DHAKA, Sept 25, 2024 (BSS) - Tour Operators Association of Bangladesh (TOAB) today called on the government to cancel new deposit requirements and address inconsistencies in the ‘Tour Operator and Tour Guide Act, 2024’, warning that these measures could harm future of the tourism industry.
 
“These requirements will discourage new entrepreneurs from entering the tourism industry, and may harm the industry’s growth in near future,” said TOAB President Md. Rafeuzzaman at a press conference held at the Jatiya Press Club in the capital.

The TOAB head also demanded the removal of VAT on tour operator services to support the growth of Bangladesh's tourism industry.

Rafeuzzaman stated that the recently issued gazette regarding tour operator registration introduced stringent requirements that could negatively impact the sector.

Under the new regulations, tour operators are required to pay a registration fee of Taka 50,000, provide a bank certificate showing a status of Taka 10 lakh, and deposit Taka 3 lakh as security – conditions which Rafeuzzaman described as “unfeasible.”

He also called for the abolition of the 15 percent VAT on tour operator services, stating that it would result in increased package prices and higher travel costs, effectively imposing a double VAT on tourism services.

Tour operators, he explained, create packages by assembling various tourism elements – such as hotel bookings, transport tickets, restaurant bills, and attraction entry fees – each of which is already subject to VAT.

“A further VAT on combined packages would significantly drive up costs, affecting both inbound and outbound tourism in Bangladesh,” he said.

At the press conference, the TOAB leaders also made additional demands, including the reduction of license and renewal fees, the cancellation of security deposits, and the recognition of inbound tourism as an export industry eligible for incentives to earn foreign exchange.

The association requested tax exemptions or concessions for road transport, boats, and accommodation used for tourism, as well as a halt to the 10 percent Advance Income Tax (AIT) on foreign remittances collected by inbound tour operators through banking channels.

Other concerns raised by TOAB included allowing year-round permission for tourist boat operations in the Sundarbans, simplified entry processes for tourists in hilly areas, and the creation of alternative routes between Teknaf and Saint Martin's Island.

The press conference was also attended by TOAB Vice Presidents Abul Kalam Azad and Md. Anwar Hossain, Immediate Past President Shiblul Azam Koreshi, and TRIAB Founder President Khabir Uddin Ahmed.

Leaders from regional tour operator associations, including Cox’s Bazar, Sundarbans, Kuakata, and Tanguar Haor, were also present.