Tourism sector reels from virus outbreak


Kamrun Nahar | Published: April 11, 2020 08:48:41 | Updated: April 14, 2020 20:02:44


File photo used for representational purpose

The domestic tourism industry, hardest hit by coronavirus, has downsized its manpower by 5,085 in the past three months since January, according to a survey.

In its report styled 'Impacts on Bangladesh Tourism and TOAB due to COVID-19', the Tour Operators Association of Bangladesh (TOAB) also claimed to have already lost Tk 15 billion.

During the period in question, the holiday business has suffered revenue losses in inbound, outbound and domestic tourism, ticketing, joblessness, salary expenses and office rent.

The total loss would be more than Tk 59 billion in 2020, the TOAB said, adding that stakeholders would need two years to recover from this damage.

Air travel restrictions and lockdown across nations have led to cancellations of group packages, umrah hajj, airline tickets and hotel bookings.

An estimated 4.0 million people are directly or indirectly working with tourist industry in Bangladesh.

The sector involves tour operators, travel agents, tourist transportation, hotel, motel, restaurant, resort, airlines, cruising and tourist guides.

According to the report, the TOAB has 678 members, mostly small and medium investors, with each employing 20 people, on average, making a total of around 14,000.

The stakeholders in the tourism sector from marginal groups include tourist guide, interpreter, photographer, small and cottage industries, homestay families and street food vendors.

Since January 2020, inbound tour operators under the TOAB have incurred Tk 1.8 billion in losses, outbound operators Tk 3.40 billion and domestic Tk 933 million.

The amount of loss in ticketing during the same period was Tk 3.05 billion by TOAB members, salary expenses Tk 803 million and office rent Tk 169 million.

With this end in view, the TOAB has sought a Tk 300-billion rescue package for the hospitality sector.

The money can be given as working capital to pay salaries, office rent and bank loans from the bailout package announced by the prime minister.

TOAB member Mahbub Hossain Sumon said, "I have to pay Tk 0.8-million salaries to my hotel staffers in Cox's Bazar alongside the monthly operating costs of Tk 2.0 million."

"I've paid them the salary for March and advance salary for April for the lockdown, even though the hotel is fully shut. There will be no business in Ramadan also."

"Despite all odds, I'll pay them like many hoteliers." Mr Sumon told the FE.

"I can't cut jobs as I need experienced staffers for better service after the outbreak is over and we start operations again…" he cited.

Seeking anonymity, a Gulshan-based hotelier said many hotels have already shed jobs after paying full salary for February and half salary for March.

They will no more pay salaries for the upcoming months as the hotels are totally empty, he added.

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