Investing in Tourism

Compared to the tourism sectors of the countries around us, our tourism sector lags far behind. For a long time, we have heard that the country’s tourism sector holds enormous potential. This is true; all the elements essential for the development of a tourism industry in a country exist here in abundance. Some even say that when it comes to tourism potential, Bangladesh is a “Hidden Gem.” The world’s longest unbroken natural sandy sea beach, the Sundarbans Reserve Forest recognized as a Ramsar site, Tanguar Haor in Sunamganj, Moulvibazar known as the capital of tea, the hill districts rich in forests and mountains along with their indigenous communities, countless historical and architectural sites including Mahasthangarh, Paharpur and Kantajew Temple in the north and Bagerhat, the “City of Mosques” included in the UNESCO World Heritage list, along with the ancient Sixty Dome Mosque located there, all of these are regarded as Bangladesh’s invaluable tourism assets. Their role in attracting domestic and foreign tourists is immense. Bangladesh’s tourism master plan has identified around 500 tourism spots across the country, most of which still remain nothing more than “tourism resources.” Even after roughly 55 years of independence, we have managed to convert only a handful of these into actual tourism products and not particularly well at that. Even the destinations we do consider tourism products still suffer from significant shortcomings due to a lack of adequate investment. Comparatively, our tourism products have not come anywhere close to those of Nepal, Bhutan, Sri Lanka, or India. Even setting aside tourism’s contribution to the economy, our position is at the bottom among these countries. Currently, the most reliable source of information on the tourism industry is the World Travel & Tourism Council (WTTC).

According to WTTC, among South Asian countries, India, Nepal, Sri Lanka and Bhutan have been identified as having strong tourism-dependent economies, with India at the very top. Bangladesh, however, has been assessed by this global body as “Underperforming,” meaning that despite its potential, the country is not performing well in the tourism industry.

Despite this dismal state of the tourism industry, our tourism has not come to a standstill. Alongside our continued economic development, the improvement of communication infrastructure and a reasonably strengthened security situation have led to a steady rise in the number of domestic tourists. What is disheartening, however, is that accurate statistics on domestic tourists cannot be found anywhere. Media reports suggest the number of domestic tourists stands at roughly one and a half crore (15 million). Whenever even a day or two of holiday is available before or after a government holiday, tourists of every class rush off to their favorite destinations.

That destination could be green hills, or vast tea gardens wrapped in green, or a sea beach, or Tanguar Haor, or northern Bangladesh brimming with archaeological treasures. Over the past decade, a number of resorts have sprung up in rural settings across various regions through medium-scale private investment. Throughout the year, these resorts see day visitors as well as overnight tourists. Foreign tourists can also be found at these resorts. Thanks to quality hospitality, seclusion and above all, airtight security, Bangladesh’s resorts are capable of drawing a notable number of tourists. Some well-known resorts have already gained recognition as MICE destinations, hosting various types of meetings and seminars.

The encouraging news is that Bangladesh receives some foreign tourists every year. Among them, business tourists make up the majority, while the number of foreign tourists coming purely for leisure remains very low. In 2023, 667,190 foreign tourists visited our country and in 2024 that number fell to 630,685 (source: WTTC). Data for 2025 has not yet been compiled.

For the development of Bangladesh’s weak yet promising tourism industry, meetings and seminars are held frequently, extensive writing takes place, many fine words are exchanged and decisions are made, but they remain stuck at that stage and are never implemented. This not only fails to improve tourism but also breeds frustration among tourism stakeholders. Having participated in countless such meetings and seminars and through my direct experience serving on the Tourism Board, it has become clear to me that no government since independence has shown genuine sincerity toward developing this industry. The Tourism Board or Parjaton Corporation has never been built up as a strong organization. There has long been a need for a unified tourism law, yet I have seen no steps taken in that direction either. The development of this industry required extensive infrastructural development, most of which falls under government responsibility. Yet no government has ever come forward with major investment aimed at building the necessary infrastructure. A state government in a neighboring country allocates 8 billion rupees annually for tourism development in that state alone, whereas our entire country’s annual allocation is a mere 400 million taka, the bulk of which goes toward paying salaries and benefits to Tourism Board staff. Because government investment has essentially been absent, private investment has not materialized properly either and foreign investment is out of the question altogether. What little private investment has occurred has gone into the country’s hospitality sector, where hotels and resorts of various standards, including star-rated ones, have been built at major tourist destinations. Another emerging and important component of Bangladesh’s tourism industry is the development of theme parks and amusement parks. Over the years, we have witnessed significant private sector investment in this area, reflecting the growing demand for leisure, recreation and family-oriented tourism. Such investments not only diversify Bangladesh’s tourism products but also create employment opportunities, stimulate local economies and contribute to the overall growth of the tourism sector.  

 In an effort to gather data on domestic and foreign investment in the tourism sector, inquiries were made everywhere: the Tourism Board, BIDA and Bangladesh Bank, but no one was able to provide any data. In truth, they simply do not have this kind of information. BIDA and Bangladesh Bank have stated that they do not separately maintain any data on tourism sector investment.

Attracting investment into the tourism sector requires adequate sector-specific data. Domestic and foreign investors make their capital investment decisions based on an analysis of such data, which is precisely why a Tourism Satellite Account (TSA) is needed. The encouraging news is that the Bangladesh Bureau of Statistics has very recently begun developing a Dynamic Tourism Satellite Account (TSA). It is expected to be completed and made available by December 2026.

Chapter Eight of our Tourism Master Plan includes a separate section titled “Action Plan With Financing & Investment Strategy.” To attract foreign capital into the tourism sector, the government has put in place a legal framework offering Tax Holiday, Tax Exemption, a Double Taxation Regime, Capital Repatriation, Tariff Reduction, Investment in the Stock Market, Investment Protection and several other provisions that can directly help safeguard the interests of foreign investors.

We can see that the current government has placed considerable emphasis on attracting foreign investment. Already, the Bangladesh Investment Development Authority (BIDA), the Bangladesh Economic Zones Authority (BEZA) and the Public Private Partnership Authority (PPPA), these three institutions, have been merged into a single, independent entity named Invest Bangladesh. It is hoped that this restructured institution will be able to play an effective role in attracting foreign investment to the country. One thing we must keep in mind: for any kind of investment, whether domestic or foreign, providing benefits to investors requires not only financial packages but also political stability and a strong law and order system in the country, both of which are absolutely essential.

The writer is former Chief Executive Officer, Bangladesh Tourism Board