Development of tourism to spur economic growth
Wednesday, 2 June 2010
Muhammad Mahboob Ali and Rehana Parvin
Tourism refers to travel for recreation, leisure, religious, medical or business purposes from one place to another place for maximum one year or lesser time period. This travel may be domestic or transnational. Tourism is one of the vital services industries and is generating huge revenues for a country. Tourism has become one of the world's most important sources of employment. Initially, it requires enormous investment in infrastructure but ultimately helps improve the living conditions of local people. It provides governments with substantial tax revenues. This will in turn create positive impact on gross domestic product.
Bangladesh is a land of scenic beauty. The country needs proper strategic management to attract both domestic as well as foreign tourists. For local tourists change of habit to tour different areas of the country is one of the main important components. And for the foreign tourist environment as well as other related facilities and worthy places are being required. The government as well as private sector may come forward to create the foundation of tourism. This will create employment generation for the country and add value to the gross domestic product. Though the government and private initiatives have been taking place it has still long way to go for developing tourism sector. Foreign direct investment in the tourism sector is also being required. Efficiency and effectiveness in the tourism sector is necessary to expand this sector for which strategic leadership, strategic formulation and strategic implementations are mandatory. This will ultimately help raise gross domestic product.
Bangladesh is going ahead in an effort to diversify its economy from traditional way to manufacturing and service sector. Tourism attractions include archeological sites, historic mosques and monuments, resorts, beaches, picnic spots, forest, religious spots, world class health facilities, and wildlife. Bangladesh is a reverie country having attractive panoramic beauty from ancient time period. Various foreign tourists during ancient time period praised the country for its natural beauty and used to compare the country with place of paradise.
This is the country which has the largest mangrove forest in the world in Sundarbans, the beautiful hills in Rangamati, the exotic tea gardens in Sylhet, the wonderful sights and sounds surrounding the livelihood of the indigenous people in the Chittagong Hill Tracts and Bandarban, the centuries old mansions and villas belonging to the Maharajas of past civilizations, the brilliant natural scenery in Foy's Lake, and the longest natural beach in the whole planet in Cox's Bazar. And this is just to name a few attractions. Bangladesh has tremendous potential for becoming a superb international tourist spot but, in reality, that is not exactly the case. The industrial policy of 1999 has included tourism as an industry and identified it as a 'Thrust Sector' considering its steady growth and sustainable development.
In the National Tourism Policy 1992 of Bangladesh , tourism's contribution to poverty alleviation has been recognized. Due to the under-developed sector of tourism, Bangladesh is missing out on immense amounts of revenue every year.
The industrial policy of 1999 has included tourism as thrust sector. The government has also declared to develop Cox's Bazar, Sundarbans and Kuakata as a special tourist Zone. Actually tourism sector can be utilized to raise gross domestic product of the country. Over the years, the tourism sector, comparatively, in Bangladesh has not made enough progress. The reason is that lack of relevant infrastructure can not support the development and nourishment of tourism in Bangladesh. But, compared to the past twenty years, the funds are being invested for the development of tourism by the government and as also private sectors have been much high in the recent years.
The private sector entrepreneurs have invested Crores of Taka for the expansion of enjoyment/theme parks/recreational places such as Foy's Lake, Replica of Tajmahal, Heritage Park, Water Kingdom, Fantasy Kingdom, Nandan Park, Shishu Park and Tourist centers / Resorts i.e. Jamuna Resort, Lawachara Forest & Resort, Panigram Resort, Nazimgarh Resort, Honeymoon Resorts, Utshab Picnic Spot & Resort ,Padma Resort , Bay of Bengal Resort, Foy's Lake Resort etc. for both local and foreign visitors in the country. Foreign Exchange earnings from Tourism and other travels in the year 2008 is Tk. 6122.48 million, a 16.28% increase over that of the year 2007. In order to encourage private and foreign investment, some special incentives are also allowed by the government such as, tax exemption on royalties: tax exemption on the interest of foreign loans; tax exemption on capital gains from the transfer of shares by investing company; avoidance of double taxation in case of foreign investors on the basis of bilateral agreements; remittance of up to 50% of the salary of the foreigners employed in Bangladesh and the facilities for repatriation of their savings and retirement benefits and personal assets at the time of their return; facilities for repatriation of invested capital, profits and dividends; and guarantee against expropriation and nationalization of foreign private investment (as per Foreign Private Investment Promotion & protection Act 1980).
Tourism and other service sectors in Bangladesh have been contributing large amount to the national GDP. The sector is dominated by transportation, housing and trade services. The contribution to the national GDP is approximately 0.3 percent only which should be raised by at least 5-6%. Many poor people starting from rickshaw pullers, day laborers to small and medium entrepreneurs find tourism as a stable source of income. Excepting these, implementation of the development projects has been planned. Above all, emphasis has been given on the security of the tourists, accommodation facility, improvement of safe communication infrastructure in the country, arrangement of clean and hygienic food & beverage, sight seeing tour, publication of brochures, production and marketing of handicrafts etc. When implementations of the development projects are completed as per target, job opportunities for men and women will be created.
The Bangladesh Parjatan Corporation(BPC) statistics indicate that tourists from India accounted for around 30 per cent of the in-bound traffic, followed by the UK, the USA, China and Pakistan. Interestingly in 2005, amongst the SAARC countries, the in-bound tourists share for Bangladesh was the lowest at about 208,000 against 4.0 million for India and over 669,000 for Sri Lanka. Around 800,000 visitors went to Pakistan and over 400,000 to Nepal and the Maldives each. Bangladesh earned US$ 78 million, against US$287 million of the Maldives, US$ 827 million of Pakistan followed by US$ 729 million of Sri Lanka. Nepal earned US$160 million. India received the largest number of tourists from Bangladesh. Over 1.5 million tourists from Bangladesh visited India which constitutes over 82 per cent of the total out-bound tourists. The UK, the UAE, Saudi Arabia, the USA and Thailand are the other top tourist destinations for Bangladeshis. A little less than 2.0 million Bangladeshis visited abroad, 23 percent of them for tourism and 14 per cent for business. Tourism for religious purposes accounted for over 3.0 per cent followed by education at 2.0 per cent and official visits at 0.5 per cent. For jobs, over 1.0 million persons went abroad. Of the total out-bound traffic, 21 per cent used surface transportation against 79 per cent who used air travel.
According to World Tourism Organization (2009) the conditions of the tourism market are starting to indicate stronger prospects for a recovery in 2010. However, tourism has some negative sides. But from the point of view of a developing country these dangers should be minimised. ECPAT(End Child Prostitution and Trafficking in Children for Sexual Purposes) works with the tourism and travel industry to raise awareness, support action and take practical measures against the sexual exploitation of children in tourism. Partnerships have been established with the hotel industry, tour operators and other members of the tourism sector for prevention of child sex tourism and technical support is provided to assist the industry, governmental and international agencies in this effort. Tourism may also create biodiversity and social imbalances.
Though Bangladesh is lagging behind in the health sector, but some private initiatives have created some world class hospitals and diagnostic centers. Middle class family members who can not go outside the country due to various reasons, they normally tour Dhaka to get better treatment. The Bisha Ijtema which is organized by the World Tabligh Council held each year in Bangladesh, the second biggest annual gatherings of the Muslims after Hajj pilgrimage in Mecca.
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Dr. Muhammad Mahboob Ali is Professor, School of Business and Economics, Atish Dipankar University of Science and Technology and Rejana Pervin is a lecturer in the same department of the university. They can be reached at e-mail: MuhammadMahboob Ali
Tourism refers to travel for recreation, leisure, religious, medical or business purposes from one place to another place for maximum one year or lesser time period. This travel may be domestic or transnational. Tourism is one of the vital services industries and is generating huge revenues for a country. Tourism has become one of the world's most important sources of employment. Initially, it requires enormous investment in infrastructure but ultimately helps improve the living conditions of local people. It provides governments with substantial tax revenues. This will in turn create positive impact on gross domestic product.
Bangladesh is a land of scenic beauty. The country needs proper strategic management to attract both domestic as well as foreign tourists. For local tourists change of habit to tour different areas of the country is one of the main important components. And for the foreign tourist environment as well as other related facilities and worthy places are being required. The government as well as private sector may come forward to create the foundation of tourism. This will create employment generation for the country and add value to the gross domestic product. Though the government and private initiatives have been taking place it has still long way to go for developing tourism sector. Foreign direct investment in the tourism sector is also being required. Efficiency and effectiveness in the tourism sector is necessary to expand this sector for which strategic leadership, strategic formulation and strategic implementations are mandatory. This will ultimately help raise gross domestic product.
Bangladesh is going ahead in an effort to diversify its economy from traditional way to manufacturing and service sector. Tourism attractions include archeological sites, historic mosques and monuments, resorts, beaches, picnic spots, forest, religious spots, world class health facilities, and wildlife. Bangladesh is a reverie country having attractive panoramic beauty from ancient time period. Various foreign tourists during ancient time period praised the country for its natural beauty and used to compare the country with place of paradise.
This is the country which has the largest mangrove forest in the world in Sundarbans, the beautiful hills in Rangamati, the exotic tea gardens in Sylhet, the wonderful sights and sounds surrounding the livelihood of the indigenous people in the Chittagong Hill Tracts and Bandarban, the centuries old mansions and villas belonging to the Maharajas of past civilizations, the brilliant natural scenery in Foy's Lake, and the longest natural beach in the whole planet in Cox's Bazar. And this is just to name a few attractions. Bangladesh has tremendous potential for becoming a superb international tourist spot but, in reality, that is not exactly the case. The industrial policy of 1999 has included tourism as an industry and identified it as a 'Thrust Sector' considering its steady growth and sustainable development.
In the National Tourism Policy 1992 of Bangladesh , tourism's contribution to poverty alleviation has been recognized. Due to the under-developed sector of tourism, Bangladesh is missing out on immense amounts of revenue every year.
The industrial policy of 1999 has included tourism as thrust sector. The government has also declared to develop Cox's Bazar, Sundarbans and Kuakata as a special tourist Zone. Actually tourism sector can be utilized to raise gross domestic product of the country. Over the years, the tourism sector, comparatively, in Bangladesh has not made enough progress. The reason is that lack of relevant infrastructure can not support the development and nourishment of tourism in Bangladesh. But, compared to the past twenty years, the funds are being invested for the development of tourism by the government and as also private sectors have been much high in the recent years.
The private sector entrepreneurs have invested Crores of Taka for the expansion of enjoyment/theme parks/recreational places such as Foy's Lake, Replica of Tajmahal, Heritage Park, Water Kingdom, Fantasy Kingdom, Nandan Park, Shishu Park and Tourist centers / Resorts i.e. Jamuna Resort, Lawachara Forest & Resort, Panigram Resort, Nazimgarh Resort, Honeymoon Resorts, Utshab Picnic Spot & Resort ,Padma Resort , Bay of Bengal Resort, Foy's Lake Resort etc. for both local and foreign visitors in the country. Foreign Exchange earnings from Tourism and other travels in the year 2008 is Tk. 6122.48 million, a 16.28% increase over that of the year 2007. In order to encourage private and foreign investment, some special incentives are also allowed by the government such as, tax exemption on royalties: tax exemption on the interest of foreign loans; tax exemption on capital gains from the transfer of shares by investing company; avoidance of double taxation in case of foreign investors on the basis of bilateral agreements; remittance of up to 50% of the salary of the foreigners employed in Bangladesh and the facilities for repatriation of their savings and retirement benefits and personal assets at the time of their return; facilities for repatriation of invested capital, profits and dividends; and guarantee against expropriation and nationalization of foreign private investment (as per Foreign Private Investment Promotion & protection Act 1980).
Tourism and other service sectors in Bangladesh have been contributing large amount to the national GDP. The sector is dominated by transportation, housing and trade services. The contribution to the national GDP is approximately 0.3 percent only which should be raised by at least 5-6%. Many poor people starting from rickshaw pullers, day laborers to small and medium entrepreneurs find tourism as a stable source of income. Excepting these, implementation of the development projects has been planned. Above all, emphasis has been given on the security of the tourists, accommodation facility, improvement of safe communication infrastructure in the country, arrangement of clean and hygienic food & beverage, sight seeing tour, publication of brochures, production and marketing of handicrafts etc. When implementations of the development projects are completed as per target, job opportunities for men and women will be created.
The Bangladesh Parjatan Corporation(BPC) statistics indicate that tourists from India accounted for around 30 per cent of the in-bound traffic, followed by the UK, the USA, China and Pakistan. Interestingly in 2005, amongst the SAARC countries, the in-bound tourists share for Bangladesh was the lowest at about 208,000 against 4.0 million for India and over 669,000 for Sri Lanka. Around 800,000 visitors went to Pakistan and over 400,000 to Nepal and the Maldives each. Bangladesh earned US$ 78 million, against US$287 million of the Maldives, US$ 827 million of Pakistan followed by US$ 729 million of Sri Lanka. Nepal earned US$160 million. India received the largest number of tourists from Bangladesh. Over 1.5 million tourists from Bangladesh visited India which constitutes over 82 per cent of the total out-bound tourists. The UK, the UAE, Saudi Arabia, the USA and Thailand are the other top tourist destinations for Bangladeshis. A little less than 2.0 million Bangladeshis visited abroad, 23 percent of them for tourism and 14 per cent for business. Tourism for religious purposes accounted for over 3.0 per cent followed by education at 2.0 per cent and official visits at 0.5 per cent. For jobs, over 1.0 million persons went abroad. Of the total out-bound traffic, 21 per cent used surface transportation against 79 per cent who used air travel.
According to World Tourism Organization (2009) the conditions of the tourism market are starting to indicate stronger prospects for a recovery in 2010. However, tourism has some negative sides. But from the point of view of a developing country these dangers should be minimised. ECPAT(End Child Prostitution and Trafficking in Children for Sexual Purposes) works with the tourism and travel industry to raise awareness, support action and take practical measures against the sexual exploitation of children in tourism. Partnerships have been established with the hotel industry, tour operators and other members of the tourism sector for prevention of child sex tourism and technical support is provided to assist the industry, governmental and international agencies in this effort. Tourism may also create biodiversity and social imbalances.
Though Bangladesh is lagging behind in the health sector, but some private initiatives have created some world class hospitals and diagnostic centers. Middle class family members who can not go outside the country due to various reasons, they normally tour Dhaka to get better treatment. The Bisha Ijtema which is organized by the World Tabligh Council held each year in Bangladesh, the second biggest annual gatherings of the Muslims after Hajj pilgrimage in Mecca.
...............................................
Dr. Muhammad Mahboob Ali is Professor, School of Business and Economics, Atish Dipankar University of Science and Technology and Rejana Pervin is a lecturer in the same department of the university. They can be reached at e-mail: MuhammadMahboob Ali