The hotel and tourism sector in Bangladesh incurred losses worth Tk6,000 crore in 2020 following the spread of Covid-19, reveals a study by Bangladesh Institute of Development Studies (BIDS).
BIDS cited the Association of Tour Operators of Bangladesh (TOAB) as reporting that the tourism sub-sector alone had lost close to Tk1,500 crore as of April 2020 since the beginning of that year.
The study was carried out by reviewing the existing literature and collecting primary and secondary information to find out the contribution of the sector to the economy as well as to comprehend the possible impacts of Covid-19 on the sector.
After completion of the secondary research, a primary survey with enterprises and workers drawn from 200 hotels and resorts, 138 travel agencies and tour operators, 200 restaurants, and 63 SMEs had been carried out across the eight administrative divisional cities and Cox’s Bazar.
Apart from quantitative surveys, case studies involving 21 transport owners and operators, and owners and employees of seven tourist attractions and recreational centres (amusement parks) were also conducted.
Among 138 tour operators and travel agencies surveyed, 87 of the enterprises are engaged in only travel agency activities, 38 in only tour operator agencies, and 23 of the enterprises are engaged in both activities.
About 82% of the hotels and resorts, 84% tour operators, 86% travel agencies, and 91% of both tour operators and travel agencies provided bonuses to their employees in 2019.
The corresponding proportions, as reported by these enterprises, dropped to 54%, 19%, 35% and 36%, respectively, in 2020.
The BIDS study also finds that most of the entrepreneurs in the sub-sectors realized that the current state of the business is untenable in the medium term as consumers’ tastes and preferences changed over time and hence need major overhauling in terms of infrastructures and services with skilled human resources.
As complementary measures, the study pointed out several issues that the government needs to address, including the development of tourist sites and strengthening diplomatic efforts by Bangladesh missions abroad and the Ministry of Foreign Affairs to help attract local and international tourists.
Besides, most of the entrepreneurs urged the government to combat corruption in their sub-sectors and relieve them of unnecessary harassment by the law-enforcing agencies and agencies of the government.
The BIDS study analyzed the current status of the hospitality and tourism sector and identifies the probable impacts in terms of loss of sales and revenues, consequent retrenchment of workers and employees and reduced work-hour of worker based on a comparison between the pre-COVID-19 and the COVID-19 pandemic periods.
The study noted that even though the government initially allocated Tk121,400 crore as fiscal stimulus and liquidity support, the hospitality sector was deprived of such support.
