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4 years ago

‘Big blow to country’s growing tourism & hospitality industry’

Triune Group managing director Kazi Wahidul Alam is seen in the image. — FE Photo
Triune Group managing director Kazi Wahidul Alam is seen in the image. — FE Photo

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Global spread of COVID-19, the disease caused by the virus SARS-coV-2, and its containment measures, including a ‘lockdown’ in Bangladesh, have already appeared as a very big blow to the country’s tourism and hospitality industry, observed an aviation and tourism expert.

He also expressed concern that there will be big job cuts and it will take a long time for the country’s growing tourism and hospitality sector to rebound.

“Tour operators have stopped their activities, travel agencies have stopped selling tickets and are struggling to refund their clients,” said Kazi Wahidul Alam, managing director of Triune Group, while talking to The Financial Express on Monday.

“Many travel agencies here run their business by operating Hajj and Umrah tours,” he added. “Saudi Arabia has put restrictions on Umrah in a bid to contain the coronavirus. We are also not sure what will happen regarding Hajj if the situation doesn’t improve significantly.”

“Be it business, pleasure or medical trip abroad, all are suspended now,” he added.

Due to the pandemic the World Tourism Organisation (UNWTO) also projected that international tourist arrivals will drop by 20.0 per cent to 30.0 per cent across the world this year.

As a result, international tourism receipts (exports) may decline between US$300 and $450 billion, almost one third of the $1.5 trillion generated in 2019 globally, it said.

Wahid said that a good number of quality hotels and resorts had been doing business in the country and the number was also growing.

“Five-star hotel InterContinental Dhaka started a fresh journey only a year back with huge investment,” he added. “Four-star Holiday Inn was set to open in Dhaka this month.”

“Now all of these hotels and resorts are facing almost zero occupancy,” he added. “How long would these be able to continue to bear huge financial losses?” he posed the question

Wahid, also a senior travel writer and editor of country's leading aviation and tourism fortnightly ‘The Bangladesh Monitor’, added that thousands of small and big restaurants across the country shut down.

“Over the years, dining out emerged as a big entertainment and social gathering and so these restaurants became vibrant,” he continued. “As no one is dining out due to lockdown, business of the restaurants was also wiped out.  Many young people employed by these restaurants now face great uncertainty.”

The hotel and restaurant sector contributes around 1.0 per cent of the country’s Gross Domestic Product (GDP). In FY19, it posted 7.57 per cent growth adding Tk 79 billion to the economy.

Wahid was of the view that tourism and hospitality industry will face a very big job cut and many small and medium units will not reopen even after the return of normalcy in future.

Regarding the aviation sector, he pointed out that Biman Bangladesh Airlines has been trying to revive by procuring new aircrafts and opening new routes.

“As air travel snapped globally and domestically, Biman is in big trouble. It has to continue its lease payments and maintenance costs without any income,” he added.

Wahid also mentioned that private airlines are also facing a big crisis.

Currently three private airlines – NOVOAIR, US-Bangla and Regent – are in operation. Of these, Regent has closed its operation before the coronavirus crisis strikes.

Wahid was of the view that some incentive policy-package for the sector is a must to support the aviation, tourism and hospitality industry.

“Singapore is trying to stimulate the industry by providing some support,” he mentioned. “It has made the airlines parking charge zero, cut the handling charge by 10.0 per cent and annual fees by 50.0 per cent.”

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