He pointed out that the establishment of a resort often leads to the construction of additional infrastructure in its surroundings, altering the local environment.

Therefore, a comprehensive plan is essential before constructing a resort, ensuring both environmental preservation and profitable business operations. Simultaneously, effective monitoring is crucial, he added.

The country's hotel and resort industry is governed by the Bangladesh Hotel and Restaurant Act of 2014. According to this act, resorts, motels, and guesthouses fall under the same definition as hotels.

Three to five-star hotels or resorts acquire licences and regulations from the Ministry of Civil Aviation and Tourism, while one to two-star establishments are overseen by District Administration (DC) offices.

Contacted, Farzana Akter Laboni, assistant commissioner of the Trade and Commerce Branch and Tourism Cell at the Gazipur DC office, said there are more than 60 resorts in the Gazipur district. The government derives revenue from resorts through licence fees, VAT and taxes.

"We monitor whether these resorts adhere to the regulations," she said.

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