Coronavirus: Tourism Sector Faces Loss Worth Tk 14,000cr

According to the Ministry of Civil Aviation and Tourism, the coronavirus epidemic has caused a loss of about Tk 14,000 crore to Bangladesh's tourism sector.

According to the Bangladesh Tourism Board, 4 million people involved in the sector have lost their jobs so far. At least one and a half crore people who depend on them are in grave danger.

Stakeholders have complained that this potential sector is still neglected in terms of government assistance.

Ranjana Saumi and her business partner have been operating two resorts in Sylhet and Khagrachari for the past few years.

They thought the potential sector could benefit them but the outbreak of the coronavirus at the beginning of the year has ruined everything.

Soumi says she has no income from the resorts for the last four months, on the contrary, she has to spend a lot of money to look after the places.

"I have done all the investment. But there is no income from March. I have to spend to maintain the resort. I have been forced to lay off staff. Those who have one or two cottages and live on their income are in a very bad condition," said Soumi.

No income for small traders related to the tourism sector

4 Million Manpower in Extreme Misery

Although there have been different tourist seasons since April, people have not been able to visit the tourist spots due to government restrictions and panic.

In such a situation, many have been forced to close down their businesses.

About 70% of the manpower involved in tourism is in extreme uncertainty about livelihood. As a number, it is more than 4 million.

The Bangladesh Tourism Board has said that at least 1.5 crore people who depend on them are in grave danger as they are unemployed.

The government needs to pay special attention to overcome this catastrophic situation, said Mohammad Shahidullah, Director of the Tour Operators Association of Bangladesh-TOAB..

"Everything related to tourism has been closed for more than four months. But the operating costs have not stopped. Bank interest, land rent, staff salaries, electricity and gas bills are still going on. Many have closed their businesses and moved to villages. Some have changed occupations," he said.

Caption Luxury hotels are empty due to a lack of tourists.

Loss of 14 thousand crores but...

According to the Ministry of Tourism, the coronavirus has caused a loss of about Tk 14,000 crore in the travel and tourism sector in Bangladesh.

On the other hand, the tourism industry of Bangladesh has lost about Tk 10,000 crore from January to June, according to the report of Pacific Asia Travels Association.

In such a situation, the tourist spots will be opened to a limited extent soon, said Mahibul Haque, Senior Secretary of the Tourism Ministry.

He also said that a policy should be formulated on how hotels, restaurants or entertainment spots will be run, especially those who will or will provide services.

However, traders involved in the sector can take mortgage loans from banks if they want, he added.

Although various tourism-related organizations have demanded help from the government, in reality, no one has been able to take loans on easy terms, complained Mohammod Shahidullah.

He said, "Those who do not have much need for loans are getting loans easily. While the tourism sector businessmen are sitting on the road. On the contrary, seeing businessmen in the tourism sector, personal loans are not being given."

He expressed concern that if this continues, the tourism sector will collapse.

Although the rainy season is crucial for tourism, people involved in this sector could not do any business.

Insignificant allocation in the budget

Despite the stagnation in the tourism sector over the past few months, no specific direction has been given and the recently passed budget does not reflect any efforts made to sustain the sector.

In the fiscal year 2020-21, a budget of Tk 5 lakh 8 thousand crores has been allocated for the civil aviation and tourism sector.

This time, the allocation for this sector has been increased by Tk 262 crore as compared to the last financial year, but it is not enough to meet the demand.

Of this, about 80% of the allocation has been earmarked for the civil aviation sector. The remaining Tk 625 crore has been allocated for other sectors of tourism.

Solution to this

It is not clear when the situation will return to normal. Uncertainty looms whether the tourism business will return to normal as soon as the outbreak subsides.

In such a situation, experts have insisted on insurance if people involved in the sector are provided loans on easy terms to keep them afloat.

Shamshad Nawrin, a teacher in Tourism and Hospitality Management at Dhaka University, has advised the government to formulate policies on how to maintain a business in tourist areas while maintaining security.

"If investors had been insured or if there were special incentives for them, it would have been possible to sustain the livelihoods of many people. Tourism involves many sectors of the economy, there is no room to underestimate it," she said.

Source: BBC Bangla
Translator: Apurbo Roy