Hospitality, tourism sector lost Tk 6,000cr in pandemic: BIDS

The hospitality and tourism sector lost Tk 6,000 crore and as many as 1.40 lakh workers also lost their jobs due to the Covid pandemic, said a Bangladesh Institute of Development Studies report.

The BIDS published the study report titled ‘The COVID-19 Pandemic and the Hospitality and Tourism Sector in Bangladesh’ on Sunday.

The BIDS conducted a primary survey with enterprises and employees drawn from 200 hotels and resorts categorised as 5-star, 4-star, 3-star, 2-star, 138 travel agencies and tour operators, and 200 restaurants and 63 tourism small and medium-sized enterprises across the eight administrative divisional cities and Cox’s Bazar.

According to the report, the sales and revenues in the HTS dropped significantly in April-June quarter of 2020 compared to that of 2019.

This fall was about 84 per cent for hotels and resorts and 98 per cent to 100 per cent for tour operators and travel agents and amusement parks.

However, most of the enterprises started to show improvement in sales revenue from the 3rd quarter July to September of 2021, which improved even more in the 4th quarter October to December of the year.

The average number of workers hired by the hotels and resorts was 42 per cent lower in the pandemic year compared to the pre-pandemic year. The retrenchment, on the other hand, was 317 per cent higher during the pandemic year, said the report.

The average reduction in wages and salaries is quite substantial — among the hotels and resorts 34 per cent, tour operators 34 per cent, and travel agents 26 per cent.

In comparison, benefits reduced to around 50 per cent for employees in these sub-sectors.

The average employee working in restaurants was drawing 80 per cent of salaries and benefits relative to a normal period.

During 2020-2021, the incidence of providing bonuses reduced to only 54 per cent in hotels and resorts, 19 per cent in tour operators, 35 per cent in travel agencies, and 36 per cent in enterprises that act both as tour operators and travel agencies.

The study also attempted to understand the economic well-being of workers employed in hotels and resorts as well as tour agencies. The percentage of employees reporting a fall in earnings is sizable — among the tour operators and travel agencies 72 per cent, the tour guides 50 per cent, and hotels and resorts 50 per cent during the 2nd quarter of the year when the strict lockdown was in effect.

The situation remained almost the same during the 3rd quarter except for employees working in hotels and resorts, with 45 per cent reporting the fall. This improved during the last quarter when a lesser number of workers from all three sub-sectors reported a fall in earnings between 43-57 per cent.

The performance of enterprises also varied across the sub-sectors while workers in the sub-sectors appeared to be particularly vulnerable during the Covid-19 pandemic.

However, the current state of businesses is untenable in the medium term as consumers’ tastes and preferences change over time and hence need major overhauling in terms of infrastructure and services with skilled human resources, said the report.

Fiscal incentive and credit facilities at easy terms and conditions should be allowed for the sub-sectors to fully recover from the staggering adverse impacts of Covid-19, it suggests.

Besides, the study also refers to the development of public infrastructure at the tourist sites and the neighborhoods to ensure the safety and security of the tourists and facilitate the private sector to do their businesses.

Short of these measures in the short and medium term, the current malaise of the sub-sector would continue and the dream of achieving the relevant targets and indicators of the sustainable development goals will remain a fleeting mirage, it said.

News Courtesy:

https://www.newagebd.net/article/167786/hospitality-tourism-sector-lost-tk-6000cr-in-pandemic-bids