Photo : Messenger
Bangladesh – A country of home to wonders beyond imagination, from the enchanting Sundarbans to the endless shores of Cox's Bazar, boasting the world's longest sea beach. But it wasn't just a land of natural wonders; it was a place undergoing a remarkable transformation.
Over the past decade, Bangladesh had risen from its status as a least-developed nation, fueled by the success of industries like Ready-Made Garments (RMG) and the steady flow of foreign remittances. However, to ensure this progress continued and to diversify its economy, the nation realized it needed to embrace the immense potential of its tourism industry.
Tourism had been quietly growing in Bangladesh, making its presence felt in the national economy. In 2019, it contributed a substantial 4.4% to the GDP. The World Travel and Tourism Council (WTTC) projected even more promising figures by 2023, with approximately 1.7 million people expected to find employment in the tourism sector, constituting 4.2% of the country's total workforce. Surprisingly, a 2019 report from the World Economic Forum (WEF) revealed that a staggering 97% of tourists in Bangladesh were locals, signaling that the country was yet to be discovered by international travelers.
But this journey was not without its challenges. Travelers within Bangladesh often found themselves struggling with a lack of real-time information, leading to unnecessary expenses as they were unaware of cost-effective transportation and accommodation options. Booking hotels was another puzzle, with many establishments lacking an online presence, resulting in communication hassles and misunderstandings.
Then came the unforeseen storm named COVID-19, causing a significant disruption. Domestic travel spending dropped by 33.9% in 2020, and foreign tourist spending plummeted by a staggering 59.7%. Prolonged lockdowns compelled small and medium-sized tourism businesses to adapt to the digital era, marking a shift towards online operations.
On the global stage, the entire travel industry was undergoing a profound transformation. Leading travel agencies such as Airbnb, Trip.com, Booking.com, and Expedia had successfully digitized their services. The online travel market, once valued at nearly USD 450 billion, was on the verge of reaching USD 700 billion by 2026. Interestingly, this shift was no longer confined to Europe and North America; the epicenter had shifted to Asia and the Middle East.
Bangladesh, with its uncharted potential, was ripe for transformation. While tourism contributed slightly over 3% to the national GDP, neighboring countries like the Maldives had mastered the art, with one-third of their GDP attributed to tourism. Bangladesh had the potential to become an unparalleled tourist destination in South Asia, not only diversifying foreign currency earnings but also boosting the economy's productive capacity.
As the journey continued, the need for comprehensive data became evident. There was a void in understanding community-based tourism (CBT), security arrangements, tourist policing, and the expectations of travelers. Recognizing this gap, the Bangladesh Tourism Board (BTB) embarked on a mission to create a 25-year Tourism Master Plan, aiming to guide the nation towards an informed and strategic approach to tourism.
The revelations from this ambitious undertaking were eye-opening. A significant majority of tourists, a staggering 89%, preferred to plan their trips independently, with only 12% opting for tour operator services. While 40% expressed satisfaction with the services they received, 8% were left dissatisfied. Travelers yearned for safer environments, improved room services, and a robust online review system. Dining experiences varied, with 32% finding costs high and expressing concerns about solo nighttime travel. However, an overwhelming 79% were satisfied with security arrangements, and a resounding 86% believed they played a role in keeping the beaches clean.
The path forward was clear. With nearly 5 million people engaged directly or indirectly in Bangladesh's tourism sector, the digital realm held the key to sustainable growth and global recognition. The transformation was well underway, and with the right digital innovations, Bangladesh's tourism industry was poised to flourish, contributing significantly to the nation's economic growth.
Bangladesh, a land of vibrant culture, rich history, and breathtaking natural beauty, was set to make its mark on the global stage in the Travel & Tourism industry. With a projected revenue of US$1,853.00 million in 2023 and an impressive annual growth rate (CAGR 2023-2027) of 7.76%, the sector was on the cusp of a remarkable journey towards a market volume of US$2,499.00 million by 2027.
The heartbeat of Bangladesh's Travel & Tourism market was undoubtedly the Hotels sector, with a projected market volume of US$972.50 million in 2023. This segment was poised for significant growth, attracting 11,950.00 thousand users by 2027. User penetration, currently at 9.0% in 2023, was expected to rise to 10.8% by 2027.
One notable statistic on this journey was the Average Revenue per User (ARPU), expected to reach US$118.40. This underscored the industry's potential not only to attract more users but also to generate substantial revenue from each user, making it a win-win scenario.
The future of Travel & Tourism in Bangladesh was undoubtedly digital. By 2027, an impressive 58% of the total revenue was expected to come from online sales. This shift towards digital platforms reflected the changing consumer landscape and the industry's readiness to adapt and innovate.
In a global context, Bangladesh was making strides. While it might not match the colossal numbers of travel revenue generated in the United States (projected at US$190.40 billion in 2023), it was essential to remember that every journey began with a single step. Bangladesh's Travel & Tourism sector was on a trajectory of growth and promised to be a significant player in the global arena.
As the country continued to invest in infrastructure, promote its cultural treasures, and embrace technological advancements, it was likely that Bangladesh would become an increasingly attractive destination for travelers worldwide. The journey of Bangladesh's Travel & Tourism sector was a tale of remarkable growth, and the destination was set for an exciting future.
The writer is CEO of TripZip
Messenger/Disha
