Political unrest in Bangladesh since the start of July has been severely affecting India's inbound tourism industry, according to local outbound tour operators.

They said the business started being gradually affected since July 1, when the nationwide student movement demanding reforms to the quota system for government jobs took hold.

As time went on, the business situation only worsened, they said, adding that their business hit rock bottom after Sheikh Hasina handed in her resignation as prime minister and fled the country on August 5.

At present, the situation remains dire. According to local outbound operators, the number of visitors travelling from Bangladesh to India has dropped by more than 90 percent.

Bangladeshi travellers account for nearly a fourth of India's inbound tourists, according to a report by The Economic Times of India. These tourists primarily come for medical tourism or for shopping, particularly during Durga Puja and the wedding season, the report mentioned.

Operators said the situation worsened after Hasina's departure as it led to temporary flight disruptions and a suspension of most visas, except for medical visas.

Although flights have now resumed, an official from an airline that operates flights to Dhaka noted that the passenger load for these trips decreased by over 50 percent, the report added.

Sabbir Ahmed, managing director of Cosmos Holiday, a local outbound tour operator, told The Daily Star that only medical and student visa services are currently available for India.

However, a few days ago, one of his clients was even refused a medical visa, he said.

"On an average 500 people normally go to India through our company each month. Not even three people have gone through our company in the past month," Ahmed lamented.

As a result, most such businesses are now being run through loans. Ahmed said he has taken loans amounting to Tk 60 lakh in the past two months.

Taslim Amin Shovon, chief executive officer of InnoGlobe Travel and Tours, another local tour operator, said the number of tourists that are visiting India has fallen by over 98 percent.

"Only those who urgently need to go to India are still travelling," he said, adding that many had shelved plans to visit the neighbouring country, he said.

India is a key destination for Bangladeshi travellers, accounting for around 40 to 45 percent of all outbound trips, according to the Tour Operators Association of Bangladesh (TOAB).

A majority visit for medical treatment (over 80 percent) while shopping (15 percent) and leisure (5 percent) are secondary reasons.

Kolkata is a favoured shopping hub while Sikkim, Goa, Kashmir, Darjeeling, Gujarat, Bengaluru, Chennai Delhi, Hyderabad and Northeast India also attract visitors.

Tourist arrivals in India surged by 43.5 percent in 2023, but the figures remain 15.5 percent below pre-pandemic levels, according to the Economic Times of India report.

The country saw 9.23 million visitors last year, bringing in the equivalent to over INR 24 crore in foreign exchange.

Among them, tourists from Bangladesh accounted for more than 22.5 percent, representing the largest percentage from any single nation, the report said.

Debjit Dutta, chairman of the Indian Association of Tour Operators West Bengal Chapter, said travel operators, hotels, and guesthouses near hospitals in West Bengal have experienced a 90 percent drop in business.

A director of the TOAB said: "The prevailing situation has had a huge impact on outbound tour operators, which is why many are having to running their businesses by availing loans."

"If I calculate conservatively, more than 5,000 Indian visas are issued to Bangladeshis per day. If each person spends around Tk 50,000 in India, that means India is losing out on Tk 750 crore per month."