MANARAT INTERNATIONAL UNIVERSITY

Term paper on

Tourism industry in Bangladesh

Course name: Bangladesh Studies
Course code: GED 224

Date: May 22, 2020

Submitted by- Submitted to-

Al Nayeem Jubaer M. A. K. Azad
ID: 1711EEE50292 Lecturer
11th batch, Section-A Department of GED
8th semester, Spring-2020 Manarat International University
Department of EEE
 Tourism industry in Bangladesh
Abstract:

Tourism is world’s largest justifiable service industry that is generating huge revenue for tourist
country. Bangladesh has lots of tourism spots but most of them unexplored by the relevant authority.
Having all the minimum requirements, the tourism industry could not develop adequately in
Bangladesh. The cracks of problem could not identify accurately because of paucity of sufficient
number of research and investigations in our country. Out of different problems, the researchers have
concentrated their focus to development aspect for tourism sector in Bangladesh. Bangladesh is a
country of natural beauty, hilly mountains, longest beach, favorable climate, seven seasons which are
the key factors to develop eco-tourism, sustainable tourism and rural tourism. Bangladesh has many
archeological and historical sites too. And the hospitality of people and local culture, life style is a
unique selling point. Tourism is a growing industry in Bangladesh. It generated 1, 25,000 international
tourists in 2014 and international tourism generated US$ 1.5 trillion in export earnings and
international tourist arrivals grew by 4.3% in 2014 to 1.133 billion. According to WTTC direct
employment support by travel and tourism is forecast to raise by 2.9 percent per annum to 1,785,000
jobs or 1.9 percent of total employment in 2023.In this paper, we tried to show the current scenario
of tourism industry and the contribution on GDP.

Introduction

The tourism industry is a major contributor to the gross state product of many countries (Reign and
Perry, 2000) and in the last 50 years, tourism has developed into one of the world’s most powerful,
yet provocative, socio-economic forces (Sharpley and Telfer 2008). Travel & Tourism industry has
become one of the world’s most important and fastest growing economic sectors, generating quality
jobs and substantial wealth for economies around the globe (WTTC, 2007). The recent global recession
has not caused the tourism industry to grind to a complete halt, and the World Tourism Barometer
indicated that the recession only caused a 4% decline in global tourism from 2008-2010 (UNWTO,
2011b) and now it is expected to grow again. WTTC President and CEO, David Scowsill (2011) says
“Over the next ten years, its total contribution to GDP will rise by 4.2% per annum to US$9.2 trillion,
bringing with it 65 million new jobs, but for that growth to be achievable and sustainable, governments
must work together with the industry towards smarter policies and legislation that will help Travel &
Tourism to thrive.” In Third world countries, governments encourage tourism investment because of
the assumption that it will contribute to economic development of their countries (Hall, 1995). Third
world nations and developing nations always seeks the potential benefits of tourism such as increased
income, foreign exchange, employments and economic diversification (Sharpley and Telfer, 2008).
According to Ferguson (2007) “The tourism industry directly provides around 3 per cent of global
employment, or 192 million jobs – the equivalent to one in every twelve jobs in the formal sector”. As
with other industrial sectors and fields of academic study, tourism has also developed over the
decades and has been influenced by a multitude of internal and external factors. It is not surprising
that many aspects of tourism are totally different than they used to be before because of the vast rate
of technological change along with social, economic and environmental changes.

Bangladesh is one of the world’s most densely populated countries, with its people packed into a delta
of rivers that empties into the Bay of Bengal [BBC] (2011). It’s implementing its developing plans for a
long time. They are not only trying to secure their economic growth but also trying to improve their
social living standards. In Bangladesh, tourism was almost non-existent at the country’s independence
from Pakistan in 1971. More recently tourism has seen as a means of the contributing to their
attainment. Tourism contributes 4.8 % to Bangladesh’s Gross Domestic Products (GDP) and employs
over 1509100 which contribute 1.9% of direct employments (WTTC, 2011). According to Bhatia (1986
in Jenkins and Tosun, 1998), many countries in the third world do not know the importance of tourism
and the impacts that it can have, and Bangladesh is one of those countries. Essentially Jenkins and
Tosun (1998) argue that, “tourism development took place in most of the places of this world as an
unplanned activity” (p 102). “Like sustainable development sounds attractive” (Butler, 1992: 64), the
phrase of sustainable tourism accepted immediately by this country even the meaning of this term is
not understood fully. “Though “sustainable tourism” is the in thing across the world, Bangladesh, in
spite of being endowed with nature’s bounties and beauty, still struggles with the concept” (Mahmud,
2010). Several destinations in Bangladesh such as Chittagong hill tracts, the Sundarbans, Saint Martin
coral island, Nijhum Island, Srimanagol Lawachera rain forest, Tangua Hoar and Cox’s Bazar, which
could be used as sustainable tourist spots (Mahmud, 2010).

Cox’s Bazar is the tourist capital of Bangladesh. By popular choice, Cox’s Bazar has recently been
ranked as one of the ‘New Seven Wonders of the World'(Zamir, 2009), located conveniently on the
east-west air-corridor making it a gateway to the Far East. It is endowed with resources and the
potential for a tourism industry. In the southern edge of the country has a 125 km (77.6 miles) long
beach of soft silvery sand, the world’s longest (Qadir, 2003) and a chain of hills that run parallel to the
sea for almost the entire length, towering cliffs, colourful, ancient pagodas and Hindu temples
(Anonymous, 2007), in a Riviera-like setting with crescent-shaped low hills overlooking the Bay of
Bengal, and most visited tourist destinations in Bangladesh. The range of the hills covered in luxurious
green groves is precious locations for tourists. Cox’s Bazar is located at the head of this terrain. Cox’s
Bazar is also known as “Panowa”, literature meaning yellow flower. “Palonkee” was its other name.

The daughter of the sea Bangladesh is a beautiful surprise for the tourist. Since the tourism is reported
as a relatively easy way to earn foreign exchange, many countries are eager to enter international
markets as fast as they can (Jafari, 1974) and Bangladesh is one of them. According to Jafari (1974),
tourists and news media of a developed countries come to be a kind of promotional agents for a
developing country or for a under developing country. Though Hasan in his book “development
tourism in Bangladesh” blames the international news media for representing a wrong appearance of
the country and news media carefully avoid telling the world of the brighter side of Bangladesh than
the rough side of it (Khairuzzaman, 2008) still there are some positive approaches from the
international media. Lonely planet is one of them. The world leader in publishing travel guides and
guidebooks ‘Lonely planet’ recommended Bangladesh as one of the top ten interesting travel
destination in 2009 (Thomsen, 2009). This UK based publication ‘Bradt Travel guide’ is known as a
“pioneer in tackling ‘unusual’ destinations, for championing the causes of sustainable travel and for
the high quality of writing” (Thomsen, 2009). The first guide on Bangladesh published in 2009 and the
back-cover text states: “Bangladesh has a reputation for being poor and beset by flooding, but this
‘republic of rivers’ rewards those willing to look beyond the headlines. Leave luxuries behind and
embark on the richest of travel experiences among some of the sub-continent’s friendliest people”
(Thomsen, 2009). This kind of positive focus on Bangladesh is not possible to buy for money. Lack of
consistent strategy on cooperation, appropriate knowledge and sustainability; are the great barrier to
a positive development of Bangladesh tourism sector.

Environmental resources are an important asset not only in Cox’s Bazar but to other tourism
destinations in all other third world countries. The tourism in Bangladesh is especially popular due to
its coastal areas of Cox’s Bazar. If environmental resources are important economic assets in
Bangladesh, the immediate action that need is that of sustainable utilisation of resources to benefit
for present and future generations (Mbaiwa, 2005). It is well established that the presence of tourism
in destination always brings with it environmental, socio-culture and economic benefit and this is why
it is an effective development tool in any under developing countries and in the case of Bangladesh, A
sustainable tourism strategy will have a major positive impact (Thomsen, 2009).
When carrying out a broad research on any substance, it is essential to become acquainted with
contextual of that topic, by using relevant literatures. For this dissertation, it is most significant to
obtain information in a number of different sources. Academic books, journals, newspapers, where
available, will be used in the gathering of information for this dissertation. Here in this project, I will
outline the history of sustainable tourism development first which will provide the context of how it
is developing and will answer either it exists in the Bangladesh, particularly in Cox’s bazar. In order to
gain this knowledge, I will look at different publications related to research issue will be collected from
academic books, daily newspaper, projects, related archives and tremendously up to date journals.
For this purpose, it will be extremely useful to look at relevant internet websites such as the websites
of different ministry of Bangladesh and tourism industry-based websites. Internet websites will be an
important source to fill in the gap by providing useful information where books and periodicals are
not so unequivocal.

Modernizing Statistics

In many meetings, conferences, talk shows, seminars and travel fairs held in Dhaka the principle
speakers including the tourism minister and senior tourism officials speak about tourist arrivals and
tourism revenue. But these figures are not accepted as reliable by many users, because their mode of
collection is not often dependable.

The “tourist arrival” figures are calculated on a monthly basis by the police department from reports
at the entry check points and not by professionals. The foreign exchange figures are released by the
Bangladesh Bank on the basis of returns furnished by the stakeholders of the tourism industry.

While reports from tourism earnings are regular, the reports on tourist arrivals lag behind by years for
reasons known to the government. During the last five years (2006-2010) Bangladesh received a total
number of 15,29,000 visitors and earned US$ 413.00 million.

In order to make these figures more reliable at the national and at the international levels, steps
should be taken by the government to modernize the methods of collecting such statistics. There is a
Tourism Satellite Accounting System for aggregating the figures of tourist arrivals and earnings, which
have been introduced by the United Nations World Tourism Organization (UNWTO).
Bangladesh, a founding member of the UNWTO, should avail this technical assistance from UNTWO
under the 'digital' Bangladesh program for streamlining these compilations.

The World Travel and Tourism Council (WTTC) and UNWTO reports say that international arrivals have
been positive in 2012, although in the Euro Zone, due to sovereign debt issues and national austerity
policies, tourism spending has declined. The pace of growth in the developing countries, including
Bangladesh, is faster than in developed nations.

Fluctuations

Tourism and the resultant employments in the sector fluctuate with every major incident that affects
the world; namely the global melt-down of banks, climate change, Tsunami and incidents like Arab
spring.

In order to adjust to the fluctuations, major tourist destinations adjust their tourism policies in time.
The US government is very much awake to the problems of fluctuations. President Obama in January
last year signed a law, The Travel Promotion Act 2010, to take steps in keeping domestic tourists at
home and to attract more inbound tourists; keeping in mind that the number of Chinese visitors is
expected to grow by 259% in the next 5 years and the number of Brazilian tourists is expected to swell
by 83%.

The US government is also liberalizing entry formalities by waving/relaxing the visa rules and allowing
the citizens of Taiwan to visit US without a visa for 90 days. Besides, US government is undertaking
giant travel promotion campaigns in their market areas and using high-profile spokes persons,
websites, social media tools to work together to bring together interesting “travelling opportunities”
to the international public and the travelling professionals.

Comparing the situation of US, which look at all the problems affecting the globe with Bangladesh,
may sound utopian but the point that is being made here is that the Bangladesh government should
learn from the best practices in tourism development, and activate the government outfits to respond
to the modern marketing needs. The weak areas of action of the government are identified below:
Speed and Implementation

The government created in 2009 the Tourism Board in addition to the Bangladesh Parjatan
Corporation, which existed for the last 40 years to expedite the growth of tourism in the country. It
now appears that both the organizations are less active in their divided filed of activities.

It is learnt from a very senior officer of the Bangladesh Parjatan Corporation that during the last
financial year (2011-2012), the government allocated Tk.650.00 million to the Board for promoting
and branding Bangladesh. A bulk of this allocation has remained unused.

tourism03During the last year, the Board participated in some international tourism fairs but their
presentations were the poorest due to a lack of experience. The Board is composed of 11
representatives drawn from various ministries of the government and 5 directors from private sectors,
who do not directly transact with any tourism business.

The Board is supposed to meet once in every 2 months to transact business but nothing is known
about their activities. The Board does not inform the print and electronic media. There is a National
Tourism Policy in the country and there is a National Tourism Council headed by the Prime Minister.
But nothing is known to the public about the activities of this high-level council.

The government has enacted a Tourist Resort Act in 2010 to safe guard the interest of the tourist
areas. But there are allegations that this law is being flouted by MPs, party men, local influential
people in connivance with the local administration:

(a) A particular case is mentioned about Mahasthangarh, one of the oldest archaeological sites of
Bangladesh, where Gautam Buddha came and preached Buddhism. Here in the protected area, some
locals had vandalized the archaeological site and tried raising a mosque in its place. The local people
stood against it. The matter went to the court, which declared the activities illegal and directed the
local Deputy Commissioner to stop the unauthorized construction;
(b) In Cox's Bazar a MP has constructed a hotel and sold away the same for living on time sharing basis
and it stands outside the hotel and motel zone very close to the beach. The local people stood agitated
on many such irregular and unlawful activities of the local leaders of the political parties; and

(c) The government in order to sponsor and oversee the growth of Cox's Bazar as a prime tourist centre
has constituted the Cox's Bazar Development Authority with the Deputy Commissioner as its head.

At present Cox's Bazar, an unplanned beach town, having nearly 450 hotels and the motels,
experiences seasonal traffics; and all kinds of illegal activities are conducted there, according to
personal experience of some local and many foreign tourists and some official who work in the hotels
there.

The Ministry of Civil Aviation and Tourism, despite its existence from 1975, has not been able to bring
out any official hotel guide, travel agents guide and tour operators guide. The minister is generally
seen performing routine functions such as banning smoking in tourist hotels (government by a law)
has banned smoking in public places inauguration of 3-4 travel fairs in a year and these travel fairs
promote foreign destinations, rather than domestic tourist centers.

Many promises came from the minister pretty fast before the listeners in the recent past, but the
follow-up by his ministry remained pretty slow.

Inbound Tourism

At present, despite some investment in putting Bangladesh on the international tourism map, there
has been a significant failure to make any real impression. The first priority for any Marketing and
Communications activity is to rectify this failure.

The government must define the key target audiences; analyses what the target group needs: history,
archaeology, culture, heritage, cuisine and shopping; create affordable flights and facilitate travel
documentation including making visas easy and accessible, especially for potential travelers from key
markets (US, Europe, Australia, Japan and China).
The present unhelpful attitudes of missions aboard and at the entry points to harass foreign travelers
have to be rectified. It must be understood that welcome to tourist's starts at the visa office, moves
to arrivals immigration queues, and onward to hotel and accommodation.

Multiplier Effect

Because of the very absorbing capacity of this industry which is influenced by the functions of many
ministries, departments and private sector enterprises, the scope of tourism activities has expanded.
UNWTO, WTTC, ILO and UNESCO say that: tourism can generate revenue in areas of high biodiversity;
tourism can raise public support for conservation since it can provide environmental education to
visitors and local/rural people; tourism can catalyze economic opportunities for local/rural people;
tourism can be less environmentally damaging than other revenue generating industries based on
natural resources; tourism may be one of the few economic activities suited to take place within
conservation areas located on marginal land and tourism based on natural resources can theoretically
be sustainable if its impacts are managed and mitigated.

The multiplier effect of the tourist dollar bigger, as the dollar changes hands through 13 beneficiaries
within the country.

Branding

Most destination countries have superb five-star resorts and attractions, unique culture, landscape
and heritage. Each place describes itself as having the friendliest people, and high standards of
customer service. As a result, the need for destinations to create an identity -- to differentiate
themselves from their competitors -- is more critical than ever.

The 'Beautiful Bangladesh' slogan, upon which such activities are based at present, is common place
and uncompetitive, in a highly sophisticated and competitive market. The work behind branding this
nation should be done in Bangladesh, in consultation with sociologists, economists, researchers'
economists and environmentalists.
Product Development

Tourism product development is designed to increase the income in the sector by implementation of
a comprehensive plan of action that will guide towards dealing with estimated increase in business
over the short, medium and long-terms.

The strategies for the development and management of tourist destinations should, therefore,
consider the needs and interests of all stakeholders in the tourism system: local/rural community,
entrepreneurs, investors, governments, tourists and others.

Training

Bangladesh is now considered as one of the leading countries having a GDP growth which has been
acclaimed internationally because of exports from Bangladesh including garments, manpower etc.
This economic growth will spur the growth of tourism industry.

According to an estimate 9,000 international standard rooms will be available in Bangladesh in next 5
years. In this connection initial contacts have been signed by some leading international chains already
for construction of hotels and resorts in Dhaka, Chittagong, Cox's Bazar and Sylhet. For operations of
these rooms nearly 15,000 trained workers will be needed for which more hospitality training
institutes have to be established both in the private and the private sectors.

Social Dialogue

tourism08Tourism development needs social dialogue including negotiation, consultation and

exchange of information between government, employers and workers on issues of common interest.
The goal is to promote consensus building and democratic involvement with the stakeholders of
tourism. This should start now and the existing gap be filled.

Not only does the lands of Bangladesh have a history that goes back as much as 5,000 years as an early
civilization, an early international center of trade and commerce, it has the tangible, as well as the
documentary, circumstantial and empirical evidence to demonstrate that through the centers of
tourism attractions.
Ancient kingdoms, such as Gangaridai, so familiar to the Greeks that Alexander sought to conquer it;
and to the Romans that they traded in it, through it, wrote about it extensively, and hired its soldiers
as mercenaries; the Historic Silk Road, an ancient trade route to China, ancient cities, such as
Vikrampur, Barisal, Wari Bateshwar, Egarasindhur, Mahasthangarh, Bhitagarh, Ancient Temples,
Vihara, Mosques and over 120 palaces, are all there to be visited and explored.

The urgent need, therefore, is to simultaneously develop further the infrastructure and promote
superstructure in the areas by giving concessions and incentives through practical and enabling means
and go for vigorous marketing, branding and promotion. And these steps need priority in
implementation. The private sector is agile. The government has to match the agility

Concluding Remarks

It is possible to sketch some wide -ranging conclusions that take the figure of policy recommendations
and a set of related lessons for why modern planning approaches to tourism development have not
been implemented and why these defects in planning approaches to tourism development have
emerged in Bangladesh. First, current defects in planning approaches to tourism development are an
extension of prevailing shortcomings of public administration systems, political cultures, over-
politicized states, and lack of developmental approaches to national development. That is to say, the
roots of an ill-planned approach to tourism development are a reflection of the existing sophisticated
socio-political and economic system that shaped planning approaches to tourism development. As
Tosun and Jenkins (1998, p. 111) argued: The choice of approach to planning assignments will be
conditioned by many factors.

Perhaps the predominant factors will be related to the stage of political and economic development
in the particular country. Tourism planning team or the national planning organization cannot develop
and implement a better planning approach to tourism development themselves unless some desirable
changes in this macro system take place. This may mirror the popular assertion that tourism does not
bring development, rather development brings tourism. Second, political instability appears to be one
of the main obstacles to implementation of continuous planning activity and consistency of tourism
policy. There are too many bureaucratic old approaches to planning has been replaced with a new
approach to planning, which is called the ``contemporary approach’’ that involves flexible, continuous,
comprehensive, integrative, participatory and system planning models. These components of the
contemporary approach are not necessarily exclusive; rather they overlap each other. Therefore,
Bangladesh should develop an appropriate method of planning by using the right promotional mix and
proportion of components of the contemporary approach, taking into account their own
circumstances. Finally, the efficiency and effectiveness of contemporary approaches to tourism
planning largely depend on the pattern of power distribution in developing countries. Centralized
public administration systems make the implementation of cone moray approaches to tourism
planning difficult. There are some other recommendations is that pricing should be reasonable,
extensive promotional activities in domestic and foreign markets, starting the tourism educations,
buildup tourism professionals through training and development works, increase private investment
and should welcome to the foreign investors. If all the recommendations and process follow by
tourism administrator or agency then only Bangladesh can able to maintain the growth of
development of tourism industry and its sustainable development.

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