Dhaka: The recent anti-government protests in Bangladesh, which have been ongoing for over a month, have severely impacted the hospitality sector in Dhaka. The unrest, which led to significant political turmoil and law and order issues, has resulted in a drastic drop in hotel bookings across both luxury and economy establishments in the capital.
Dhaka, being both the political and financial hub of Bangladesh, is home to several prominent commercial properties managed by international hotel chains. These establishments, which primarily cater to business travelers, have been hit hard by the unrest. According to senior managers at these hotels, the peak of the impact was felt in July, when a substantial number of bookings were cancelled, leading to considerable financial losses.
The situation began to unfold dramatically around August 4-5, when protests reached a peak, resulting in the ouster of the then Prime Minister Sheikh Hasina and plunging the country into crisis. The unrest, triggered by a controversial quota system for civil service jobs, led to numerous casualties and injuries, further exacerbating the instability in the region.
A senior manager from a five-star hotel located in the affluent Gulshan area of Dhaka reported that during the height of the unrest, their hotel saw occupancy drop dramatically. The manager noted that out of 150 rooms, only about 35 were occupied, a stark contrast to the usual full capacity. The manager recalled that during the peak of the protests, the hotel was forced to take extraordinary measures to ensure the safety of guests, including sealing off the building to protect guests from potential harm.
In financial terms, the losses have been significant. The manager indicated that the cancellations in July alone resulted in a loss of around Tkk 1.2-1.3 crore. The financial impact continued into August, with additional losses estimated at Tkk 35 lakh. The hotel had to make special arrangements for its staff during the unrest, including accommodating them within the hotel premises for their safety.
Other hotels in Dhaka have reported similar experiences. An Indian national working at a senior managerial position in one of these luxury hotels shared that the situation remains challenging, with a notable drop in guest arrivals. Another front office staff member from a well-known international hotel chain revealed that their hotel lost approximately Tkk 3-4 crore due to cancellations in the last two weeks of July, with luxury suite bookings particularly affected.
Economy and three-star hotels are also feeling the economic strain. Hotel Lake Castle, a property with 71 rooms in the Gulshan area, reported a significant decline in occupancy, with only six rooms occupied as of August 19. The hotel resumed its buffet breakfast service recently, hoping for an increase in guest numbers.
The broader impact on Dhaka’s hospitality sector reflects the severe economic repercussions of the ongoing political unrest. Restaurants and other hospitality services in the city are also experiencing reduced patronage. A Malaysian restaurant chain outlet in Dhaka reported that their tables, usually filled to capacity, were sparsely occupied due to the current situation.
Overall, the hospitality sector in Dhaka is grappling with the aftermath of the unrest, with both immediate and long-term challenges ahead. The sector, a vital component of Bangladesh’s economy, is hoping for stability and a return to normalcy as the situation evolves.