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India

How Bangladesh Crisis Has Affected Travel And Trade With India

Bangladesh crisis led to a temporary suspension of air services and the suspension of all visas except those issued on medical grounds.

The recent situation in Bangladesh has led to a significant 90 per cent drop in outbound travel, according to an Economic Times report citing officials from the Travel Operators Association of Bangladesh. The situation worsened about two weeks ago when Prime Minister Sheikh Hasina resigned and left the country in response to the escalating student protests. This led to a temporary suspension of air services and the suspension of all visas except those issued on medical grounds.

Although flights have now resumed, an official of a budget airline operating flights to Dhaka noted that the number of passengers on these flights has dropped by over 50 per cent, according to the report.

Md Taslim Amin Shovon, the director of the Tour Operators Association of Bangladesh, said that travel to India constitutes a significant segment of Bangladesh’s outbound travel market. “India is a major destination for Bangladeshi travellers, who account for 40-45 per cent of outbound trips. Most of them travel for medical treatment (over 80 per cent) while shopping (15 per cent) and leisure (5 per cent) are considered secondary reasons. Kolkata is a popular shopping destination, especially before festivals, while Sikkim, Northeast India and Kashmir also attract visitors,” said Shovan, as quoted in the report.

Although tourist arrivals in India increased by 43.5 per cent in 2023, the numbers are still 15.5 per cent below the pre-pandemic level. Last year, 9.23 million visitors entered the country, bringing in Rs 24,707 crore in foreign exchange. Among these tourists, those from Bangladesh accounted for more than 22.5 per cent, which is the highest share by any single nationality, according to the report.

Debjit Dutta, Chairman of the Indian Association of Tour Operators (IATO) West Bengal Chapter, noted that travel between Bangladesh and India has almost come to a standstill since the outbreak of the recent crisis.

The report quoted him as saying, “The government has stopped issuing visas and only those who have genuine medical reasons are being given visas. Tour operators, hotels and guest houses near hospitals in West Bengal have seen a drop in business of almost 90 per cent.”

In 2023, medical tourism from Bangladesh to India has seen a significant increase of 48 per cent with the number of patients increasing to 449,570 from 304,067 in the previous year.

Due to this situation in Bangladesh, inflation in Bangladesh has also increased sharply and the difference between Indian and Bangladeshi rupees and taka has also become very large. Because of all these problems, the movement of people between the two countries has been temporarily restricted. As a result, the traders in the border areas who exchange money and rupees have been in trouble.

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