The adverse effects of Covid-19 were profound in Bangladesh’s hospitality and tourism sector as it lost about Tk 60,000 crore in gross value added during the pandemic. Bangladesh Institute of Development Studies (BIDS) estimates that the sector would have contributed about Tk 150,000 crore in terms of gross value added in absence of the pandemic, but it was ultimately reduced to around Tk 95,000 crore by the coronavirus fallout.
The transport sub-sector endured more than 40 per cent of the loss while hotels and resorts accounted for about 29 per cent. The findings show that sales and revenue in the sector dropped significantly in the April-June quarter of 2020 compared to the same period in 2019. The fall in revenue was about 84 per cent for hotels and resorts and between 98 per cent and 100 per cent for tour operators, travel agents and amusement parks. Most of the enterprises started to show an improvement in sales revenue from the July-September period of 2021, and it improved more in the next quarter of October-December.
The average number of workers hired by hotels and resorts was 42 per cent lower during the pandemic compared to pre-pandemic levels. Even though amusement parks came up with greater employment generation in 2019 compared to other sub-sectors, the net employment generation in 2020 was low with no hiring. The average employee working in restaurants at the time was drawing 80 per cent of the salaries and benefits relative to a normal period. In 2019, about 82 per cent of hotels and resorts, 83 per cent of tour operators, 86 per cent of travel agencies, and 91 per cent of enterprises that act as both tour operators and travel agencies provided bonuses to their employees.
The enterprises under the hospitality and tourism sector perceive that recovery of losses due to the Covid-19 pandemic is almost impossible without assistance from the government. Economic diversity supported the country to turn around. The government should support small entrepreneurs in the tourism and hospitality sector, thus they can survive and support the scaffold of the industry.
