Hospitality industry likely to see Tk 10-15b investment in a few years

Published : 24 Oct 2023 10:18 PM

The country's hospitality industry is likely to witness new investment worth some Taka 10-15 billion in the next couple of years, hopes sector insiders mentioning at least 8- 10 new 5-star hotels are entering into market within the next 5-6 years, as the economy has been growing by over 7.50 per cent over the last 10-15 years. 

The industry in Bangladesh holds tremendous potentials as Bangladesh economy is growing by over 7.00-8.00 per cent and the country became a member of a middle-income group this year.

The number of international hotels in Bangladesh has increased over the years. A lot of new brands have entered the market and new brands are under development and coming into the market, showing a healthy sign.

Buoyed by the spending by local travelers, the hotel and hospitality sector of Bangladesh that suffered heavily during the pandemic period has picked up in recent times with the business in some cases surpassed the   pre-pandemic period, said  Ashwani Nayar, General Manager, Intercontinental Dhaka recently

Ashwani Nayar, an Indian citizen, has a vast experience of over 25 years, said Bangladesh has contained the pandemic period successfully putting the economy on the track during 2020 and 2021.     

Though the international travelers are not visiting Bangladesh as per expectation to the level of the pre-Covid-19 period, the local travelers are contributing to the booming business in the industry, said Ashwani Nayar.

‘Local consumers are nowadays spending that was not a trend five years back. Bangladesh’s domestic consumption is much higher, especially in terms of food and beverage. Even if the number of inbound international travellers drops, the domestic consumption itself ensures, to a certain degree, that businesses of hospitality, food and beverages and dining remain viable and profitable. I think that is a very unique situation,‘ he said.

In the last 10 years the country has witnessed opening of pose hotels including Five-Star hotels like Radisson Blu Water Hotel at Chittagong, Holiday Inn at Tejgaon, DuSai Resort & Spa in Maulvi Bazar, The Peninsula Chittagong, Amari Dhaka, Long Beach Suites Dhaka, Le Meridien Dhaka, Six Seasons Hotel in Dhaka, Four Points by Sheraton in Dhaka, Rose View Hotel, Hotel Valley Garden and Nazimgarh Garden Resort in Sylhet, Long Beach Hotel at Cox Bazar, Grand Sultan Tea Resort & Golfin at Maulvi Bazar showing that Bangladesh is becoming a success story in the hospitably industry. 

During this time, The Westin, Radission Blu Water Garden, Amari, Six Season, Four Points Sheraton, Le Meridien and Sarina and Regency have been opened.

Shahadas Sadeque, director for marketing and business promotion of InterContinental Dhaka, while talking to this correspondent said restaurant business of the hotel has running well and reached the pre-pandemic period.  

However, the occupancy of guest rooms is slightly low compared to the pre-pandemic period. With gradual rise in international traveling, the guest room occupancy is expected to rise in the coming days, said Shahidus Sadeque, who has vast nearly 20 years in the hospitality industry. 

Meanwhile, the hotel and tourism sector in Bangladesh incurred losses worth Tk6,000 crore in 2020 following the spread of Covid-19, reveals a study by Bangladesh Institute of Development Studies (BIDS).

The study was carried out by reviewing the existing literature and collecting primary and secondary information to find out the contribution of the sector to the economy as well as to comprehend the possible impacts of Covid-19 on the sector.