Tourism is an important sector for Bangladesh's economy. In 2014, tourism contributed 1.9% of Bangladesh's GDP directly and was expected to grow to 2% of GDP by 2025. Bangladesh earned $158 million from tourism in 2014, and that figure was predicted to rise to $18.4 billion by 2025. International tourist arrivals in Bangladesh were expected to increase from 500,000 in 2014 to 650,000 by 2025. Tourism benefits Bangladesh's economy by creating jobs and income both directly in the tourism industry and indirectly in other related sectors that tourism spending supports.

1. Role of tourism in
Bangladesh

3. 1 06
2
3 56
4
5 100

4. International Trade

8. Ruin to middle income country

11. International Trade of Bangladesh

12. Major Import
Items of
Bangladesh
Wheat
oil
Seeds Crude
petroleum
Raw
cotton
Edible
oil
Petroleum
products Fertilizer
Staple
fibers
Yarn
Iron
&
steel
Capital
goods

13. Major export
Items of
Bangladesh
 Raw jute
 Jute manufactures
Hessian sacking
Carpet backing
Carpets
 Jute products
 Tea
 Leather and leather products

15. Effect of International trade
Measuring Bangladesh

16. Measuring the Impact of International Trade on
the Economy
• GDP is a good indicator of measuring the impact of
International Trade and GDP can be calculated by the
following formula:
GDP= C + I + G + (X – M)
Where,
C= Consumer Spending
I= Capital Investment
G= Government Expenditure
X= Export
M= Import

17. Measuring the Impact of International Trade on
the Economy
• If exports exceed imports, the net exports figure would
be positive, indicating that the nation has a trade surplus
• If exports are less than imports, the net exports figure
would be negative, and the nation has a trade deficit
• Positive net exports contribute to economic growth
• More exports mean more output from factories and
industrial facilities, as well as a greater number of people
employed to keep these factories running

18. Effect of Exchange Rate on the International
Trade
• A weaker domestic currency stimulates exports and
makes imports more expensive.
• Conversely, a strong domestic currency hampers
exports and makes imports cheaper
Effect of Inflation and Interest Rate on
International Trade
• A currency with a higher inflation rate (and
consequently a higher interest rate) will depreciate
against a currency with lower inflation and a lower
interest rate

20. Real export and import
of Bangladesh

21. on the economic growth

22. Tourism Profile of Bangladesh in Global Context
• 55 yrs average growth rate
- 6.5%
• No of tourists arrivals
(globally):
- 1950 : 25 mil
- 2005 : 806 mil
- 2014 : Over 1.13 billion
• Bangladesh witnesses 11%
growth rate of foreign tourist
arrivals from 2008-2012.
• Global Earnings in 2014: 1225
billion US$
• Bangladesh’s Earnings in 2014
:158.09 million US$.

23. Tourism Profile of Bangladesh in Global
Context
• Tourism emerged as one of
major sector contributing to
socio-economic development.
• Tourism tends to grow about
1.5 times faster than GDP, if
GDP growth is 4% or above,
and vice-versa
• Investment in Tourism
generates 50% indirect and
50% induced growth in other
related sectors.
• Travel & Tourism investment
of BD in 2014 was BDT
60.9bn, or 1.4% of total
investment. It should rise by
7.8% pa over the next ten
years to BDT 132.1bn in 2025
(1.6% of total).

24. The direct contribution of
Travel & Tourism to GDP
was BDT 296.6 bn (1.9%
of total GDP) in 2014
It is forecasted to rise by
6.1% pa, from 2015-2025,
to BDT 566.3bn (2.0% of
total GDP) in 2025.
The total contribution of
Travel & Tourism to GDP
was BDT 627.9bn (4.1% of
GDP) in 2014
It is forecasted to rise by
6.5% pa to BDT 1,252.8bn
(4.4% of GDP) in 2025.

25. o

26. • Bangladesh generated BDT10.2bn in visitor exports in 2014.
• The country is expecting to attract 0.5 million international
tourist arrivals this year.
• By 2025, international tourist arrivals are forecasted to total
0.65 million generating expenditure of BDT 18.4bn, an
increase of 5.7% pa. (All values are in constant 2014 prices & exchange rates)

27. Multiplier analysis
1.Transactions or sales multipliers: An increase in tourist expenditure will generate additional
business revenue. This multiplier measures the ratio between the two changes.
2.Output multiplier: This relates to the amount of additional output generated in the economy as a
consequence of an increase in tourist expenditure. The main difference with the transactions or
sales multiplier is that the output multiplier is concerned with changes in the actual levels of
production and not with the volume and value of sales.
3.Income multiplier: This determines the extra income created in the economy as a consequence
of the increased tourist expenditure.
4.Government revenue multiplier: This measures the impact on government revenue as a
consequence of an augment in tourist expenditure.
5.Employment multiplier: This measures the total amount of employment created by an
additional unit of tourism expenditure.

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