RESEARCH REPORT

ON
“Impact of Tourism in Bangladesh Economy”

A Research Report is submitted to fulfillment of the requirements for the degree of

Master of Business Administration (MBA), Examination 2020, Department of
Management, Islamic University, Kushtia.

Submitted By Supervised by
Md. Titas Hosen Dr. Dhanonjoy Kumar
MBA Professor
Department of Management
Roll:190529
Islamic university, Kushtia,
Session:2019-20
Department of Management
Islamic University, Kushtia,

Date of Submission: 25-09-2022

[i]
Bismillahir Rahmanir Rahim

Dedicated to
My Respectable Parents
&
Honorable supervisor

[ii]
 Declaration

I declare that the report on “Impact of Tourism in Bangladesh Economy”

embodies the results of my own research works, pursued under the supervisor of
Professor Dr. Dhanonjoy Kumar, Department of Management, Islamic
University, kushtia. I hereby declare that this research work and Submitted for the
partial fulfillment of the award of degree of Master of Business Administration
(MBA) is an outcome of my own work. Two copies of the research paper have been
submitted to the Department of Management for which this paper was developed.
To the best of my knowledge this research work or parts there, does not form a part
of any other project work or thesis on the basis of which a degree or award was
conferred on an earlier occasion.

I affirm that the work reported in this report is original and no part or whole of this
has been submitted to, in any form, any other University or Institution for any degree
or any other purpose.

Md. Titas Hosen

MBA
Roll: 190529
Session: 2019-2020
Department of management
Islamic University, kushtia

[iii]
 SUBMISSION LETTER

To,
Professor (Dr. Dhanonjoy Kumar)
Department of Management
Islamic University, kushtia.

SUB: SUBMISSION OF RESEARCH REPORT

Sir,
I am very glad to submit you my research report on “Impact of Tourism in
Bangladesh Economy”. I have concentrated my all out endeavour the research
program for the most realistic and professional way.

I hope that you would be kind enough to receive this report and bless me heartily.

Sincerely yours,

Md. Titas Hosen

MBA
Roll: 190529
Session: 2019-20
Department of management
Islamic University, kushtia

[iv]
 CERTIFICATION

I hereby recommend and certify that this research entitled “Impact of Tourism in
Bangladesh Economy” is carried out by Md. Titas Hosen for partial fulfilment of
the Degree of MBA in the Department of Management, Islamic University, Kushtia
under my supervision.

I also certify that I have gone through the report and found it satisfactory for
submission in partial fulfilment of the requirements for the degree of MBA in
Management.

Dr. Dhanonjoy Kumar

Professor,
Department of Management -----------------
Islamic University, kusthtia. Signature

[v]
 ACKNOWLEDGEMENTS

My first and greatest indebtedness is to my respectable sir, Professor Dr.

Dhanonjoy Kumar of the Department of the Management, Islamic University,
Kushtia for his untiring and patient guidance in carrying out my research. I can
humbly tell that without his meticulous care, valuable suggestions and instructions
it would not have been possible for me to complete the report. Every endeavour like
this one is the result of contributions by many supporting individuals. This report is
no exception. We owe special thanks to a number of people and organizations that
help to make the research report fruitful.

I am grateful that is my first research paper. So, the excitement is working on me so

much. The most important upcoming sector Tourism Industry is special research for
me.

Sincere thanks are also due to all others who are related directly or indirectly to the
completion of this research work.

Finally, I am indebted to my parents, a permanent source of inspiration for all my

works and achievements.

Md. Titas Hosen

MBA
Roll: 190529
Session: 2019-20
Department of management
Islamic University, kushtia.

[vi]
 Table of Contents

Contents
Declaration ........................................................................................................................ iii
SUBMISSION LETTER .................................................................................................. iv
CERTIFICATION............................................................................................................. v
ACKNOWLEDGEMENTS ............................................................................................. vi
Abstract .............................................................................................................................. 1
Introduction ....................................................................................................................... 2
Rational of the study.......................................................................................................... 3
Objectives of the Study...................................................................................................... 4
Methodology of the study .................................................................................................. 5
Literature review ............................................................................................................... 6
Impact of tourism .............................................................................................................. 8
Types of tourism ................................................................................................................ 9
Institutions of tourism management in Bangladesh ..................................................... 11
Name of the Tourist destination.................................................................................. 12
UNESCO declared World Heritage sites in. Bangladesh ............................................ 13
Analysis of Tourism sector scenario .............................................................................. 14
Conclusion and Recommendations ................................................................................ 19
References......................................................................................................................... 20

[vii]
 Abstract

Tourism is a dynamic and one of the most profitable sectors for the world economy as well
as for many developing countries like Bangladesh. Bangladesh has so many natural,
cultural, historical, archaeological, religious and man-made tourist destinations. By visiting
this country one can get the opportunity to know about the tribal people, their unique
culture, traditions, food habit, wildlife of various species and also can enjoy diversified
tourism-related activities like water skiing, river cruising, hiking, rowing, yachting,
kidding, sea bathing etc. Tourism industry is considered as a growing industry for many
developing countries. It plays a significant role directly and indirectly in the GDP growth
rate of Bangladesh by creating new employment opportunities for both male and female,
alleviating poverty, enhancing local community participation, earning foreign currency via
foreign tourists, improving the economic standards of locals, making people economically
and socially stable. This research is carried out based on the qualitative approach.

[1]
 Introduction

Tourism is increasingly recognized as global strength for economic growth and rapid
growing industry of modern business world. In 21st century, tourism is considered as an
important part due to its significant share in the world economy. According to the World
Travel and Tourism Council (2015), the contribution of travel and tourism industry in the
global economy is estimated at $7580.9 billion or 9.8% of the GDP (Gross Domestic
Product) in 2014 and is expected to rise by more 3.7% in 2015. World Tourism
Organization (WTO) states that tourism is the leading sector in the world not only in terms
of income generation but also in creating employment. It is an emergent sector supporting
at least one third of the developing countries. For South Asian nations, tourism act as a
catalyst of change for household economies, leading to new opportunities for employment,
income, and for new information about technologies (Barkin 1996, Eadington and Smith
1992, Liu 2003). Bangladesh has plenty of wonderful tourism locations both innate and
synthetic like mountains, large coastline, mangroves, rain forest, marshland, island,
archeological sites, historic mosques and monuments. These features make Bangladesh
fairly rich in own Geo and Bio-diversity. Data from World Travel and Tourism Council
(2015) portray that the entire contributions of travel and tourism in Bangladesh‟s GDP was
BDT 627.9 billion or 4.1% of GDP in 2014 and forecast to rise by 6% in 2015.Tourism is
one of the top five export categories for as many as 83 percent of countries and is a main
source of foreign exchange earnings at least 38 percent of countries. Many developed
countries like USA, UK, Italy, and France are ruling the industry. But the scenario of many
Asian countries like India, Srilanka, Singapore, Maldives, Thailand, Malaysia, Nepal,
show that tourist are attracted to the climate, nature, and overall beauty of these spots.
Although Bangladesh is in its baby step but according to WTTC The direct contribution of
Travel & Tourism to GDP was BDT296.6bn (1.9% of total GDP) in 2014 and to rise by
6.1% pa, from 2015-2025, to BDT 566.3bn (2.0% of total GDP) in 2025.

[2]
 Rational of the study

Thoroughly investigating all aspects of tourism development and economic growth is

extremely important for all concerns (Leea and Chang, 2008). In this perspective, a clear
conception of the economic contribution of tourism on an economy with deficit (largely
the cases of the developing and under developed countries) or surplus would not only carry
significance for the economic planners, but also would come to test the justification of
tourism investments. In the above context, this study is an attempt by the researcher to
evaluate present trend and growth of tourism industry which can contribute a lot to flourish
the economy of the country.

[3]
 Objectives of the Study

Tourism industry is not very well established. For making the sector developed and
significant, some modification and arrangement are to be made here. This paper has set
some objectives which will serve the research purpose. The specific objectives of the study
are:
a) To assess different aspects of tourism;
b) To identify the reasons of tourism;
c) To analyze the contribution of tourism in GDP of Bangladesh;
d) To explore future prospects of tourism in Bangladesh and
e) To suggests some recommendations for development of tourism sector.

[4]
 Methodology of the study

To accomplish any study, it is necessary to collect data and information, processed

tabulated and analyzed carefully. It has been prepared in present form to make the study
more informative and useful. The study was conducted mainly on the basis of secondary
data. The secondary data collected from some books, journals, articles, booklets and
published materials, Internet, some statistical information, newspapers and other related
materials, these were consulted and used as references. Thus, secondary data provides the
guideline to create blue print of the research & study.

[5]
 Literature review

Tourism is a special and complex industry and its promotion has to be directed at a large
number of people in various lands of different socio-economic structures having different
needs, tests, attitudes, expectations and behavior pattern. Therefore, planning effective
marketing promotional strategy must penetrate in the people’stestes and preferences (Shafi,
1985). Jahangir (1998) argued that Bangladesh’s share in the total arrivals in the south
Asian region is too small. Almost all the countries of South Asia, backed by organized
efforts, are far ahead of Bangladesh in respect of development of tourism. Hossain and
Nazmin(2006) depicted that according to the foreign tourists of Bangladesh ,scenic beauty
ranked first, cost of services second ,attitude of people third ,and so on down to facilities
ranking the tenth. Tourism is a leisure activity which involves a discretional use of time
and money and recreation is often the main purpose for participation in tourism (Ghosh,
2001). Tourism is emerged from the movement of people to and theirstay in various
destinations. There are two basic elements in tourism, such as the journey to the destination
and the stay. In short, tourism means the business of providing information, transportation,
accommodation and other services to travelers (Ghosh, 2001). Fayissa, Nsiah, Tadasse
(2007) found that receipts from the tourism industry significantly contribute both to the
current level of gross domestic product and the economic growth of Sub-Saharan African
countries as doinvestments in physical and human capital. Their finding implies that
African economies can enhance their short-run economic growth by strategically
strengthening their tourism industries. In the literature review, it has been well described
by different authors that tourism marketing is essential for economic development of a
country. The study intends to do research work considering secondary sources. Most of the
authors do either conceptual framework or secondary sources. Lincoln (2008) wrote an
article on “Impact of Tourism in Bangladesh Economy: A Tremendous Potential for
Foreign Currency”. He analyzed the various tourism products and services available in
Bangladesh. He found that our tourism industry has bright prospect. Our tourism season is
6 months as against 3 months in Europe and USA. We have also healthy weather, largest
sea beach in Cox’s Bazar and Kuakata. There is easy journey opportunity from Cox's
Bazar, Saintmartin’s Island, Rangamati, Khangachari and Bandarban.Major difficulties are
shortage of international standard Hotel or restaurant. Dhaka to Chittagong communication
is difficult, security in Sea beach is also questionable. Islam (2008 : 69) had a study on
“The significance of Tourism Products in Bangladesh”. The aim of the paper was to analyse
the various impacts of tourism products on the economic development of Bangladesh. The
study is based on both primary and secondary data. He narrated that quality of hotels
product and services has negative impact on the perception of tourists. Prices and charges
are reasonable and it shows positive impact. Cultural background history of our tourist’s
products are really very much prospective, sports tourism products are of below standard.

[6]
He suggested for raising tourists’ products, creating tourists’ interest, security and other
safety measures. Kamal (2008: 83-90) developed an article on “Economic Impact of
Tourism and Globalization in Bangladesh”. He found that tourism growth has positive
impact on our economic development in the context of global challenges. He found that
the combined effects of the growth of foreign tourism and globalization are very much
contributory. Our trade balance and govt. accounts are in better position due to increasing
revenue from this vital sector. Sarkar et al., (2008: 105-110) had an article on “Sustainable
development of Eco-Tourism in the southern part of Bangladesh”. They found that tourism
has immense social, economic, environmental cultural benefits. If also helps in poverty
alleviation programs through creating employment opportunity for the local poor. They
suggested for increasing awareness for eco-tourism, conservation of tourism centers,
further research activities, security measures, more hotels and restaurants and creating
satisfactory image of our available tourism centers.

[7]
 Impact of tourism

Tourism can bring many economic, social and environmental benefits, particularly in rural
areas and developing countries, yet mass tourism is also associated with negative effects.
Tourism can only be sustainable if it is carefully managed so that probable negative effects
on the host community and the environment are not permitted to outweigh the financial
benefits. There are economic, socio-cultural and environmental key benefits of tourism.
i) Economic benefit: Tourism can provide direct jobs to the community, such as tour guides
and hotel housekeeping. Indirect employment is generated through other industries like
agriculture, food production and retail. Infrastructure development and visitors’
expenditure generates income for the local community and can lead to the alleviation of
poverty.
ii) Social benefit: In addition to the revenue, tourism can bring about a real sense of pride
and identity to communities. It allows them to look at their history, and community identity.
This helps the local residents to maintain their tradition and culture.
iii) Environmental benefit: Tourism provides financial support for the conservation of
ecosystems and natural resource management, making the destination more authentic and
desirable to visitors. Negative effects of tourism are also not ignorable. These are:
i) Negative economic effect: Jobs created by tourism are often seasonal and poorly paid,
yet tourism can push up local property prices and the cost of goods and services. Place of
tourism can be affected by terrorism.
ii) Negative social effect: Visitor’s behavior can have a detrimental effect on the quality of
life of the host community. For example, crowding and congestion, drugs and alcohol
problems can occur. Interaction with tourists can also lead to an erosion of traditional
cultures and values.
iii) Negative environmental effect: Tourism poses a threat to a region’s culture and natural
resources, through overuse.

[8]
 Types of tourism

The type of tourism depends on the reason for travel. Travel can be to destinations that are
domestic or international. Domestic tourism involves residents travelling only within their
country. International tourism may be inbound or outbound. Inbound tourism involves non-
residents travelling within a country. Outbound tourism involves residents travelling within
another country. Based on the purpose of visit, tourism is categorized into the following:
i) Leisure Tourism
Tourists may travel to experience a change in climate and place and learn something new
about the culture of adestination. Tourists, who seek break from the stress of day-to-day
life, devote their holiday to rest, relaxation and refresh themselves. These tourists prefer to
stay in some quiet and relaxed destination preferably at a hill resort, beach resort or island
resort.

ii) Cultural tourism

Culture is one of the most important factors, which attract tourists to a destination. Cultural
tourism gives insight to a way of people’s life of a distant land, its dressing, jewelry, dance,
music culture, as well as architecture, customs and traditions, fairs and festivals.
iii) Religious tourism
It is a form of tourism, where people travel individually or in groups for pilgrimage.
Modern religious tourists visit holy cities and holy sites around the world.
iv) Family Tourism
Family tourism involves the family unit and their participation in diverse forms of tourism
activity. This includes visiting one’s relatives and friends for interpersonal reasons.
v) Health Tourism
Health tourism is also called as medical tourism. Today, many people travel great distances
to exotic locations in search of medical treatment. Medical tourism is an old-aged concept
that has gained popularity in the recent times. Many developing countries are emerging as
hot medical tourism destinations capitalizing on low cost advantages. Many hospitals have
specially designed packages including resorts facilities.

[9]
vi) Sports Tourism
Sports Tourism refers to travel which involves either viewing or participating in a sporting
event staying apart from their usual environment. Normally these kinds of events are the
motivators that attract visitors to visit the events like Olympic Games, FIFA World Cup
etc.
vii) Educational Tourism
Educational tourism developed because of the growing popularity of teaching and learning
of knowledge and the enhancing of technical competency outside of the classroom
environment. In educational tourism, the focus of the tour is visiting another country to
learn about the culture, such as in Student Exchange Programs and Study Tours, organizing
specialized lectures of the eminent personalities and visiting for research.
viii) Business Tourism
Tourists visit a particular destination for various reasons pertaining to his work such as
attending a business meeting, conferences, conventions selling products, meeting with
clients. Business tourism is popularly called as MICE (Meetings, incentives, conferences,
and exhibitions) tourism.

[10]
 Institutions of tourism management in Bangladesh

Bangladesh Parjatan Corporation (BPC) is an autonomous body under the ministry of Civil
Aviation and Tourism established in 1972. Basic target of BPC is to expand the tourism
sector and provide the service for local and foreign tourist. National Hotel and Tourism
Training Institute (NHTTI) is an institute for professional tourism management training.
NHTTI was established in 1974 under Bangladesh Parjatan Corporation. This institute
offers courses to ensure trained personnel for hotel and tourism industry. NHTTI started a
two-year long diploma course in hotel management in 1994. Institute also provides the job
training for BPC personnel and arrange special seminar, workshop related to tourism
development. Another important institution supporting the development of tourism is
Bangladesh Tourism Board. Bangladesh Tourism Board established in 2010 to meet the
strong demand for private sector and the tourism professionals. It is affiliated with United
Nations World Tourism Organizations (UNWTO).

[11]
Name of the Tourist destination

1. Beaches and Island

Cox’s Bazar Sea beach, Kuakata Sea-beach, Potenga Sea-beach,Saint-martin Island,
Nihjum Dip, Parki sea beach, Kotka sea beach etc.
2. Hills and waterfalls
Bandarban hill tracts: Nilgiri, Nilachal, Chimbuk hills, Keoradadong, Tajigdon and many
others, Khagrachori Hill tracts, Shuvolong waterfall, Madhobkundu Waterfall, Hum hum
waterfall etc.
3. Forests
Sundarbans, Ratargul swamp forest, Madhupur and vowal gore
4. Religious sites
Golden temple, Kantojiu Temple, Dhakeshwari Temple, Sixty Dome Mosque, Star
Mosque, Hazrat Shahjalal Mazar,
5.Historical and Archeological sites
Lalbagh Fort, Curzon Hall, Somapura Mahavihara, Jatiyo Sangshad Bhaban, Suhrawardy
Udyan, Ahshan Monjil, Aporajeo Bangla.
6. Dark tourist spots
Central Shahid Minar, Jatio Smriti Soudho, National poet’s graveyard.
7. Lakes
Foy’s Lake, Madhobpur lake, Boga lake, Kaptai Lake, Dhanmondi Lake
8. Man-made tourist spots
Heritage Park, Dulahazra Safari Park, Butterfly Park, Foy’s Lake etc.
9. Other attractions Ramna Park, National Zoo, Jamuna Bridge,Padma Bridge,Metrorail
etc.

[12]
 UNESCO declared World Heritage sites in. Bangladesh

1.Historic Mosque city of Bagerhat (1985).

2.Ruins of the Buddhist Vihara at Paharpur (1985).
3.Sundarbans (1997).

[13]
Analysis of Tourism sector scenario

[14]
[15]
[16]
[17]
[18]
 Conclusion and Recommendations

Now Bangladesh is low-middle income country. Its average GDP growth rate is 6%.
The economy is highly dependent on work force export, Ready Made Garments
(RMG) and agriculture sector. Other prominent sectors are shipbuilding,
pharmaceuticals etc. The rate of employment is 90 %, which is below expected
level. As a result, disguised employment and employment at low wage rate is rising.
Many of the people are illegally crossing border in the hope of better life. In order
to improve employment rate and to stop the illegal migration, government has to
take and implement some projects and policies, through this, it has to try to receive
the social, cultural and economic benefits of the tourism sector. As part of tourism
sector development, recently government has passed the Cox’s Bazaar
Development Authority (CDA) at the meeting of ministry. This is supportable but
not enough. The government of Bangladesh should place equal emphasis in its
policy on the development of the tourist spots all over the country. This will create
employment opportunity on the one hand and on the other hand it reduces the
dependence of the country on some other specific sectors.
Following measures are necessary for the development of tourism sector in
Bangladesh:
1. Up-date the present tourism policies in Bangladesh compare to the world tourism
market.
2. Tourism spot and related organization should run by the private sector.
3. Tourism related discipline like hotel and tourism management should be start at
the all university in Bangladesh.
4. Infrastructures around the tourism sector should be built and maintained. Rail
connection between Cox’s Bazaar
and Chittagong is necessary. Because, present communication system is not enough
for tourist attraction.
5. Political stability should be maintained to attract the foreign tourist.
6. Government should take the actions about the security system at the tourist place.

[19]
 References

1. Ali, Mobasher (2004). Bangladesher Sandhanay, Student Ways, Dhaka, 3rd edition
(Bangla).
2. Faruk, Ahmed, and M. Hafiz Uddin Bhuiyan. 2003. Tourism in Bangladesh: The
Problems and Potentials. Journal of Management Studies 8-9, no.1 (June 2002–June
2003):99-117.
3. Redwan, S. (2014) Tourism & Socio-Economic Development: Focus on
Bangladesh, a Destination Country.
4. Jannatul Ferdous & Hasan Mohammad Faisal (2014), Tourism potentiality and
development of Bangladesh: applicability of pragmatic governmental management
policy.
5. Sandip, S. (2014) Competitive Marketing Strategies for Tourism Industry in the
Light of “Vision 2021” of Bangladesh.
6. Jannat, A. (2013) Current Status of Impact of Tourism in Bangladesh Economy: An
Empirical Evaluation.
7. Bazlul, H. and Tahera, A. (2015) Background paper on tourism sector. Bangladesh
Parjatan Corporation (2015) statistics and policy act.
8. Ashraful,F. and Faisal, S (2012), The impact of tourism in a deficit economy: A
conceptual model in Bangladesh perspective.
9. Jahangir.Mahbub J(1998).Facilitation of International Travel in Bangladesh”,
Bangladesh Parjatan Corporation,Dhaka.
10. David PT Harcombe, The economic impact of Tourism
11. Blanke and Cheisa (2007), The travel & tourism competitiveness report
12. World Travel and Tourism Council, Travel and Tourism Economic Impact Report
(2020).
13. World Travel and Tourism Council (WTTC): Annual report-2020: The Economic
Impact of Travel and Tourism 2020.
14. www.bangladeshtourism.gov.bd: Bangladesh Parjatan Corporation (BPC).
15. www.bangladeshbank.org.bd; Website of Bangladesh Bureau of Research and
Website of Bangladesh Bureau of Statistic
16. www.parjatan.gov.bd/tourism Website of Ministry of Civil Aviation.
17. www.tourismboard.gov.bd: Tourism Policy-Bangladesh Tourism Board (National
Tourism Organization.

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