The COVID -19 pandemic has had a profound impact on industries throughout the globe. The Travel and Tourism industry is one of the hardest hit, facing a highly critical period which will render them incapable of a quick recovery.
The UNWTO has released a new prospect for 2020, predicting an international tourist arrival growth to negative 1% to negative 3%. This will result in an estimated loss of US$ 30 to 50 billion in international tourism receipts. Prior to the COVID-19 outbreak, the numbers predicted a positive growth of 3% to 4% this year.
Tourism in Bangladesh is not a popular international endeavor but it employs people in the millions. Domestic tourism alone has a turnover of around 250 billion a year. Hundreds of travel agencies will be impacted and may definitely close down, also affecting operations of many small hotels, resorts and restaurants. This will mean thousands of people employed at these establishments will become jobless. The effects of COVID-19 on businesses have already become visible as a lot of establishments have already begun shutting down and many are on the verge. By the end of June 2020, it is estimated that losses will reach around 10 thousand crore and 3 lakh jobs will be lost.
Specifically, the PATA Bangladesh chapter roughly estimates a total of BDT 9705 crore in revenue losses and 309,500 job losses from airlines, hotels and restaurants shutting down.
The tourism authority would like to appeal to owners of establishments within the industry to manage the severe impact of COVID-19 by:
• Retaining as many employees as possible on a reduced salary, thereby saving jobs.
• Assuring employees who are laid-off that they will resume their positions once the industry recovers.
• For senior management to do all in their power to help employees under their departments.
The tourism body would also like to make suggestions to the government to:
• Provide interest free loans of up to BDT 3000 crore to maintain the least amount of operations in existing establishments over the next three years, including hotels, airlines, tourist vessels, etc.
• Allocate more to the tourism budget in the fiscal year 2020-2021.
• Mobilize a high powered fact-finding team to establish the minute impacts of COVID-19 on the industry.
• Allocate a fund of BDT 500 crore for international promotion and product development for tourism in Bangladesh when the crisis lifts.
• Waive our utility bills till the crisis is averted and normal operations can resume.
• A reduction on income tax for employees and establishments of the tourism sector for the next two years.
The government must remember that the tourism sector is a valuable industry for Bangladesh and will be hardest hit during this crisis. Keeping the many jobs that will be lost during this time in mind, the hotels and other establishments hope for assistance to ride through this critical wave.
