The Economy of in Sakib Bin Amin The Economy of Prospects, Constraints, and Policies Sakib Bin Amin Department of Economics School of Business and Economics North South University , Bangladesh

ISBN 978-3-030-72899-1 ISBN 978-3-030-72900-4 (eBook) https://doi.org/10.1007/978-3-030-72900-4

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This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland To My Parents Acknowledgements

Publishing a book on the Bangladesh tourism industry has been my long- cherished dream, and I am very thankful to the Almighty for giving me the opportunity and strength to finish this book. While preparing for an undergraduate assignment at Dhaka University in 2001, I realised the necessity of a complete book on the Bangladesh tourism industry covering different aspects of the industry, highlighting its economic importance, barriers, and policies. Almost after 2 decades, my dreams have come to a reality in 2021, when Bangladesh proudly celebrates the 50 years of independence. I like to express my gratitude to my loving parents Mr. S. M Aminur Rahman and Mrs. Akhter Jahan Selima Aziz, for their unconditional and endless love, care, support, and encourage- ment throughout my life. I thank my wife Sameena Shahzadi, my sister Tanjila Amin Bintu, my niece Tabiah Wania Khan for their support. I am also thankful to Dr. Laura Marsiliani, Dr. Thomas Renström, Professor Tooraj Jamasb, Professor Ricardo Raineri, Professor Gurkan Kumbaro˘glu, Professor Fehmi Karasio˘glu, Professor Parantap Basu, Dr. Rabindra Nepal, Dr. Farhad Taghizadeh, Dr. Manuel Llorca, Dr. Agnirup Sarkar, Dr. Birsen Bulut Solak, Dr. Syed Manzoor Ahmed, Dr. S.

vii viii Acknowledgements

M. Zahid Iqbal, and Dr. Mainul Islam Chowdhury for their constant encouragement. I am also grateful to Mr. Monwar Islam, Chairman of Bangladesh Energy Regulatory Commission, Professor Abul Barkat, Pres- ident, Bangladesh Economic Association, Dr. Bazlul Haque Khondker, Chairman, SANEM for their affection and encouragement. I want to show my fullest gratitude to the Chairman and other members of the Board of Trustees, North South University (NSU), Bangladesh for their relentless hard work to enhance research-oriented activities at NSU. I would like to thank the Vice-Chancellor, Pro-Vice- Chancellor, Dean (SBE), the senior management team, and the Accred- itation Project Team (APT) of NSU, Bangladesh, for their continuous support. Thanks go to all my colleagues and students at NSU, Bangladesh, and Durham University Business School (DUBS), UK, to always be supportive. My deepest thanks go to Nejc Jus (WTTC), Laura Delgado Álvarez (UNWTO), Farhana Shahnaz, Shah Zahidur Rahman, Bismi Samia Iqbal, Juhi Jannat, and Mahatab Kabir Khandaker. My Research Assistants, Mr. Farhan Khan and Mr. Foqoruddin Al Kabir, deserve more than gratitude for their hard work and support to complete this book. I like to thank the reviewers for their valuable comments towards improving the manuscript. My heartiest gratitude goes to the friendly Springer team, Jessica Harrison, Shreenidhi Natarajan, and Shukkanthy Siva for their helpful advice in publishing this book. Finally, I like to acknowledge my only son Sabir Amin, who inspires me all the time. Contents

1 Introduction 1 References 8 2 Different Forms of Tourism in Bangladesh 11 2.1 Introduction 11 2.1.1 Tourism Definition 11 2.1.2 Domestic Tourism 12 2.1.3 International Tourism 14 2.2 Different Forms of Tourism in Bangladesh 14 2.2.1 Heritage Tourism 14 2.2.2 Religious Tourism 18 2.2.3 Sports Tourism 22 2.2.4 Seaside Tourism 25 2.2.5 Tea Tourism 26 2.2.6 Rural Tourism 28 2.2.7 Eco-Tourism 29 2.2.8 Other Tourism in Bangladesh 30 2.3 Conclusion 35 References 36

ix x Contents

3 A Brief History and Overview of Tourism in Bangladesh 39 3.1 Background 39 3.2 Tourism in Central Bangladesh 41 3.2.1 Central Shaheed Minar (Monument of Language Martyrs) 41 3.2.2 National Martyrs’ Memorial (Symbol of Sacrifice and Valour) 44 3.2.3 Mausoleum of Father of the Nation Bangabandhu Sheikh Mujibur Rahman 45 3.2.4 46 3.2.5 47 3.2.6 Bangabandhu Memorial Museum 48 3.2.7 Panam City in 49 3.2.8 Bhawal Rajbari in Gazipur 50 3.2.9 Bangabandhu Sheikh Mujib Safari Park 50 3.2.10 Nikli 51 3.2.11 Susang Durgapur in Netrokona 51 3.3 Tourism in Eastern Bangladesh 52 3.3.1 Cox’s Bazar (Longest Sandy Sea Beach) 52 3.3.2 St. Martin’s Island (the Coral Island) 54 3.3.3 Hill Tracts 54 3.3.4 Shalban Bihar in 58 3.3.5 Mainamati War Cemetery 59 3.3.6 60 3.3.7 Tourism in Division 60 3.4 Tourism in Northern Bangladesh 68 3.4.1 Paharpur 68 3.4.2 70 3.4.3 Ramsagar Lake (Dighi) and Ramsagar National Park 71 3.4.4 Chalan Beel 72 3.4.5 Other Archaeological Tourist Attractions 72 3.5 Tourism in Southern Bangladesh 73 3.5.1 74 3.5.2 75 Contents xi

3.5.3 76 3.5.4 Fakir Lalon Shah Shrine 77 3.6 Conclusion 78 References 82 4 Economic Prospects of Tourism Industry in Bangladesh 83 4.1 Background 83 4.2 Economic Prospects of Tourism Industry in Bangladesh 87 4.3 Empirical Analysis 97 4.4 Conclusion 109 References 110 5 Barriers to Tourism Industry in Bangladesh and the Way Forward 115 5.1 Background 115 5.2 Social Barriers 117 5.2.1 Lack of Community Development 117 5.2.2 Safety and Security Issues 118 5.2.3 Large Share of Unskilled Labours 119 5.2.4 Political Unrest 120 5.2.5 Image Crisis and Failure to Promotion and Marketing 121 5.3 Institutional Barriers 122 5.3.1 Policy Biasedness 123 5.3.2 Lack of Destination Services and Facilities 125 5.3.3 Lack of Research and Development (R&D) 127 5.3.4 Carrying Capacity and Resource Management in Tourism 128 5.3.5 Coordination Problem 130 5.3.6 Public-Private Partnerships (PPPs) 131 5.4 Proposed Policies to Overcome the Barriers 132 5.5 Conclusion 132 References 134 xii Contents

6 Role of Government and the Private Sector in Bangladesh Tourism 139 6.1 Introduction 139 6.2 Role of Government in Tourism Development in Bangladesh 141 6.3 Private Sector Participation in Tourism Industry in Bangladesh 146 6.4 Conclusion 152 References 153 7 An Overview of South Asian Tourism Industry and Significance of the Regional Tourism Integration 157 7.1 Introduction 157 7.2 Overview of Tourism in Five Neighbouring South Asian Countries 162 7.3 Prospects of Regional Tourism in South Asia 170 7.4 Barriers for Regional Tourism in South Asia 174 7.5 Conclusion 175 References 176 8 Tourism and Globalisation Nexus in Bangladesh 179 8.1 Introduction 179 8.2 Dynamic Simulation Framework 184 8.3 Analysis from the Dynamic Simulation 188 8.3.1 Tourism and Globalisation 189 8.3.2 Tourism and Energy Consumption 190 8.3.3 Tourism and Environment 191 8.3.4 Tourism and Renewable Energy 193 8.4 Conclusion and Policy Recommendations 194 References 196 9Conclusion 201 References 204

Appendix A 205 Contents xiii

Appendix B 223 Appendix C 225 Index 231 About the Author

Dr. Sakib Bin Amin is an Associate Professor in the Department of Economics, School of Business and Economics, and the Director of the Accreditation Project Team (APT) at North South University, Bangladesh. He holds a Ph.D. in Economics from Durham Univer- sity (UK). Dr. Sakib was the receiver of the Commonwealth Ruther- ford Fellowship (2017–2018) for conducting his postdoctoral research at Durham University (UK). Previously, Dr. Sakib received his bache- lors’ and masters’ degrees in Economics from Dhaka University, securing first class in both. He also holds a masters’ degree in International Economics from the University of Essex (UK). Dr. Sakib is a fellow of the Higher Education Academy (HEA) and a life member of the Bangladesh Economic Association (BEA). His research focuses on energy and tourism policy in developing countries. He is the first and lead author of the book, titled Energy Resources in Bangladesh: Trends and Contemporary Issues, published by Springer International in 2019.

xv Abbreviations

ADF Augmented Dickey-Fuller ADP Annual Development Programme ARDL Autoregressive Distributed Lag ASEAN Association of Southeast Asian Nations BIMSTEC Bay of Initiative for Multi-sectoral Technical and Economic Cooperation BOP Balance of Payment BPC Bangladesh Parjatan Corporation BTB Bangladesh Tourism Board BTRI Bangladesh Tea Research Institute CHT CUSUM Cumulative Sum Test DARDL Dynamic ARDL DF-GLS Dickey-Fuller-GLS DOLS Dynamic Ordinary Least Squares FDI Foreign Direct Investment FY Fiscal Year FYP Five-Year Plan GDP Gross Domestic Product GNH Gross National Happiness

xvii xviii Abbreviations

IESCO Islamic Educational Scientific and Cultural Organization IMED Implementation Monitoring and Evaluation Division IUCN International Union for Conservation of Nature LFS Labour Force Survey MoCAT Ministry of Civil Aviation and Tourism NGO Non-Government Organisation NHTTI National Hotel and Tourism Training Institute NTO National Tourism Organization OIC Organisation of Islamic Cooperation OLS Ordinary Least Squares PPPs Public-Private Partnerships R&D Research and Development RETOSA Regional Tourism Organization of Southern Africa RMG Readymade Garments Rs Nepalese Rupee RTI Regional Tourism Integration SAARC South Asian Association of Regional Cooperation SDGs Sustainable Development Goals SMEs Small and Medium Enterprises SWIID Standardized World Income Inequality Database TLGH Tourism-Led Growth Hypothesis UN United Nations UNESCO United Nations Educational, Scientific and Cultural Organiza- tion UNWTO World Tourism Organization WB World Bank WDI World Development Indicator WTTC World Travel & Tourism Council YDI Youth Development Institute YWCA Young Women’s Christian Association List of Figures

Fig. 2.1 Tourism Classification (Source Author’s own elaboration) 13 Fig. 3.1 Tourist Map of Bangladesh (Source Ministry of Civil Aviation and Tourism (https://mocat.portal.gov.bd/ sites/default/files/files/mocat.portal.gov.bd/files/acc 7e98a_8963_4ccf_a00d_6f7d612301dd/BTB-BD- Map.jpg) 42 Fig. 4.1 Total Contribution and Share of Tourism in GDP (Source World Travel & Tourism Council [WTTC, 2019]) 88 Fig. 4.2 Tourism Industry’s Contribution (Source Author’s Compilation) 90 Fig. 4.3 Total Employment Generation from Tourism Industry (Source World Travel & Tourism Council [WTTC, 2019]) 91 Fig. 4.4 Disaggregated Employment Generation from Tourism Industry (Source World Travel & Tourism Council [WTTC, 2019]) 93 Fig. 4.5 Tourist Spendings in Bangladesh (Source World Travel & Tourism Council [WTTC, 2019]) 94

xix xx List of Figures

Fig. 4.6 Scenario of Capital Investment for Tourism Industry in Bangladesh (Source World Travel & Tourism Council [WTTC, 2019]) 96 Fig. 4.7 Scenario of Government Spendings for Tourism Industry in Bangladesh (Source World Travel & Tourism Council [WTTC, 2019]) 96 Fig. 5.1 Barriers to Tourism Industry (Source Author’s Own Elaboration) 116 Fig. 5.2 Number of International Tourist Arrivals Over the Years (Source World Development Indicators [WDI, 2019]) 121 Fig. 5.3 Employment Scenario in Bangladesh (Source Penn World Table 9.1 and World Development Indicators [WDI, 2019]) 124 Fig. 5.4 Expenditures for Passenger Transport Items (Source World Development Indicators [WDI, 2019]) 126 Fig. 5.5 Policy Summary to Overcome the Barriers of the Tourism Industry (Source Author’s Own Elaboration) 133 Fig. 6.1 Tourism Development Plans in Bangladesh (Source Author’s Compilation) 144 Fig. 6.2 A Conceptual Mechanism on the Effectiveness of PPPs in Bangladesh Tourism Industry (Source Author’s Own Elaboration) 151 Fig. 7.1 Geographical Map of South Asia (Source Google Maps) 159 Fig. 7.2 Global International Tourist Arrivals in 2018 (Source UNWTO 2019) 160 Fig. 7.3 South Asian International Tourist Arrivals from 2010 to 2018 (Source UNWTO Tourism Highlights [2011–2019]) 160 Fig. 7.4 South Asian Tourist Receipts from 2010 to 2018 (Source UNWTO Tourism Highlights [2011–2019]) 161 Fig. 7.5 Tourist Arrivals by Purpose of Visit in Bhutan (Source Bhutan Tourism Monitor [2018]) 164 Fig. 7.6 Tourist Arrivals by Purpose of Visit in Nepal (Source Nepal Tourism Statistics [2018]) 166 Fig. 7.7 Tourist Arrivals by Purpose of Visit in Sri Lanka (Source Annual Statistical Report, Sri Lanka Tourism Development Authority (SLTDA) [2018]) 167 List of Figures xxi

Fig. 7.8 Tourist Arrivals by Purpose of Visit in (Source Indian Tourism Statistics [2019]) 169 Fig. 7.9 Prospects of Regional Tourism Integration in South Asia (Source Author’s Compilation) 172 Fig. 7.10 Barriers for Regional Tourism in South Asia (Source Author’s Compilation) 172 Fig. 8.1 Export Earnings by Product Category, 2017 (USD billion) (Source World Tourism Organization [2019] and the World Trade Organization [2019]) 180 Fig. 8.2 World Globalisation and International Tourism (Source KOF Swiss Economic Institute [2019] and World Bank [2019]) 182 Fig. 8.3 Association of Globalisation and Tourism from Different Channels (Note Author’s own elaboration) 184 Fig. 8.4 Globalisation and Tourism 190 Fig. 8.5 Energy and Tourism 191 Fig. 8.6 Tourism and CO2 (Controlled for Real Income) 192 Fig. 8.7 Tourism and CO2 (Controlled for Energy) 192 Fig. 8.8 Tourism and Renewable Energy 194 Fig. 8.9 Stability Diagnostics of the Variables 195 Fig. 9.1 Conceptual Model for the Sustainable Tourism Development in Bangladesh (Source Author’s own elaboration) 202 List of Tables

Table 2.1 List of Archaeological Sites Preserved by the Archaeological Department 16 Table 2.2 List of World Heritage Sites in Bangladesh 19 Table 2.3 Various Types of Cricket Events in Bangladesh 24 Table 3.1 Tourism in Different Regions of Bangladesh 41 Table 3.2 Tourism Destinations by Region, Division, and Category 79 Table 4.1 Global Tourist Arrivals by Region of Origin (Millions) 84 Table 4.2 Selected Countries with Higher Share of Tourism in GDP 89 Table 4.3 Disaggregation of Tourism Contribution in GDP (BDT Billion) 91 Table 4.4 Trend of International Tourism Receipts and Expenditures in Bangladesh 93 Table 4.5 Description of the Variables 98 Table 4.6 Description of the Parameters 99 Table 4.7 Stationary Properties of the Variables 100 Table 4.8 ARDL Bounds Cointegration Test with Surface Regression Results 102 Table 4.9 DOLS Long-run Estimation 105

xxiii xxiv List of Tables

Table 5.1 Capital Investment in Tourism Industry (USD Billion) 126 Table 6.1 Budget Allocation to Ministry of Civil Aviation and Tourism 145 Table 6.2 Future Plan for Blue Economy in the Tourism Industry in Bangladesh 147 Table 7.1 Tourist Arrivals from Different Countries in Bhutan (2018) 163 Table 7.2 Tourist Arrivals from Different Countries in Nepal (2018) 165 Table 7.3 Tourist Arrivals from Different Countries in Sri Lanka (2018) 167 Table 7.4 Tourist Arrivals from Different Countries in India (2018) 169 Table 7.5 Tourist Arrivals and Tourism Receipts in Maldives 170 Table 7.6 Tourist Arrivals from Different Countries in Maldives (2018) 171 Table 8.1 Description of the Parameters 185 Table 8.2 Descriptive Statistics of the Variables 187 Table 8.3 Stationary Properties of the Variables 188 Table 8.4 Cointegration Test Results 189 Table A.1 Classification of Heritages Tourism 206 Table A.2 List of Tourist Destination by Region, Division and District of Bangladesh 207 Table A.3 Descriptive Statistics of the Variables 215 Table A.4 SDG Aligned 7th FYP Targets for Tourism Industry Development in Bangladesh 216 Table A.5 SDG Aligned Tourism Industry Development Progress 220 Table A.6 Tourism Arrivals of Selected South Asian Countries (Persons) 222 Table A.7 Tourism Receipts of Selected South Asian Countries (in USD Million) 222