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Tourist spots and resorts adjacent to the capital are bracing for yet another big financial blow after nearly 150 tourist sites in Savar, Gazipur and Manikganj counted nearly Tk 11,000 crore in loss during the pandemic.
The tourist attractions are popular for picnic, holidays, film shooting, corporate functions and honeymoon for newly-wed couples.
Resort owners have said their occupancy rates have gone down to nearly zero over the last three weeks with booking cancellations becoming an everyday affair.
The picture was opposite even in early last month as the tourist attractions were making a turnaround in their business after a last year’s catastrophic experience.
Ismail Hossain, manager of Sarah Resort in Rajabari area under Gazipur’s Rajendrapur told The Business Post they had huge bookings after the first wave of Covid-19, but all were gradually canceled when the second wave hit the country.
“One after another reservations were cancelled due to coronavirus. Now we have no guests, no bookings, but resort staff only,” he said.
Abul Hossain Abir, general manager at Chuti resort in Sukundi area under Gazipur said with the outbreak of coronavirus, visitors’ movement stopped here. The company suffered a huge financial loss.
“We used to earn crores every year. But this time the income has come down to a zero. We had over 100 employees here. But 30 per cent of them have lost their job for the second wave of Covid-19. Lack of business in our deserted resort will cost a huge job loss,” he apprehended.
Abir said if the coronavirus infection goes on in this way, it would be an existential threat to the tourism industry.
Apart from these districts, some 300 resorts are in Cox’s Bazar, Chattogram, Sylhet, Bandarban, Rangamati and Khagrachari, according to the sector people.
They estimated that they incurred a loss of around Tk 11,000 crore in revenue due to the raging pandemic in the last 16 months.
Around one million people’s livelihoods directly or indirectly involved in this business are now under threat.
They think it will be difficult to make a turnaround without the government support, be it in the form of incentive or low-cost aid.
Tourism Resort Industries Association of Bangladesh (TRIAB) president Khabir Uddin Ahmed told The Business Post many developed economies in the world are dependent on tourism
industry.
“The resorts have largely been developed in exurbs away from the hustle and bustle environment. People rush to our spots for the scenic beauty of rural Bangladesh where all modern amenities for recreation, food and lodging are available,” he explained.
The owners of resorts, picnic and shooting spots have to survive on their own subsidies in this torrid time as there is no government support for the sector.
“We cannot afford further loss. We have expenses like electricity bills, staff salaries and others,” added the business leader.
Citing a reference that incentives are being given to tourism sector in different countries during the pandemic, Kabir urged the government to follow suit to keep Bangladesh’s tourism industry afloat.
Resort owners said metropolitan lives are associated with heavy traffic, noise and loud horns. People living a mechanical life in the city want respite and some relief and opt for resorts occasionally to get relaxed and
energized.
Keeping this in mind, tourists’ attractions were developed in Savar, Gazipur and Manikganj areas so people in the capital can reach those spots with a one-hour drive.
They also said among the resorts, most eco-resorts are situated surrounding the capital. Most of the spots hold greenery with different types of plantation and vegetation.
The resorts have sprung up with hundreds of acres of land in Gazipur district alone. The operating cost of these resorts is much higher, owners said.
Nokkhottrobari Resort’s Accounts Officer Shahin Bapari said they have virtually no business due to Covid-19. Now they are surviving with 50 per cent employee. If this situation continues, the number could be halved.
Business insiders said resort business is largely run and owned by big corporates under a partnership model and also on an individual effort.
Many workers of tourist spots have already been laid off while a large number of them await termination from owners. A good number of staff are being paid half their salaries.
Aronnobash Picnic Spot and Resort owner Maj (Retd) Md Mahbubur Rahman Khan (Bir Protik) said it is a nearly Tk 1000-crore market.
“Our bookings for business programmes have been cancelled due to the pandemic,” he said, adding that corporate programmes are one of the major sources of revenues for resort owners.
“Our company started business in 2018 with a loan of Tk 4.6 crore. Our target was to do business worth Tk 2 crore every year. In the first two years, we managed to do it around Tk 1.5 crore. We might be defaulter if the current situation sustains a long time.”
The businessman pointed out that smaller resorts were the most affected and many of them were forced to close their businesses.
The resort industry insiders said they are not getting the benefit of the stimulus package announced by the government to offset the loss.
“Banks are not interested in giving us loans,” one businessman said, asking not to be named.
According to the association president Khabir, banks think if they provide loan against resorts, money would not be repaid.
“This sector will be in a dire situation if the government does not consider stimulus package for us,” Khabir pleaded.
Bangladesh Tourism Board’s Chief Executive Officer Javed Ahmed told The Business Post they are working hard to achieve the desired goal of the tourism industry. The country has all elements to attract tourist and help the industry flourish.
“We have taken up various programmes and plans on how to recover this sector. Besides, if situation improves, we will open the tourism sector,” he said.
Asked about the incentive, the official said: “The incentive offer was announced a week ago. But the resort industry is out of it. Negotiations are underway with the government to this end.”
