 "How the Bangladesh crisis has affected tourism in India")
The crisis in Bangladesh has caused a slump in tourism in India.
Outbound tourism from Bangladesh has crashed since Sheikh Hasina’s resignation.
Meanwhile, India’s inbound tourism has also declined by double digits.
Tourists from India’s neighbouring country usually come for shopping and medical tourism.
Let’s take a closer look:
Tourism in India
First, let’s look at India’s tourism statistics.
As per Economic Times, tourist arrivals in India spiked 43.5 per cent – however, that is still 15.5 per cent below the pre-pandemic mark.
India witnessed 9.23 million tourist arrivals last year.
These tourists generated revenue of Rs 24,707 crore in foreign exchange.
Meanwhile, tourists from Bangladesh comprised over 22.5 per cent of the arrivals.
That’s the most of any nationality.
Economic Times quoted Md Taslim Amin Shovon, the director of the Tour Operators Association of Bangladesh, as saying, “India is a key destination for Bangladeshi travellers, who account for 40-45 per cent of outbound trips. The majority visit for medical treatment (over 80 per cent), with shopping (15 per cent) and leisure (5 per cent) as secondary reasons. Kolkata is a favoured shopping hub, particularly before festivals, while Sikkim, Northeast India, and Kashmir also attract visitors.”
Bangladesh is even more important when it comes to medical tourism.
A report by knowledge-based analytical group CareEdge Ratings stated that Bangladeshis comprise 50 to 60 per cent of India’s total medical tourism inflow.
Impact Shorts
More ShortsAs per NDTV, around 300,000 to 350,000 people from Bangladesh visit India every year for medical tourism.
More people from Bangladesh visit India for medical tourism then they do Wesst Asia, Myanmar, Maldives, Sri Lanka, and Pakistan.
India is among the top 10 countries when it comes to medical tourism.
It is usually the destination of choice for people from South Asia, Africa and West Asia.
This is due to its relatively modest cost of treatment, top-notch medical facilities and short waiting times.
As per Good Returns.in, the medical tourism industry is only set to grow thanks to initiatives such as ‘Heal in India’ from the Centre.
Medical tourism contributes approximately 3 to 5 per cent of the total revenue in the Indian hospital sector, as per Business Standard.
Bangladesh turmoil and its impact on India
Economic Times quoted officials from the Travel Operators Association of Bangladesh as saying that the developments in Bangladesh have caused a massive drop of 90 per cent drop in outbound travel.
The country saw its flights and visas, barring medical reasons, temporarily suspended.
An official from a budget airline told the newspaper that the passenger load for these flights have declined by more than half.
The year 2023 witnessed medical tourism from Bangladesh increasing 48 per cent.
The number of patients coming to India from Bangladesh spiked to 449,570 in 2023 compared to 304,067 in 2022.
Experts say turmoil in Bangladesh might see footfalls take a hit.
A new report from CareEdge Ratings predicted that India’s footfall from Bangladesh may slide by 10 to 15 per cent in 2024.
“This highlights Bangladesh’s crucial role in the Indian medical tourism sector. However, recent socio-political instability in Bangladesh poses a risk to this flourishing segment of the industry,” the report states.
“The effect on individual hospitals will vary depending on their reliance on Bangladeshi medical tourists. Hospitals with a high dependency on these tourists may experience revenue declines in the second and third quarter of FY25, while larger, multi-location hospitals in India are likely to see a relatively minor impact,” CareEdge Ratings Associate Director D Naveen Kumar was quoted as saying by NDTV.
“Most Indian industry players appear to be largely unaffected by the crisis, supported by their strong financial resilience and robust cash accruals.”
But some say the impact is already being felt.
Samit Bez, chief executive and founder of Kolkata-based medical tourism company Indiatreatments.com, told the newspaper his firm treated around 150 patients from Bangladesh every month.
However, that number has dropped to around five to six patients per month.
In Kolkata, hotels and lodges were going half full in early August.
Harmit Singh, president of Central Kolkata Hotel Owners’ Association, told The Times of India, “The hotel occupancy has dipped to 50 per cent in the past few days. In normal times the occupancy is usually around 75 to 80 per cent going up to 90 to 95 per cent before Eid and during winters.”
“The tourist inflow has reduced to a trickle due to the condition in the neighbouring country. Most of the people arriving are either coming for medical treatment or those who had planned the trip in advance and could not cancel it,” Singh added.
Owners of local eateries are also in distress.
“Our business is totally dependent on Bangladeshi tourists who stay in hotels in these neighbourhoods. We even prepare dishes which appeal to their taste. For the last few days the number of diners has reduced considerably,” Arshad Alam, owner of Nabab’s Restaurant on Marquis Street, told the newspaper.
With inputs from agencies
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