Socio-economic impacts of accommodation on tourism development: Bangladesh perspective

Asma. Akter Akhy and Mallika Roy

Introduction

Tourism can be characterized as those who travel for the reason of entertainment and relaxation beyond their normal environment for maximum one year so that they can have the option to get the services for mental and physical folfilment. Accommodation is one of the basic needs of any tourism operation. These are establishments that provide the tourist with a place to stay i.e. hotel facilities that are paid by the tourist for the duration of the stay. There are different types of accommodation that are commonly used by visitors.

The Bangladesh government announced that 2016 would be the “Tourism Year” targeting one million tourists. The World Travel & Tourism Council (WTTC) (2016), the global authority' responsible for travel and tourism’s economic and social contribution, said travel and tourism’s direct contribution to Bangladesh’s GDP in 2015 was BDT407.6bn (2.4 percent of GDP).

The hotel industry is concerned solely with offering guest accommodation services. Conversely, in a more general sense, the hospitality industry is concerned with leisure. It therefore requires housing, restaurants, bars, cafes, nightlife and a variety of tourism and travel facilities. According to Rahman (2010), the contribution of the tourism sector was around 4.4% to GDP, 3.8% to employment generation and 1.5% to investment in 2013. In spite of the fact that the nation has enormous potential for economic growth utilizing the tourism industry, in correlation with neighbour nations, Bangladesh is the most minimal beneficiary of international tourist and the size of both international and domestic tourism industry is very insignificant. Due to some limitations, Bangladesh has failed to introduce itself as a tourist destination in the world.

Bangladesh has recently begun realizing that the nation has a massive potential in the tourism industry development in future. Although Bangladesh has not advanced much as far as planning and implementing physical plans of its urban communities and towns and different territories of monetary and resource potentials, current efforts in preparing the plan may assist the development of tourism in different sectors.

Literature review

Ali (2004) found that from the ancient period this area is famous for beauty. Foreign tourists praised this country for its natural beauty, rich cultural heritage and hospitality of the people.

Alegre and Garau (2009) examined dissatisfaction of sun and destination, namely the island of Majorca in the Balearic Islands. The following attributes were rated in terms of satisfaction: climate, cleanliness and hygienic scenery, peace and family, interaction with other tourists, night life, sports activities, tourist attractions, prior visits to the destination, ease of access, facilities for children, easy access to information, local cuisine, local lifestyle and affordable facilities.

Amin (2007) argued that tourism is now one of the largest industries in the world contributing over 10% to global GDP. Economically, travel and tourism creates jobs and contributes to a country’s GDP as well as bringing in capital investment and exports.

World Economic Forum (2013) said that over the past several decades, travel and tourism has become a key sector in the world economy.

Baisakalova (2009) argued that the tourism development is a win-win strategy as it leads to creating jobs, developing infrastructure and improving sustainability of the country. Improving the business environment, eliminating barriers such visa obtaining procedures, providing incentives for innovations and knowledge development can result in growth of the inbound and domestic tourism.

Deegan and Moloney (2007) argued that in the context of the overall macro-economic activity there is good reason to believe that tourism can be a significant contributor to economic development in the year ahead.

Elena et al. (2012) described that tourism is one of the profitable sectors in Bangladesh.

The basic from of supplementary accommodation are youth hostels, motels, camping sites, bed and breakfasts, tourist holiday village, inns, guest houses, farmhouses, time share and hostels (Raju, 2009).

According to Ghosh (2001), there are two basic elements in tourism: the journey to the destination and the stay. In short tourism means the business of providing information, transportation, accommodation and other services to travellers.

Hossain and Nazmin (2006) found that according to the foreign tourists of Bangladesh, scenic beauty ranked first, cost of services second, attitude of the people third and so on down to facilities ranking tenth.

Islam and Islam (2006) argued that Bangladesh is a country of the Asian region holding high potentiality for tourism. Since long past, Bangladesh was an attractive destination to the tourists. But at present her position is not significant in terms of international tourism.

Johannesburg Summit (2002) stated that tourism helps a country directly in building necessary infrastructures which not only facilitate the tourist but the local community. In a destination country, tourism initiates the development of different relevant physical facilities and infrastructure.

Nath (2007) observed that the level of satisfaction with the overall tourism facilities and services is at a level of 51%. These tourists judge very poorly the level of night entertainment, tour information, advertisement and travel agencies.

Okaka (2007) described that the media can spur the current prospects for the African countries to actively collaborate in a wide range of eco-tourism enhancement activities which include: joint product or service development, human resources development and management, exchange of tourism expertise and tourism information within the existing economic and regional blocks.

Energy production, transportation and industrial process are the main factors in carbon dioxide emission. One big contributor to carbon dioxide emission is air transportation, which is closely related to the accommodation business. Airplanes cause by far the biggest carbon dioxide emission compared to train and buses ( Planet Green, 2013).

Roy and Roy (2015) discussed that tourism can bring many economic, social and environmental benefits, particularly in rural areas and developing countries, although mass tourism is also associated with negative effects. She has shown that, due to the variety of tourist spots, tourism policy can contribute in the economy.

Sandip (2014) mentioned that the development of service industry will accelerate our economic growth. The study developed some competitive strategies in the light of vision 2021 and therefore economic growth.

Tuhin and Majumder (2011) opined that in recent times, tourism is the most significant and up-to-date business all over the world. International tourism ranks fourth after fuels, chemicals and automotive products in term of generation of export income.

According to UNWTO (2008), in Bangladesh, the tourism sector got recognition as an industry in 1999 (Dhaka Mirror, 2012) but it could not receive much attention to date from the government as a vibrant industry, where globally it is regarded as the fastest rising industry.

Again, according to UNWTO (2002), tourism can provide material benefits to the poor in many forms directly and indirectly. It can also bring long-term earning opportunity, cultural pride and sense of ownership and reduce vulnerability through diversification and development of personal skills of the poor.

Wang and Qu (2006) investigated tourist satisfaction using 12 variables: accommodation, shopping facilities, restaurant facilities, quality of accommodation, personal safety, tourist information, beach cleanness, the state of the roads, beach promenades, drinkable water, traffic flow and parking facilities.

Yilmez (2008) commented that as one of the largest and fastest growing sectors of the global economy, tourism consists of many small- and medium-size enterprises which try to be successfill in an extremely competitive and rapidly changing business environment.

Zulfikar (1998) pointed out that tourism may be broadly divided into domestic and international tourism. In domestic tourism, people move within their own country whereas in international tourism, the barriers exist in travelling destinations beyond national boundaries.

It has been well described by different authors that tourism marketing is essential for economic development of a country. This study intends to do research work considering both primary and secondary sources. Most of the authors do cither conceptual frameworks or secondary sources. To mitigate the gap of the research work this study used both quantitative and qualitative methods.

Thus, the objectives of this study are first, to assess the present accommodation conditions and opportunities of tourism sector in Bangladesh. Second, to express overall conditions by SWOT analysis on accommodation of tourism sector. Third, to sort out the limitations of the development of tourism in Bangladesh. And finally, to offer policy instruments that can be used to utilize tourism accommodation facilities properly.

Background of Bangladesh

Geography

Bangladesh is honoured with profound, rich and prolific soil, a blessing from the three significant streams (the Ganges, Brahmaputra and Meghna Rivers) that structure the deltaic plain whereupon it sits. This extravagance comes at a substantial expense, be that as it may. Bangladesh is on the whole level, and aside from certain slopes along the Burmese fringe, it as a rule adrift level. Accordingly, the nation is consistently overwhelmed by the waterways, by tropical cyclones off the Bay of Bengal, and by tidal bores. Bangladesh is bordered by India all around it, except a short border with Burma (Myanmar) in the southeast.

Climate of Bangladesh

The atmosphere in Bangladesh is tropical and monsoonal. In the dry season, from October to March, temperatures are gentle and lovely. The climate turns hot and damp from March to June, anticipating the rainstorm downpours. From June to October, the skies open and drop the greater part of the nation’s complete yearly precipitation, as much as 224 inches for each year (6,950 mm). As referenced, Bangladesh regularly experiences flooding and cyclone strikes - a normal of 16 typhoons hit for each decade.

Economy

Bangladesh is a developing nation, with per capita GDP of about USDS4,200 every year starting in 2017. In any case, the economy is developing quickly, with around a 6% annual growth rate from 2005 to 2017. In spite of the fact that manufacturing and services are expanding in significance, practically 50% of the Bangladeshi workers arc engaged in agriculture.

Major tourism attractions

Although there are opportunities for developing tourism attractions and facilities across the country, at present only a handful tourism spots are available for visits by tourists. These limited facilities are concentrated in places like Dhaka, Chittagong and Sylhet divisions. In Chittagong division, the sightseeing facilities are mainly located at Cox’s Bazar, Rangamati, Khagrachari and Bandarban districts. Mainamati at Cumilla is an important archaeological site and Lalbagh Fort in Dhaka is a great historic site. In Sylhet division, the major tourist attractions are located mainly at Jaflong, Madhabkunda, the tea gardens and the shrines of Har-zat Shah Jalal and Shah Poran. Some renowned attractions in Rajshahi division are Kantaji’s Temple, Swapnapuri, Ramsagor and Rajbari at Dinajpur, Paharpur at Noagaon and Mahasthangarh at Bogra. In Khulna division, some attractions are Shatgombuj Mosque at Bagerhat and Sundarban, the largest mangrove forest in the world, is located in the southern part of Khulna division along the Bay of Bengal. This mangrove forest has been declared as a World Heritage Site (Ministry of Civil Aviation and Tourism, 2020). Some major tourism attractions are listed in Table 4.1.

Table 4.1 Major tourism attractions

Source: Bangladesh Parjatan Corporation, 2020

56 Asma Akter Akhy and Mallika Roy

Types of accommodation in Bangladesh

Camping and caravan sites can be in very basic field with few utilities provided compared to very sophisticated resort locations, including a high range of comfort services with lots of leisure, food services and retail choices (Cooper ct al. 2008; Saxena 2008).

There are many different types of accommodation on offer, with each providing various facilities and different experiences. Types of accommodations available in Bangladesh are hostels, hotels, motels, resorts, capsule hotels, floating hotels, guest houses, cottages, camping and vacation rentals.

Hostels

A place while travelling, people, especially young people, can stay cheaply with shared rooms and sometimes private rooms.

Hotels

A hotel offers paying tourist accommodation and can also have various other facilities or amenities, such as a bar, swimming pool and/or spa. Most hotels organize conferences and seminars, making them appropriate places for meetings. Generally a one- to five-star rating exists as a way of measuring the quality of the hotels and their facilities.

Motels

Motel is a word derived from the words motorist hotel. They are situated on highways and open places. Tourists who are on a transitory and cost-conscious mode prefer to stay in such accommodations. These motels offer not only parking space but also some amenities such as television, swimming pools or restaurants.

Resort

A spot where a lot of people go for relaxation, sport or other stated purpose.

Cottage

In today’s tourism sector, cottage is used to describe a small vacation house typically in a rural area.

Theoretical background

Figure 4.1 depends on the prevailing definitional components of the tourist experience found in the literature. The phasic nature is spoken to utilizing Clawson and Knetsch’s (1966) Five Stages Model, yet in addition consolidates

Figure 4.1 Tourist experience conceptual model of influences and outcomes Source: Developed by the authors, 2020

impacts and individual results. Right now, tourists’ experience is all that occurs during a visitor occasion (travel to site, nearby action and travel back). That being expressed, the expectant stage and memory period of the vacationer experience are still displayed, exhibiting how the traveller experience is arranged and foreseen before an outing takes place and recalled long after an excursion has completed. The expectation and memory stages likewise spill into the experience itself. This depends on the possibility that during movement to a site, the traveller could in any case be creating and refining desires for the goal similarly as return travel could include reflection on the excursion which has quite recently occurred.

During the experience, three classes of impacts are exhibited, including those components which are outside the person. The physical viewpoints include spatial and place-based components of the destination, while social perspectives incorporate the different social effects on experience. The impact of goods and services focuses on the elements, for example, service quality, relaxation activities accessible and the sort of traveller-related goods available.

The model is a combination of the influential realm and personal realm. Based on the tourist experience conceptual model of influences and outcomes, we tried to test the model to identify the variables of tourists’ satisfaction and dissatisfaction.

Methodology, data analysis and results

Methodology

The study is based on primary and secondary data sources. Primary data were collected through a questionnaire responded by randomly selected domestic and foreign tourists of the country during the period from 14 October to 28 November 2019. As the primary data is concentrated on the tourists only, from the primary source the study purports to see the demand side views of the tourism sector. For the primary sources one questionnaire has been prepared. The questionnaire was kept succinct and consisted of both close-ended and open-ended questions, with a mixture of formats to keep the participants attentive and less likely to induce quick completion, and thus vague and absent-minded answering, which helped us for in-depth analysis. Structured and unstructured questionnaires had been used to collect data. In addition to this, some selected respondents were exclusively interviewed for in-depth analyses to strengthen the dimension of the study. An unstructured questionnaire was used to take interview. Interviews were mainly taken when tourists were visiting spots. However, respondents were so free and frank that collection of information was not so hard. Structured questionnaires were supplied to hotel counters with a request letter. Then after seven days those were collected from there. The major sources of secondary sources include publications of various authors, research reports, journals, websites and so on that are indicated in the references.

Sample size

The study is an empirical effort based on primary and secondary data. For collecting data, 20 foreign and 30 domestics tourists were selected randomly from five famous tourist spots, for a total of ten tourists from each spot: Dhaka, Cox’s Bazar, Rangamati, Chittagong and Foy’s Lake.

Respondents’ profile

The survey group consisted of 50 respondents. The majority of them, that is, 30 respondents, were from Bangladesh. Among the selected 20 foreign tourists, 3 were from Nepal, 5 from Sri Lanka, 5 from Thailand and 7 from Korea.

Classification

The questionnaire has some classification questions, as the demographics of an individual has a large impact on that person’s pre-environmental knowledge, perceptions, beliefs, interpretation and outcome of such a visit, as well as prejudice in filling out the questionnaire. The classification questions believed to be most relevant to the study are:

Question - Age

Question - Gender

Question - Nationality

Question - Marital status

Question - Employment

Question - Income

The age range for participants is 18+ for more appropriate completion and also adults are capable of answering the questions properly. Descriptive statistics for income and age are given in Table 4.2.

Married and unmarried respondents are quite similar in quantity in our survey. On the other hand, we collected information from various occupation holders such as students, service holders, businessmen, the unemployed and also those who have been retired from their job for an in-depth analysis of demographic behaviour of the respondents which will help us to get a good explanation.

Results

Pre-knowledge

Visitors can discover the travel industry data on web journals, discussions with friends or known ones, sites of focal points and so forth. It should be able to provide tourism information based on the user’s preferences and current location. A rich website can provide better information than the people. In our result, 62% of visitors collected their required information from websites, whereas only 38% of people visited the tourist places recommended by their friends or known persons.

Table 4.2 Descriptive statistics for income and age

Satisfaction/dissatisfaction based on motivation/expectation

Table 4.3a, 4.3b, 4.3c Summary statistics of the variables of accommodation of a tourist place

Source: Developed by the authors, 2020

These summary statistics shed light on the overall facilities of an accommodation place. We can see that according to tourist satisfaction mean of location, food quality, reasonable food cost, natural setting, room quality and spaciousness are 4.92, 4.9, 4.8, 4.72, 4.62 and 4.52, respectively, which indicates that these variables are in excellent condition. On the other hand, transport cost, behaviour of hotel staff and cleanliness scored means of 4.12, 4.04 and 4, respectively, which implies very good qualities of these variables. Only safety and security scored less, but obviously in quite good condition. Thus we can realize that the tourists are very satisfied.

Indoor and outdoor facilities

Accommodation is one of the essential requirements for any tourism activity. Explorers and vacationers need accommodation for rest while they are on a visit. Accommodation from low-budget lodgings to world-class lavish inns is accessible at all the significant traveller destinations to give the vacationer a home away from home. These are foundations that give a spot to the visitor to remain, and are paid for the span of the stay by the vacationer. There are different kinds of accommodation which are being utilized by sightseers consistently. Based on our research we have drawn a clear picture of indoor and outdoor facilities which are provided in various tourist spots in Bangladesh. All accommodation places have separate toilets and also balcony facilities (Figure 4.2a). So in this case, customers are quite satisfied.

From our study, we can see that room facilities are in excellent condition (Figure 4.2b). Most of the hotels, motels or cottages have TV (96%), AC (94%), Wi-Fi (96%) and land phone (96%). But 64% of them have refrigerators (fridge), which can be improved. Satisfaction level of overall indoor facilities is very high.

Figure 4.2a Respondents’ facilities of toilet and balcony

Source: Developed by the authors, 2020

Figure 4.2b Respondents’ facilities of TV, AC, fridge, Wi-Fi and land phone Source: Developed by the authors, 2020

Figure 4.3 Respondents’ outdoor facilities

Source: Developed by the authors, 2020

Some questions believed to be most relevant to the study are:

Question - Hospital far or near

Question - Food options available or not

Question - Pre-booking

Question - Pay in advance

Question - Breakfast facility’

Question - Own transport

Hospital

hospital is an institution that is constructed, staffed and prepared for the diagnosis of disease; for the treatment, both clinical and surgical, of the ill and the injured; and for their lodging during this procedure. In life, people can become

Figure 4.4 Respondents’ hospital facilities

Source: Developed by the authors, 2020

sick anytime. Again, as we all know just by life experience, anyone can have an accident, and it can happen anytime or anywhere. On top of that, there are countless different types of accidents. So tourists should aware of this also. Hospitals near tourist sites are very helpful. In our study, we found that 48% of hospitals arc near whereas 52% are far away. In our opinion, policy makers should implement policies for establishing more hospitals near the tourist places to provide medical services if needed.

Food options

Food is a significant segment in the tourism industry. Food as a noteworthy fascination while individuals travel (Cohen and Avieli, 2004). Food has been perceived as a viable promotional and positioning tool of a tourist place (Hjalager and Richards, 2002).

For example, France, Italy, Thailand, Mexico and India have been known for their cuisine. The importance of the connection between food and tourism cannot be ignored. Authentic and interesting food can attract visitors to a destination. The destination (tourist place) will utilize food as the fundamental fascination and will create promoting methodologies that will concentrate on the food.

For the geographic location, although Bangladesh is rich in foods, various restaurants in tourist places offer different types of foods such as Bangladeshi traditional foods, Indian food, Italian-Mexican food, Chinese cuisine, Thai cuisine, mixed items and so on. In our study, we found that 20% offer only local food whereas 76% offer mixed (different country’s cuisine including local). And only 4% offer Italian-Mexican food. Tourists are highly satisfied as there are many food options. Bangladeshi foods arc globally famous for authentic quality that attracts people from all over the world to come to Bangladesh to taste them. That’s why some restaurants in tourist places should focus on Bangladeshi traditional foods more.

Figure 4.5a Respondents’ food options

Source: Developed by the authors, 2020

Figure 4.5b Respondents’ food options

Source: Developed by the authors, 2020

Regression analysis result

Room service, environment and safety-security level on overall satisfaction

We hypothesized that there is a very close connection with room service, environment and security level with overall satisfaction of accommodation. Our regression model considered overall satisfaction as dependent variable. It depends on room service, environment and safety-security level. The following variables have been chosen to estimate regression equation:

Accommodation- f (room service, environment, safety-security)

Table 4.4 Regression analysis result

Source: Developed by the authors, 2020

The a priori relationship is as follows: Room services are positively related to tourism, i.e. when room services can be provided on the basis of the different demand criteria of the tourist then it will have positive impact on increasing tourism. Environment is one of the determining factors for accommodation, which is positively related. And lastly, when security measures are sufficient, tourists will feel safe to tour.

In our analysis, R square and adjusted R squares are 0.952 and 0.959, respectively; 95.2% indicates that the model explains almost all the variability of the response data around its mean. Also the result of adjusted R square fits well. Moreover, significance F (8.473E-30) indicates that there is almost no chance to affect by random change. P-values (4.016E-28 and 0.0008431) showed significant results.

SWOT analysis

Based on the survey, we have made a SWOT table for the tourism sector of Bangladesh (Table 4.5).

Recommendations to promote accommodation in the tourism industry of Bangladesh

Tending to the major and multi-faceted difficulties looked at by the travel industry requires an incorporated way to deal with strategy improvement across numerous government departments. Rationality and consistency are basic in the structure

Table 4.5 SWOT analysis result

and application of strategies between all degrees of government to guarantee that travel industry approaches are viable.

Governments and other stakeholders can assist goals and the travel industry in improving their intensity on the world tourism market through proper policy making, planning, arrangements and directed projects including those outlined next.

Policies and an institutional structure that add to a business domain are helpful for tourism growth and development

These policies ought to incorporate stable macroeconomic and well-planned basic arrangements in territories that encroach on sustainable tourism. They however are not restricted to employment and education or training, small and mediumsized enterprises (SMEs) and businesses, sustainable development, transport and infrastructure, local improvement, culture and creative industries, trade and investment and safety and security.

To take full advantage of the tourism industry’s advancements, the government needs to step forward with necessary policies. First, build up an extensive policy framework for accommodation; second, advance a reasonable policy framework for accommodation through an “entire of government” approach; third, empower a culture of co-activity among tourism industry accommodation characters; and finally, actualize assessment and execution appraisal of government approaches and programmes influencing tourism industry accommodation improvement.

Target programmes

Appropriate projects may include the stimulation of advanced accommodation components, efficiency-based development and quality by first, advancing the sharing of innovative practices as far as association, enterprise or process improvement for a superior utilization of existing higher labour productivity and a revival of the tourism industry accommodation components supply (for example new products). Second, urging SMEs to adjust their ideas to the consumer’s desire by advancing the accommodation product quality in solace and services through travel industry accreditations. Third, encouraging co-activity, the formation of networks and working groups in the accommodation sector of the tourism industry to accomplish economies of scale and scope. Fourth, improving and advancing the allure of work in the accommodation sector by impacting upgrades in the travel industry labour market to make appealing working places; expanding the pioneering/management capacity of travel industry SMEs through support and training programmes; advancing training and aptitude advancement for workers of the accommodation sector through education and vocational training; and urging organizations among enterprises to offer better vocational points of view.

Conclusion

The discoveries of this research demonstrate that tourist evaluation of destination accommodation is still the most significant marker of visitor fulfilment. Tourists at different places had divergent opinions on various service indicators selected for this study. As we selected five specific locations for this study, we discovered different findings based on place accommodation. Tourists were overwhelmed by the natural beaut}', archaeology, beaches and other attractions. However, the lowest level of satisfaction was observed with respect to attributes such as safety and security, communication, information services about the destination, distance between the places and hospitals. On the other hand, the prevalence of high satisfaction of tourists staying at the resorts/hotels/motels indicated that staying cost was reasonable and affordable. Amenities also were sufficient. Based on our regression analysis it is clear that environment and safety-security' are the important indicators of accommodation facilities. That’s why Bangladesh needs to concentrate on these indicators to compete with other tourist destinations.

Despite the fact that improvement of different multi-storied lodging projects has been seen in the region, it appears that development of tourism does not only mean developing hotels or tourist accommodation, but rather requires total development of the region as well as enhanced competitiveness of those components that are directly or indirectly involved in tourism. In coming years, global competitiveness will increase. To achieve a good rank in the tourism sector, Bangladesh should improve the components of tourism.

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