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Political unrest, economic slump stifle tourism in 2024

SAIF UDDIN | December 26, 2024 00:00:00


The outgoing year 2024 has been a year of uncertainties and undesired situations for the country's tourism sector, which faced a severe blow due to the economic slowdown and political unrest, coupled with geopolitical tensions in neighbouring countries.

Several significant events, including national elections at the very beginning of the year, regime change in the middle, and restrictions on different tourism spots, hindered the sector's growth.

Other such events include major floods across the southern region in August and violence in the Chittagong Hill Tracts in September, followed by travel restrictions on the St Martin's Island.

Also, the government imposed VAT on tour operators' services, effective from the current fiscal year.

Contacted, the immediate past president of the Tour Operators Association of Bangladesh (TOAB), Shiblul Azam Koreshi, said the year has been troublesome for them overall.

"Businesses in most of the domestic tourism spots have been sluggish due to the overall socio-economic conditions as well as some unexpected restrictions," he said.

He, however, said only the Sundarbans tourism was vibrant as it attracted the desired number of tourists this month.

The sector was affected by not only politics and the economic situation but also fiscal measures, said Koreshi, referring to the newly imposed VAT.

"This has increased the cost of operators as well as that of holidaymakers," he said, adding they are trying to convince the government to withdraw it.

The Bangladesh tour operator rules 2024 and the Bangladesh tour guide rules 2024, prepared as per the relevant law, obligates an operator to pay a deposit of Tk 50,000 for a licence, Tk 0.3 million in the form of a security deposit, and submit a bank statement of Tk 1.0 million.

"This is a serious hindrance as many potential operators will not be able to start business," Koreshi said, adding that over 20 universities in the county offer bachelor's programmes in tourism, which could create tourism entrepreneurs.

The financial obligations have a negative impact not only on the tourism sector but also the job market, he observed.

On the other hand, outbound tourism was also affected due to excessive airfare, visa complications, and relevant expenses, he said.

"India has suspended tourist visas for Bangladeshis, while visa refusals and fees have increased in other countries like Turkey and Thailand," the business leader said.

Moreover, a 10 per cent advanced income tax has been imposed on inbound tourism, creating further troubles for operators, Koreshi added.

Sources said the tourism sector contributes around 4.0 per cent to Bangladesh's gross domestic product (GDP) and accounts for 1.78 per cent of total employment opportunities in different forms. As the concept of tourism is related to many other sectors, the country fails to prepare adequate statistics.

Identifying the causes behind the unavailability of robust statistics, TOAB President Md Rafeuzzaman said around 20 ministries and departments are directly connected to tourism, which is a broad concept.

There are also 121 sub-sectors linked to tourism, he said, adding there is no exact data on how many foreign tourists visit Bangladesh every year.

"It can be inferred that 0.3-0.4 million people travel around Bangladesh in different forms of tourism, such as visiting friends and relatives, business, and spirituality," he said, adding the number of bona fide tourists remains very low.

Despite being a country of six seasons, winter is the peak time for Bangladesh's tourism sector, said Rafeuzzaman.

"Preparations for this winter were disrupted mainly by the July-August uprising, followed by floods and adverse economic conditions," he said, adding restrictions are now taking a toll on the St Martin's Island tourism.

He, however, was optimistic that the sector would turn around next year as it appears there will be political stability and economic recovery.

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