Report on tourism of bangladesh

The Development of the Tourism Industry of Bangladesh over the last three years Prepared for Mr. Arafat Rahman Course Instructor BUS 104, 18th Batch BBA Program October 03, 2009 Prepared by Muhammad Musfiqur Rahman ID: 18b931 Group Section no.: 01 The Development of the Tourism Industry of Bangladesh over the last three years Authorization Message September 03, 2009 BUS 104 Students, The purpose of this report is to familiarize students with the basic techniques and principles associated with writing a formal business report so that they can build and enhance this specific written business communication skill. This formal report will be coordinated with a formal presentation session or a viva-voce examination on the topic of the report. You are being asked to perform a detailed analysis of the assigned industry. At a minimum, your report should include information related to the following issues: * Introduction to Industry What is the industry? What is the background of the industry in Bangladesh? Who are the major participants in the industry? * Describe how the industry is contributing to the economic development of the country. In this case, you must use industry-related data for the past three years (at least). * In case of export-oriented industries, you must use export performance for the last three years (at least), or the latest available data. * Describe any known issues surrounding the industry that might be related to the topic of the report. * A conclusion summarizing the main points of the report. Use both commercial and academic resources. Use at least 8 references in your report from academic and industry-related sources. Out of these references, at least two must be from academic sources. Where appropriate, you should incorporate charts, graphs, or other visual aids to illustrate the facts you present in your report. Based on the above-mentioned details, you are authorized to prepare and submit the report on the selected issue. The submission date of the report is October 02; 09: 30 AM sharp. Students must submit a soft copy of the respective report to the class representative on the same day. Arafat Rahman Course Instructor BUS104, 18th Batch BBA Program Transmittal Message October 03, 2009 Mr. Arafat Rahman Course Instructor BUS 104, 18th Batch BBA Program Jahangirnagar University Dear Mr. Arafat Rahman: Here is the report on ‘ the Development of the Tourism Industry of Bangladesh over the last three years’ you asked on September 03, 2009. You assigned the report for our group, section no. 01. You asked for preparing the report individually and so did I. The report is made on the basis of study only. The study includes journals, magazines, newspapers and mainly Web pages in internet. I prepared it as far as I could make it better. I focused mainly on the economic aspects of the tourism industry. I also added some other descriptive passages as I thought would be relevant. I dared not to recommend anything from my own opinion rather just included it from literature review. I appreciate your assigning report on this very interesting topic for me. I pray and hope that my report would not dishearten you from your expectation. Respectfully yours, Muhammad Musfiqur Rahman ID: 18b931 BBA Program Jahangirnagar University Contents Executive Summary Vii Chapter 1: Introduction 1 1. 0 Origin 2 2. 1 Problem and Purpose 2 2. 2 Scope 2 2. 3 Background 3 2. 4 Methodology 3 2. 5 Report Preview 4 2. 6 Limitations 4 Chapter 2: Report Body 5 2. 0 Tourism 6 3. 7 Tourism: Industry 6 3. 0 Bangladeshat a glance 6 4. 0 Bangladesh’s Tourism 7 5. 8 Beginning of Tourism Industry in Bangladesh 8 5. 9 Government Policy 8 5. 10 The Tourism Master Plan 9 5. 11 Tourist Arrivals 10 5. 12 Growth trend of tourist arrivals in Bangladesh 11 5. 13 Growth trend of tourist arrivals to SASEC countries 11 5. 0 Some Tourist Spots of Bangladesh 12 6. 14 Cox’s Bazar 12 6. 15 Kuakata 12 6. 16 Parki beach 12 6. 17 Patenga beach 12 6. 18 St. Martin island 13 6. 0 Economic Aspects 13 7. 19 Contribution to GDP 13 7. 20 Growth in GDP 13 7. 21 Employment 13 7. 22 Visitor exports 14 7. 23 Capital investment 15 7. 24 Government expenditure 15 7. Tourism Economy-at a glance 15 8. International Ranking 16 9. Main problems of Tourism Industry in Bangladesh 16 10. Remedies of the problems 17 11. Conclusion 18 Chapter 3: Ending Part 19 12. SWOT Analysis 20 13. Recommendations 21 14. Ending Summary 22 Chapter 4: Appended Part 23 15. Appendix 24 15. 1 Tourist Arrivals 24 15. 2 Tourism Revenue 24 15. 3 Players in the local tourism business 24 16. Bibliography 27 List of Illustrations Tables Table: 1 Bangladesh-at a glance 6 Table: 2 Tourism Economy-at a glance 15 Table: 3 World Ranking (out of 181 countries) 16 Table: 4 South Asian Ranking (out of 6 countries) 16 Charts Chart: 1 Purpose based Tourists’ classification 10 Chart: 2 Tourists’ arrival percentage by months 10 Chart: 3 Showing Growth Trend of Tourist Arrival in Bangladesh (19962007) 11 Chart: 4 Showing Growth trend of Tourist Arrivals to SASEC countries since 199520 11 Chart: 5 Tourism Employment 14 Chart: 6 Total demand percentage 14 Executive Summary Tourism industry is certainly one of the key industries for Bangladesh. Bangladesh has not paid that importance yet to the industry that it deserves. However many developments have been done to the industry. The report focuses, at its length, on overall performance of the tourism industry of Bangladesh. Bangladesh’s tourism industry started its journey in 1972. It did not perform well with its weak infrastructure. It prospered with time. In 1992 national level tourism industry process was introduced. National Tourism Council, Bangladesh Parjatan Corporation (BPC) etc. were constituted. Bangladesh possesses one of the world’s most beautiful sites, Cox’s Bazar. Kuakata, Patenga beach, Parki beach, St. Martin Island etc. are also very beautiful and important tourist spots for Bangladesh and for travel-loving people. These beautiful sites give much pleasure to respective foreigners. Bangladesh tourism industry holds 84th position out of 181 countries according to its size. Unfortunately, she possesses 172nd position out of them according to economic contribution to national economy. Furthermore, she holds the last position out of 6 countries in South Asia region in the latter criterion. This industry is expected to contribute total of US$ 1, 466. 3 million to the country’s GDP (Gross Domestic Product) which will be approximately 1. 7% of total GDP of the country in ongoing year. Bangladesh Tourism Industry is contributing to the country’s employment sector with a great deal of importance. It is estimated that 2, 301, 000 jobs or 3. 2% of total employment or 1 in every 31. 4 jobs will be allocated among Bangladeshi people from this industry in this year. Tourism sector is to contribute approximately 3. 5% of total export earnings in 2009. Of about 4. 1% of total investment would be on this very industry. It would also grab about 2. 1% of government expenditure this year. This ‘ thrust’ sector still faces many problems. Transportation, accommodation, political instability etc. are most problematic issues for developing this industry. Remedies in urgent basis should be conducted to fulfill this sector’s exploitation. Taking short-term and long-term steps would help this sector get rid of its obstacles. Moreover, media should play versatile role to picture this sector as a developing one to the travelers. Sometimes, tourism sector is showed worse toward the world travelers than actually it is. Necessary measures can dim this conviction and vindicate. Undoubtedly, government has to play the vital part in order to better the industry. But local people should also provide support. Working mutually would make us beneficiary in both economic and world’s reverend viewpoints. Chapter: 1 Introduction 1. 0 Origin This report is prepared as Mr. Arafat Rahman, respective instructor of our Business Communication course, assigned. He assigned the report to a group of ours. Though the topic was distributed group wise, the report is done individually. The report is wholly constructed by me, Muhammad Musfiqur Rahman, student of 18th batch, BBA program of Jahangirnagar University. Mr. Arafat Rahman provided an Authorization Message on September 03, 2009. The report is submitted on the assigned date October 03, 2009 at 9: 30 am. 1. 1 Problem and Purpose The report seeks to present the performance of Bangladeshi tourism industry in contrast with the worldwide. With proper concentration on this industry it can be one of the iconic sources of our economic development. Tourism sector has emerged as a booming industry in many countries of the world. The industry has been the main source of income of many third world countries like Nepal, Bhutan, Maldives, Thailand and many more. Bangladesh is one of the unfortunate countries in the world who could not make any remarkable success in this sector in spite of its huge potentialities (Bhuiyan, M. H., 2004). No doubt that, Bangladesh will thrive on the sector with a little care. The report, therefore, focuses on the industry’s functions over the years in Bangladesh. The purposes of preparing the report are included below: * To acquire knowledge from real world situation * To know about the social and economic condition * To be able to acquaint with the corporate environment * To be able to setup efficient planning * To try to represent the role of tourism industry in our country 1. 2 Scope It needs to be cleared that the report does not ponder on any specific problem of this industry. It describes, with its little ability, situation of the Tourism Industry in Bangladesh. Neither detailed description nor surveys have been associated with this report. Overall operation of the industry is given here. What the industry is, its economic impact, its economic as well as natural benefits etc. are included. Inadequate knowledge about the topic and inadequate experience are mentionable reasons for such little inclusion. 1. 3 Background Tourism plays an important role in the national economy through fostering growth of linkages in the economy. It encourages growth of other sectors related to tourism, such as transportation, telecommunications, hotels and restaurants, manufacturing industries, trade and services. Thus employment opportunities are created by tourism both directly and indirectly. No less important is the sector’s contribution toward revenue earnings through taxes and surpluses of government enterprises catering for tourism. The tourism industry through its multidimensional development potentials helps accelerate the growth of economic activities and diversify economic base of a nation. Although not well documented, tourism also has social, educational and other implications. Besides creating friendship, goodwill, and cooperation among people of the nations it also enriches the world culture through facilitating direct contacts and exchange of experience. The rapid development of tourism in Bangladesh becomes imperative for at least two reasons. As a resource-poor country with a nascent industrial base and enjoying a meager per capita income of only $US 200, Bangladesh has to make determined efforts to diversify her economic base as well as sources of revenue earnings. In that direction, tourism can certainly play a critically important role as a source of revenue, perhaps with relatively low investments being made in this industry. Second, Bangladesh possesses considerable potential for tourism development, which has hitherto remained unexplored. In the field of inter-continental communication networks between Europe, Asia and Australia, Bangladesh is being used as an important air corridor. In addition, the country has enviable natural beauty, sea beaches, tribal culture, thick forests, and hill areas, all of which if developed properly for purposes of tourism, should provide her with immense potentials to help boost her tourism industry. Now tourism is considered a tool of poverty alleviation and sustainable development. A sustainable growth of tourism can play an important role in eradicating poverty. “[T]here is strong evidence that tourism if developed and managed in a sustainable manner, can make a significant contribution to alleviate poverty, especially in rural areas, where most of the poor live and where there are very few other development options. “– (Frangialli, 2004). 1. 4 Methodology The report is prepared on the basis of secondary data. Related books, journals, reports, statistics, magazines, newspapers etc. are consulted. Most of the tourism related websites are reviewed. 1. 5 Report Preview The report is, as assigned to be, about tourism in Bangladesh. It starts with a little definition about ‘ Tourism’. What is meant by the word ‘ Tourism Industry’ is also defined here with its top level efforts. Bangladesh’s tourism is the main topic of the report. Thereat, it broadly concentrates on Bangladeshi tourism industry. Bangladesh tourism industry’s journey, government policy, its position in world ranking, where it belongs in South-Asian ranking, its contribution to GDP, growth in GDP, contribution to employment sector etc. are added in short descriptions. Categorization of visitors is mentioned. A SWOT analysis discovers the industry’s Strengths, Weaknesses, Opportunities and Threats. Moreover, a study based declaration for the industry’s obstacles in Bangladesh and probable remedies is given. A recommendation part is also included by literature review. 1. 6 Limitations Nevertheless, the report certainly bears some limitations: * Lack of information may be considered as a limitation. * It was not possible to visit all the places and collect data. * It is prepared based on secondary data, which may not always focus on the exact thing. * Time constrains is another great problem for accumulating information. * Lack of relevance may be noticed owing to insufficient experience. * Passé data on the websites, etc. Chapter: 2 Report Body 2. 0 Tourism The World Tourism Organization defines tourism as ‘ the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes’. This broad definition of tourism is then broken down into six categories according to the purpose of the trip (Roe, 2004): * Leisure, recreation and holidays. * Visiting friends and relatives. * Business and professional. * Health treatment. * Religion/pilgrimages. * Other. 2. 1 Tourism: Industry Tourism is treated as one of the world’s fastest growing industries. While travel was once an uncertain and hazardous event but it is now an easily planned and coordinated adventure that has been revolutionized since middle of last century by vast improvements in transportation in general and air transportation in particular, computer technology, and networks of international communication. In many developed and developing countries, tourism has been designed as a leading industry for the purpose of stimulating economic development (Parveen, 2006). 3. 0 Bangladesh–at a glance Table1: Bangladeshat a glance | Official Name | The People’s Republic of Bangladesh | Geographical Location | Latitude between 20°34′ and 26°38′ North Longitude between 88°01′ and 92°41′ East | Area | 147, 570 sq. km. | Boundaries | North – India (West Bengal and Meghalaya), West – India (West Bengal) East – India (Tripura and Assam) and Myanmar, South-Bay of Bengal. | Capital City | Dhaka | Other Major Cities | Chittagong, Khulna, Sylhet, Rajshahi, Barisal | Standard Time | GMT +6 Hours | Climate Variation | Winter   11° C – 20° C (October-February) Summer  21° C – 38° C (March — September) | Rainfall | 1100 mm to 3400mm (June — August) | Humidity | Highest 99% (July) Lowest 36% (December & January) | Population | 145 million | Literacy Rate | 60% | Language | Bangla (national language). Spoken by 95%, other dialects 5%, English is widely understood and spoken. | Principal Crops | Rice, Jute, Tea, Wheat, Sugarcane, Pulses, Mustard, Potato, Vegetables. | Principal Rivers | Padma, Meghna, Jamuna, Surma, Brahmaputra, Karnaphuli, Teesta, Sitalakhya, Rupsha, Madhumati, Gorai, Mahananda etc. | Principal Industries | Garments, Tea, Ceramics, Cement, Leather, Jute, Textiles, Electric and Electronics, Medicine, Fishing. | Principal Exports | Garments, Knitwear, Frozen Shrimps, Tea, Leather and Leather products, Jute and Jute products, Ceramics etc. | Principal Imports | Wheat, Fertilizer, Petroleum goods, Cotton, Edible Oil etc. | Electricity | 220 Volts AC in all cities and towns | Currency | Taka, having 500, 100, 50, 20, 10, 5, 2 and 1 in notes and 5, 2, 1 in coins.   Exchange Rate : US$ 1 = Taka 68. 00 | Religion | Muslims – 86. 6%, Hindus – 12. 1%, Buddhists — 0. 6%, Christians 0. 4% and others 0. 3%. | Government | Parliamentary form of Government President is the head of the state while the government elected by the people is headed by the Prime Minster. | Business Hours | Parliamentary form of Government President is the head of the state while the government elected by the people is headed by the Prime Minster. | Best Tourist Season | October to March. | Source: Bangladesh Parjatan Corporation (BPC) | 4. 0 Bangladesh’s tourism Tourism is a growing industry in Bangladesh. Recently, Cox’s Bazar of Bangladesh has been recognized as a rising tourists’ spot among the fastest growing destinations in the world (BPC, 2006). Presently, it holds important position in the competition of world’s natural beauty- new seven wonders. So, this industry has great potentials both as a foreign exchange earner and provider of job opportunities with the resultant multiplier effect on the country’s economy as a whole (Rahman, 2007). However, the potentials of this sector in Bangladesh still remain unexplored by parties concerned mainly owing to poor infrastructure facilities and deterioration of law and order system (corruption and terrorism), whereas this sector in different countries is a major source of revenue, employment generation and poverty alleviation. Tourism industry in Bangladesh is becoming an emerging issue both for the public and private sector to establish their eligibility for accomplishing a successful business as well as marketing activities development (Akteruzzaman, 2001). Bangladesh is fast emerging as an alluring tourist spot on the global map. It is a land of diverse attractions, bountiful nature and millions of friendly people with more than a millennium of cultural heritage. The country has failed to utilize even 10 percent of its tourism potential owing to lack of sufficient steps and entrepreneurship by the government and private sectors. 4. 1 Beginning of tourism industry in Bangladesh Promotion of tourism in Bangladesh under the aegis of the government started in 1972, following independence of the country. Recognizing the contribution of tourism to the socio-economic development of the country, the government framed the National Tourism Policy in 1992. In the Tourism Policy, status of tourism industry in Bangladesh was described, aims and objectives were defined and implementation strategies were suggested. The policy identified tourism as multidimensional industry and spelt out the necessity to have an effective coordination among various government ministries, departments, agencies and civil society bodies. As per the recommendation of the National Tourism Policy, a ‘ National Tourism Council’ headed by the Prime Minister and an ‘ Inter-ministerial Coordination Committee’ headed by the Minister of Civil Aviation and Tourism were formed. 4. 2 Government Policy Government stresses great importance to develop inter and intra-regional tourism among the SAARC member countries. For an instance, Bangladesh has taken initiative to promote sub-regional (Bangladesh. Bhutan. Nepal and India) tourism titled ‘ South Asian Sub-regional Economic Cooperation (SASEC) for Tourism Planning’ funded by Asian Development Bank (ADB). Foreign investors are welcome to Bangladesh to invest in tourism sector. In the context of National Tourism & Industrial Policy, the government encourages foreign investors in this sector, which can be either in the form of joint venture or on 100% foreign ownership basis. In order to encourage private and foreign investment the following incentives are allowed by the government: * 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; * Exemption of income tax on salaries up to three years for the foreign technicians employed in the approved industries; * Remittance 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; * Guarantee against expropriation and nationalization of foreign private investment (as per Foreign Private Investment Promotion & Protection Act 1980); * Provision for transfer of shares held by foreigners to local partners with the permission from the Board of Investment and the Foreign Exchange Control Department of Bangladesh Bank. * Re-investment of repatriating dividend is treated as new foreign investment. 4. 3 The tourism Master Plan The Tourism Master Plan of Bangladesh prepared in 1988 with the assistance of UNDP/ILO has identified a number of hindrances of the tourism industry and suggested various ways and means for the growth of tourism in Bangladesh. The Master Plan has envisaged a short-term, medium-term and long-term planning strategy for the promotion of tourism in Bangladesh. The short and medium-term strategies are intended to be completed within a 10-year period, the short-term referred broadly to the third and fourth national development plans, and the medium-term extending into the following five year period. Because of the constraints on public sector resources and possible caution on the part of the private sector to commit investment finance on tourism projects, the development program follows the same broad approach in allocating projects to short and medium-term programs. Although, in short term, some increase in tourism activity in Bangladesh can be achieved through small-scale product improvements, in the medium and longer term, major product initiatives will be required to achieve the growth targets. The major product development strategies may be ‘ River Tourism Product’, ‘ Village Tourism Development’, ‘ Cultural Heritage (archeological sites, historic buildings and monuments, museums, fine arts and performing arts etc.)’, ‘ Forest and Wildlife’ and other products innovation. 4. 4 Tourist Arrivals According to sample survey, the tourists’ arrivals are classified in the following categories: In the above chart, it is clearly showed that a great part of our visitors in Bangladesh is tourist. They occupy 33% of total foreign visitors’ percentage. Foreign visitors’ arrival by months: On a general survey of National Tourism Organization of Bangladesh, it is noticeable that tourist arrival increases in winter seasons from December to January and it decreases in September, October months. 4. 5 Growth trend of tourist arrival in Bangladesh The Above charts show the growth performance of tourist arrivals and income from travel and tourism in Bangladesh over the years. The overall growth trend of tourist arrivals show disappointing picture, except the year 2003. However, in the fiscal year 2006-2007, arrival of foreign tourists in Bangladesh grew by 35% from the previous year (Media Bangladesh, 2008). But the actual growth in the last five years is almost nil. 4. 6 Growth trend of Tourist Arrivals to SASEC Countries The above chart reveals very attractive growth performance of Bangladesh (7. 8%) in case of tourist arrivals compared to other SASEC countries since 1995 to 2003). In the same period, the chart-4 also show growth trend of India (3. 7%), Bhutan (3. 9 %) and Nepal (—1. 5%) respectively. Besides, in the year 2007, arrival of foreign tourists in Bangladesh grew by 35% from the previous year (2006), where in India, the same year, the growth trend of tourism is 12. 34 % (The New Nation May 20, 2008). From the above analysis, it is crystal clear that tourism sector of Bangladesh has huge prospects to be an important driving force of rapid economic development of the country. For Bangladesh, it should be a matter of great opportunity to enrich its economy by developing its tourism sector, which unfortunately has been at low ebb and could not be any significant contributory factor for its economic development. 5. Some tourist spots of Bangladesh 5. 1 Cox’s Bazar Miles of golden sands, towering cliffs, surfing waves, rare conch shells, colorful Pagodas, Buddhist Temples and delightful sea-food — all this make what Cox’s Bazar is today, the tourist capital of Bangladesh. The World’s longest uninterrupted (120 km.) beach slopes here down to the blue waters of the Bay of Bengal against the picturesque background of a chain of hills covered with deep green forests. 5. 2 Kuakata A rare scenic spot on the southernmost tip of Bangladesh in Patuakhali district Kuakata has a wide sandy beach from where one can see both the sunrise and sunset. Kuakata is located at a distance of 70 km. from the district headquarters of Patuakhali. 5. 3 Parki Beach Parki beach is situated in Gahira, Anwara thana under southern Chittagong region. The beach lies about 28 km. away from Chittagong. As the beach is situated at the Karnaphuli river channel, visitors can view both the Karnaphuli river and the sea together. Tourists enjoy the views of big ships anchored at the outer anchor, fishermen catching fist in sea, sunset, various colored crabs at the beach and quiet environment. In picnic season, many visitors come to the beach. 5. 4 Patenga Beach The patenga beach at Chittagong is one of the most popular beaches of Bangladesh, stretching for miles near at the meeting place of the Bay of Bengal and the river Karnaphuli. Nature lovers come around here to enjoy the scenic sunrise and sunset. 5. 5 St. Martin Island Forty-eight kilometers from Teknaf, St. Martin’s is the country’s only coral island and an unspoiled paradise. Named Narikel Jinjira (Coconut Island) by the locals, the dumbbell shaped St. Martin’s has an area of only 8 sq. km. which reduces to about 5 sq. km. and in places from 1–4 meters during high tide. 6. 0 Economic aspects Tourism plays an important role in the national economy through fostering growth of linkages in the economy. The rapid development of tourism is one of the most dynamic phenomena in the modern socioeconomic life. In 2009 Bangladesh’ Travel & Tourism is expected to generate BDT245 BILLION (US$3, 470 million) of economic activity (GDP). The industry’s direct impact includes BDT103 billion. However, since Travel & Tourism touches all sectors of the economy, its real impact is even greater. Bangladesh’s Travel & Tourism economy directly and indirectly accounts for: BDT 245 billion in economy GDP, 2, 301, 000 economy employment, BDT 44 billion in exports, services and merchandise, BDT 60 billion in capital investment and BDT 7 billion in government expenditure. 6. 1 Contribution to GDP The Travel & Tourism Industry is expected to contribute directly 1. 7% to Gross Domestic Product (GDP) in 2009 (BDT 103. 3 billion or US$ 1, 466. 3 million), rising in nominal terms to BDT299. 8 billion or US$3, 283. 5 million (1. 7% of total) by 2019 (WTTC, 2009). 6. 2 Growth in GDP The Travel & Tourism Economy is expected to grow by 6. 0% per annum in real terms between 2010 and 2019(WTTC, 2009) 6. 3 Employment TTE employment is estimated at 2, 301, 000 jobs in 2009, 3. 2% of total employment, or 1 in every 31. 4 jobs. By 2019, this should total 2, 822, 000 jobs, 3. 2% of total employment or 1 in every 31. 2 jobs (WTTC, 2009). The chart describes the fact that Travel & Tourism industry shares a big portion of total employment in our country. And related industries like hotels, restaurants, motels, entertainment parks etc. provide a great number of employment opportunities to our people. 6. 4 Demand In 2009, TT is expected to post BDT330. 5 billion (US$4, 684. 6 million) of economic activity (Total Demand), growing to BDT973. 2 billion (US$10, 659. 5 million) by 2019 (WTTC, 2009). In our country, the total Travel & Tourism sector contributes a lot in our overall economy. And among these vast contributions, personal tourism activity is the most demanded economic gift. 6. 5 Visitor Exports Exports make up a very important share of Travel & Tourism’s contribution to GDP. Of Bangladesh’s total exports, Travel & Tourism is expected to generate 3. 6% (BDT43. 5 billion or US$616. 8 million) in 2009, increasing to BDT134. 5 billion or US$1, 473. 4 million (3. 5% of total), in 2019 (WTTC, 2009). 6. 6 Capital Investment Travel & Tourism Capital Investment is estimated at BDT60. 1 billion, US$852. 1 million or 4. 1% of total investment in year 2009. By 2019, this should reach BDT164. 3 billion, US$1, 799. 7 million or 3. 9% of total (WTTC, 2009). 6. 7 Government expenditure Government Travel & Tourism operating expenditures in Bangladesh in 2009 are expected to total BDT7. 1 billion (US$100. 5 million), or 2. 1% of total government spending. 7. Tourism Economy–at a glance Table2 Tourism Economyat a glance | BANGLADESH TOURISM INDUSTRY | 2009 | 2019 (Estimated) | | BDT billion | % of Total | Growth | BDT billion | % of Total | Growth | Personal Travel & Tourism | 141. 5 | 3. 0 | 5. 1 | 437. 3 | 3. 4 | 6. 6 | Business Travel | 78. 3 | 1. 3 | 0. 0 | 215. 5 | 1. 2 | 5. 4 | Government Expenditure | 7. 1 | 2. 1 | 5. 5 | 21. 5 | 2. 2 | 6. 4 | Capital Investment | 60. 1 | 4. 1 | 1. 7 | 164. 3 | 3. 9 | 5. 3 | Visitors Exports | 6. 7 | 0. 5 | -0. 6 | 21. 4 | 0. 5 | 7. 0 | Other Exports | 36. 8 | 2. 9 | 11. 1 | 113. 1 | 2. 8 | 6. 6 | T&T Demand | 330. 5 | 4. 2 | 3. 8 | 973. 2 | 4. 4 | 6. 1 | Direct Industry GDP | 103. 4 | 1. 7 | 2. 7 | 299. 8 | 1. 7 | 5. 9 | T&T Economy GDP | 244. 8 | 4. 0 | 3. 5 | 711. 3 | 4. 0 | 6. 0 | Direct Industry Employment | 945. 5 | 1. 3 | -0. 2 | 1, 156. 6 | 1. 3 | 2. 0 | T&T Economy Employment | 2, 300. 6 | 3. 2 | 0. 6 | 2, 821. 9 | 3. 2 | 2. 1 | Source: World Travel & Tourism Council (WTTC) | 8. International ranking Bangladesh occupies 84th position out of 181 countries according to ABSOLUTE ranking position. This ranking is done with respect to the size of the tourism industry. She possesses 172nd position according to contribution to national economy and fits on 29th position of WTTC forecast positioning. Table-3 World Ranking (out of 181 countries) | Position | 84th | 172nd | 29th | Criteria | ABSOLUTE size | RELATIVE contribution to national economy | GROWTH forecast | Source: World Travel & Tourism Council (WTTC) | In South Asia, Bangladesh tourism industry shows somewhat discouraging performance. On same basis ranking, out of 6 countries it occupies very low hierarchy. Table-4 South Asian Ranking (out of 6 countries) | Position | 4th | 6th | 2nd | Criteria | ABSOLUTE size | RELATIVE contribution to national economy | GROWTH forecast | Source: World Travel & Tourism Council (WTTC) | 9. Main Problems of Tourism Industry in Bangladesh * The negative image of Bangladesh in the world i. e. it is a country of corruption, we have brought shame by becoming number one corrupted country thrice. * Poor law and order situation in this country. UK foreign office of travel always discourages their people or makes caution which place is unsafe for their tourists and in this list Bangladesh is included. * Under developed infrastructural facilities. For an example, the condition of famous tourist spot Kuakata’s roads is very poor. * Governments are key players owing to regulations rules in transport and communication and its influence on tourism such as major tourism hubs credit financing and destination management/marketing. But this condition is very poor in our country. * Lack of strategic marketing plan and understanding of competitive market. * The demand and freedom to travel increase when travel restrictions are lifted but administrative service like visa collection process and other rules are complicated in our country. * Accommodation facilities like hotel motel are not available through all the tourist spot. * Reliance of government funding. * Negative socio cultural elements, like our people are conservative that is why sex tourism is restricted in our country. * Government does not emphasize on this industry much. * Not sufficient fund, equipment and knowledge for conservation of the sensitive tourism areas. 10. Remedies of the Problems * Trying to build up positive image by focusing our positive side like our strong cultural background and hospitality of our people. We can make documentary films about the tourist spot and facilities what we have. * Government should play a significant role to provide good governance and better administrative service to improve our law and order situation. * The key to success of tourism in Asia pacific region is a clear recognition by the host government of the important role in the economic development of the country. So our government should become more aware about the regulation rules in transport communication and its influence on tourism. * Studying the experience of those countries which have a strong contribution of tourism sector in their GDP. * Making short term and long term plan. For the short term, to attract more tourists we can make package program and for the long term, we should emphasize to improve our infrastructural facilities. * The increase in demand for travel has created new marketing opportunities in eco-tourism adventure travel; drive travel, cruise travel, golf tours, arts entertainment tour and meeting. So we should build up this type of facilities. * Improving our strategic marketing plan to compete with other countries. We need to segment our market and focus on our target market and create advertising and campaigning to convince people to come here. * Necessity to create skill guide and employer who would be able to serve better service. * Utilizing our natural tourism spots and making people aware to conserve the sensitive tourism areas like the Sundarbans. 11. Conclusion Tourism is an important income and employment generator, directly or indirectly affecting many assorted branches and services. The most important are hotels, restaurants, retail trade, transports, sports, entertainment, culture, travel agents, tour operators, guide and personal services. Tourism is called invisible export goods (Economic Impact, 2004). Making utilization of this invisible export product, many countries have reached at much better position. A day might come when tourism could be one of the major sectors by which Bangladesh can earn huge foreign exchange. Chapter: 3 Ending Part 12. SWOT analysis Strengths * People of Bangladesh are generally very hospitable and tourist-friendly. * Security is not that bad as often projected by electronic and print media. * Domestic tourism is increasing steadily. Owing to two-day holiday in the week, the trend of moving out for recreation has increases mainly among the middle class people of the society. * Awareness about tourist attractions among the local community is increasing. * Communication and transport system has been developed from north to south, east to west. * The country possesses some unique archeological sites, cultural heritage and eco-tourism products like the world’s largest mangrove forest, the Sundarbans, the world’s longest unbroken sea beach in Cox’s Bazar (120 km), the oldest archeological site in the Southern Himalays-Paharpur and world’s largest terracotta temple-Kantaji Temple in Dinajpur, and spectacular monuments and mausoleums of language movement and liberation war of the country. Weakness * On the role of BPC, there is debate whether the Corporation should play the role of a mere NTO or a commercial organization or both. * Frequent changes of officials in the BPC’s management and its line ministry. * Absence of representation of civil society in the BPC’s Board of Directors. * No revenue budget for the promotion of tourism development in the country. * Absence of a regular policy direction. Owing to absence of proper policy direction, BPC or the private sector cannot receive any fund or loan from any quarter. * There are some flaws in the law of categorizing the country’s hotels and restaurants. Categorizing of the hotels and restaurants as Star or non-Star is not under the jurisdiction of the BPC. Nontechnical hands or institutions are involved in this process. * Owing to absence of a tourism law, the tour operators or tourism service providers cannot be punished for any mishandling of tourists. Also owing to absence of law, tourism products cannot be protected or conserved, which is there in many countries of the world. * The country often suffers from image crisis. The country continues to remain as an unknown destination to the tourist generating countries. Opportunities * It is easy to implement eco-tourism, riverine tourism, and spiritual tourism, as the country possesses enough opportunity to develop these types of tourism. * Government has formulated favorable foreign investment policy to attract overseas investors in readymade garments, leather goods, natural gas and petroleum sector and liberal policy for joint venture investment in tourism sector. * As there are hundreds of rivers crisscrossing Bangladesh, immense potentiality exists for development of riverine tourism in Bangladesh. * Bangladesh is located strategically in South Asia. Threats * Unstable political situation created a bad image abroad, which should be taken as the biggest threat for development of tourism industry overseas. * Continuous campaign against Bangladesh by certain quarters as a fundamentalist country is another obstacle. * Unholy alliance between the trade union and political leaders, which disrupts labor discipline. * Politicization of administration * Trade Union Menace in the organization * Rapid growth of population is another big problem. Bangladesh is the most over-populated country of the world, except the city-state of Singapore. 13. Recommendations: * There are so many problems, the researcher found regarding tourism in Bangladesh. The customers of tourism market are price sensitive and want security in tourist place. To expand the market it is necessary to set competitive price. * Develop the management education on tourism Marketing and prepare marketing or sales people to sell the product properly to the right place in local and global perspectives as well. * In order to strengthen the marketing department, a person should be appointed to look after policy matters and new brand exclusively while the responsibility of that division should be in the hand of the marketing Director. * Bangladesh Parjatan Corporation should create pressure on Govt. to implement her policy more strictly regarding the quality of service. As a result private service provider will be able to face competition on an even ground. * To deliver information to the foreign tourist through online or website and Information Technology is necessary to research about new tourist spot. * To encourage the Jr. executives they should be promoted to his/her position and new executives should be recruited to ensure. * Training and other refresher courses should be conducted at regular intervals to update the personnel with efficient. * BPC should formulate her strategy in such way by which she can serve the users more effectively. BPC can easily utilize the following distribution channel. * Private sector in this field should be encouraged by the BPC and as well as Government officials. 14. Ending summary Adequate investment and creation of required facilities will be of immense help to exploit the full potential of tourism in Bangladesh (Tourism in Bangladesh, 2005). Bangladesh holds extreme potentiality to be exploited. Tourism industry is one of the future growing industries. It is already recognized as ‘ thrust sector’ for foreign exchange earnings. With proper planning and anticipation this sector will surely bring a great advancement in economy as well as in other sectors of Bangladesh. Chapter: 4 Appended Part 15. Appendix 15. 1. Tourist arrivals (in thousands) Country | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2007 | Bhutan | 5 | 6 | 7 | 8 | 6 | 6 | 9 | 13 | 6 | – | India | 2395 | 2382 | 2482 | 2649 | 2537 | 2384 | 2726 | 3371 | 3919 | – | Maldives | 366 | 396 | 430 | 467 | 461 | 485 | 564 | 616 | 395 | – | Nepal | 422 | 464 | 492 | 464 | 361 | 275 | 338 | 385 | 375 | – | Pakistan | 375 | 429 | 432 | 557 | 500 | 498 | 479 | 648 | 798 | – | Sri Lanka | 384 | 409 | 465 | 445 | 397 | 457 | 583 | 566 | 669 | – | Bangladesh | 183 | 172 | 173 | 199 | 207 | 207 | 244 | 271 | 208 | 200 | Source: Majbritt Thomsen, 2007 | 15. 2. Tourism revenue (in millions US$) Country | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | Bhutan | 6 | 8 | 9 | 10 | 9 | 8 | 8 | 13 | 19 | – | India | 2889 | 2948 | 3009 | 3168 | 3042 | 3013 | 3533 | 4769 | – | – | Maldives | 286 | 303 | 314 | 321 | 327 | 337 | 402 | 471 | 287 | – | Nepal | 116 | 153 | 229 | 219 | 191 | 134 | 232 | 260 | 160 | – | Pakistan | 117 | 98 | 492 | 551 | 533 | 562 | 618 | 765 | 827 | – | Sri Lanka | 212 | 231 | 414 | 388 | 347 | 594 | 692 | 808 | 729 | – | Bangladesh | 62 | 52 | 50 | 50 | 48 | 57 | 58 | 67 | 70 | – | Source: Majbritt Thomsen, 2007 | 15. 3. Players in the local tourism business Accommodation Elenga Resort www. ipsslgroup. com/serv-elenga. htm Esmeralda Resort www. esmeralda-resort. com Hillside Resort www. guidetours. com Hotel Naz Garden www. hotelnazgarden. com/home. php Hotel Swiss Park Bangladesh Jamuna Resort www. jamunaresort. com Nazimgarh Resort http://nazimgarh. com Pan Pacific Sonargaon Hotel www. panpacific. com/Dhaka/Overview. html Sarina Hotel Dhaka www. sarinahotel. com Seagull Hotel www. seagullhotelbd. com/cox’s_bazar. htm Sheraton Hotel Radisson Water Garden Hotel Dhaka www. radisson. com/dhakabn Royal Resort www. lighthousebd. com/resort/ The Westin Hotel Dhaka Transportation Bangladesh Inland Water Transport Corporation (BIWTC) www. mos. gov. bd/biwtc. htm Bangladesh Road Transport Corporation www. brtc. gov. bd Royal Bengal (Aviana Airways Ltd.) www. flyroyalbengal. com United Airways (BD) Ltd. www. uabdl. com Zia International Airport Tourist information Bangladesh Online www. bangladeshonline. com Discovery Bangladesh www. discoverybangladesh. com Joy Bangla www. joybangla. info Gateway Bangladesh www. bdgateway. org Tourist organizations Parjatan (The Bangladesh Parjatan Corporation) www. bangladeshtourism. gov. bd TOAB (Tour Operators Association of Bangladesh) www. toab. org Tour operators Amazing Holidays www. holidays-amazing. com Bangladesh Ecotours www. bangladeshecotours. com Classic Tours & Travels www. classictours-bd. com Contic www. contic. com/Main. html Delta Outdoors www. delta-outdoors. com Excursion Bangladesh www. excursionbangladesh. com Experience Bangladesh (USA) www. experiencebangladesh. com Galaxy Travel International www. galaxybd. com Grace Tours (Denmark) www. gracetours. com/default. asp Guide Tours Ltd. www. guidetours. com Undiscovered Destinations (UK) www. undiscovereddestinations. com UNITAS rejser (Denmark) www. unitasrejser. dk Resorts/hotels outside Dhaka: Hillside Resort, Bandarban, Chittagong Division Cottages (double) from 1200 Taka Tribal houses (double) from 800 TK Royal Resort, Dhanbari, Tangail, Dhaka Division Palace, rooms from 75 US$, suite 175 US$ Villa, room from 25 US$ Bungalows, from 60 US$ Cottage, from 40US$ Jamuna Resort, Jamuna River, Rajshahi Division Cottage from 6000. 00 TK Suites from 4250. 00 TK Elenga Resort, Kalihati, Rajshahi Division Cottages of different sizes from 5500TK Dormitory style from 2750 TK Dormitory style from 660 TK double Seagull Hotel, Cox’s Bazar, Chittagong Division Presidential suite (Double) US$250 Suites (Double) US$108 Deluxe sea view (Double) US$54 Regular sea view (Double) US$45 Hotel Pashur, Khulna, Khulna Division (Parjatan Hotel) AC room 1200 Taka No AC room 600 Taka Domestic Tour Package Contic (1 night 2 days boat trip) Dhaka-Srimongol-Dhaka Super deluxe 7000 Taka/person Deluxe 5000 Taka/person Economy 3500 Taka/person Contic (2 nights 3 days boat trip) Dhaka-Cox’s Bazar – Dhaka Super deluxe 10. 500 Taka/person Deluxe 8500 Taka/person Economy 5500 Taka/person Safari plus (3 days 3 nights) Bandarban, Chittagong District Standard 2850 Taka/person Executive 3950 Taka/person Safari plus (3 days 3 nights) Sylhet, Sylhet Division Standard 4850 Taka/person Executive 6950 Taka/person 16. 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