Home ›› 23 May 2020 ›› World Biz
There is no denying of the fact that Covid-19 pandemic has wreaked havoc on global tourism. Cancellation of bookings, travel bans and suspensions, the shutting down of hotels and layoffs due to the pandemic have already dealt a heavy blow to the tourism sector and the people directly involved with it.
Bangladesh is no exception. Centring this year’s Eid alone, tourism industry here has suffered a loss worth more than Tk1,000 crore, according to Bangladesh chapter of the Pacific Asia Travel Association (PATA). In the five months from February to June, the loss might pile up at Tk9,700 crore, estimated the PATA, warning that around 3 lakh of the people involved in this sector would lose their jobs if the situation prolongs any further.
Since people are staying home to control the spread of coronavirus, tourist sites that only a few months ago were teeming with visitors are now eerily still. Different components that are directly involved in the tourism sector, for instance, hotels, motels, resorts, tour operators, travel agents, are bearing the brunt of the pandemic's impact.
Nobody can say for sure when the situation will return to normalcy. However, insiders said even if the pandemic is over, it might take around two years for the tourism industry to recover from this hit. Moreover, in the post-pandemic period, restrictions might be imposed on passenger travelling on international routes, resulting in the decline of tourists, they observed.
As per PATA Bangladesh chapter, around 90 percent hotels in Cox’s Bazar have been shut. Failing to pay salaries, hotel authorities there have sacked many of their employees.
Asked, Yasin Arafat, front desk manager at Royal Beach Resort in Cox’s Bazar, told The Business Post that they have 75 staff.
“Just three days ago, we could pay them salaries for the month of March. As the business is dull, we are not quite sure if we will be able to pay them for April and May alongside Eid bonus,” he said.
While explaining how grave the situation is, Yasin said they have 98 rooms in the resort, all of which remain booked centring Eid festival every year. “Last year, we made a profit of Tk22 lakh only during Eid vacation, but this year the hotel is empty,” he said with a frustration in his tone.
All their rooms were booked during weekends until April, but all the reservations were later cancelled due to the pandemic, he said.
Asked how they are planning to bounce back, Yasin said they will try to open the hotel on a limited scale, of course maintaining health hygiene -- still there is a chance that tourists won’t turn out.
“In that case, we are planning to rent out our conference room to NGOs, pharmaceutical companies and different organisations to generate hotel revenue,” he said. “Though it will take some time, but at least we will then be able to manage salaries for the employees through this move.”
Government official Saiful Islam loves holidaying at home and abroad. Due to the Covid-19 pandemic, all his plans have gone down the drain. While talking to The Business Post, he said different businesses are closely linked to tourism industry.
Due to the pandemic, both tourism and the people dependent on the sector will suffer a huge blow, leading to a spike in unemployment rates, he said. It will take time to recover from the hit, he observed.
Rafsanjani Rahi, chief executive officer of Tour Group BD, said all of their tours at home and abroad have been cancelled since the coronavirus struck.
“All of our four resorts have been kept shut,” he said. During Eid last year, he said, they had arranged around 10 tours. “But this year, we are struggling to pay our staff and employees,” said a frustrated Rahi.
If the situation gets better, Rahi said, they will start their air ticketing business again. But he does not see any hope to arrange any international tour in the next one year -- India and Nepal are unlikely to allow any tourists.
Since people have a shortage of money, he said, his organisation is looking forward to arrange small tours inside the country after the situation starts returning to normalcy.
Asked how the tourism sector can recover the loss, PATA Bangladesh chapter Secretary General Taufiq Rahman said though tourism sector is the worst hit by the pandemic, it will recover after other sectors start recovering.
Aviation industry is closely linked to tourism, he said. If it is not opened, hotels, motels, resorts, travel agents, tour agencies, tour operators will get affected.
Though the government has announced different stimulus packages, he doubted if the government help would reach the small and medium entrepreneurs in tourism sector. The country’s tourism might take two years to overcome the ongoing crisis and get back on track, he observed.
To help tourism industry bounce back, the government announced a stimulus package. Under the package, banks will provide loans at 9 percent interest rate, of which 4.5 percent will be subsidised by the government and the rest will be paid by borrowers.
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