Ministry seeks tighter regulation on unlicensed lodging establishments in the tourism sector
The tourism industry in Bangladesh is undergoing significant changes, with a focus on regulation, enforcement, and strategic partnerships.
The Ministry of Civil Aviation and Tourism has taken a decisive step to improve the industry's standards by ordering a nationwide crackdown on unregistered hotels, particularly in popular tourist destinations like Cox's Bazar, where about half of the hotels are not registered[1]. This move aims to ensure compliance with safety and operational standards, potentially enhancing the overall tourist experience and trust in the industry.
One of the main challenges faced by the industry is the presence of unlicensed hotels. Many hotels in various tourist areas, including Cox's Bazar, are operating without ministry approval, some falsely claiming star status[2]. This not only affects the quality of service but also costs the government significant revenue annually[3].
To address this issue, hotel registration requires district approval and a No Objection Certificate (NOC) from the Hotel and Restaurant Cell of the tourism ministry[4]. The Hotel Cell under the ministry will supervise licensing going forward[5].
In a bid to boost the industry, Wyndham Hotels & Resorts is expanding its growth in Bangladesh, India, Sri Lanka, and Nepal through a new strategic alliance with Cygnett Hotels & Resorts[6]. This partnership aims to add over 60 hotels across the four countries in the next 10 years, introducing brands like La Quinta by Wyndham and Registry Collection Hotels to the region.
Despite these efforts, high prices and poor service during peak seasons have frustrated tourists[7]. Abu Tahir Muhammad Zaber, CEO of the Bangladesh Tourism Board, attributes high prices to elevated bank interest rates and high import taxes on hotel supplies[8]. Masum Iqbal, CEO of Sea Gull Hotel, states that it's not possible to run a star hotel without government approval[9]. Industry insiders claim the government loses significant revenue annually due to widespread unregistered hotels, particularly in tourist hubs like Cox's Bazar[3].
To facilitate easier travel for tourists, the visa on arrival policy is being promoted[4]. The Bangladesh Tourism Board is also focusing on local promotional events and international tourism fairs to enhance the country's visibility as a tourist destination[3]. However, funding remains a challenge.
In conclusion, while Bangladesh has significant potential in the tourism sector, regulatory challenges, infrastructure issues, and a lack of strong branding hinder its growth. Upcoming developments include stronger regulatory enforcement and promotional activities aimed at enhancing the tourism industry's competitiveness.
- The enhancement of overall tourist experience and trust in the industry could be further boosted by promoting financial transparency and adherence to business standards, as this would help combat the issue of unlicensed hotels and ensure a consistent, high-quality service across all registered establishments.
- The financial implications of widespread unregistered hotels in popular tourist destinations are far-reaching, affecting not only the industry's reputation but also the general-news surrounding the nation's economy, as revenue lost to unregistered hotels could be channeled towards economic development and lifestyle improvement initiatives.
