Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 72 Sat. August 07, 2004  
   
Business


Floods taking toll on tourism


The floods are taking toll on Bangladesh's fledging tourism sector as occupancy rate in hotels and guesthouses drops.

"Floods have come as a blow to hospitality business. Usually, business remains dull during this period of the year. To make the situation worse, the floods have led to 30 percent drop in occupancy rate in hotels and guesthouses," said Sadique Ahsan, president of Bangladesh Hotel and Guest House Owners Association.

He said foreign tourists do not take pleasure trips during floods. However, he hopes that the occupancy rate will gradually increase when floodwaters start receding.

Hasan Mansur, managing director of The Guide Tours Ltd, a leading tour organiser, said the floods will add to the nation's perennial image problem as a disaster-prone country that affects tourism industry.

"It will take time to restore tourists' confidence. The bad image is a big problem for tourism growth," he said.

According to unofficial sources, some 5,000 foreign tourists visit Bangladesh a year who spend some $1,000 each during their trips. Besides, about two lakh foreigners come to Bangladesh a year for business or other purposes.

Hotels are witnessing dull business as room occupancy rate drops. Dhaka's two five star hotels -- Dhaka Sheraton and Pan Pacific Sonargaon that largely depend on foreign guests for room occupancy-- are hit hard by the flood spell.

"The occupancy rate here is 65-70 percent but due to the floods the rate has come down by 5 percent. But we have little problem in reservation of programme venues as they are booked in long advance," an official of Pan Pacific Sonargaon told the newspaper seeking anonymity.

An official of Dhaka Sheraton Hotel admitted the business fall due to the floods. He, however, declined to give detailed information about loss. Sheraton Hotel cancelled Malaysian Food Festival, which was due to be held from July 28 to August 3 due to the deluge.

Tour operators usually have little business during this period of the year. But they are now completely out of business as they suspend all tours to the Sundarbans, Rangamati, Bandarban and Sylhet due to the floods.

"Outbreak of water-borne diseases and damaged infrastructure will surely discourage them to visit Bangladesh in the next season," Faridul Haque, president of Bangladesh Tour Operators' Association, said.

The government's hospitality business arm, Bangladesh Parjatan Corporation (BPC), is suffering huge loss due to dull business. "Room occupancy usually remains low during this time of the year but the floods have just deteriorated the situation," an official of BPC said. BPC runs 14 hotels and rest houses.

Abu Fazle Sobahani, general manager (Central Control) at Flight Operations Directorate of Biman, said Biman had to cancel about 20 flights during four days of suspension as floodwaters inundated runway of Sylhet MAG Osmani International Airport.

Though domestic flights resumed operation in July 23, international flights to Sylhet have remained suspended since July 19.

"Biman operates three to four domestic flights a day on average while three weekly flights from London and two from Saudi Arabia that connect Sylhet via Dhaka," he said.

Private GMG Airlines had to suspend 16 flights on Dhaka-Sylhet route when floodwaters entered Sylhet airport runway. "We suspended flights on July 19 and resumed with the evening flight from Sylhet on July 21. We are yet to estimate the loss due to the suspension," an official of GMG Airlines said.