Tourism Industry – Term Paper

Tourism Industry of Bangladesh Term Paper International Business BUS 301 Submitted on: 20th July 2014 Letter of Transmittal Sub: Submission of term paper for completion of academic course Dear Madam, This is to inform you that we have completed our term paper on Tourism Industry of Bangladesh for the Summer 2014 semester as a requirement of our academic course International Business (BUS 301 The report encompasses on the functioning, organization, growth prospect, and other Important facets of tourism In Bangladesh.

Through this report a bridge between our classroom learning about the theories and he reality of tourism Industry In Bangladesh has been established. It was, Indeed a great opportunity to study this industry of our own country. For extending our scope for learning, we shall like to take this platform to thank you. In writing this report, we have followed your instructions for report writing so as to present our views and understanding in the easiest possible ways. However, it will be our pleasure to clarify any discrepancies that may arise.

Thank you in anticipation. Acknowledgements On the very first note we will like to thank the Almighty for helping us to complete this paper. It has been an honor and privilege to work with all those wonderful people who have contributed something of theirs to this paper. There are certainly some special ones who cannot go without mention. We express our humble gratitude to our respected faculty Ms Seedy Carnaubas Shabby, for her continuous support, assistance, guidance, and encouragement that has helped us sparing her valuable time to read this report.

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Table of Contents Executive Summary 5 6 8 8 Industry 12 Export growth 19 Industry production . 24 policy 30 value 39 This report provides detailed information about tourism industry in Bangladesh in the light of international business. It provides an industry overview, size and growth, domestic market, related export and import, industry capacity, industry segment, squired resources, policy initiatives, demand drivers, value chain, and industry analysis under Porter’s Diamond model.

The theories which have been learned on Bangladesh tourism industry so that the actual functioning of the theories can be witnessed. Bangladesh is a land enriched in natural beauty. It has a rich history and cultural background that presents that presents it with a wide array of tourism facility. In order to make the best use of the natural resources and historical sites the country has developed modern facilities like hotels, motels, restaurants, theme parks, ND other recreation and communication modes.

The emergence of globalization have facilitated this industry and contributed to the country’s GAP in a sustainable manner. Furthermore, it is also assisting other related and supporting industries to rise. Several international players have highlighted Bangladesh positively as a tourism destination during the last couple of years. The worldwide Endorsers of Nature campaign included Sandbars and Cox’s Bazaar among more than 440 candidate locations from 220 countries. Along with only 27 locations Sandbars is still a part of the competition.

World leading publisher of travel guides and guidebooks, Lonely Planet, recommended Bangladesh as one of the top ten interesting travel destination in 2009. New travel guides have been published on Bangladesh by international renowned publishers. There should be no doubt, national as well as international; the Bangladesh tourism sector has indeed potential. But to make a successful international tourism destination it is Just not enough that Bangladesh has an interesting history, culture, nature and society to show – much more is required.

Tourism sector of Bangladesh needs to be boosted through tragic management to raise gross domestic product of the country. As such linkage among vision, mission, goal and result are required. This will enhance tourism opportunity of the country. Introduction This academic report has been prepared with the aim of studying tourism industry of Bangladesh. The main intention was to have an elaborate understanding of the industry in order to comprehend this industry as an internationally recognized industry.

Specific objectives General study on the industry – industry size, growth, capacity, domestic market, etc ; Analyze the export opportunities and potentials of this industry and the related imports that are being drawn by this industry ; Extensive learning on the industry production capacity, human resource and other factor requirements, policy initiatives, and demand facilitation ; Learn about the value chain of this service industry ; Incorporating theories with actuality Scope of the report The report consists of details analysis of tourism industry in Bangladesh from multiple dimensions.

Thorough inclusion of theories and examples has enriched the report. This may be used for future academic and professional use to some extent. The keen analysis of issues can be effective if it is nurtured further. Methodology For this report mainly secondary sources have been used for data collection and analysis ; Text books Websites Journals Other reports and publications The major limitation of this report is that it is strictly based on secondary data. No primary research has been conducted.

An overview of various matters has been brought forward, but it is deficient in terms of objectivity to a little extent. Therefore, much elaborate research and groundwork has not been conducted. Furthermore, access to recent data few cases proved to be challenging. Outline: Tourism in Bangladesh is a developing foreign currency earner. The country was listed by Lonely Planet in 2011 as the “best value destination”. Bangladesh tourist attractions include, historical and monuments, resorts, beaches, picnic spots, forests and tribal people, wildlife of various species.

Bangladesh offers ample opportunities to tourists for angling, water skiing, river cruising, hiking, yachting, sea bathing as well as bringing one in close touch with pristine nature. In the northern part, imprisoning the Rajahs division, there are archaeological sites, including the temple city Putrid in Rajahs; the largest and most ancient archaeological site, Manslaughter in Bogart; the single largest Buddhist monastery, Paragraph in Mango; the most ornamental terracotta Hindu temple in Bangladesh Kantian Temple, and many Raisers or palaces of old Seminars.

In the south-eastern part, which is the Chitchatting division, there are natural and hilly areas like Chitchatting Hill Tracts, along with sandy sea beaches. The most notable beach, in Cox’s Bazaar, is a contender for the title of longest unbroken sandy sea beach in the world. Cox’s Bazaar is the longest natural unbroken sea beach in the world. In the south-western part, the world with Royal Bengal Tiger and spotted deer. The historically and architecturally important sixty domed mosque in Begetter is a notable site. In the north-eastern part, Sylphs division, there is a green carpet of tea plants on small hillocks.

Natural reserved forests are great attractions. Migratory birds in winter, particularly in the hoar areas, are also very attractive in this area. Overview of the Industry Ministry of Tourism and The Civil Aviation Ministry design national policies for the velveteen and promotion of tourism. The Ministry also maintains the Beautiful Bangladesh campaign. It was an ancient state founded around 300 BC where Bengal region (Bangladesh and West Bengal) lies today according to the information available from Wisped.

Greek, Latin and Egyptian accounts about Sangria suggested that the country was located in the detail region of South Bengal. In many meetings, conferences, talk shows, seminars and travel fairs that were held in Dacha, the principle speakers including the tourism minister and senior tourism officials speak about tourist arrivals and tourism revenue. But these figures are not accepted as reliable by many users, because their mode of collection is not often dependable.

The “tourist arrival” figures are calculated on a monthly basis by the police department from reports at the entry check points and not by professionals. The foreign exchange figures are released by the Bangladesh Bank on the basis of returns furnished by the stakeholders of the tourism industry. While reports from tourism earnings are regular, the reports on tourist arrivals lag behind by years for reasons only known to government. During the last five years (2006-2010) Bangladesh achieved a total number of 15, 29,000 visitors and earned IIS$ 413. 00 million.

In order to make these figures more reliable at the national and at the international levels, steps should be taken by the government to modernize the methods of collecting such statistics. There is a Tourism Satellite Accounting System for aggregating the figures of tourist arrivals and earnings, which have been introduced by the United Nations World Tourism Organization (UNTO). Bangladesh, a founding member of the UNTO, should avail this technical assistance from UNTO under the ‘digital’ Bangladesh program for streamlining these compilations.

The World Travel and Tourism Council (WATCH) and UNTO reports say that international arrivals have been positive in 2012, although in the Euro Zone, due to sovereign debt issues and national austerity policies, tourism spending has declined. The pace of growth in the developing countries, including Bangladesh, is faster than in developed nations. Tourism and the resultant employments in the sector fluctuate with every major incident that affects the world; namely the global melt-down of banks, climate change, Tsunami and incidents like Arab spring.

In order to adjust to the fluctuations, major tourist destinations adjust their tourism policies in time. The US government is very much awake to the problems of fluctuations. President Obama in January last year signed a law, The Travel Promotion Act 2010, to take steps in keeping domestic tourists at home and to attract more inbound tourists; keeping in mind that the number of Chinese visitors is expected to grow by 259% in the next 5 years and the number of Brazilian tourists is expected to swell by 83%.

The US government is also liberalizing entry formalities by waving/relaxing the visa rules and allowing the undertaking giant travel promotion campaigns in their market areas and using high- profile spokes persons, websites, social media tools to work together to bring together interesting “traveling opportunities” to the international public and the traveling professionals.

Comparing the situation of US, which look at all the problems affecting the globe with Bangladesh, may sound utopian but the point that is being made here is that the Bangladesh government should learn from the best practices in tourism development, and activate the government outfits to respond to the modern marketing needs. Industry Size and Growth The government created the Tourism Board in 2009, in addition to the Bangladesh Parental Corporation, which existed for the last 40 years to expedite the growth of tourism in the country.

It now appears that both the organizations are less active in their divided filed of activities. It has been learnt from a very senior officer of the Bangladesh Parental Corporation that during the last financial year (2011-2012), the government allocated TX. 650. O million to the Board for promoting and branding Bangladesh. A bulk of this allocation has remained unused. During the last year, the Board participated in some international tourism fairs but their presentations were the poorest due to a lack of experience.

The Board is composed of 11 representatives drawn from various ministries of the government and 5 directors from private sectors, who do not directly transact with any tourism business. The Board is supposed to meet once in every 2 months to transact business but nothing is known about their activities. The Board does not inform the print and electronic media. There is a National Tourism Policy in the country and there is a National Tourism Council headed by the Prime Minister.

But nothing is known to the public about the activities of this high level council. At present Cox’s Bazaar, an unplanned beach town, having nearly 450 hotels and the motels, experiences seasonal traffics; and all kinds of illegal activities are conducted there, according to personal experience of some local and many foreign tourists and some official who work in the hotels there. The Ministry of Civil Aviation and Tourism, despite its existence from 1975, has not been able to bring out any official hotel guide, travel agents guide and tour operators guide.

The minister is generally seen performing routine functions such as banning mooing in tourist hotels (government by a law) has banned smoking in public places inauguration of 3-4 travel fairs in a year and these travel fairs promote foreign destinations, rather than domestic tourist centers. Many promises came from the minister pretty fast before the listeners in the recent past, but the follow-up by his ministry remained pretty slow. At present, despite some investment in putting Bangladesh on the international tourism map, there has been a significant failure to make any real impression.

The first priority for any Marketing and Communications activity is to rectify this failure. The government must define the key target audiences; analyze what the target group needs: history, archaeology, culture, heritage, cuisine and shopping; create affordable flights and facilitate travel documentation including making visas easy and accessible, especially for potential travelers from key markets (US, Europe, Australia, Japan and China).

The present unhelpful attitudes of missions aboard and at the entry points to harass foreign travelers have to be rectified. It must be understood that welcoming the tourists and accommodation. Because of the very absorbing capacity of this industry which is influenced by the functions of many ministries, departments and private sector enterprises, the scope of tourism activities have expanded.

UNTO, WATCH, ILL and UNESCO say that: tourism can generate revenue in areas of high biodiversity; tourism can raise public support for conservation since it can provide environmental education to visitors and local/rural people; tourism can catalyst economic opportunities for local/rural people; tourism can be less environmentally damaging than other revenue generating industries based on natural resources; tourism may be one of the few economic activities suited to take place within conservation areas coated on marginal land and tourism based on natural resources can theoretically be sustainable if its impacts are managed and mitigated.

The multiplier effect of the tourist dollar bigger, as the dollar changes hands through 13 beneficiaries within the country. Most destination countries have superb five-star resorts and attractions, unique culture, landscape and heritage. Each place describes itself as having the friendliest people, and high standards of customer service. As a result, the need for destinations to create an identity -? to differentiate themselves from their competitors -? is more critical than ever.

The ‘Beautiful Bangladesh’ slogan, upon which such activities are based at present, is common place and uncompetitive, in a highly sophisticated and competitive market. The work behind branding this nation should be done in Bangladesh, in consultation with sociologists, economists, researchers’ economists and environmentalists. Tourism product development is designed to increase the income in the sector by implementation of a comprehensive plan of action that will guide towards dealing with estimated increase in business over the short, medium and long-terms.

The strategies for the development and management of tourist destinations should, therefore, consider the needs and interests of all stakeholders in the tourism system: local/rural community, entrepreneurs, investors, governments, tourists and others. Tourism development needs social dialogue including negotiation, consultation and exchange of information between government, employers and workers on issues of common interest. The goal is to promote consensus building and democratic involvement with the stakeholders of tourism.

This should start now and the existing gap be filled. Not only does the lands of Bangladesh have a history that goes back as much as 5,000 ears as an early civilization, an early international center of trade and commerce, it has the tangible, as well as the documentary, circumstantial and empirical evidence to demonstrate that through the centers of tourism attractions. Domestic market The attraction of tourism of a country depends upon its geology, natural beauty, heritage, archeology and history.

Bangladesh, the ancient state founded around 300 BC is now a land of 154. 7 million people with an exponential market in tourism industry. With over 8% registered growth from the year 2000 to 2013 the domestic tourism market is full of potentials and opportunities. The domestic tourism of Bangladesh continues to be driven by major cities, like Dacha, Chitchatting, Rajahs and Sylphs etc. And mountain destinations for instance Reanimating, Geographic, Bandore.

The locations hosting the massive salt water body like Kuwait, Cox’s Bazaar are also the prime intention of native travelers plus the islands across the Bay nowadays regard personal well-being and relaxation as key factors in refreshing their daily lives, the home tourism flow showed smooth growth over the years and the stream of people in the popular tourist attractions rise in its peak in time of three ajar occasions-in the winter and after two Did festivals; Led-LU-fitter and Did-LU- dada.

Over year growth of domestic tourism Year Growth rate (Based on the number of trips and revenue from tourism sector) 2009 – 20104% 2010- 20116% 2011 – 20127. 25% 2012- 20138% To lodge this huge and consistent in ward flow of travelers in these cities, hotel and resort business flourishes impressively. Range of national and international hotels mounts in at the popular tourist destinations to give the travelers a sense of relief and relaxation from the monotony of city hustle and bustle. Hotel Roseville, Hotel Supreme and Maximizing resort are the popular choice of Sylphs.

In Chitchatting, Hotel Graded, Hotel Costal Palace, Seagull hotel are operating in full swing. Hash’s Inn, SUB Hotel International, Parental Motel etc. Are doing their business in Rajahs. In Ranging Parental Motel, Shah Manta Inn and Hotel North View are the first choice of the customers. Reports Bangle (hotel). Dacha Regency hotel, Platinum Suites are few among the range of hotel experience anyone can enjoy in the capital city of Bangladesh. Few top ranked hotels and resorts of Bangladesh tourism industries are Resort/ Hotel Special Features and Location

Dacha Weston Location: Goulash Avenue, Plot-01, Road 45, Dacha 1212, Bangladesh. Height : 85. 91 m (281. 9 Ft), Rooms : 241 Restaurants : 6 , Floors count : 24 Hotel Garden Inn Fully air-conditioned rooms, gym facility, Wi-If advantage, sports zone, rent a car service, conference hall, separate swimming pools. Location: Sleet, Garden Tower, Shah]all Bridge Link Road. Radios Blue Water Garden Five star hotel services, with spa, health club and pool, business lounge facility, free WI-IF, grab and run late checkout facility, expressed checkout and one touch service. Location: Airport road, Dacha Cantonment, Dacha 1206.

Coral Blue Only resort in SST. Martins. Facilities for diving, 24 hour reception Apart from the travel to cities and favorite destinations; local festivals and traditions fiestas as well as food tourism and cultural activities are increasingly driving Bangladesh countrymen to discover their nation state more exclusively than ever before. The food industry literally starts booming from the years of the recent past. A number of local and international food courts and restaurant chains are introduce and they are plating high quality international standard recipes with local style, spices and taste in it.

To mention few names, international chain restaurants like KEF, Pizza hut, A, Node’s and native delights like Nana barbarian, Beauty leach, Mistake chap, Handier barbarian will come upfront. Major tourist attractions of Bangladesh Although there is room for improvement in tourism industry, still there exist a handful of tourism spots for visits. These limited facilities are concentrated in some places, like Dacha, Chitchatting and Sylphs Divisions. In Chitchatting Division, the site seeing facilities are mainly located at Cox’s Bazaar, Reanimating, Saccharine and Bandanna districts.

Maintain at Comical is an important archaeological site and Alabama Fort in Dacha is a great historic site. In Sylphs Division, the major tourist attractions are located mainly at Gaffing, Manhandled, Tea gardens and the Shrines of Hardhat Shah Jail and Shah Porn. Some renowned attractions in Rajahs Division are Cantata’s Temple, Swapping, Rampages and Raja at Dinosaur, Paragraph at Nonage, and Manslaughter at Bogart. In Kulak Division, some attractions are Shutterbug Mosque at Begetter and Sandbar, the largest mangrove forest in the world, is located in the southern part of Kulak Division along the Bay of Bengal.

This mangrove forest has been declared as a World Heritage site. There is no denying the fact that, Bangladesh has not made enough efforts to preserve and develop its tourism sites of historical, cultural and environmental interests and that is reason why Bangladesh is not earning as per the expectation from this prospective industry of tourism. Considerable efforts of the Government as well as private sectors are necessary here to make this industry flourish so that the domestic market can rise and people of our country gets more interested in discovering their own country ether than visiting other countries as holiday destination.

Export growth regarding size and market In tourism industry export is regarded as percentage (%) of total export; which is basically the international tourist receipts (% of total exports) in Bangladesh. An international tourist receipt means the expenditure by international inbound visitors, including payments to national carriers for international transport. These payments include any other payment made for goods or services received in the destination country. The data shown in the graph shows that international tourist receipts got a onwards trend with some fluctuations.

There is lack of budgetary allocation and scarcity of trained people for the development of tourism sector in Bangladesh and to international tourist through advertisement in international print and electronic media. Eventually these factors lead to a stagnant growth rate and make the tourism industry a slow operating revenue generating entity. The data shown in the graph reveal that foreign earnings got a rhythmic upward trend for the first 6 years(2001-2006) and then it remained almost stable for the following few years (2006-2010).