Tourism is a leading industry of the 21st century. According to the information issued by the World Travel & Tourism Council (WTTC), in 2001 international tourist arrivals and receipts stood at 693 million and 462 billion dollars respectively making it the highest export earning sector of the world.

Tourism today is not confined to a few countries of traditional tourist interest. More and more tourist are now avoiding the over-crowded beaten tract and heading for new areas and destinations. This changing behavior and trend in global tourist movement was identified and exploited by many countries by developing their own tourism industry. The tourism industry of Bangladesh has great potentials both as a foreign exchange earner and provider of job opportunities with the resultant multiplier effect on the country ' s economy as a whole.

The structure of the tourism sector in Bangladesh is predominantly managed by a public sector. Government involvement in the tourism sector is channeled through Bangladesh Parjatan Corporation (BPC), the National Tourism Organization (NTO). It was established in the year 1972 with the dual responsibility of development and promotion of tourism in the country and commenced business as a Corporation in January 1973. As a semi-autonomous organization it provides tourism facilities to construct and run hotels, restaurants, operate Duty Free Shops (DFS), transportation and car rental, establish and run tourism training institution. NTO in Bangladesh is primarily a tourism service provider and promoter of tourism product.

Bangladesh Government has taken necessary measures to encourage the private sector to play positive role in the development and diversification of tourist facilities to promote domestic and international tourism in the country. It has declared a National Tourism Policy, recognizing tourism as an industry and a thrust sector in the latest Industrial Policy and it taking appropriate measures to offer incentives to both the local and foreign investors. A national Tourism Council has been set up.

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. Recently, the Government has taken the initiative to revise and update the Master Plan with the help of international technical assistance for the purpose. The Government has 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 foreign tourist. These include Cox's Bazar, Sundarbans and Kuakata. The Chittagong Hill Tracts (CHT) comprising three districts: Rangamati, Khagrachari and Bandaran will also be developed as a Tourists Zone.

Private sector investment in tourism in Bangladesh is still scanty and public sector has been playing the pioneering role in the development and promotion of tourism in the country. The 5-Star Sonargaon Hotel in Dhaka is a public sector initiative. Government is also the main partner of Dhaka Sheraton Hotel. Tourism facilities at major tourist spots like Dhaka, Cos,x Bazar, Eangamati, Khakata, Mongla, Teknaf, Sylhet, Rajshahi, Dinajpur, Rangpur, Bogra etc have been established mainly by Bangladesh Parjatan Corporation (NTO). However, private sector investors are showing keen interest now a day to participate in the tourism sector too. Only a few noteworthy hotels have been established in the private sector and more 5-Star category hotels will be established in this sector within a couple of years.

National Policy and Investment Opportunities

Government of Bangladesh recognized tourism as an industry and declared a National Tourism Policy for the development of domestic and international tourism in Bangladesh . The policy underlines marketing strategies and development of infrastructures and human resources. The Government of Prime Minister Begum Khaleda Zia has attached priority and importance to the tourism sector.

Foreign investors are welcome to Bangladesh to invest in tourism sector. In the context of National Policy, the government encourages foreign investors in this sector, which can be either in the form of joint venture or on 100% foreign ownership basis. In order to encourage private and foreign investment, the following incentives are allowed:

•  Tax exemptions of royalties;

•  Tax exemption on the interest of foreign loans;

•  Tax exemptions on capital gains from the transfer of shares by investing company;

•  Avoidance of double taxation in case of foreign investors on the basis of bilateral agreements;

•  Exemptions of income tax on salaries up to three years for the foreign technicians employed in the approved industries;

•  Remittance up to 50% of the salary of the foreigners employed in Bangladesh and the facilities for repatriation of their savings and retirement benefits and personal assets at the time of their return;

•  Facilities for repatriation of invested capital, profits and dividends;

•  Guarantee against expropriation and nationalization of foreign private investment (as per foreign private investment promotion & protection Act 1980);

•  Provision for transfer of shares held by foreigners to local partners;

•  Reinvestment of repatriable dividend is treated as foreign investment.

Bangladesh Parjatan Corporation, National Tourism Organization (NTO) is playing the leading role as a promoter of the industry and is now engaged in creating facilities for local and foreign investors to develop the tourism sector. Some of the potential areas for such investment have briefly been outlined here. International investors are welcome to Bangladesh to participate in the development of profitable tourism sector will help to promote Bangladesh as a destination having rich Islamic heritage and culture.

Memorandum of Understanding between the Ministry of Civil Aviation and Tourism of 
the People抯 Republic of Bangladesh and National Tourism Administration of the People抯 Republic of China
on the Facilitation of Group Travel By Chinese Tourists to Bangladesh