The Tour Operators Association of Bangladesh (TOAB) on Wednesday urged the government to cancel new deposit requirements and address inconsistencies in the Tour Operator and Tour Guide Act, 2024, warning that these measures could jeopardise the future of the tourism industry.

‘These requirements will discourage new entrepreneurs from entering the tourism sector and may hinder the industry’s growth in the near future,’ said TOAB president Md Rafeuzzaman at a press conference held at the National Press Club in Dhaka.

TOAB president also called for the removal of VAT on tour operator services to support the growth of Bangladesh’s tourism industry.

He stated that the recently issued gazette concerning 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 Tk 50,000, provide a bank certificate showing a status of Tk 10 lakh, and deposit Tk 3 lakh as security—conditions which Rafeuzzaman described as ‘unfeasible.’

He further demanded the abolition of the 15 per cent VAT on tour operator services, arguing that it would lead to increased package prices and higher travel costs, effectively imposing a double VAT on tourism services.

Tour operators 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, he he said.

‘An additional VAT on combined packages would significantly raise costs, affecting both inbound and outbound tourism in Bangladesh,’ Rafeuzzaman said.

At the press conference, TOAB leaders also made additional requests, including a reduction in licence 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 called for tax exemptions or concessions for road transport, boats, and accommodation used for tourism, as well as a halt to the 10 per cent advance income tax 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, simplifying entry processes for tourists in hilly areas, and creating 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.