Challenges for our tourism industry

The hospitality and tourism industry in Bangladesh stands at a crossroads, poised between untapped potential and systemic inefficiencies. The hospitality sector, which welcomed approximately 650,000 foreign visitors in 2023, has rebounded beyond pre-pandemic levels. Yet, despite the golden beaches of Cox's Bazar stretching endlessly toward the horizon and the verdant hills of Bandarban whispering their timeless secrets, the industry remains constrained by an overreliance on imports. Approximately 70-80 per cent of the 1,000-1,200 service-related products used in five-star hotels and luxury resorts are sourced from abroad, pushing costs higher and creating an unsustainable business model. Without decisive policy interventions, the hospitality industry which is a cornerstone of tourism sector risks remaining a supporting act rather than the main attraction on the global stage.

 

The food and beverage segment, which should be a celebration of local flavors, is paradoxically one of the biggest cost drivers. Despite the rich fisheries of Saint Martin's Island and the fertile lands of Rajshahi producing the country's finest mangoes, five-star establishments continue to depend on imported Wagyu and Angus beef from Japan and Australia, salmon and sushi-grade fish, and high-end dairy products. Premium quality fruits like kiwi, avocado, dragon fruit, and blackberries remain unavailable locally pushing the international hotel chains to import them. Even where local alternatives exist, perception plays a powerful role-Bangladeshis often gravitate toward imported items, while international guests display greater flexibility.

 

Beyond food, the industry's infrastructure is built upon imported foundations. The colonial-era elegance of Panam City and the traditional grandeur of Mahasthangarh tell stories of resilience, yet modern hotels depend heavily on foreign materials. Except for bricks, cement, and rods, nearly all construction inputs-fixtures, furniture, lighting, ceramics, and even room key cards-come from abroad. Import duties averaging 200 per cent make development costs prohibitively high, limiting new investments. With interest rates at 14-15 per cent and logistical expenses climbing, Bangladesh's luxury hotels are becoming some of the most expensive to operate in South Asia.

 

 

Land prices in prime locations like Gulshan, Banani, and Baridhara are now comparable to those of New York, restricting expansion. Yet, outside these urban enclaves, opportunities abound. The rolling tea gardens of Sylhet, kissed by the morning mist, hold immense potential for luxury eco-resorts. The mangrove wilderness of the Sundarbans, home to the elusive Bengal tiger, remains a global treasure waiting to be properly integrated into the high-end tourism market. However, without significant policy changes, Bangladesh will continue to lag behind regional competitors. Construction and operational costs here are already three times higher than in Sri Lanka and India, further eroding competitiveness.

 

Compounding these economic barriers are outdated regulatory policies. Despite the thriving hospitality industry, hotels are still charged commercial utility rates for gas and electricity rather than industrial tariffs, inflating operational expenses. Import duties on luxury hotel vehicles are similarly prohibitive-while a Toyota model costs between 40-50 lakh BDT, a Mercedes exceeds 2 crore BDT, preventing premium hotels from offering high-end transportation services. These costs, passed on to tourists, make Bangladesh a less attractive destination.

 

The sector also faces a crippling skills gap. In a country that boasts the architectural marvels of the Sixty Dome Mosque and the cultural vibrancy of Dhaka's Shakhari Bazar, the hospitality workforce remains underdeveloped. Expensive foreign hires, earning an average of $10,000 per month, dominate management roles, while local employees take home a mere $500. International training programs have failed to close this divide. Meanwhile, Bangladesh's livestock sector, despite its vast grazing fields, struggles to produce meat with the required lean-to-fat ratio for high-end culinary use. The consequence is a continued reliance on costly imports.

 

Beyond economic concerns, the industry is also battling an environmental crisis. The unregulated rise of tourism is putting fragile ecosystems at risk. The pristine beauty of Kuakata, where the sun both rises and sets over the ocean, is threatened by unchecked construction. The emerald waters of Ratargul Swamp Forest, a natural wonder, risk degradation due to a lack of sustainable tourism policies. Infrastructure projects often proceed without thorough environmental assessments, jeopardizing both biodiversity and cultural heritage.

 

Despite these challenges, the future holds promise. If managed correctly, Bangladesh's tourism industry could rival the most sought-after destinations. The Haor wetlands, shimmering under the vast sky, could become a hotspot for birdwatchers and nature lovers. The ancient terracotta temples of Puthia, each brick a testament to lost dynasties, could be a magnet for heritage tourism. But unlocking this potential requires immediate, strategic action.

 

Reducing import duties on construction materials, food, and luxury goods would significantly lower costs. Investing in scientific agriculture and livestock farming would boost local production, ensuring high-quality, homegrown alternatives for hotels. The government must revamp skill development initiatives, prioritizing training that aligns with international hospitality standards. Bangladesh must also introduce a comprehensive tourism policy that balances infrastructure expansion with environmental preservation, ensuring that destinations like the Madhabkunda Waterfall and Jaflong retain their natural splendor.

 

Without urgent intervention, Bangladesh's tourism industry will remain an underutilized asset. Addressing import dependency, lowering operational costs, and fostering local capabilities are crucial to competing globally. The world's travelers are searching for the next undiscovered paradise. Bangladesh, with its unmatched natural beauty and cultural richness, has everything it takes to claim that title. Now, it must act decisively to turn potential into reality.

 

The writer is Chief Executive Officer of Unique Hotel & Resorts PLC ( owning company of The Westin Dhaka, Sheraton Dhaka and HANSA Premium Residence)