Research Report

Course Title: Research Methodology

Course Code: AIS 4205
Submitted to:
Abdul Alim Baser
Associate Professor
Department of Accounting and Information Systems
University of Barishal

Submitted by:
Student Name :Md Shakil
Student ID :18 AIS 043
Department :Accounting and Information Systems
Session :2021-22
Year & Semester :4 th Year 2nd Semester
Date of Submission :8 January 2023

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IMPACTS OF COVID-19 PANDEMIC ON TOURISM &
HOSPITALITY INDUSTRY IN BANGLADESH.

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Table of Contents
Abstract 4
INTRODUCTION 5
LITERATURE REVIEW 6
RESEARCH METHODOLOGY 10
Data analysis and findings…………………………………………………………………….10

CONCLUSION 16
REFERENCES 17

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Abstract:

This article tries to find out the impacts of COVID-19 on Tourism and Hospitality Industry in
Bangladesh and presented some recovery plans for minimizing those negative impacts. This study
is carried out based on the secondary data sources, various literature, newspapers, organizational
and government publications, website materials and other sources are used to find out and complete
the analysis. COVID-19 has created an anxiety around the globe. Bangladesh has already started to
face its horrible look. The economy of Bangladesh is just sunk and like other industries tourism
industry is facing most awful situation ever before. Due to lockdown people cannot move from one
place to another. As the number of COVID-19 positive cases increasing day by day, government
bound to take this hard decision (lockdown). All international flights have been cancelled and
stopped for long days; accommodation business (hotels/motels/resort owners) already started to
face a countless loss. Small hotels/motels/restaurants/travel agencies already closed their
businesses; thousands of people working in tourism industry have started to become jobless. The
study has found that the COVID-19 has several negative impacts on the tourism industry including
the noticeable losses of revenue, a huge number of cuts off of jobs and closing the operation of the
business both permanently and temporarily. Though it is near to impossible to get overcome this
pandemic quickly but taking proper strategies can minimize the impact and recover the industry.
This study provides an understanding of the present scenario of the impact of the COVID-19
pandemic with a guideline for future research to the academician and probable recovery strategies
for the industry professional. Already government of Bangladesh offered different special packages
for recovery and ensuring sustainability of different sector. Tourism industry also needs to offer
different stimulus and discount packages for attracting domestic tourist which will help to recover
the losses. This study also presents the real scenario of tourism industry during COVID-19
pandemic which will help to know the update knowledge regarding the impacts of COVID-19 on
tourism and hospitality industry and to take proper recovery steps.

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Introduction:

COVID-19, an infectious disease caused by SARS-CoV-2, was first identified in December 2019
in Wuhan, Hubei, China (Mayo clinic, 2020) but now the whole world is suffering from COVID-
19 outbreak. It creates an unstable and emerging situation around the world. Around two-million
people in 185 countries around the globe have been identified as confirmed cases of COVID-19
(Corona virus) (Dong E, Du H, Gardner L, 2020). Like others, Bangladesh is also suffering from
Corona virus pandemic. The country confirmed the first COVID-19 case in its territory on March
2010 but now identified cases number crossed 145,483 in 30th June 2020 (Report of IEDCR,
30th June, 2020). The number of infected cases as well as death cases is increasing day by day
here and entire economy is facing a devastating situation. To reduce the spread of Corona virus,
Government took a lot of initiative like lockdown, general holiday, selection of restricted area,
zone-wise lock down etc. Due to lockdown, people cannot travel even in domestic area for long
time. Travel activities were remained closed till second week of March 2020. Still now tourism
spots are remained closed. Now, hotel, motel, restaurant, transportation facilities are opened in a
limited away. But people afraid to move and travel due to the increase number of COVID-19
patients. Tourism and Hospitality industry stays at one of the major sector which is going to look
more shocking situation due to COVID-19 outbreak. This study will discuss about the impacts of
COVID-19 on tourism and hospitality industry in Bangladesh and present some recovery plans for
re-shaping tourism industry to minimize present losses.

According to the report of the World health organization till March 2020 the worldwide confirmed
number of total Covid-19 cases are 12,94,69,648 and the number of total deaths is 28,29,898
(Worldometer, 2021; Worldometer, 2021a). The first Covid-19 positive case was identified in
Bangladesh on 8th March 2020 and till 31st of March, 2020 the total number of confirmed
Covid19 positive cases are 6,05,937 and the number of total deaths is 8,994 (World Health
Organization, WHO Coronavirus (COVID-19) Dashboard, 2021). The number of infected people
is drastically rising. To minimize the transmission of that virus government has taken few steps
such as imposing lockdown, banned international travel, restriction on domestic travel which has a
direct impact on the country’s economy and the economy is going through an overwhelming
condition.

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Literature Review:

Covid-19 is a very transmittable disease caused by a new-fangled virus that takes a very short time
to spread and it is also called novel coronavirus, moreover, that virus can stay alive for 3 days
(Cennimo, 2021). The transmission of Covid-19 in the human body mainly happens by coming to
the contact of a Covid-19 positive person and it spreads when the Covid-19 positive person sneezes
or cough apart from that the virus may spread through touching any surfaces which are having the
virus on it and then touching the mouth, nose or eyes (World Health Organization , 2020).

Table 1. COVID-19 cases around the world and Bangladesh

Month World Total Bangladesh Comparison Comparison

Reporte Total
d
Cumulative/ Cumulative/ Amount of
(Last day Amount of
deaths
of each Deaths Cumulative
Deaths incompariso
month) cases
n to the
incomparison to
world
the world
February, 88,731 2,978 0 0 0 0
2020
March, 9,60,671 54,261 49 5 0.0051% 0.009%
2020
April, 34,77,888 2,39,309 7,10 163 0.204% 0.068%
2020 3
May,2020 65,10,618 3,86,774 44,6 610 0.685% 0.157%
08
June, 2020 1,09,17,0 5,27,030 1,41 1,783 0.298% 0.338%
69 ,801
July, 2020 1,82,13,6 6,95,023 2,34 3,083 0.289% 0.443%
17 ,889
August, 2,62,64,2 8,72,244 3,10 4,248 0.183% 0.487%
2020 75 ,822
September 3,48,87,4 10,27,93 3,62 5,219 0.037% 0.507%
,2020 07 4 ,043
October, 47,154,37 12,04,84 4,06 5,905 0.861% 0.490%
2020 7 5 ,364
November 6,45,11,0 14,80,45 4,62 6,609 0.716% 0.446%
,2020 56 2 ,407
December, 83,971,39 18,36,83 5,12 7,531 0.610% 0.409%
2020 6 7 ,496
January, 10,35,35, 22,49,84 5,34 8,111 0.516% 0.360%
2021 678 5 ,770

Source: Worldometer (2021a); WHO (2021); Worldometer (2021)

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Covid-19 has a massive effect on global growth in the economy. The economic crisis has been
created worldwide as the numbers of customers as well as the amount of companies’ revenue are
declining sharply due to the quarantines on a large scale, restriction on travelling and social
distancing policies (OECD, 2020). However, in every country government attempt have been made
to limit COVID-19 propagation. For example, many countries have applied the movement control
lock-down approach (MCO) and because of that the people are staying at home but they have lost
the sources of their income which has increased unemployment extremely (Bakar & Rosbi, 2020).

All of these previous crises and outbreaks showed that those had an impact on the tourism industry
and due to these the drastically transformational modifications have been seen in the earlier period
also (Sigala, 2020). The impact of COVID-19 on tourism in space and time is unpredictable, with a
massive international and economic impact apart from the human tool, the arrival of the
international tourist has been estimated to fall to 78%, results in the loss of US$1.2 trillion revenue
which will decline the global GDP by 1.5-2.8% and 120 million direct job cuts in tourism which is
almost seven times as many as the impact of 9/11 and the biggest drop in terms of tourist revenue
(UNWTO, 2021).

Table 2. Impact of COVID-19 on tourism industry of top ten tourist arrival

country

Source Countr Impact of

y Covid-19
(The Local, France  In 2019, the net revenue of France tourism was
€150
2021) billion but due to the pandemic France tourism has lost
almost 41% of its revenue in 2020 which is €61 billion
as
the revenue has been decreased €150 billion to €89. The
most affected area was Île-de-France which has seen a
revenue loss of €23.1 billion.
(Ministry of Spain  Due to the COVID-19, the international tourist arrival
in
industry, trade Spain has been fall to 77% in 2020 in-comparison to
the
and tourism, previous year and the tourism ministry of Spain
forecasted
2021; Statista, that the Spain tourism will lose 30-50 billion USD in
the
2021) year of 2020.
(U.S Travel USA  The COVID-19 pandemic has led to estimated losses of
$492
Association , billion for the U.S. travel economy, which is amounted to
a
2021) total daily loss of almost $1.6 billion in the last 10
months,
from early March 2020 to the rest of the year of 2020.
(Ashikul China  Chinese tourists were banned by many countries to
visit
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 Hoque, 2020) and international tourists cancelled their trips to China.
Many Chinese airlines were forced to cancel their
flight
which has a negative impact on the country’s
total
economy.
(Schengen Italy  The tourism industry of Italy has seen the loss of
€36.7
Visa Info, billion due to the pandemic in 2020 because of the crisis
on
2020) international travel. A report of Schengen Visa
Info
forecasted that the expenditure of tourist will be decreased
by 82% by the year ending of 2020 which will result in
the
loss of weekly €700 million and €100 million daily.
2.8
million Jobs based on the tourism industry will be laid
off.
(Hatice Turkey  Tourist arrival in Turkey has been decreased to 15
million
Ozdemir which resulted in a total revenue loss of 11 billion USD
in
Tosun, 2020) 2020. Due to the COVID-19, the tourism sector will
be
curtailed by 70%, stated by Turkey’s minister of
culture
and tourism.
(Tanner, Mexico  Total revenue loss of tourism industry of Mexico has
been
2020; Statista, forecasted approximately 11 billion Mexican pesos due
to
2021) COVID-19 as 19.7 million foreign tourist arrivals has
been
decreased and the domestic and international passenger of
the airline industry has been decreased by 48% and 52%
respectively. 40% job based on tourism industry has
been laid off as well.

World Travel and Tourism Council (2021) reported that globally Travel and Tourism industry will
face losses of 4.5 trillion USD which is 49.1% less than the previous year and the global GDP will
be decreased by 3.7%. 62 million jobs were laid off in 2020 which is 18.5% more than the previous
year (Anadolu Agency, 2021) and the majority number of job loss is from the Asia region (Figure:
1). Visitors spending of domestic and international have been decreased respectively 45% and
69.45%.

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 Figure 1. Estimated job loss in the tourism industry

Asia
Africa
Europe
America
Middle East

Source: World Travel and Tourism Council (2021)

Tourism is highly connected with the human movement which is largely affected due to the travel
ban. With a huge domestic market of tourism, the tourism industry of Bangladesh has been
expanding bit by bit but all forms of travel and tourism operations, as well as activities, have been
closed from the middle of March 2020 because of the travel ban. Moreover, a noticeable change
has been seen in the consumers’ lifestyle and the economy of Bangladesh because of COVID-19 as
all forms of commercial operations had been kept close according to the order of the Bangladesh
government. The COVID-19 pandemic had a massive impact on many industries in Bangladesh
such as the e-commerce business, infrastructure business and travel business (Hossain, 2020) but
the first of the industries impacted by COVID-19 is tourism and that industry is one of the big
industries which would look more deplorable because of the outbreak of COVID-19 as the tourist
destinations have been restricted on travel. Because of imposing the lockdown country-wide, the
operations of hotels, motels, restaurants and the transport sector were allowed to operate in a
limited range but people are afraid of going outside and travelling as the number of COVID-19
cases are upward. The aviation industry of Bangladesh has been affected highly due to a large
number of the cancellation of domestic and international flights from and to Bangladesh. Currently,
the prospect of the tourism industry of Bangladesh is very uncertain. The objective of conducting
this study is to study the impact of the COVID-19 pandemic on the tourism industry of Bangladesh
and to suggest some possible recovery strategies to minimize the effect of the COVID19 outbreak.

Key words: COVID-19, Tourism, Tourism and Hospitality industry, economic and other effects,
recovering methods, Bangladesh.

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Research Methodology:
This study is basically qualitative in nature and necessary data are collected from different
secondary sources. Data are collected from different newspapers, articles, journals, UNWTO’s
(United Nations World Tourism Organizations) reports , World Health Organization’s reports,
tourism related various organizations’ (PATA, TEAB, TOAB etc.) reports and other relevant
secondary data sources.

Data Analysis and findings:

Tourism industry doesn’t deal with only one industry or sector it also connected directly or
indirectly with other industries- attraction (natural &man-made attractions), transportation (surface,
air and water transport system & providers), accommodation (hotel, motel, resort, home stay and
others), intermediaries (travel agencies and tour operators), amenities providers
(Telecommunication, restaurants, food & beverage providers, entertainment facility providers etc.)
and others.

Figure-1: Components of Tourism Industry

Accommodations
Intermediaries

Transportations
Amenities

Tourism
Attractions
Industry Others

Source: Developed by Author (2019)

So, COVID-19 situation has more or less halted all of these mentioned sectors and directly or
indirectly affect tourism industry. Tourism industry is one of the growing and potential drivers
industries in the economy of Bangladesh. In 2018, its contribution in total GDP was 4.4% which
is gradually increasing each year. The international tourism expenditure was worth USD 1208
million which belongs to comparatively moderate among the South Asian countries. But now this
country has to face a different scenario due to COVID-19.

In Bangladesh, November to June is the ideal time or peak season for tourism business. According
to tourist experts, the months of February –March have long been the season most ideal for
visiting the country’s major beaches. This post winter time is best period for travelling country’s
one and only coral island-Saint Martin. Bangladesh tourism and hotel sector has fallen on real bad
times. The impact of COVID-19 has proved so massive that it might take years for the sector to
return to its normal shape. It fell on the nation like bolt from the blue. Like all other sectors,
people involved in the tourism business have started drawing a picture on estimated losses. With
the popular spots lying deserted, hotels closed and the tour operator and other stakeholders have to
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stop their work. So, they could find themselves one of the worst victims of coronavirus outbreak.

The World Tourism Organization’s (UNWTO) mentioned in their site “Tourism Support
Measures” that Bangladesh tourism industry will face a loss of about TK 40 billion (USD 470
million) this year. As all internationals fights postponed their operations and domestic travellers
can’t move due to lockdown and facing current panic situation, tourism industry is facing more
vulnerable situation right now.
Alongside, Tour Operator Association of Bangladesh (TOAB) forecasts that tourism sector of
Bangladesh will suffer a loss of around TK5,700 crore due to the outbreak of COVID-19. They
forecast around 40 lakh people are employed in this sector (including tour operators, travel agents,
hotels, motels, resorts, airlines, transportation, cruising etc.) ( The Business Standard ,4th
June,2020). So directly or indirectly they are in great risk. TOAB president presented a proposal
to get bank loan with a minimum interest rate and other government’s support for survival of
tourism industry (Travel Bangladesh, 30th June, 2020).

Cox-bazar is known as the tourist capital of Bangladesh. The economy of cox bazar, Saint Martin
Island is largely dependent on tourism. According to TOAB, only cox-bazar district is going to
face a loss of BDT 20 billion revenue till Eid-Ul-Fitr. As aviation, tourism, hospitality,
transportation and accommodation industries are interlinked to each other. All have to face trouble
at their business. Aviation have to cancel their fight, hotel, transportation are stopped due to
lockdown. The shattering situation creates in hotel/motel/resorts and other accommodation
businesses. The occupancy situation of different 2* to 5* hotels around Bangladesh are shown in
following figure:

Figure-2: Impact of COVID-19 on the occupancy rate of luxury hotels

100%
90%
80%
70% Usual rate
60%
50% Current rate
40%
30%
20%
10%
0% Pan Pacific Inter Amari Le Meridien Radisson
Sonargaon Continental Dhaka Dhaka Blu
Dhaka Chattogram

Source: The daily star (15th March 2020)

Occupancy rate of all hotels are decreasing as well as wearing a deserted look due to Corona virus
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outbreak. According to the secretary of Bangladesh International Hotel Association, this time was
the peak season and but due to Coronavirus now occupancy rate reduced by 30%. Abu Hanif
Bari, Company secretary and head of admin at Sena Hotel Development said “The crushing
impact of Coronavirus on the travel industry has had a devastating effect on hotels in Bangladesh”.
According to above figure-2, The occupancy rate of hotel Amari Dhaka sank to just 10 percent,
The Six Season Hotel already lost TK 1.5 crore since the outbreak began. Occupancy rate of La
Meridian Dhaka dropped from 90-95% to about 60%. Hotel industry have started to close their
some unique services as well as reducing the number of employees because this not possible to
settle the payment of employee during this situation.

Not only hotel, aviation industries situation also catastrophic. The IATA forecasted that global air
transportation revenue will be dropped by 11% in 2020 which means a loss of $163 billion dollars
(IATA, 2020). They also forecast that around 25 million aviation-related jobs are at risk globally
now. Due to this outbreak situation, flights have to cancel and stopped for long time which causes
losses for airlines. The impacts of COVID-19 on weekly flights number during the initial time of
lockdown are shown below.

Figure-3: Impact of COVID-19 on weekly flight numbers

400
350
300
250
200
150
100
50
0
Biman Us-Bangla NovoAir
Bangladesh Airlines
Airlines

Before lockdown After lockdown

Source: The daily star (23rd March 2020)

Airlines are obliged to suspend their International flights as per Government direction. Government
has cut air connectivity with other countries to curb the spread of Coronavirus in the country which
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also creates losses for airlines. According to the report of The Daily star, local airlines were on
course to losing TK 350 crore in revenue just in March month due to COVID-19 pandemic
situations around the globe. Here, figure-3 shows the flights number before and after lockdown
which clearly shows the horrible situations of different airlines.

Moreover, Different supportive organizations are trying to estimate and forecast the losses of travel
and tourism sector and finding out probable recovery plan for reshaping country’s tourism
industry. Pacific Travel Association (PATA) Bangladesh Chapter prepared a statistics presenting
COVID-19’s impact on tourism and present tourism industry’s situation in Bangladesh. Tourism
industry of Bangladesh largely depends on domestic tourism. About 10 million domestic tourists
travel each year and the turnover is around 35 billion in a year. International travelers also
cancelled their travel schedule due to COVID-19.

Figure-4: Forecasted Number of jobless people in Tourism and Hospitality Industry due
to COVID-19 pandemic

Forecasted
15000 number of
jobs at risk in…
10000

5000

Source: PATA Bangladesh Chapter (2020)

Thousands of small hotel, resorts, motel, travel agencies and other travel related organization have
to close their service due to this pandemic. Aviation industry is also going to face a great loss
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which estimated as loss of 6 billion taka and around 2000 people involved with aviation industry
will become jobless. The estimated losses of tourism and hospitality industry are presented in
following graphs.

Figure-5: Forecasted losses in Tourism and Hospitality Industry in Bangladesh due to

COVID-19

Forecasted losses in taka (crorers) in

Tourism and
Hospitality industry in Bngaldesh
Transportation directly &indirectly
involved in tourism
Restaurants,
coffee shop and
others Tour
Operator
(Umra,land
package) Tour
Operator
(Domestic)
Tour
operat
or( Out
bound)
Tour
0 500 1000 1500 2000 2500
3000 3500

Forecasted losses in taka (crorers) in Tourism and Hospitality

industry in Bngaldesh

Source: PATA Bangladesh Chapter (2020)

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According to the above mentioned figure-4 and figure-5, hotel/resorts/INN (2*-5*) are going to
face a loss of 15 billion (1500 corer) taka as a result of which 100000 people will become jobless,
travel agents going to face loss of 30 billion taka and to create 1500 jobless people, Tour Operator
(inbound) is going to face loss of 1 billion (100 crore) taka and create 1000 jobless, Tour Operator
(Outbound) is going to face loss of 25 billion (3000 crore) taka and create 15000 jobless, Tour
Operator (Domestic) is going to face loss of 1000 crore taka and create 15000 jobless, 4.5 billion
taka loss will be faced only at UMRA (land package). Restaurants, coffee shop, bar and others
will have to face a loss of 4.5 billion (500 crore) taka and to create height unemployed people
(around 150000 jobless). Transpiration directly or indirectly involved with tourism has to face a
loss of 55 crore taka and to create 16500 jobless people.

So, the forecasted total loss till June 2020 is around 97.5 billion taka and more than 3 lac people
will become jobless which will create a devastating socio-economic situation in Bangladesh.

So, it can be said that the entire tourism and hospitality industry around the globe is going to face
a bog disaster and this will continue till the COVID-19 situation become normal. Necessary steps
and plans need to develop for recovering this estimated loss.

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Recommendations and Conclusions:

This study provides an understanding of the impact of the COVID-19 outbreak in the tourism and
hospitality industry with some probable strategies to recover the tourism industry from that
pandemic. Due to the movement control and restriction on travel the operations of the tourism
industry has been either stopped or operated in a limited range as the consumer has started
cancelling their previous reservations and stopped giving new bookings which result in the
billions of revenue loss, a huge number of people lost their job and many companies have shut
down their business as they are not able to bear the maintenance cost. The occupancy rate in the
hotel has been decreased a lot, the airlines' companies have lessened the number of flights, tour
operator are continuously receiving tour cancellation from inbound, outbound and domestic
tourist, tourist transportation providers are about to close their business, overall the entire tourism
and hospitality sector is in extreme suffer and millions of people have lost their jobs, some of
them changed their profession already. As tourism industry works with the amalgamation of too
many other industries, it’s not possible to any single industry to recover the entire loss of tourism
and hospitality industry. Both public and private relevant organizations need to come forward to
take proper recovery plans. The Government of Bangladesh already announce its annual budget
for aviation & tourism industry, now proper utilization of this budget is essential for recovery
tasks. The Government of Bangladesh also announced a stimulus package to support the tourism
sector where banks will provide loans at 9% interest and government will bear 4.5% interest and
other 4.5% need to be bearded by the business (UNWTO, 9th April, 2020). Now Bangladesh
should focus on domestic tourism, special discount packages need to be developed to attract
tourists. The promotion of village tourism, agro-tourism, community-based tourism needs to be
practiced which will help to enhance visitor’s interest of travel as well as improving the economic
conditions of country. Moreover, policymakers must have to ensure and monitor the proper
utilization of resources as well as proper execution of their recovery plans which will bear more
fruitful result for tourism industry in Bangladesh.

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https://covid19.who.int/region/searo/country/bd

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