Course Title- International Financial Management
Course Code- BUS423
Topic- Role of Bangladesh Tourism Industry as an Important Source of Rapid Economic Development— An Empirical Evaluation
Submitted to-Name –Rahim UddinDesignation-Course Teacher| Submitted By-Name- Tariqur RahmanId-468461321Department-USB|
Role of Bangladesh Tourism Industry as an Important Source of Rapid Economic Development— An Empirical Evaluation
Tourism is treated as one of the world's fastest growing industries. While travel was once an uncertain and hazardous event but it is now an easily planned and coordinated adventure that has been revolutionized since middle of last century by vast improvements in transportation in general and air transportation in particular, computer technology, and networks of international communication. In many develop and developing countries, tourism has been designed as a leading industry for the purpose of stimulating economic development The World Travel & Tourism Council Measures that by 2011, the Travel & Tourism economy will constitute: 11.0 per cent of global GDP, support 260.5 million jobs worldwide. This is 9 % of total employment or 1 in every 11.2 jobs (Siddiqi, 2003).
Tourism offers immense potential on employment generation, poverty alleviation and maintaining ecological balance. It is relatively modern phenomenon, which plays an intensely important role in the economic development of any country (Kendell 1988, p.43). According to World Tourism Organization (WTO), it is one of the world's biggest industries is set to double within 15 years to reach a billion tourists by year 2010. Moreover, The WTO said that the industry at present employs about 212 million people and the figure is expected to rise to 385 million by 2006 (Chamber News, Nov. 1995 p.4). The contribution of this sector to the GDP of many countries is significant. In China it was 3.64 % in 1995 followed by Singapore 5.2% (The Bangladesh Monitor, 1996).
In the year 1998, the number of tourists in the USA increased by 1.4% and income by 2.1% , in Europe these percentages were 3% and 3.6%, in the middle East 5.3% and 6.4% and in South Asia 5% and 2.8% respectively (Madrid AFT 1999 p. 12). The overall economic impact of travel and tourism in South Asia is expected to contribute 4.8% to gross domestic product (GDP) in 2003, rising to 5.3% in 2013. The industry is projected to provide employment to about 29 million people (5.2% of the total) in 2003, and to almost 36 million (5.4%) in 2013 (ADB, 2003).
After a short lull following the September 11 episodes in the USA, global tourist movement has been on the ascending track again. The tourist flow maintained its healthy magnitude in the Asian region though the Afghanistan war and tension between Pakistan and India. In the South Asian region particularly, tourism industry is ever vibrant and growing steadily. With growing international interest in traveling through Asia, tourism industry is taking roots in Bangladesh. (The Daily Star, Feb 1, 2002).
2. Rationale of the Study
According to a news of New York Times that Cox’s Bazar of Bangladesh will be an attractive destination to most of the Americans to enjoy their holidays from the next years(BPC News, 2006). Infact, tourism in Bangladesh is becoming an emerging issue both for the public and private sector to establish their eligibility for accomplishing a successful business as well as marketing activities development (Akteruzzaman & Ishtiaque 2001 p.107). It is consequently an industry wide economic application, especially when one considers indirect economic imports of such activities. It is one of the important means of foreign exchange earnings and also contributing to correct negative balance of payment. But the share of Bangladesh in the world tourism is very poor.
Bangladesh has substantially different of offer in its...