High taxes, weak returns holding back tourism investment, say industry experts
Bangladesh had never properly attempted to build a strong national brand despite having the resources, says Bida Chairman Ashik Chowdhury.
High taxes and weak returns are discouraging investment in Bangladesh's travel, tourism and aviation sectors despite their strong growth potential, experts said at the launch of the Travel and Tourism Development Centre (TTDC) at Hotel InterContinental Dhaka yesterday (8 August).
Policy gaps, limited investment, weak coordination and institutional challenges are also holding back the industry despite the country's rich tourism assets and rising demand, they said.
The newly launched TTDC aims to promote sustainable development of the tourism, hospitality and aviation sectors through public-private collaboration, providing a platform for policy dialogue, knowledge sharing, industry cooperation and advocacy, while strengthening Bangladesh's international tourism positioning.
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Delivering the keynote, TTDC executive committee member and ShareTrip co-founder and CEO Sadia Haque said barriers must be addressed to make sector investment more viable.
"Bangladesh has a strong story to tell, but we are not communicating that story effectively," she said, adding that adverse travel advisories discourage international visitors.
There have, however, been positive developments, Sadia said. In July 2026, the US lowered its travel advisory for Bangladesh from Level 3 to Level 2, while Japan reduced its advisory from Level 2 to Level 1.
Civil Aviation and Tourism Minister Afroza Khanam called for travel, tourism, aviation and hospitality stakeholders to work together to bring the industry up to international standards.
The government, working under the prime minister's directives, is taking steps towards that goal, she said, expressing hope that TTDC would provide an important platform.
Tourism currently contributes around 3% of Bangladesh's gross domestic product, and the government aims to raise this to 6-7%, Khanam said. She urged greater private-sector coordination and participation in sustainable development, assuring stakeholders of policy support and necessary assistance.
She also said the sector had seen little significant development over the past 17 years, but the current government was taking initiatives to harness its untapped potential.
TTDC President Kazi Wahidul Alam said the organisation's ultimate goal was an integrated travel ecosystem with efficient airports, competitive airlines and seamless visitor experiences.
Government, private-sector and investor collaboration is essential to unlock Bangladesh's potential, create opportunities for young people and strengthen its global image, he said.
TTDC executive committee member Shahid Hamid said tourism already contributes nearly 3% of gross domestic product, equivalent to about $10 billion, and supports more than 20 lakh jobs across hotels, airlines, restaurants and local tourism services.
These services span more than 30 districts with recognised tourist destinations. Despite being a significant industry, much of its potential remains untapped, he said, calling for a stronger platform to bring the country's tourism attractions together and stressing the private sector's leading role.
Bida Chairman Ashik Chowdhury said Bangladesh had never properly attempted to build a strong national brand despite having the resources.
Developing and promoting one would require around $8 million-$15 million annually, compared with an Annual Development Programme of about $25 billion and a total government budget of around $78 billion, he said.
The issue is now receiving high-level attention, Ashik said, citing a meeting last Saturday with the prime minister, several ministers and private-sector representatives on "Brand Bangladesh". "We worked through the issues and now have a strategy in place," he said.
CPD Research Director Khondaker Golam Moazzem called for greater private-sector participation supported by appropriate policies and institutional structures. Without stronger private-sector involvement, the sector cannot move forward effectively, he said.
The Ministry of Civil Aviation and Tourism received around Tk1,800 crore this year, but most of the allocation is for local airport infrastructure, leaving very little for broader travel and tourism development, he added.
The minister said TTDC's launch was an important step, providing a permanent forum for public-private collaboration and linking government ambitions with the infrastructure, expertise and cooperation needed for tourism development.
