Hospitality industry is recovering in Bangladesh

Humaira Binte Kabir
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700,000 tourists visit Bangladesh in 2025

The hospitality and tourism sector of Bangladesh has been recovering since the USA-Israel imposed war on Iran that began on February 28, 2026 hitting the hospitality industry, said stakeholders .

The USA-Israel imposed war on Iran has caused turmoil in the global energy market impacting global growth and creating uncertainty in the world..

The tourism sector in Bangladesh weathered a difficult year in 2024, plagued by political instability, environmental calamities and security concerns in popular destinations. An Asian Development Bank report noted that Bangladesh’s earnings from foreign tourists fell in 2024, from $453 million in 2023 to $440 million in 2024

Efforts are underway to finalise a Tourism Master Plan, which aims to attract investments and deliver visible improvements, said a high official of the Bangladesh Tourism Board (BTB) while expressing optimism, stating that these initiatives could transform the sector into a significant driver of economic growth.

Mezbah Uddin, Director of Sales and Marketing, Hyatt Place Dhaka Utara, while talking to this correspondent, said the hospitality industry is recovering as war threat in the middle-east is being contained.

The business is picking up now, international passengers are increasing in number compared to last two months and local businesses are also increasing spending, he said.

Some 90-95 percent of guests at our hotel are members of multinational groups, importers of readymade garments, consultants of big projects, leading banks and international development partners.

‘The travel restrictions or warnings by the USA, UK and Canada on Bangladesh also send negative perceptions about a country, said Javed Ahmed, former Chief Executive Officer of the Bangladesh Tourism Board (BTB).

Javed Ahmed, who has vast experience in working in the travel and tourism sector, said Bangladesh should work with the western countries in easing travel restrictions on the country.

The high tariff on liquor also stands in the way of promoting tourism in Bangladesh.

Bangladesh, known for its archaeological treasures, historic mosques and natural wonders such as the world’s longest natural beach and lush tea gardens, holds immense potential for tourism.

The 2024 Travel and Tourism Development Index by the World Economic Forum ranked Bangladesh 109th out of 119 economies, placing it last among 19 Asia-Pacific countries

Meanwhile, Bangladesh attracted roughly 7,00,000 tourists in 2025 compared to 655,000 tourists posting some 7.00 per cent growth, according to sources of Bangladesh Parjaton Corporation (BPC) .

According to the Bangladesh Tourism Board (BTB), 655,000 foreign tourists visited the country in 2024, marking a modest recovery from pandemic-era lows but falling short of 2019’s pre-pandemic figures of 621,131 visitors.

The tourism contributes 3.02% to Bangladesh’s GDP

Meanwhile, former Civil Aviation and Tourism Secretary Nasreen Jahan highlighted that tourism contributes 3.02% to Bangladesh’s GDP.

Industry leaders emphasized that addressing political, infrastructural, and environmental challenges could unlock the tourism sector’s full potential, turning it into a cornerstone of Bangladesh’s economic development.

Though the latter half of the 2024 witnessed turbulent political situation in Bangladesh hurting arrival of the tourists, the year 2025 seemed better reflecting positive turn–out of the tourists, said a member of Tour Operators Association of Bangladesh (TOAB)

Political instability, including internet blackouts during July’s student protests and the uncertainty following Sheikh Hasina’s resignation on August 5, further disrupted the sector during the second half of 2024.

The caretaker government took some steps in restoring the law and order situation in 2025 and a number of international travelers, involved in the election process and human rights, visited Bangladesh, said officials of Election Commission and international development organizations.

According to the Bangladesh Tourism Board (BTB), 655,000 foreign tourists visited the country in 2024, marking a modest recovery from pandemic-era lows but falling short of 2019’s pre-pandemic figures of 621,131 visitors.

With a long-term vision, we should give more importance to the tourism sector and prepare an innovative plan for developing the Tourism infrastructure and tourist spots having modern amenities.

Bangladesh Parjatan Corporation can improve and protect, preserve historical, religious, cultural and architectural sites across the country with relevant government agencies and relevant stakeholders that will help attract local and international tourists., said a director of Bangladesh Tour Operators Association (TOAB)

To attract tourists in great numbers, Bangladesh needs to improve its infrastructure, construct a good number of hotels in Dhaka, Chittagong, Sylhet, ensure safe movement of tourists, and improve road and rail networks.

He said Bangladesh missions abroad can hold discussion meetings with leading cultural personalities to highlight our Bengali culture including different festivals like Pahela Baishakh to woo tourists in the region. Branding of Pahela Bhaishakh abroad can also help attract tourists to visit Bangladesh and to enjoy Bengali festival with our Bangladeshi citizens in major cities. Pahela Baishakh has turned out to be national festival in the last 20 years-irrespective of religion, cast, race and creed.

Tourism industry has great potential to boost the economic growth and GDP.

He said with the emergence of new middle and upper middle class consumers along with rich consumers, the hotel business will enjoy a healthy growth in the days to come. He said local Bangladeshis are now increasingly spending money in restaurants and hotels that also lead growth in the hospitality sector.

Meanwhile, entrepreneurs and businessmen are expected to put new investment in the sector as political government is restored in the country as the interim government held a credible parliament on February 12, 2026.

Bangladesh’s foreign tourist earnings fell by USD 13 Million in 2024, dropping to USD 440 Million from USD 453 Million a year earlier, according to ADB data.

Sources said that the room service of the Le Meridian Hotel, Radisson Water Garden and Westin share 70 per cent of total earning, while restaurant and ballroom service share the rest 30 per cent of the business.

The room service of the Intercontinental Hotel, Pan Pacific Sonargaon Hotel and Holiday Inn share 30 per cent earning, while restaurant and ballroom service share the rest 70 per cent earning of the business, sources said. The industry posted some 4/5 per cent growth in the past 20 years that slowed to zero per cent or very nominal in the last one year.

The political violence, vandalism and deteriorating law and order situation stood in way of tourists during the July-September period of 2024.

The situation has improved since the political government intervened in bringing out the law and order situation under the control

Sources at the hotel industry said Chinese clients shared 40 per cent, Indian clients 30 per cent, and American, Canadian, Australians and European clients shared the rest 30 per cent of hotel guests.

The number of guests at posh hotels like Westin Hotel, Radisson Water Garden Hotel, and Le Meridien, Pan Pacific Sonargaon Hotel, Intercontinental Hotel has started increasing this month as top Chief Executive Officers of the multinational companies, representatives of readymade garment buyers, leaders of donor agencies and NGO leaders either cancelled and rescheduled their visit to Bangladesh.

Bangladesh can mull over replicating success stories of the hospitality and tourism industry of Malaysia, Indonesia, the Maldives, India, Vietnam and Sri Lanka to give a boost to the national economy, said a tourism expert.

According to the Bangladesh Tourism Board (BTB), 655,000 foreign tourists visited the country in 2024, compared to 2019’s pre-pandemic figures of 621,131 visitors

Meanwhile, Bangladesh’s economy is estimated to grow by 4.0% in fiscal year 2025 (FY25), rising to 5.0% in FY26, according to the Asian Development Outlook (ADO) September 2025, released by the Asian Development Bank (ADB).

Bangladesh can mull over replicating success stories of the hospitality and tourism industry of Malaysia, Indonesia, the Maldives, India, Vietnam and Sri Lanka to give a boost to the national economy, said a high official of the Hotel Intercontinental Dhaka.

Bangladesh is rich with natural and historical sites that uphold our glorious past from century to century. “Tourist spots, including our heritage, will have to be highlighted in a smarter way to the foreigners,” President Hamid said.

A high official of the Westin Hotel opined the country needs international standard hotel management institutions to produce and groom skilled manpower required in the sector. He said the existing institutions and traditional courses offered by universities and some institutions can’t produce the trained manpower required in the industry.

To attract more and more tourists and ensure a hassle-free arrival here, the government has decided to provide port visa to foreign nationals, including those of Bangladesh origin. Immigration officers at the port of entry- airports and land ports – are supposed to approve this after examining all the relevant documents.

“To ease the visa system for tourists, our persuasion from the Ministry and Bangladesh Tourism Board is always there,” former Chief Executive Officer (CEO) of Bangladesh Tourism Board (BTB) said.

A government official said the visa regime of Bangladesh is quite tourist-friendly and Bangladesh missions abroad always accord visas to the tourists at the shortest possible time.

He, however, said it may attract more tourists if the visa-on-arrival process is eased further. Talking to this correspondent, a diplomat said, “We’ve offered the privilege of on-arrival visa to a number of countries. We don’t know its impact on our tourism sector and it’s high time we found that out. It would help us take appropriate measures accordingly.”

The tourism industry is considered as a major source of foreign currency earnings for countries like India, Malaysia, Thailand, Maldives, Spain, Switzerland, Nepal, UAE, the Maldives, Indonesia, Singapore and many more. He said Bangladesh a number of attractive tourist places like ancient Buddhist monastery in northern region, the largest sea beach in Cox’s Bazar and the largest mangrove forest Sundarbans in Khulna district in the southern part of the country.

Bangladesh has to transform the structural features of our cities and tourist spots in keeping with the tourism centric structures of some Asian countries like Singapore, Dubai and Kuala Lumpur. The focus should also be given to domestic tourism industry as around nine million domestic tourists travel across the country in a year. Bangladesh has the longest sea beach, Cox’s Bazaar, the largest mangrove forest, the Sundarbans, lush green hills and villages, historical monuments, beautiful rivers, lakes and haors and many more attractive things which are to be exploited.

Former Kuwait Ambassador to Bangladesh Adel Mohammed A H Hayat in an interview said that Bangladesh is a beautiful country with mind captivating landscape. It has the world’s largest mangrove, the Sundarbans and the largest unbroken sea beach in Asia. Although local tourism has picked up greatly, foreign tourists are not too familiar with the country. Bangladesh needs to invest more in the tourism sector and develop the infrastructure facilities and entertainment facilities.

The construction of international hotel chain Marriott, Hilton, Novotel, Sheraton, InterContinental Holiday Inn, Marriott Courtyard and one more Westin hotel is going on.

As demand grew in the last 20 years, a number of posh five-star hotels are being built in the country’s two main cities and these hotels would be ready for the guests within five years.

In the last 25 years the country has witnessed opening of pose hotels including Five-Star hotels like Radisson Blu Water Hotel at Chittagong, DuSai Resort & Spa in Maulvi Bazar, The Peninsula Chittagong, Amari Dhaka, Long Beach Suites Dhaka, Le Meridien Dhaka, Six Seasons Hotel in Dhaka, Four Points by Sheraton in Dhaka, Rose View Hotel, Hotel Valley Garden and Nazimgarh Garden Resort in Sylhet, Long Beach Hotels in Dhaka and at Cox Bazar, Grand Sultan Tea Resort & Golfin at Maulvi Bazar showing that Bangladesh is becoming a success story in the hospitably industry.

During this time, The Westin, Radisson Blu Water Garden, Amari, Six Season, Four Points Sheraton, Le Meridien, Sarina and Regency have been opened.

According to the Bangladesh Parjatan Corporation’s latest data, while tourism accounts for around 10 percent of global GDP, its contribution to Bangladesh’s GDP remains only 3 percent.

In contrast, all of Bangladesh’s neighbors—India, Nepal, Bhutan, the Maldives and Sri Lanka—boast stronger tourism sectors. The World Travel & Tourism Council (WTTC) reported that India earned 3.1 trillion Indian rupee ($ 37 billion) from tourism in 2024.

According to the Nepal Rastra Bank (NRB), tourism income rose from NPR 62.3 billion in FY 2022-23 to NPR 82.33 billion in FY 2023-24, contributing 6 percent to the country’s GDP. In 2024, Nepal welcomed nearly 1.2 million foreign tourists, compared to just around 650,000 in Bangladesh.

Even Pakistan ranked above Bangladesh at 101st position on the WEF’s latest Travel and Tourism Development Index 2024, scoring 3.41 out of 7 compared to Bangladesh’s score of 3.19.

The Pakistan Business Council estimates tourism contributes over 5 percent to its GDP, generating nearly USD 20 billion in 2024—far higher than Bangladesh’s earnings of under USD 3 billion.

The Maldives remains the most tourism-reliant economy in South Asia, with 68 percent of its GDP dependent on the sector. Over 1.5 million tourists visit the island nation annually, each spending an average of $ 2,500, according to its statistics bureau.

Sri Lanka, despite economic setbacks, managed to increase foreign tourist arrivals and income. An Asian Development Bank (ADB) report noted that India’s tourism receipts grew from $ 32.2 billion in 2023 to $ 35.02 billion in 2024. Sri Lanka’s income also rose by $ 1.01 billion year-on-year to $ 3.17 billion.

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