Public private partnership in Tourism sector in Bangladesh

Mohammad Shamsul Hoque

Tourism is the world's largest and fastest growing industry. In many countries in the world like the Maldives, Bhutan, Nepal, Malaysia, Thailand, France, Germany, Russia, Britain, tourism is the most money-spinning business where as Bangladesh are still failing to utilize plenty of resources due to lack of proper planning, business and investment climate reforms and economic governance.

Tourism industry in Bangladesh is emerging issue both for the public and private sector to establish eligibility for accomplishing successful business. Though the land of diverse attractions, bountiful nature and millions of friendly people with more than a millennium of cultural heritage, Bangladesh failed to utilise 10 per cent of its tourism potentiality due to lack of sufficient steps and entrepreneurship by the government and private sectors. It is proved that tourism plays vital role in diversifying the nation's economic base and source of foreign exchange through the promotion of international tourism, creation of more employment opportunities to absorb an ever increasing labour force, improvement in the quality life of both urban and rural dwellers, through provision of leisure facilities and amenities, in addition to fostering respect for cultural diversity, promotes and encourages active private sector participation, creates better international image and increased foreign investments. In Bangladesh, investment opportunities exist in tour operation, water sports, accommodation, conferences, textiles, crafts, resort development, beaches, sports and recreation, travel and food services, etc.

Parjaton has enormous scope to add value in our country and economy. The statistics showed that from the year 1950 to 2007 the tourist growth rate was 6.5 percent and this volume could be raised to much higher level and tourist arrival could be raised to ten folds. For the past several years, the inflow of foreign tourists to one of the low cost tourism destination of Bangladesh more than doubled from two lakh in 2005 to 4.67 lakh in 2008.

Government involvement in the tourism sector is channeled through Bangladesh Parjatan Corporation (BPC), the National Tourism Organization (NTO). Though it was established in the year 1972 with the dual responsibility of development and promotion of tourism in the country, the development of the sector is low. All the governments showed negligence and fewer initiatives has been taken to create a favorable environment. While the other tourists countries like SARRC and ASEAN countries attracted both domestic and foreign tourists enormously by taking public private partnership (PPP) ventures and implementing policy and guideline since the decades, Bangladesh recently adopted PPP approach to encourage the private sectors for tourist facilities to promote domestic and international tourism in the country. The present government has updated the Tourism Policy 2009 for the greater interest of tourism sector growth. As per the draft policy, 23 stakeholders governing body of Bangladesh Parjatan Board (BPB) will be constituted chair by the Secretary, Ministry of Civil Aviation while Members would be representatives from the Ministry of Culture, Home Ministry, Ministry of Environment and Forest, Ministry of Foreign Affairs, Land Ministry, Roads and Railways Department, representatives from Travel Agency Organisations, Tour Operator Organisations, Hotels and Guest House Owners Association, Transport Organization, a lady expert on tourism and Chief Executive of the Board will be the Member-Secretary. A Jatiya Parjatan Council will also be formed with Prime Minister as President of the Council, Minister for Civil Aviation and Tourism will be vice-president and 14 other ministers as members.

A cabinet committee will also be formed to coordinate and implement tourism policy. The government in principle also agreed to formulate a time-befitting Bangladesh Parjatan Board Act.

In the meantime, a Strategic Master Plan for Tourism for the country has been prepared by the World Tourism Organization (WTO) with the assistance of UNDP. This comprehensive tourism plan has identified our major potential tourist products and types of tourist facilities to be developed in the country. The Government decided to setup and develop Special Tourist Zones (STZ) at different potential places of the country to cater to the needs and demands of the domestic and foreign tourists. These include Cox's Bazar, Sundarbans and Kuakata, Chittagong Hill Tracts.

Developing a sustainable tourism sector through PPPs require legal and governance framework which meets the demands of the international environment. In the present international and national context PPPs are imperative in promoting economic development in a country. The concept of PPPs has manifested itself to the tourism sector in Bangladesh.

The forces of globalisation in emerging markets and the requirement for good economic governance are pillars in promoting PPPs and developing a sustainable tourism sector.

To boost the sector, the government must concentrate on the Business Enabling Environment issues for creating a conducive environment, business entry costs, providing investment incentives, bank loan facilities, introducing adequate and supporting legislation including simplification of business and investment licensing and registration, reducing and building public sector capability for the formulation and prioritisation of projects and negotiations. Visa policy of government needs to be simplified. The process and number of days for getting visa should be reduced for the tourists. To ensure better communications telex, fax and international dialing services, e-mail and Internet connections through a satellite system need to be made available in the tourist destination especially in the Special Tourist Zones (STZs) in Cox's Bazar, Kuakata and other important spots. Adequate communication services especially railroads, highways, airways, and street in all tourism spots must be renovated. Roads from Dhaka to Chittagong, Chittagong to Cox's Bazar, and other spots need drastic improvement.

Government should allow Travel Agents Association of Bangladesh to import luxury coaches at reduced tax to carry tourists in the important spots, introduce tourist police to ensure security to local and foreign tourists. So creating such enabling environment, the government should formulate PPP framework and Guidelines focusing the development of tourism sectors as priority basis.

On the other hand, to explore Foreign Investment, government and private initiative may design a road map involving the foreign Embassy, Foreign Chambers of Commerce and Industry, International Travel Agencies. Strong and co-operative partnership between government departments as well as national tourism authorities, international and national trade associations, and the travel and tourism private sector is required. Besides, under the Bangladesh Parjatan Board, Public Private Tourism Network comprising of relevant governments, Chamber of Commerce and Industries, hotels, motels, resorts, airlines, tour operators, travel agencies, tourism training institutes, tourism publications, travel shops, and youth and adventure clubs should be formed to create tourism friendly business climate and economic development within country and internationally.

Tourist Zones' may also be extended with Nepal, Bhutan, India, Malaysia even with China as most of the western tourists want to enjoy a package tour.

The future of tourism is bright. But it relies heavily on the efficient management and development process of government-private sector cooperation, proper planning and implementation. Substantial business and investment climate policy and regulatory reforms are sine-qua non to attract the private and foreign investors. The tactful and attractive media blitz is needed to visualise the dreams for the global audience to maximise the gains from the development of the Tourism goldmine.