Cox's Bazar, Patuakhali, Sylhet, and the Chittagong Hill Tracts—Bangladesh’s key tourist hotspots—have been left deserted due to ongoing unrest surrounding the anti-discrimination student movement and subsequent curfews.
The absence of tourists has triggered a severe decline in tourism-dependent businesses, leaving hotels and motels in these areas largely empty, with shops and restaurants reporting plummeting sales. Many mobile vendors have also been forced to cease operations, with employers struggling to pay staff due to the loss of revenue.
Industry representatives note that the tourism sector is invariably the first to suffer during national crises and the last to recover, a trend that has been evident since the beginning of this year. The industry has been repeatedly hit by the heated political environment surrounding the national elections, several rounds of flooding, and a prolonged heatwave, all contributing to a slump in tourism.
Even during the two Eid festivals and other holidays, the threat of disasters deterred tourists from travelling. Just as the sector was beginning to rebound from these losses, the recent turmoil has dealt yet another blow.
The prolonged absence of tourists has left business owners facing significant financial losses, though exact figures are difficult to determine. However, industry leaders estimate that the tourism industry has incurred direct and indirect losses amounting to several thousand crore taka over the past two months due to recent unrest.
They stressed that quickly restoring normalcy is essential to ensure public safety and sustain the entrepreneurs and businessmen in this industry. Without prompt action, they warn, many in the industry may struggle to survive.
Tourism hit with multi-thousand crore losses
Tour Operators Association of Bangladesh (TOAB) President Md Rafeuzzaman told The Business Post that tourism thrives in a stable environment, with tourists preferring travel when conditions are favourable.
“Bangladesh is home to around 300 tourist spots, with 30 of them being highly sought-after destinations. Recent events, however, have severely disrupted both inbound and domestic tourism,” he said.
Many foreign tourists have cancelled their trips, and while exact figures are unavailable, Rafeuzzaman estimated that the losses in the tourism sector could amount to several thousand crore taka over the past two months.
“Cox's Bazar beach, once bustling with visitors, now stands deserted. Business owners have reported that four to five hotels in that area have been vandalised and damaged during the recent unrest,” he continued.
Slow recovery ahead
Md Alam Joy, manager of Ikra Beach Hotel on Kolatoli Road in Cox’s Bazar, said, “Our six-storey hotel with 60 rooms has been vandalised and set on fire. The miscreants took televisions from the hotel and destroyed chairs, tables, and beds. It will cost us nearly Tk 3 crore to make the hotel operational again.”
Federation of Tourism Owners' Association of Bangladesh President Abul Kashem Shikder reported that Cox's Bazar hosts over 500 hotels and motels, with investments totalling between Tk 15,000 crore to Tk 20,000 crore. However, he noted that the tourism sector is always the first to suffer during any disaster.
“Over the past two months, Cox’s Bazar has incurred direct and indirect losses of around Tk 10 crore per day, amounting to an estimated Tk 500 to Tk 600 crore in total,” Shikder said.
“Around 25,000 to 30,000 people in Cox’s Bazar depend on various professions, including hotel employment, for their livelihood. However, many business owners are now struggling to pay their staff due to the lack of revenue, and sales in smaller shops have plummeted,” he said.
Shikder warned that it would take time for the industry to recover.
Sajek faces similar challenges
Rahul Chakma Jon, organising secretary of Cottage Malik Somitee of Sajek, told this correspondent that while some hotels in Khagrachari were vandalised during the recent unrest, Sajek itself was spared from such incidents.
“Sajek, a popular tourist destination after Cox’s Bazar, has 117 hotels and resorts. However, the lack of tourists over the past one and a half to two months has severely impacted business,” he said.
Rahul Chakma estimated that the losses in the tourism in Sajek during this period amounted to Tk 5 to Tk 6 crore. Expressing concern that just as businesses start to recover from one setback, they are hit by another, he said, “Many hotel owners are now using their own money to pay staff, and some are struggling even to cover wages.”
Kuakata tourism in the red
Kuakata Hotel-Motel Owners Association Secretary-General MA Motaleb Sharif reported that approximately six hotels in Kuakata have been vandalised by miscreants during the recent unrest. “Repairing the damage and resuming operations at these hotels will require around Tk 1 crore,” he added.
Motaleb further mentioned that Kuakata is home to nearly 200 hotels and motels, providing employment for about 5,000 people. The recent unrest has left the area nearly devoid of tourists, putting both the survival of businesses and the livelihoods of these workers at risk. "We are now in the red and believe that our businesses have suffered damages of around Tk 100 crore," he added.
Dhaka tourism hit hard too
The unrest has also affected many resorts and cottage businesses in and around Dhaka. Many city dwellers who typically seek a day’s escape to areas like Gazipur and Narayanganj stayed away during this period, leaving these locations largely empty, according to business owners.
Tourism Resort Industries Association of Bangladesh (TRIAB) President Khabir Uddin Ahmed told The Business Post that their approximately 400 resorts have seen a significant drop in visitor numbers over the past two months.
Mentioning that their businesses lost around Tk 4,000 crore in potential revenue during this time, he further said that the resort industry market is valued at approximately Tk 20,000 to 22,000 crore, employing around 10,000 people. "We cannot downsize them. Even without business, I am obligated to pay their salaries," Khabir Uddin Ahmed said.
Urgent call to save tourism sector
Business leaders warned that without a swift return to normalcy, many may be forced to abandon their ventures. They urged the government to take immediate steps to revive the tourism sector, including providing incentives, offering easy loan facilities, and restoring the previous VAT rate by removing the current 15 per cent VAT on this sector.
To attract foreign tourists, they called for Bangladesh’s embassies, missions, and consulates abroad to maintain regular communication with tour operators in those countries, reassuring them that the situation in Bangladesh is returning to normal.
