New ordinance sparks concern among travel agencies

Leaders of Bangladesh's travel sector today (4 January) voiced concern that the newly issued Travel Agency Registration and Control Ordinance 2026 could create serious operational challenges for thousands of agencies, calling for a review of several provisions.

Sector representatives said the ordinance, while intended to strengthen regulation, may unintentionally affect the viability of many agencies and the livelihoods of people dependent on the industry.

Former Association of Travel Agents of Bangladesh (ATAB) president Manzur Morshed Mahbub shared the concerns at a press conference at the National Press Club, noting that the gazette published on 1 January includes new sections and clauses that could restrict agency operations.

He said an amended provision now fully restricts the buying and selling of airline tickets among travel agencies. Of around 5,800 registered agencies, only about 800 are members of the International Air Transport Association (IATA), while the rest rely on inter-agency arrangements to serve passengers.

Without access to such arrangements, Mahbub said, many agencies may struggle to continue operations or meet the required annual sales turnover of Tk5 million for licence renewal.

ATAB Members' Welfare Unity Alliance Convener Mohammad Jamal Uddin Tipu highlighted another provision requiring offline travel agencies to submit a bank guarantee of Tk1 million, saying smaller agencies with limited financial capacity could face difficulties complying with the requirement.

The speakers also said travel and recruiting services are often run from the same office for migrant workers, and forcing them to operate separately would raise costs.

They further raised concerns about a provision that allows authorities to temporarily suspend an agency's registration without a prior hearing, warning that such a measure could lead to unfair decisions.

The proposed increase in penalties under the ordinance was also discussed, with speakers suggesting that the previous regulatory framework had been sufficient.

The government has said the ordinance was issued to strengthen oversight of travel agencies, promote fair ticket pricing, protect passengers, and improve governance in the aviation transport sector.

Issued by order of the president, the ordinance amends the Bangladesh Travel Agency (Registration and Control) Act, 2013. It was issued on 1 January 2026 under Article 93(1) of the Constitution, as Parliament remains dissolved.

Under the amended law, travel agencies will be subject to stricter disclosure requirements, mandatory bank guarantees of Tk10 lakh for offline agencies and Tk1 crore for online agencies, periodic submission of financial and activity reports, and penalties of up to one year's imprisonment or a fine of up to Tk10 lakh, or both, for violations.

The Civil Aviation and Tourism Ministry said the measures are aimed at ensuring transparency, accountability, and consumer protection, while sector representatives expressed hope for continued dialogue to address practical concerns and support the sustainable growth of the travel industry.