Tourism ministry moves to crack down on unauthorised hotels

Highlights:

• Tourism ministry orders crackdown on unregistered hotels nationwide
• Many hotels falsely claim star status without ministry approval
• High prices, poor service frustrate tourists in peak seasons
• Unlicensed hotels cost government significant revenue annually
• Hotel registration requires district approval and ministry NOC
• Wyndham to expand in Bangladesh via Cygnett partnership

The tourism ministry has recently directed district administrations across the country to identify unauthorised hotels, following complaints from tourists and industry insiders about high accommodation costs and subpar services.

"We have received complaints that various unregistered hotels are operating in different tourist areas and districts, with some even presenting themselves as star-category hotels without any approval from the ministry," Mohammad Ataur Rahman, controller of the Hotel and Restaurant Cell at the ministry, told The Business Standard on Wednesday.

He added, "Three weeks ago, we officially sent letters to the deputy commissioners of all districts, requesting a list of hotels operating without registration or licenses. We hope to receive the lists within a few days. Action will be taken as per the rules."

According to ministry officials, the initiative is aimed at improving service standards and ensuring regulatory compliance in the hospitality sector.

In Cox's Bazar — the country's top tourist destination — around half of the approximately 500 hotels, motels, resorts, cottages, and guest houses are not registered with the district administration, according to Mohammad Salahuddin, deputy commissioner and district magistrate.

"We had already sent a list of unauthorised hotels to the tourism ministry a few months ago, even before the directive was issued. We also conduct mobile court drives regularly against unregistered establishments," Salahuddin said.

According to the tourism ministry, any hotel — regardless of category — must first be registered with the district administration. For three-star to five-star hotels, an additional No Objection Certificate (NOC) must be obtained from the Hotel and Restaurant Cell of the ministry. Only after receiving the NOC is a license issued.

Hotels with star ratings can operate either independently or in partnership with global chains, provided they meet the ministry's standards.

As per data from the Civil Aviation and Tourism Ministry's Hotel and Restaurant Cell, Bangladesh currently has 20 five-star, 7 four-star, and 24 three-star hotels.

Meanwhile, according to the Bangladesh International Hotel Association (Biha), there are around 2,000 luxury hotels without star ratings, employing approximately 100,000 people.

What do tourism stakeholders say?

Tourists say hotel prices in Bangladesh are much higher than in neighbouring countries, with subpar service and limited scope for complaints. During peak seasons, rates increase sharply — with star-category rooms starting at Tk5,000 and reaching up to Tk50,000 per night.

"A tourist can often stay in Bangkok for what it costs to stay in Cox's Bazar," said Abu Tahir Muhammad Zaber, CEO of the Bangladesh Tourism Board. He attributed the high prices to elevated bank interest rates (12–13%) and high import taxes on hotel supplies.

He added that many hotels claim star status without licenses, charging premium rates despite lacking approval or proper service quality. The Hotel Cell under the ministry will supervise licensing going forward.

Abul Kashem, president of the Cox's Bazar Hotel, Motel, Guest House, and Restaurant Owners Association, said all 140 of their member establishments are registered, and the district administration is aware of which hotels are not.

Industry insiders say the government loses crores in revenue annually due to widespread unregistered hotels, particularly in tourist hubs like Cox's Bazar.

"It's not possible to run a star hotel without government approval," said Masum Iqbal, CEO of Sea Gull Hotel.

Wyndham partners with Cygnett for 60 hotels in 4 countries, including Bangladesh

Wyndham Hotels & Resorts is accelerating its growth in Bangladesh, India, Sri Lanka, and Nepal through a new strategic alliance with Cygnett Hotels & Resorts.

The partnership aims to add over 60 hotels across the four countries in the next 10 years, introducing brands like La Quinta by Wyndham and Registry Collection Hotels to the region, according to a 14 July report by Tornos News.

As part of the deal, Wyndham and Cygnett have signed an exclusive 10-year development agreement focused on expanding the La Quinta by Wyndham brand.

Wyndham already operates 70+ hotels in the region under brands such as Ramada by Wyndham, Howard Johnson, and Wyndham Garden.

In Bangladesh, the group recently marked its official entry with the opening of Ramada by Wyndham Cox's Bazar Kolatoli Beach, its first property in the country.