Bangladesh is set to become one of South Asia's most
attractive hospitality investment markets in the next 5 years, said Karthi VK,
General Manager, Crowne Plaza Dhaka Gulshan, while giving an interview with
this correspondent.
Karthi VK is the General Manager of Crowne Plaza Dhaka
Gulshan and a hospitality leader with nearly two decades of international
experience across India, Nepal and Bangladesh.
The rest part of the interview is given below “
1. The present government has planned to develop the
hospitality sector. Do you think Bangladesh can become a tourism hub in South
Asia? What suggestions would you give to improve the tourism sector?
Bangladesh has never had a tourism asset problem; it has a
tourism positioning problem. We possess one of the world's longest natural sea
beaches, the largest mangrove forest, rich heritage and an incredibly warm
culture. Yet globally, Bangladesh is still perceived primarily as a business
destination rather than a leisure destination.
The next phase of growth should focus on destination
branding, seamless connectivity, simplified visas and public-private
collaboration. Tourism today is an export industry without shipping products
overseas. Every international visitor brings foreign exchange, creates
employment and supports thousands of SMEs. If we position Bangladesh correctly,
tourism can become one of the country's strongest economic engines
2. How do you see the growth of the hotel business in
Bangladesh in the last 30 years?
Thirty years ago, Bangladesh's hospitality industry was
largely transactional. Today, it is becoming experiential. International brands
have not only raised service standards but also transformed governance,
sustainability, talent development and guest expectations. The industry has
evolved from providing accommodation to creating destinations, experiences and
communities. That evolution is far more significant than simply adding more
hotel rooms.
Looking ahead, I believe the industry's next phase of growth
will be driven by the government's continued investment in infrastructure,
including the Third Terminal of Hazrat Shahjalal International Airport,
improved national connectivity, and increased private-sector investment in
tourism. At the same time, there is tremendous potential to expand
International and domestic MICE travel.
3. Bangladesh now has political stability and strong
economic policies. How do you see the growth of the sector in the next five
years?
Over the next five years, I expect Bangladesh to become one
of South Asia's most attractive hospitality investment markets not because of
one project, but because multiple growth drivers are converging simultaneously.
Better infrastructure, expanding economic zones, stronger aviation connectivity
and increasing international brand presence will collectively reshape demand.
The winners, however, will be hotels that differentiate
through experiences rather than simply adding inventory.
4. The Middle East situation has affected petroleum prices
and created uncertainty. How is this creating a knock-on effect on the hotel
business?
Hospitality is highly sensitive to global events because it
is fundamentally driven by travelers’ confidence. Geopolitical uncertainty
doesn't just influence fuel prices, it affects airline capacity, corporate
travel decisions and overall business sentiment.
For a market like Dhaka, where international business travel
is a key demand driver, prolonged uncertainty can lead to more cautious travel
planning, shorter booking windows and softer demand from certain international
markets. This naturally makes forecasting more challenging and requires hotels
to remain agile in their commercial strategies.
Higher fuel costs also place pressure on airlines, travel
budgets and supply chains, increasing operating costs across the hospitality
ecosystem.
5. The hospitality sector needs skilled and experienced
manpower. How can Bangladesh groom skilled talent?
People are the greatest asset in hotels!
I believe Bangladesh's hotels don’t have a talent shortage -
it has an exposure shortage. Young professionals need greater access to
structured internships, global standards, mentoring and international career
pathways. Hotels, educational institutions and international hotel brands must
work together to build a talent pipeline where graduates are operationally
ready from day one.
Investing in people delivers the highest long-term return in
hospitality. The future of our industry will not be defined by the hotels we
build, but by the people who bring those hotels to life.
6. Hotel rents are high in Bangladesh compared to countries
like Kathmandu, Bangkok, Kuala Lumpur, Kolkata, Bangalore, and Chennai. Why?
Guests compare room rates; investors compare market
fundamentals. Hotel pricing is ultimately driven by demand, operating economics
and market dynamics rather than geography alone.
Cities such as Bengaluru, Chennai and Kuala Lumpur often
command premium room rates because they benefit from strong domestic demand,
diversified business sectors, mature MICE markets and consistent year-round
travel. Their occupancy levels provide greater pricing stability.
Dhaka, on the other hand, remains predominantly an
international corporate market. Pricing is influenced by business travel
demand, market supply, operating costs and the investment required to maintain
international brand standards. As Bangladesh's tourism ecosystem matures and
domestic and leisure travel continue to grow, the market will become even more
competitive and resilient.
The objective should never be to have the highest room
rates; it should be to create sustainable value for guests while delivering
healthy returns for investors. A stronger tourism ecosystem and continued
investment will naturally support long-term pricing power.
7. What policy
support can the government provide to boost the hospitality sector?
If I could recommend three policy priorities, they would be:
First, make Bangladesh easier to visit through faster visa
processing and stronger air connectivity.
Second, make investment easier by rationalizing duties on
hospitality infrastructure and offering long-term policy certainty.
Third, market Bangladesh globally with the same ambition
that we invest domestically. Great destinations are not discovered, they are
promoted consistently.
8. Bangladesh has
witnessed many five-star hotels in the last 20 years. Will more five-star
hotels create healthy competition?
I have always believed that "more is merrier." The
entry of more international hotels will raise service standards, attract global
talent and further strengthen Bangladesh's reputation as a credible business
and hospitality destination. The objective should never be to simply divide
existing demand, it should be to expand the market, create new demand and
elevate the destination.
Of course, greater competition also means greater
responsibility for General Managers like me. It challenges us to think
differently, innovate continuously and avoid complacency. We have to create new
experiences, unlock new revenue streams, strengthen commercial partnerships and
constantly evolve our business strategy to stay ahead.
Competition doesn't make us weaker - it makes us better. The
hotels that continue to innovate, adapt and deliver exceptional guest
experiences will always find opportunities to grow. Ultimately, healthy
competition benefits guests, team members and the country's economy
9. How can
public-private sectors work together to boost hospitality?
Public-Private Partnership (PPP) is one of the most powerful
mechanisms for building a globally competitive tourism & hospitality
industry. The government's role is to create an enabling environment through
policy stability, infrastructure development, improved connectivity and
destination planning. The private sector, in turn, brings investment,
innovation, international expertise and world-class operational standards.
Together, they can accelerate the development of tourism
destinations, convention centres, heritage sites, eco-tourism projects and
hospitality infrastructure while strengthening destination marketing and
hospitality education.
Government builds destinations; the private sector builds
experiences.
Sustainable tourism & travel requires both.
10. How can Bangladesh share success stories from
neighbouring countries like India, Maldives, Nepal, Bhutan, Malaysia,
Indonesia, and Singapore?
Bangladesh should take inspiration from successful tourism
destinations without trying to imitate them. The Maldives is known for
exclusivity, Nepal sells adventure, Singapore for efficiency and India for its
diversity. Bangladesh must define its own unique story, one built around its
authentic culture, majestic rivers, rich heritage, natural beauty, vibrant
cuisine and genuine hospitality
The most successful tourism destinations don't imitate
others; they tell their own story exceptionally well. Bangladesh has an
authentic story to tell, and with the right positioning, it can establish
itself as a distinctive destination.
11. How do you see
the growth of the hotel business this year?
2026 is likely to be a year of disciplined growth rather
than explosive growth. Demand is recovering, but competition is intensifying as
new supply enters the market. Hotels that rely solely on occupancy will
struggle. Those that invest in guest experience, revenue optimization,
technology and talent will outperform. I remain optimistic about the long-term
outlook because Bangladesh's economic fundamentals continue to support
hospitality investment.
Hotels have always been a long-term business. Markets will
fluctuate, but destinations that continue to invest in quality, people and
guest experience will emerge stronger. I believe Bangladesh is entering a
defining chapter in its hospitality journey, and the best is yet to come.
