How Kolkata’s economy plunged in absence of Bangladeshi tourists

Some Bangladeshis go to Kolkata for medical treatment, while others travel for sightseeing or shopping. Some move from one hospital to another, while others explore the city's main cultural attractions and various shopping malls. 

However, all these paths eventually lead to one place: New Market's Clock Tower, the heart of the wholesale chocolate trade. Because, upon returning from abroad, everyone inevitably asks what has been brought for them. In such cases, chocolate is the go-to option due to its affordability.

This practice once brought booming business to the market's shopkeepers. "Just until June, I was selling around Rs3 lakh worth of goods daily," said Shahinul Islam, one of the shopkeepers. 

Overall, across India, foreign tourist arrivals (FTAs) from January to June reached nearly 47.8 lakh, with Bangladesh leading the list, followed by the US, according to official data from the country's Ministry of Tourism, revealed on 27 September on the occasion of World Tourism Day. 

"But now, sales have dropped to Rs25,000–30,000 a day. Bangladeshi customers are hardly seen anymore, and they used to be my main buyers," Shahinul added. 

In early November, at least four establishments, including two currency exchanges, a clothing store, and a travel agency shut down, with fears that more could follow in December

The reason behind this sudden absence of Bangladeshis is simple: since the fall of the Sheikh Hasina regime in August, the Indian High Commission in Bangladesh has ceased issuing tourist visas to Bangladeshi nationals. 

Currently, it is only providing visas for emergency medical purposes or for students. This policy shift has led to a significant drop in the number of Bangladeshi visitors to Kolkata.

"You may still see some Bangladeshis in the city, but they are either here for medical treatment or obtained their visas in June or July. Most of these six-month multiple-entry tourist visas will expire by December or January. After that, virtually no Bangladeshis will be entering Kolkata on tourist visas," said Debjit Dutta, chairman of the Indian Association of Tour Operators (IATO), West Bengal Chapter.

The impact of this change has been particularly hard on a two-square-kilometre area in central Kolkata, often referred to as 'Mini Bangladesh'. This area, encompassing Free School Street, Marquis Street, Sudder Street, Collin Street, Rafi Ahmed Kidwai Road, and Mirza Ghalib Street, is home to around 150 hotels and over 3,000 shops, all of which are now grappling with a sharp decline in business.

"Generally around this time of the year, the hotels surrounding the New Market area remain almost full with an occupancy of 90%, largely thanks to Bangladeshis. But now, without them, the occupancy is around 5-10%," said Monotosh Sarkar, an executive committee member of the Calcutta Hotel and Restaurant Owners' Association. 

"So definitely, the visa suspension for Bangladeshi tourists is affecting us badly," he added.  

Debjit, however, highlighted a silver lining: while Bangladeshi tourists are staying away, Kolkata has been attracting more domestic tourists than in the last few years, particularly since the Covid-19 pandemic. 

"Most are backpackers booking budget accommodations around Sudder Street," he shared with us. But he also admitted that this influx is far from enough to compensate for the void left by Bangladeshi visitors.

Some businesses have been hit so hard that they went belly up. In early November, at least four establishments, including two currency exchanges, a clothing store, and a travel agency, shut down, with fears that more could follow in December.

While the upcoming winter season, school holidays, and Christmas celebrations — a major attraction on Kolkata's Park Street — might help fill hotels and guesthouses to some extent, shopkeepers remain worried.

"Domestic tourists, who come from other parts of India, don't bring much business for us because they aren't looking for anything exclusive from our shops," said Sujit Das, a clothing shop owner in Gariahat.

"Bangladeshi tourists shop with us not just for variety but also for affordability. Our clothes, cosmetics, and jewellery are much cheaper than in Bangladesh, and many buy in bulk. That's not something we can expect from Indian tourists," he added.

He also shared an interesting insight, "Bangladeshi tourists used to fill the cash boxes for small businesses like ours, which proved helpful in times of emergency. Nowadays, most Indian customers prefer online payments, leaving us with little cash in hand, much like during the Covid-19 days."

And so, like Avijit Chowdhury, a salesman for an international luxury watch brand at South City Mall, many believe it is crucial for the Indian government to reconsider its decision to halt the approval of tourist visas for Bangladeshis.

"Apart from the Durga Puja festivals, December is the time of year when sales see the biggest spike. Many Bangladeshi tourists prefer to visit Kolkata during this period, as the weather is much more pleasant compared to the scorching summer months. Their arrival also boosts our business, almost like a year-end bonus," he said.

"So, I think the visa suspension should be lifted with December fast approaching," Avijit added. 

However, on 22 November, AF Hassan Ariff, the Advisor to the Ministry of Civil Aviation and Tourism, as well as the Ministry of Land, commented that when India will reopen visas for Bangladeshis is entirely India's decision. He insisted that the government has nothing to say regarding when India will lift the visa restrictions.

Earlier, in late October, Environment, Forest, and Climate Change Adviser Syeda Rizwana Hasan told reporters, "India has been categorically saying that visa restrictions will stay 'till the situation normalises'. I don't think there is any situation in Bangladesh that justifies restricting visas for Bangladeshis because nobody else — US, Japan or the EU — has done so."

According to reports, a Foreign Office Consultation (FOC) between Bangladesh and India is scheduled to take place in Dhaka in early December. Indian Foreign Secretary Vikram Misri is expected to visit Bangladesh to attend the meeting, where Bangladesh's Foreign Secretary, Md Jashim Uddin, will lead the discussions.

During Vikram Misri's visit, the two countries are expected to discuss and review various bilateral issues, including the visa issue.

Debjit Dutta mentioned that they are hopeful for a resolution to the visa issue soon, but noted that ultimately, it is up to the Ministry of Foreign Affairs to decide whether the visa suspension will be lifted. 

"We certainly want Bangladeshi tourists to return, as it is important for both countries. However, we are hearing that the authorities may not lift the suspension until the situation in Bangladesh is fully stabilised with the formation of an elected government," he explained. 

"We have our expectations, but in the end, our government may prioritise what it considers to be a greater national interest," he concluded.