The average occupancy rate of hotels and resorts in Dhaka and elsewhere in the country has recently reached the lowest-ever level of around 20 per cent due to the ongoing political conflict.
The industry insiders said their usual occupancy is nearly 85 per cent on an average in normal time.
"The occupancy rate has reached the lowest-ever level, and the gradual decline continued throughout the year 2013," H M Hakim Ali, president of Bangladesh International Hotel Association (BIHA), told The Financial Express (FE) Wednesday.
According to BIHA officials, Dhaka's luxury hotels, like - Pan Pacific Sonargaon, Westin Dhaka, Radisson, Ruposhi Bangla and Dhaka Regency, now have an average occupancy rate of 20-25 per cent. The rate is much lower in the hotels and resorts outside Dhaka.
Salman Kabir, public relations manager of Pan Pacific Sonargaon Hotel, termed October-February period as the peak season for hospitality business, and said their occupancy rate has declined by 50 per cent in the last two months. At the same time, cancellation of room-booking has increased sharply.
"The occupancy rate shows that foreigners are not at all interested in visiting Bangladesh."
"We have recently received some guests on the occasion of the national election. But now the situation is worsening further, as the ongoing political volatility is increasing," he added.
H M Hakim Ali, who owns Hotel Agrabad, one of the country's oldest international hotels, said his hotel is now getting maximum 15 per cent clients, which is the lowest in its history.
Nasir Uddin Opu, another BIHA leader, said many of the hotels and resorts are now cutting jobs for survival.
He said many foreign business guests have cancelled their booking amid the current political volatility in the country.
"Our business is now facing a hard time due to the ongoing political turmoil," he concluded.
Sales manager of Hotel Cox Today Humayun Kabir said, "Our occupancy rate is showing a marked decline since February last."
He said around 100 small-size hotels and resorts in Cox's Bazar area have shut down their business in last three months. The hotels also sent off their staffs on the condition of being employed again, if they can resume business.
Mr Hakim Ali said they met the government high-ups for making a way out.
"The government leaders told us that they would provide police protection for the foreign guests, if needed. But the guests are not feeling enthusiastic enough to visit Bangladesh in such a situation," the BIHA president concluded.
Tour Operators Association of Bangladesh (TOAB) director - training and research Masud Hossain told FE: "The number of local tourists decreased by 90 per cent compared to that of the same season last year."
He said most of the foreign clients have cancelled their scheduled tours to Bangladesh due to political unrest. They are visiting other countries, like - Thailand, Nepal, India, Malaysia and Singapore, instead.
A manager of Ruposhi Bangla Hotel said, "Different scheduled events and conferences at hall-rooms of our hotel are also being cancelled over the last few months."
There are nearly 1,200 quality rooms at the six existing luxury hotels and resorts for accommodating local and foreign guests. The average occupancy rate of these hotels was nearly 85 per cent and revenue growth 15 per cent last year, sources said.
The occupancy rate at various hotels, motels, rest houses and guest houses as well as booking for various entertainment spots has dropped to their lowest-ever level, in the aftermath of the lingering uneasy political situation since February, the sources said.
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