Without sustainable business model, grim future awaits Dhaka's hospitality market

Dhaka : The hospitality market of Dhaka will head towards a grim future without a dynamic sustainable business model.

The recent mass uprising in mid-July showed how the hotel industry is always the first to get hit, however, the last to recover during any crisis.

Ever since the protests, all the hotels in Dhaka are witnessing only 15-20 per cent occupancy each on average.

Md Al Amin, Hotel Manager of Renaissance Dhaka Gulshan Hotel, said this while talking to The Bangladesh Monitor, at his office in the hotel premise recently.

In time of the unrest in mid-July, all the foreign guests across the hotels of Dhaka left.

Also, due to the travel alerts currently in position by mostly all source markets like the US, UK, Japan and Europe, international visitors are currently refraining from visiting Bangladesh, said Al Amin.

Along with rooms, the F&B and MICE businesses were hit hard as well.

In August, the hotel had to operate in loss, claimed Al Amin, adding, this uncertainty of the industry is discouraging investors to invest in the market.

Similarly, the hospitality professionals are considering different career choices that could result in expert manpower crisis in the sector soon.

In the coming days, this reluctance can stand as a huge obstacle in the industry's path to progress and expansion, claimed Al Amin.

Hence, there should a dynamic sustainable business model to make the sector investment-friendly. That could ensure security of the investors, stressed the Hotel Manager.

Meanwhile, to survive the crisis, Al Amin urged the government to offer some tax rebates and utility waivers. Otherwise, small hotels would fail to sustain amid the current horrible situation.

It may be mentioned here, hotels serve international visitors. These properties are foreign currency earners.

Their service leaves a good impression of the country among the guests. Therefore, Al Amin calls on the government to put more priority in the sector.

He stressed that the embassies should be proactive to amend foreigners' current negative perception of Bangladesh.

The government should take measures to address the international destinations that Bangladesh is currently safe to visit.

Meanwhile, to stay afloat during the current crisis, Renaissance Dhaka Gulshan Hotel is running attractive F&B promotions.

The hotel has recently launched buffet lunch at its signature dining outlet.

Al Amin rejoiced that the restaurant is witnessing a better footfall ever since. 

However, staycations are not promising enough for Dhaka market, informed Al Amin.

In this uncertain period, people are even less interested in spending after recreational activities.

According to him, there is no demand currently for luxury items like five-star hotels. 

Nevertheless, Al Amin expects to see business returning from October, given that the government manages to restore the negative perception of the world towards Bangladesh by then.