Election jitters, infrastructure gaps threaten tourism

Bangladesh, with its large population and strong domestic demand, has significant potential for a thriving tourism sector. However, tourism infrastructure is still not up to the required standard, said Mohammad Rafeuzzaman, president of the Tour Operators Association of Bangladesh (Toab), the country's apex body of tour operators.

In an interview with The Daily Star, Rafeuzzaman said, "The tourism season began in November, but the number of tourists is expected to be low due to the upcoming February 2026 election, as foreign visitors tend to avoid travelling to Bangladesh during election periods.

"Tourism growth depends on political stability, security, transport facilities, and proper accommodation, and there are concerns about how the political situation will unfold ahead of the 2026 election."

He added, "Still, our members are making efforts to bring them in… Last year, political unrest, deterioration of law and order, and restrictions had a somewhat negative impact on the tourism business. This year, the situation is relatively more stable, so business is expected to improve."

Mohammad Rafeuzzaman

"Despite high taxes, expenses, and hotel costs, people here naturally enjoy travelling, so tourism demand remains strong," Rafeuzzaman said.

He noted that people's interest in the Sundarbans, the world's largest mangrove forest, has increased this year, while travel to Saint Martin's Island and Sylhet has declined due to various restrictions and difficulties.

Although the coral-rich Saint Martin's Island reopened to tourists on November 1, Rafeuzzaman said, "In the eight days until November 8, not a single visitor arrived. As a result, more than 230 hotels, resorts, and cottages, along with over a hundred restaurants, remain empty.

"The local economy is suffering, and businesses cannot survive if they only earn during December and January each year."

He also pointed to the 15 percent VAT on foreign tourists' total travel expenses as a major obstacle. "There is also a shortage of quality guides for foreign visitors and restrictions on travel in the rivers and hills of the Chittagong Hill Tracts," he added.

CONCERNS OVER FOREIGN TRAVEL AGENCIES

Rafeuzzaman warned, "Allowing foreign travel agencies to operate in Bangladesh would destabilise the local market. Because of their massive campaigns, local agencies will be pushed out of the competition.

"That's why we do not want the government to allow any foreign travel agency to enter the market. If this policy is implemented, local agencies will have a chance to grow."

The Ministry of Civil Aviation and Tourism has decided to revise the Bangladesh Travel Agency (Registration and Control) Act 2013 and its 2021 amendment.

According to the draft, travel agency ownership must be 100 percent domestic. It also proposes a Tk 10 lakh deposit for offline agencies and Tk 1 crore for online agencies, and prevents agencies from buying or selling tickets from each other.

Rafeuzzaman said, "If the government introduces such changes, it will be impossible to run businesses. Small and medium entrepreneurs will struggle to survive, and only a few large businesses will control the entire market.

"To protest these changes, travel industry entrepreneurs staged a human chain in Dhaka on November 15."

The draft also suggests a new security deposit of Tk 3 lakh for tour operators. "Tour operators earn foreign currency, bring in international tourists, and keep the country's tourism market active. Imposing an additional deposit on them is unfair to small and less-advantaged entrepreneurs," he said.

According to the Tourism Satellite Account 2020 by the Bangladesh Bureau of Statistics, the sector contributed three percent to the country's gross domestic product in fiscal 2018-19 and accounted for eight percent of total employment that year.

However, Rafeuzzaman said, "The government does not consider tourism an important industry. There is no policy support, no training, and no help to participate in international fairs.

"We have repeatedly urged that tourism must be given priority, because in countries where tourism is developed, the economy is strong. Tourism creates jobs and revitalises remote areas."