Investment Opportunities

Bangladesh Tourism & Hospitality Industry

A small but beautiful country of smiling people which is located in the South Asia with a total area of 147,570 sq. km.

It shares borders with India on

the west, north and east and Myanmar (Burma) on the southeast. On the south, 66,400 kilometers of coastline merged into the Bay of Bengal.

Bangladesh - Overview

Bangladesh History Bangladesh came to today's shape through a long history of political evolution. Bengal was probably the wealthiest part of the subcontinent up till the 16th century.

The area's early history featured a succession of Indian empires, internal squabbling, and a tussle between Hinduism and Buddhism for dominance.

When the British took control of the region and created their Raj in India, Bangladesh was included. Later after the division India-Pakistan it was called East Pakistan. After 9 months of fight Bangladesh became independent on 16th December 1971.

Bangladesh ClimateBangladesh is a country of 6 seasons: Summer, Rainy, Autumn, Late-autumn, Winter and Spring.

The climate in Bangladesh is tropical and monsoonal.

In the dry season, from October to March, temperatures are mild and pleasant. The weather turns hot and muggy from March to June, awaiting the monsoon rains. From June to October, the skies open and drop most of the country's total annual rainfall.

Facts and Figures: Economy

Currently manufacturing and services are increasing in importance, and particularly travel and tourism sector posted 25% growth in 2014.

Bangladesh is a developing country, with per capita income of just about $1,314 US/year. Nevertheless, the economy is growing rapidly, with around 6% annual growth rate.

Facts and Figures: Economy One important source of income for Bangladesh has been

workers' remittances from the oil-rich gulf states such as Saudi Arabia and the UAE. Remittance inflow in Bangladesh is expected to see a record rise this year in the wake of recent reopening of labour market by Saudi Arabia and global economic recovery, says a World Bank report.

Non-resident Bangladeshis have sent remittances worth $15.3 billion during the just concluded 2014-15 FY, the highest ever in a single year. This is an increase of over 7% in the same period a year earlier, according to the Bangladesh Bank. A major portion of the remittance is from the workers involved in the hospitality industry.

Population: 170 million (Approx.)

Total GDP : 153.5 Billion USDGrowth : 6.12%Per Capita Income : $ 1314

Total Exports: 31.20 Billion USD

Total Imports: 29.37 Billion USD

Foreign Currency Reserve : 25 Billion USD

Bangladesh- A Brief Glimpse

Source : World Travel & Tourism Council

Economic Prospects

The manpower involved in hospitality industry will again play a vital role in this respect. Consumer and investor confidence are expected to pick up as the political situation stabilizes, strengthening growth momentum. In addition, infrastructure constraints will likely ease somewhat with the completion of ongoing projects, particularly the opening of new chain star hotels and power plants.

Growth in FY2016 is projected to accelerate to 6.4%, aided by higher remittances and export growth.

Education: “Skills Change Lives” Bangladesh do not lack infrastructure for grooming

skilled workers but there was a huge gap between what they learned at general, technical and vocational education institutions and what the country's industrial firms and the international market needed. “Skills Change Lives” is what job providers believe. Bangladesh's population is estimated to reach 180 million by 2030 from 160 million now and the size of the workforce will be 120 million two decades later.  

Unemployment Rate

The latest survey has revealed that the country's total unemployed persons stood at 2.58 million (2,580,000) in 2013 against 2.60 million (260,000) in 2010.

Currently, 47% Graduates in Bangladesh are unemployed according to a special report of world-renowned British magazine, The Economist.

Contribution to GDP

3.7 Billion USD

1.9 % of Total GDPContribution to Employment

28,46,000 Jobs

3.8% of Total Employment

Investment Pattern

0.98 Billion USD in 2014

Expected to rise by 7.6% over the next ten years

Source : World Travel & Tourism Council

Around

7.9%increase in GDP in 2014compared to 2013

Travel & Tourism Contribution

Domestic Tourists Spending is expected to grow about 6% in 2015

Around 5,94,000 Intl. Tourist Arrivals in 2014

3.46 Billion USD in Leisure Travel Spending

Business Travel Spending is expected to grow by 8.6% by 2015.

More number of travelers due to the developments activities in RMG, Energy Sector & Communication

Around

10,00000International

Visitors are expected

to travelin coming

Years

Visitors Arrival

Source : World Travel & Tourism Council

Significant Multiplier Effect on the EconomySustainable Livelihood

Poverty Alleviation

Heritage Conservation

Direct and Indirect Employment - Creates a large number of semi-skilled jobs for local population.

Third Largest Net Foreign Currency Earner

Infrastructural and Technological Development

Economic, social and environmental benefits, particularly in rural areas

TOURISM - A Potential Development Driver

Opportunity for Foreign Direct Investment (FDI)

Foreign investment, with particular preference to Foreign Direct Investment (FDI) is encouraged in all industrial activities in Bangladesh  including service industries. (Industrial Policy 1999)

For foreign investment, there will be no limitation pertaining to equity participation, i.e. 100 percent foreign equity is allowed. Fully foreign owned firms or joint ventures will in no way be obliged to sell their shares through public issues, irrespective of the amount of their paid-up capital.

FDI Inflow

In the last FY 2014-15 FDI inflow stands at USD 1,640 million where 700 million is reinvestment . Total Foreign investment (FI) for the same period was USD 3,000 million. (Source: Board of Investment, Bangladesh)

FDI increases and even reinvestment is made because there is steady growth in economic and tourism sector.

Bangladesh Tourism Industry – Past vs. PresentBangladesh has recorded impressive economic and social gains since the 1990s.

There was a remarkable growth in Domestic Tourism over the last decade due to the nationwide infrastructural development .

Travel & Tourism GDP is forecasted to rise by 6.5% per annum by 2024.

Number of tourists have increased almost 10 times in inbound and outbound destinations.

Number of Hotels across the country has increased 20 times.

Number of Airlines has increased 7-8 times.

Emerging Tourist Destinations have also increased multiple times.

8 five stars + 8 New are coming

10 four stars

25 three stars

30 business Hotels

More than 1200 other accommodations

Around

15000International

Standard Rooms

are available

Current Hotel Inventory

Demand for 5-Star

AccommodationIn Dhaka is Increasing

at 15%rate

Current Hotel Inventory

Upcoming Hotel Inventory

Dhaka

2 neware in the Pipeline

Current Airlines Inventory - Domestic

6 Domestic Airlines

Over 18 international destinations spread out throughout Asia and Europe.

Combined annual market size of 2014 was worth USD 440 million, with 5.8 million passengers and

0.23 million tons of cargo.

Current Airlines Inventory - International

Current Airlines Inventory - International

Initiative: Infrastructural Investment

Public Private P-P Partnership

Highways, Airports, Urban Infrastructure,

Power

Hotels, Travel Agencies, Tour

Operators, Dealers, Handicraft Stores

Roads, Airports,Resorts, Heritage Properties, Circuit

development, Web-portals

INVESTMENT

New Projects In Bangladesh

Padma Bridge Project

Metro Rail Project in Dhaka

Dhaka Elevated Express Way

4 Lane Dhaka-Chittagong Highway

RMG Sector

will hitaround

50 Billion USD

Exports

New Projects In Bangladesh

Cox’s Bazar Intl. Airport

Single line meter gauge railway track from CTG to

Cox’s Bazar

Construction of a Deep Seaport at Paira,

Patuakhali

150 kilometer Marine Driveway from Teknaf of

Cox's Bazar to CTG

Return on Investment Criteria in Hospitality Industry in Bangladesh

Initial Investment

Debt Equity Ratio

Location

Size and Standard of the Property

Nearly 6-8 years required to cover the investment

Current Rate of Return is 12-15% based on Debt-Equity Ratio

Opportunities Ahead Bangladesh, Bhutan, India and Nepal (BBIN) Motor Vehicles Agreement would establish people-to-people contract along with expansion of trade among the four SAARC countries.

Government initiatives on Technological and Skilled Manpower Development.

Announcement from Government on the increased flexibilities on FDI.

Improved curriculum and increased interest on Tourism Education.

Training, Workshops, Co-op programs are widely available.

Increase in Research Activity on Tourism.

“Year 2016” Visit Bangladesh Bangladesh is a hidden tourism treasure waiting to

be discovered.

Ample of opportunities to strengthen and refurbish Bangladesh Tourism Industry

Tremendous opportunities to develop Adventure Tourism and possibly Religious Tourism.

Develop a focused Destination Marketing Strategy and campaigns.

More diversified and enriched Curriculum in Tourism Education.

Tourism Research initiatives in national level and disseminate research data to the industry.

Develop a holistic approach in building Sustainable and Eco Tourism principles which delivers a range of outcomes.

Commitment to continuous Professional Development. Initiatives to produce skilled labor forces, qualified tourism marketers and penetrate Digital Marketing in promoting tourism.

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