Bangladesh needs policy overhaul, investment push to unlock tourism potential

Dhaka : Bangladesh needs coordinated government policies, stronger private-sector investment, improved infrastructure, and a larger skilled workforce to turn tourism into a major driver of economic growth, industry leaders and policy experts said on August 8.

The call came at the formal launch of the Travel and Tourism Development Centre (TTDC), a national platform focused on sustainable development in Bangladesh's tourism, hospitality, and aviation sectors through public-private collaboration.

The launch was held at Hotel InterContinental Dhaka, followed by a high-level panel discussion featuring Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA); Dr. Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD); Ahmed Yusuf Walid, President of Galaxy Group; and Ashwani Nayar, Area General Manager of IHG Southwest Asia and Cluster General Manager of Crowne Plaza and InterContinental Dhaka Airport. The discussion was moderated by Sadia Haque, Executive Committee Member of TTDC.

Global branding needed

Chowdhury Ashik Mahmud

Chowdhury Ashik Mahmud Bin Harun said Bangladesh needs a stronger international identity as a tourism      destination.

"We need to brand Bangladesh," he stressed, adding that funds have already been allocated for tourism promotion. He said the government recently discussed tourism strategies with Prime Minister Tarique Rahman and decided to appoint a global firm to develop a tourism branding strategy.

The BIDA chief added the government is prioritizing tourism projects and encouraging private-sector participation in government-owned hotels through leasing arrangements. While tax cuts may be difficult, authorities should explore other incentives and support mechanisms for tourism businesses, he mentioned.

Policy implementation priority

Khondaker Golam Moazzem

Dr. Khondaker Golam Moazzem said private investment must play a central role in tourism development, while the government needs to provide a supportive policy environment.

Bangladesh has introduced numerous tourism policies, but implementation has remained weak, he claimed.

"It is time we started implementing policies," Moazzem noted.

He also highlighted the fragmented nature of tourism governance, noting that around 18 ministries are involved in the sector. Greater coordination among agencies is therefore essential.

Moazzem called for wider e-visa facilities and simpler business visa procedures, saying easier visa access could increase international arrivals. He also urged the government to reduce VAT on tourism businesses while improving tax compliance.

Hotel shortage could widen

Ashwani Nayar

Ashwani Nayar highlighted the gap between Bangla-desh's tourism ambitions and its hospitality infrastructure.

He said travel and tourism contributes about 10 percent of global GDP, compared with around three percent in Bangladesh, leaving substantial room for growth.

Dhaka currently has only around 15 to 20 three- to five-star hotels with roughly 3,000 rooms, while the city needs an additional 7,000 rooms, Nayar expressed. The shortage could become more serious after the Third Terminal at Dhaka Airport becomes operational.

He called for incentives to attract foreign investment in hotels and emphasized the need for budget, midscale, and upscale properties.

Nayar also stressed the importance of domestic tourism, saying the local market could provide a strong foundation for industry growth.

Investment, skills gaps

Ahmed Yusuf Walid

Ahmed Yusuf Walid said Bangladesh should capitalize on its large domestic market while increasing international arrivals.

He called for tax incentives for airlines and hotels similar to those offered to export-oriented industries. Inbound tourism can generate valuable foreign exchange, but the sector requires long-term investment and often delivers slower returns, he informed.

Walid also highlighted shortages of skilled workers in aviation and hospitality. Bangladesh lacks an IATA-accredited training center, while existing aviation training facilities produce limited numbers of graduates.

The hotel industry also needs substantially more trained personnel, he claimed. Bangladeshi hospitality professionals are increasingly moving abroad for better-paying jobs, underscoring the need to create stronger career opportunities at home.

The speakers agreed that tourism development is closely linked to aviation, hospitality, infrastructure and workforce development. TTDC is expected to provide a platform for government agencies, investors, businesses, and industry experts to develop coordinated strategies and help unlock Bangladesh's tourism potential.