Report

124 QUANTIFICATION OF BENEFITS FROM ECONOMIC COOPERATION IN SOUTH ASIA
In the WTO context tourism is only one of the
three services sectors – the other two being financial
and
telecommunications
– wherein Bangladesh has undertaken
commitments. The commitments made earlier in
tourism have a very positive implication as Bangladesh
has gained experience and should thus be willing to
take wider and deeper commitments in the sector in
the current round. Others also suggest that Bangladesh
had initial commitments in this sector during the
conclusion of the Uruguay Round negotiations and it
is quite obvious from such commitments that the it has
developed some understanding of the opportunities and
risks involved in this sector (Raihan and Mahmood
2004). This will certainly help Bangladesh in drafting
improved commitments.
In Bangladesh, the tourism and travel related sector
ranks low in GDP share. It has been estimated that
tourism contributed about 0.3% to GDP while the hotel
and restaurant subsectors accounted for only 0.67%
of services sector output in 2002–03 (ESCAP 2005:3).
Direct employment in tourism was estimated to be just
over 100,000 people and indirect employment could
be over 200,000 people. Tourism has been considered
important for poverty alleviation and Bangladesh
strives for the optimal use of tourism resources to
benefit local communities.
The Bangladesh Parjatan Corporation, the national
tourism organisation, has been responsible for
developing tourist facilities nationwide (ESCAP 2005).
At the same time, the private sector has developed
tourism businesses. The government has encouraged
foreign investment in tourism, either as a joint venture
or with 100% foreign ownership. A set of 10 incentives
was designed to encourage local and foreign investment.
In Bangladesh, the National Hotel and Tourism
Training Institute has been developing human resources
in the tourism industry. A two-year diploma course in
hotel management began in 2002, and national
certificate courses on hotel and tourism-related subjects
have been conducted regularly.
Bangladesh has supported the Action Plan on
Tourism of 1991 as a member of the SAARC Technical
Committee on Tourism, which identified tourism as one
of six important sectors with scope for multilateral and
bilateral cooperation. In 2004, members of the Bay of
Bengal Initiative for Multisectoral Technical and
Economic Cooperation (BIMSTEC) 2 recognised that
strategies such as joint marketing and exchange of visits
and information could enhance interregional tourism.
Members also agreed to facilitate business travel,
exchange programmes and tourism by introducing a
BIMSTEC business travel card/visa. Bangladesh is a
member of South Asia subregional economic
cooperation.
Bangladesh needs to improve upon its commitments
in the sector during the ongoing services negotiations.
Bangladesh should expand the coverage of its
commitments by including other sub-sectors – travel
agencies and tour operators services and tourist guides
services. In the sub-sector in which Bangladesh has
already undertaken commitments it should also include
hotels other than five star and restaurant and catering
services. Moreover, as Bangladesh has not made any
commitments under Modes 1 and 2 in the committed
sub-sector, it should take full commitments in these
modes. The opening of the tourism sector will increase
the volume of domestic tourism, as well as the level of
investment (Raihan and Mahmood 2004). Currently,
Bangladesh is a net importer of tourism services through
Mode 2 despite having enormous resources for the
development of its tourism sector.
Bangladesh is an important tourism market for
India. It sends a large number of people to India for
various purposes including tourism. For instance, in
1998 about 303,000 Bangladeshis visited India and the
number rose to 333,000 in 1999 (Rahman 2000). It
has been estimated that about 40,000 Bangladeshis visit
India annually primarily for the purpose of medical
treatment (Ibid). Those who visit India for health
reasons are also relevant to tourism in view of health
tourism. Similarly, Sri Lanka has started direct flight
service between Dhaka and Colombo in order to
facilitate the movement of tourists between the two
countries. There is trade taking place between
Bangladesh and Bhutan via India which is also likely
to facilitate tourists’ movement between these two
countries. Though it is interesting to note that India
has been operating hotels in the Maldives, Sri Lanka
and Bhutan, there is no information regarding any
reputed Indian hotels operating in Bangladesh.
Bangladesh being the third largest market in the
region has a lot of potential to attract investments and
skilled professionals which will help its tourism industry
to grow at a rapid pace. In view of this it ought to
undertake wider and deeper commitments in all sub-
2
The BIMSTEC is an international organisation involving a group of countries in South Asia and South East Asia. The
member nations of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.