Tourism’s place in Bangladesh’s post-july reform efforts: An untapped resource

Following the July uprising, Bangladesh entered a phase of reform aimed at restoring stability, public trust, and institutional credibility. The immediate focus was on governance and accountability, with the government promising greater transparency in decision-making and a review of policies that had triggered public dissatisfaction. 

Furthermore, administrative reforms emphasised responsiveness in public service delivery, restraint in the use of force, and renewed dialogue with civil society and student groups. These steps were indeed intended to ease tensions while signalling a strong willingness to address long-standing grievances, rather than relying solely on security measures.

Moreover, reform efforts also extended to the economic and political spheres. Measures were discussed to strengthen regulatory oversight, improve fiscal discipline, and protect vulnerable groups from inflationary pressures. 

In parallel with macroeconomic stabilisation efforts, a set of targeted structural reforms has been undertaken to enhance private sector dynamism and broaden participation across the economy. There are also ongoing initiatives, supported by international development partners such as the World Bank, to enhance infrastructure, strengthen public financial management systems, and promote investment, with the overarching objectives of accelerating economic recovery, generating employment, and enhancing resilience in the face of both domestic and global challenges.

In the aftermath of the July events, reform efforts have exhibited a degree of unevenness across various sectors, with specific areas receiving insufficient policy focus and institutional backing. Notably, the tourism sector has been comparatively overlooked, despite its recognised strategic significance for economic diversification and growth, as emphasised by Chief Adviser Professor Muhammad Yunus and several other advisors of the interim government.

It is worth mentioning that the tourism sector has emerged as a major driver of the global economy, gaining significant momentum and importance. The sector contributes positively to economic development by enhancing living standards, increasing foreign exchange earnings, alleviating poverty, creating new investment from both public and private perspectives and generating employment opportunities. 

The existing literature provides strong support for the Tourism-Led Growth Hypothesis (TLGH), which posits that the rapid expansion of the tourism sector produces multiplier effects through increased revenue generation, thereby fostering long-run economic growth. 

Notably, tourism has evolved from a relatively small-scale activity into one of the world's most significant sectors. Scholarly empirical literature indicates that a 10 per cent increase in tourism activity in Bangladesh can lead to an increase in economic growth of up to 5 per cent and create 0.8 per cent more jobs. 

Additionally, there is empirical evidence that tourism can improve the exchange rate regime, which has a further positive effect on foreign earnings and investments in Bangladesh. On the other hand, some scholarly works suggest that transferring resources (for example, revenue-neutral fiscal transfers) to the tourism sector leads to significant forward and backward linkages, which are crucial for long-run welfare enhancement.

Although the reform booklet published by the interim government does not explicitly outline a dedicated reform agenda for the tourism sector, certain initiatives have been introduced that appear promising to some extent. 

These measures include efforts to reduce the use of single-use plastics, enhance waste management systems, promote the efficient use of natural resources, conserve biodiversity by imposing travel restrictions during ecologically sensitive periods, the development of a satellite account, and safeguarding local cultural heritage. Such steps reflect an awareness of the environmental and cultural dimensions of sustainable green tourism. 

However, a key concern remains that these initiatives are essentially ad hoc and fragmented, lacking coordination and integration within a comprehensive, forward-looking strategic framework. Needless to say, the draft tourism master plan, initiated in 2019 by the Bangladesh Tourism Board, is still under review, indicating a telltale sign of bureaucratic shenanigans in Bangladesh.

In the absence of a coherent strategic master plan, the effectiveness of current initiatives is likely to remain limited, thereby significantly constraining the tourism sector's ability to make a meaningful and sustained contribution to economic diversification, environmental sustainability, and social development in Bangladesh. 

To fully realise the sector's potential, it is therefore imperative that the interim government take decisive steps to expedite the formal adoption of the tourism master plan, enabling the incoming government to commence its implementation without delay. Moreover, ongoing initiatives must be explicitly incorporated within this strategic master plan. Such an approach would not only enhance the coherence and effectiveness of tourism reforms but also demonstrate a strong commitment to sustainable growth, multi-stakeholder collaboration, and long-run sectoral resilience.

Farhan Khan is working as a Research Associate at the School of Business and Economics, North South University, Dhaka Bangladesh.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.