Service economy

SERVICE ECONOMY
Leisure & Hospitality

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Prepared for
Mohammad Zahedul Alam
Assistant Professor
Group Members
Sumaiya Afreen (ID#B1001014)
Nazifa Nushrat (ID#B1001038)
Anika Tasmia Shawi (ID #B1001048)
Zaharatul Munir Sarah (ID#B1001049)
BBA 1st
Batch
BANGLADESH UNIVERSITY OF PROFESSIONALS
Mirpur Cantonmet, Dhaka- 1216
Date of Submission: 07 May, 2013
Service Economy
Course: Service Marketing (M411)

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Executive summary
The main purpose of this research study is to identify the challenge in achieving the ideal
about scope and opportunities of Service sector of Bangladesh.
 Tourism sector of Bangladesh
 Leisure business of Bangladesh
 Entertainment business of Bangladesh
 GDP of Bangladesh
The main Purpose of these term paper is to know about the raising sector of Bangladesh
which is the service sector of Bangladesh. New opportunities of this sector and what are the
challenges of this sector.
Service sector plays a very vital role in the overall economy of Bangladesh. If we want to
know about it very clearly we must go through it in detail.
And in this term paper our main focus was the Tourism and Entertainment sector of
Bangladesh which is the most developing part of it.

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Table of Contents
Executive summary..........................................................................................................................................................................iii
Objectives of the Study....................................................................................................................................................................5
Methodology........................................................................................................................................................................................5
1.0 Introduction..................................................................................................................................................................................6
2.0 Economy of Bangladesh...........................................................................................................................................................6
3.0 Service Economy.........................................................................................................................................................................7
3.1 Importance of Service Sector.............................................................................................................................................8
3.2 The Comparative Growth of Service Sectors in Bangladesh ..................................................................................8
3.3 Service Sector and GDP........................................................................................................................................................9
4.0 Service economy Leisure, Tourism and Entertainment............................................................................................. 12
4.1 Entertainment...................................................................................................................................................................... 12
4.1.1 Literature...................................................................................................................................................................... 12
4.1.2 Music............................................................................................................................................................................... 12
4.1.3 Painting.......................................................................................................................................................................... 13
4.1.4 Drama............................................................................................................................................................................. 13
4.1.5 Dance.............................................................................................................................................................................. 14
4.2 Hospitality............................................................................................................................................................................. 14
4.3 Tourism.................................................................................................................................................................................. 15
4.4 Flim Industry........................................................................................................................................................................ 17
5.0 Contributing in the GDP........................................................................................................................................................ 19
5.1 Tourism.................................................................................................................................................................................. 19
5.2 Entertainment...................................................................................................................................................................... 20
6.0 Trade of service and Trade liberalization....................................................................................................................... 20
7.0 Employment opportunity in Service sector................................................................................................................... 20
7.1 Share of Service Sector in Employment...................................................................................................................... 21
8.0 Regulatory Framework.......................................................................................................................................................... 22
8.1 Health...................................................................................................................................................................................... 22
8.2 Tourism.................................................................................................................................................................................. 22
9.0 Technical Assistance Require.............................................................................................................................................. 22
10.0 Points for Service Sectors................................................................................................................................................... 23
10.1 Development of Tourism............................................................................................................................................... 23
10.2 Quality Financial Services............................................................................................................................................. 23
10.3 Development of Education sector.............................................................................................................................. 23
11.0 Concluding Remarks............................................................................................................................................................ 24
12.0 Recomandation...................................................................................................................................................................... 24
13.0 Conclusions............................................................................................................................................................................. 25
14.0 Appendix.................................................................................................................................................................................. 26
Appendix A................................................................................................................................................................................... 26

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Objectives of the Study
Some specific objectives are set for this research. The principal objective of this study is to
evaluate the comparative position of service sector. To accomplish this basic objective, following
specific objectives are set:
 To conduct the comparative analysis of service sector with Tourism Industry sectors.
 To analyze the impact of Liberalization on Service sectors
 To provide the recommendations for development of Service sector.
Methodology
This research has used mostly secondary data have been used for analysis. Data have been
collected from
Bangladesh Economic Survey, Bangladesh Bureau of Statistics, Bangladesh Bank, World Bank,
and Internet websites, Books, Newspapers, Magazines and Journals. We have used required data
for ten years from 2000-01 to2009-10 for analyzing the contribution of economic sectors; growth
rate of each sectors viz. service, industry and agriculture. Data of service export and import from
2004-05 to 2009-10 (five years) and the data of employment contribution for 9 years have been
explained and also gone through various websites.

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1.0 Introduction
The Economy of Bangladesh is growing one. It is basically divided into three basic sectors viz.
Service, Agriculture and Industry. Among the Economic Sectors in Bangladesh, Service sector is
most important. The contribution of service sector to the GDP is about 50% (Bangladesh
Economic Review-2010). So, Service sectors influence the development of national economy.
There is a latent demand for services in Bangladesh. To specify the need of services for huge
population of Bangladesh, such sectors are to be opened for private entrepreneurs with required
control. The enormous contribution of service sector and an increasing trend there in have played
an important role in high growth of GDP. The analysis of last few years’ data gives a clear idea
on the phenomenon. The contribution of the industry sector to the economy of Bangladesh has
been increasing day by day. For the purpose of national income accounting, Bangladesh Bureau
of Statistics (BBS) divides the economy into fifteen sectors (Bangladesh Economic Review-2010,
Ministry of Finance).
2.0 Economy of Bangladesh
The economy of Bangladesh is a rapidly developing market-based economy. Its per capita
income in 2010 was est. US$1,700 (adjusted by purchasing power parity). According to the
International Monetary Fund, Bangladesh ranked as the 44th largest economy in the world in
2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of
Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP
terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per
annum over the past few years. More than half of the GDP is generated by the service sector;
while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced
are textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, ready-made goods.
Exports of textiles and garments are the principal source of foreign exchange earnings.
Shipbuilding and pharmaceuticals have become a major force of growth, while the jute sector is
re-emerging with increasing global demand for green fibers.
Remittances from Bangladeshis working overseas, mainly in the Middle East, are another major
source of foreign exchange earnings. Other important export sectors include ceramics, cement,
fertilizer, construction materials, fish, seafood, cane and leather products. Bangladesh has also
made major strides in its human development index.
In real terms Bangladesh's economy has grown 5.8% per year since 1996 despite political
instability, poor infrastructure, corruption, insufficient power supplies, and slow implementation
of economic reforms. Bangladesh remains a poor, overpopulated, and inefficiently-governed
nation. Although more than half of GDP is generated through the service sector, 45% of

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Bangladeshis are employed in the agriculture sector with rice as the single-most-important
product.
Bangladesh's growth was resilient during the 2008-09 global financial crisis and recession.
Garment exports, totaling $12.3 billion in FY09 and remittances from overseas Bangladeshis,
totaling $11 billion in FY10, accounted for almost 12% of GDP.
3.0 Service Economy
The service sector constitutes a significant share of gross domestic product (GDP) in most of the
developing countries in South Asia, Africa and the Caribbean region since these countries have
an important stake in the Doha Round of negotiation on services liberalization.
Among the many issues being negotiated “Domestic Regulation” has become very important for
developing and least developed countries (LDCs) while undertaking liberalization of their
service sectors. The Doha Round points out national policy objectives to be a valid concern as
long as these are not used to restrict trade.
It strives to facilitate trade in services and yet focuses on achieving a level playing field between
domestic and foreign service providers.
However, the stress is on regulatory measures which can be applied to limit anti-competitive
practices that may arise from market dominance by a few firms (domestic as well as foreign).
Moreover, regulation can enhance consumer welfare by ensuring quality and appropriateness of
services in the midst of a wide range of providers under progressive
liberalization on services.

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3.1 Importance of Service Sector
In the era of global economic integration, competitiveness plays a vital role in the success of
international trade. In addition, the competitive environment of domestic markets facilitates higher
economic growth and can help in reducing poverty. Competition in the services sector can therefore
play a fundamental role in ensuring the competitiveness of an economy. Services are used intensively
in the production of all goods, making up around 10-20 percent of production costs in both
manufacturing and agriculture, and sometimes more (Sauvé, 2006).
Over the years, it has increasingly played an important role in economic activity and displayed more
dynamism vis-à-vis in other sectors. This has led to most countries seeking export markets for
services.
Expansion of services offers room for increased foreign exchange earnings through exports and
foreign direct investment (FDI) resulting from improved capacity and efficiency of the sector.
Depending upon the pattern of growth, it further contributes towards national development by
enhancing efficiency in sectors which are key sources of national output and employment..
3.2 The Comparative Growth of Service Sectors in Bangladesh
The Economy of Bangladesh is classified into three sectors. Of these, the average contribution of
service sector, industry sector, agriculture sector to the GDP are 49.33%, 28.42% and 22.42%
respectively. So, the service sectors contribute most of the development of national economy.
The research aims are to analyze the comparative contribution of service sector with other
sectors, the impact of trade liberalization of service sector and to provide the recommendations
for development of service sector. It is taken a sample of ten years data of GDP from 2000-01 to
2009-10 for analyzing the comparison of service sector with other sectors (industry and
agriculture).
The average growth rates between service sectors and industry sectors or agriculture sector or
total GDP are analyzed with ‘t’ test. The average growth rate of service sector, industry sector
and agriculture sector are 6.17%, 7.49%, 3.21% respectively. The growth of service sector is
more than the agriculture sector but less than the industry sector (result of ‘t’ test). The paper
also reveals that total trade deficit of service is increasing over the year. The average
employment of Agriculture, Industry, and Service to total employment are 58.89%, 12.39% and
25.36% respectively. The paper emphasizes for the development of Tourism sector, Software,
Transportation and Financial service, Education with quality, etc.

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3.3 Service Sector and GDP
Over the past three decades, Bangladesh has evolve from a controlled economy to a market
oriented economy through a wide range of policy reforms which include reforms in trade policy,
industrial policy, monetary and fiscal policy, exchange rate policy, and promotion of foreign direct
investment. Trade liberalization has been one of the major policy reforms in Bangladesh. During the
course of the overall trade liberalization program, the liberalization of service sectors (especially
telecom and financial sectors) also received much importance. Service sectors are increasingly
becoming the core of Bangladesh economy.
In the context of South Asia where growth rates in services sector has been fluctuating during the
last two and Bangladesh have been the exceptions with consistent growth. For instance, the annual
average growth in services has increased from 3.71 percent in 1981-90 to 4.48 percent in 1991- 00 to
5.67 percent during 2001-05 for Bangladesh.
The significant change in Bangladesh’s approach towards trade and investment liberalisation in
services may be attributed partly to the growing importance of the services sector in the economy and
its trade and investment flows in recent years .
Economic development inevitably triggers a structural change in the composition of output in favour
of services.

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One of the striking features of the Bangladesh’s growth performance during the last decade has been
the strength of the services sector. During this period, Bangladesh economy has been experiencing a
significant structural change the role of agriculture has been declining and those of industry and
services have been growing inconsistently. Between 1980-81 and 2006-07, agriculture’s contribution
to GDP declined from 33 percent to 21 percent, while that of industry increased from 17.3 percent to
29.8 percent.
During the same period, the services sector contributed around 50 percent of Bangladesh’s GDP.
This highlights the role of service sector as the driver behind accelerated growth. Since 2004-05, the
overall GDP of the economy has been increasing at a rate over 6 percent, which has been facilitated
by high growth in industry and services sectors.
During 2001-05, services sector in Bangladesh grew, on average, at a rate of 5.67 percent per annum
as against of 5.5 percent growth in overall GDP. The rates of growth in some services sub-sectors
have been higher than the growth in overall GDP growth rate in 2006-07. In terms of the share in
GDP the major sub-sectors in services sector are ‘wholesale and retail trade’, ‘transport, storage and
communication’, ‘real estate, renting and business activity’ and ‘community, social and personal
works’, and their respective contributions to GDP in 2006-07 are 14.17 percent, 10.21 percent, 7.65
percent and 7.09 percent.
Among these services sub-sectors, ‘whole sale and retail trade’, and ‘transport, storage and
communications’ grew at rates faster than that of the overall services sector, as in 2006-07, these two
sub-sectors grew by 7.44 and 8.25 percent respectively while the services sector as a whole grew by
6.74 percent.

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Share of Service Sector to GDP and Its Dynamics (at 1995-96 constant prices)
Contributon % Share in GDP
Sector 1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 2006-07
Agriciulture 33.07 31.15 29.23 25.68 25.03 22.27 21.84 21.11
Industry 17.31 19.13 21.04 24.87 26.20 28.31 29.03 29.77
Service 49.62 49.73 49.73 49.45 48.77 41.43 49.13 49.12
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Annual Average Growth Rate
Agriculture 3.31 3.31 2.23 3.10 3.14 3.21 4.94 3.18
Industry 5.13 6.72 4.57 6.98 7.45 8.38 9.74 9.51
Service 3.55 4.10 3.28 3.96 5.53 6.36 6.40 6.43
Total 3.74 3.34 3.24 4.47 5.41 5.93 6.63 6.51
Another sub-sector where a high growth has been witnessed is the ‘transport, storage and
communication’ sub-sector from where a major contribution to GDP comes and which shows
linkages with production and external sectors. The transport head covers roads, railways, air
transport, port and shipping services; but high growth in this sector is mainly because of strong
growth posted by communications that comprises telecommunication, IT and postal services.
Robust growth momentums in the communication sector as well as in the financial services have
been triggered by liberalization and reforms in these sectors.

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For example, deregulation policy for the telecommunication sector and market driven reforms have
created a huge demand for new products which have been instrumental in attracting new foreign
investment in this sub-sector. With the entry of five foreign cellular operators namely, Telenor,
Orascom, TM International, SingTel and Warid Telecom, competition in the cellular phone market
has become tougher leading to improvement in service quality and further reduction in tariffs to
advantage of consumers. Inception of the state-owned cellular phone company, namely Teletalk, has
further augmented this competitive environment. Finally, despite low contribution to GDP,
‘education’ and ‘community, social and personal services’ are also having high sectoral growth rates.
4.0 Service economy Leisure, Tourism and Entertainment
4.1 Entertainment
Bangladesh is a melting pot of races. She, therefore, has a mixed culture. Her deep rooted
heritage is amply reflected in her architecture, literature, dance, drama, music and painting.
Bangladeshi culture is influenced by three great religions- Hinduism, Buddhism and Islam in
successive order, with Islam having the most pervading and lasting impact. Like a colorful
montage, the cultural tradition of the country is a happy blending of many variants, unique in
diversity but in essence greatly symmetrical.
4.1.1 Literature
Bangalees have a rich literary heritage. The earliest available specimen of Bengali literature
is about a thousand years old. During the mediaeval period Bengali Literature developed
considerably with the patronage of Muslim rulers. Chandi Das, Daulat Kazi and Alaol are
some of the famous poets of the period.
4.1.2 Music
The traditional music in Bangladesh shares the perspectives of that of the Indian sub-
continent. Music in Bangladesh can be divided into three distinct categories -classical, folk
and modern. The classical music, both vocal and instrumental is rooted in the remote past of
the sub-continent. Ustad Alauddin Khan and Ustad Ayet Ali Khan are two names in classical
instrumental music who are internationally known.
The store of folk song abounds in spiritual lyrics of Lalan Shah, Hasan Raja, Romesh Shill
and many anonymous lyricists. Bangla music arena is enriched with Jari, Shari, Bhatiali,
Murshidi and other types of folk songs. Rabindra Sangeet and Nazrul Sangeet are Bangalees'
precious heritage. Modern music is also practiced widely. Contemporary patterns have more
inclinations to west. Pop song and band groups are also coming up mainly in Dhaka City.

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Figure 1 Musical Instruments
Bangladesh has a good number of musical instruments originally of her own. Originally
country musical instruments include, Banshi (bamboo flute), Dhole (wooden drums), Ektara
(a single stringed instrument), Dotara (a four stringed instrument), Mandira (a pair of metal
bawls used as rhythm instrument), Khanjani, Sharinda etc. Now-a-days western instruments
such as Guitar, Drums, Saxophone, Synthesizer etc. are being used alongside country
instruments.
4.1.3 Painting
There is a rich tradition of modern painting which was pioneered by Zainul Abedin, Kamrul
Hassan, Anwarul Haque, Shafiuddin Ahmed and S. M. Sultan. Zainul Abedin earned
international fame for his sketches on famine of 1943 in Bangladesh.
Other famous artists of Bangladesh are Abdur Razzak, Qayyum Chowdhury, Murtaza
Baseer, Aminul Islam, Debdas Chakraborty, Kazi Abdul Baset, Syed Jahangir, and
Mohammad Kibria.
Figure 2 Zainul Abedin's painting called 'The Rebel Cow'
4.1.4 Drama
Drama in Bangladesh has an old tradition and is very popular. In Dhaka more than a dozen
theater groups have been regularly staging locally written plays as well as those adopted
from famous writers, mainly of European origin.
Popular theatre groups are Dhaka Theatre, Nagarik Nattya Sampraday and Theatre. In
Dhaka, Baily Road area is known as 'Natak Para' where drama shows are regularly held.

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Public Library Auditorium and Museum Auditorium are famous for holding cultural shows.
Dhaka University area is a pivotal part of cultural activities.
4.1.5 Dance
Classical forms of the sub-continent predominate in Bangladeshi dance. The folk, tribal and
Middle Eastern traits are also common. Among the tribal dances, particularly popular are
Monipuri and Santal. Rural girls are in the habit of dancing that does not require any
grammar or regulations. Bangla songs like jari and shari are presented accompanied with
dance of both male and female performers.
Figure 3 Folk Dance
4.2 Hospitality
The capital’s hospitality industry has almost doubled in size and earnings over the last four years,
thanks to the addition of a few new five-star hotels, officials said Wednesday.
The luxury hotels in Dhaka have earned Tk 1.18 billion revenue as room rent in calendar year
2007 while it was Tk 577.29 million four years back in 2004, a top official of a five star hotel
told the FE.
“The hospitality industry is expected to go to a new heights as four five star hotels in Dhaka
earned TK 1.312 billion in the first three quarters of the current year 2008, up by Tk 140 million
from the 12-month earnings of 2007,” he said.Bangladesh’s four five-star hotels -Pan Pacific
Sonargaon, Dhaka Sheraton, Radisson Water Garden and The Westin – are situated in the
capital.
Foreign businessmen, ready-made garment buyers in particular, have contributed to the growth
of the hospitality industry.
The four five-star hotels earned Tk 970.42 million in 2006 and Tk 717.69 million in 2005.“We
are optimistic that the hospitality industry in Bangladesh will flourish further in the coming days
as the country’s economy is growing fast with the increased flow of tourists and businessmen to
the country,” said director (sales and marketing) of the Westin hotel ATM Hafizullah.

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He said: “Businessmen around the world are gradually choosing Bangladesh as one of the
lucrative places for investment. This is helping the hospitality industry to reach a new height.”
The occupancy rate of the newly set up Radisson Water Garden and The Westin is higher than
their older counterparts — the Pan Pacific Sonargaon and the Dhaka Sheraton, an official of the
Radisson hotel said requesting anonymity.He said the newly started Dhaka’s Radisson hotel’s
occupancy rate was 81 per cent during January-September period this year followed by 70 per
cent of the Westin, 69 per cent of Dhaka Sheraton and 37 per cent of Sonargaon hotel.
“The winter season is the peak time for tourists flow. We expect more revenue earnings during
the last quarter (October-December) than that of any other previous quarters of current year
2008,” the official said. “I hope the revenue earnings will cross Tk 1.5 billion in 2008. It will be
history for the country,” he said.
In the first three quarters (January-September) of 2008, the Westin hotel earned highest Tk 454
million as room rent revenue, followed by the Radisson Tk 402 million, Sheraton Tk 272 million
and the Sonargaon Tk 184 million..
4.3 Tourism
The hotel and hospitality sector is growing steadily in Bangladesh thanks to the political stability,
growth in export earnings and high turn-up of tourists and corporate and business clients, sources said.
The hotel industryisgrowing by at least 10 percent as the economy of Bangladesh isposting 6-7 percent
growth per annum, said Azeem Shah, General Manager of the Westin Dhaka.
“In general the hotel industryis growingby at least 10 percent whereas the Westin Dhaka is clocking 15
per cent growth per year, said Shah. Emphasizing the political stability, he said political instability
causes heavylosses to the hotel industry; even 11-daysof hartal duringthisyear also caused substantial
loss to the hospitality businesses.
“A businessperson has to cancel their booking before and during the period of hartal. Hotels in Dhaka
lose an average of three-months of business because of two Eids, Christmas and hartal,’ claimed Azeem,
brand ambassador for Bangladesh and an Australian citizen. Suggesting simplification in the visa
processing, Azeem said that if the US embassy in Dhaka can issue five-year multiple visa to Bangladeshi

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nationals, why can’t the Bangladesh embassy in Washington issue a five–year multiple visa to US
citizens? The tourist arrival in Bangladesh will go up if visa processing system is eased, he claimed.
Demanding rationalization of high VAT rate, the Westin GM has suggested that the existing 15 per cent
VAT should be lowered to 10 per cent. The government revenue collection will jump if the National
Board of Revenue (NBR) lowers the present VAT rate. Acknowledging the shortage of skilled manpower
in the hospitality industry, he said that the international standard training institute should be set up in
the country to produce skilled manpower. He deplored that the mindset of the people should be changed
towards women working in the hotel industry. Employment of women in the hotel industry is very poor
compared to health, education, banking, garment and government service sectors in Bangladesh, he said.
Painting a shiny picture of economic activities, the Westin GM said the hotel industry will get a boost
when construction of the Padma Bridge begins.He believes that Bangladesh needs construction of the
Padma Bridge to connect the south and south-western parts of the country. Representatives of the
World Bank, Asian Development Bank, Japan International Cooperation (JICA), Islamic Development
Bank (IDB) and consultants will regularly visit Bangladesh during construction of the Padma Bridge. To
a question of construction of new hotels in the capital, Azeem said that this may lead to an unhealthy
competition in the market as the existing(five-hotel) hotels are enough to meet the demand of corporate
clients and tourists. It is to be mentioned here that some new hotels will be in the market within one or
two years. He claimed that business growth in the two-three- star business is higher than that of five-
star hotels in the country. Quoting statistics Azeem Shah said that the hotel industry in Bangladesh
directly contributes 2.6 per cent to the gross domestic products (GDP).
On potentials of tourism sector in Bangladesh, he said the potentials remain untapped here and the
government should launch a massive campaign. He said nearly 99 percent of his guests at the hotel are
mostly cooperate and business clients where the number of tourists will be rare.
Meanwhile, the hotel industry in Bangladesh contributed taka 93.89 crore and restaurant business
contributed taka 54.77 core taka to the national exchequer in 2009-2010 fiscal year, according to the
National Board of Revenue (NBR). This also shows that businesses in hotels and restaurants are
growing.
The hotel industry posted 2.65 per cent negative growth in 2008-9 fiscal year, but the restaurant
business posted 7.74 per cent growth over the previous year 2007-08 fiscal year.
The hotel industry contributed 74.64 crore taka to the national exchequer in 2070-08 and taka 77.29
crore in 2008-09 fiscal year.
The restaurant sector contributed taka 44.17 crore in 2007-08 and taka 51.91 crore in 2008-09 fiscal
year. As National Board of Revenue (NBR) has not prepared the data for the 2010-11 fiscal year, the
contribution of the hotel industry and restaurant sector to the national exchequer was unavailable for
2010—11 fiscal year. Azeem Shah took over as the General Manager of the hotel on March 1, 2011.
Earlier he joined the hotel as Executive Assistant Manager and Hotel Manager in July 1, 2010. Under his
leadership, Team Westin won two awards in the space of a week at two blue riband events recently,
which put Bangladesh firmly on the world hospitality map.
These are World Luxury Hotel Awards and World Travel Awards, the first one was received by him in
Zagreb and the second one in Bangkok.

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Azeem Shah has extensive experience in the hospitality industry extending over three decades. B efore
joining The Westin Dhaka, he worked in three continents as General Manager in prestigious
international five star deluxe hotels across the world. He held a variety of senior management positions
ranging from Vice President, General Manager, Executive Assistant Manager, Food and Beverage
Manager, Hotel Consultant and Senior Lecturer. As a food and beverage specialist with over two
decades’ experience, he has intimate knowledge and experience in all aspects of food and beverage
management. He has a proven track record in turnaround strategies as well as developing and running
successful and profitable food and beverage operations. And since his joining the Azeem Shah has
brought about changes in the management style as well as the cuisine of the hotel.
4.4 Film Industry
Though the study of film as a discipline started in the sixties, the debate whether a movie is a
piece of art or not began much earlier. A group of academicians prefer the term "film" to
"movie" and recognise it as piece of Art. But a great number of practitioners and academicians
regard it as a form of entertainment, pure and simple. Governments may also promote movies as
a mass communication tool to communicate nationally important messages to its people. We will
not take any extreme position to explain the phenomena of the film industry of Bangladesh.
"Assumptions that fail to provide criteria for the analysis of messages, falling between the
extremes of good and bad, beautiful and ugly and art and non-art must prove singularly unfit as
basic assumptions for the analysis of films that so clearly fall between these extremes." (Sol
Worth 1971)
On the other hand, the inherent issues like demand uncertainty, risk involvement and big
investment render movie-making a truly business endeavor. From the perspective of the
phenomenal decline of Hollywood in the late 1960s and early 1970s, Fadiman (1973) contends
that "movie-making is business which is at the same time an art and an industry."

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After the war of independence of Bangladesh in 1971, most of the time we have seen a gradual
decline in the quality of the films that eventually resulted in a slump in the market coupled with a
growing indifference in the attitude of the film goers.
Just as success of business depends on customers' tastes and preferences, the key element in film
making is a continuous exploration of creativity and innovation. As such popularity in the past
has been found to be no guarantee of success in the future. "There is no simple, consistent
relationship between film themes, costs of productions and box office receipts."(Edmunds and
Strick 1977). It is strategically sound to recognise the truth of movie business. "The measure of
success in movie making is either in terms of the number of admissions, the dollar value of the
rental fees which exhibitors return to the distributors. But more practically it is not the number of
admission, not box office hit; it is the rentals which the distributor receives that are used in
calculating the actual profit or loss"(Jowett, Linton 1980).
In today's competitive world one must differentiate his/her movies in the market. But in which
area you have to differentiate, in which area you have to compete is a matter of concern. "Each
movie while produced is essentially a unique commodity. It needs high degree of product
differentiation which results in promotional competition rather that admission competition."
(Larmett et al, 1978).
Understanding the phenomena of the film industry in a pragmatic way is important to the people
having stake in the industry. Contemplating the learning of modern management and
implementing latest marketing strategies in making movies can play an influential role to
develop the film industry of Bangladesh.

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5.0 Contributing in the GDP
5.1 Tourism
2013 ANNUAL RESEARCH: KEY FACTS
The direct contribution of turison in the GDP was BDT 193.obn (2.1% of GDP) in2012 and
forcast to rise by 7.7 % in 2013 and rise by 6.8 % on the next year.
GDP: TOTAL CONTRIBUTION
The total contribution of Travel & Tourism to GDP was BDT394.8bn (4.3% of GDP) in 2012
and forcasted to rise by 7.5% on the next year.
EMPLOYMENT: TOTAL CONTRIBUTION
In 2012, the total contribution of Travel & Tourism to employment, including jobs indirectly
Visitor exports generated BDT7.7bn (0.4% of total exports) in 2012. This is forecast to grow by
3.2% in 2013, and grow by 4.9% pa, from 2013-2023, to BDT12.8bn in 2023 (0.5% of total).
Travel & Tourism investment in 2012 was BDT37.3bn, or 1.6% of total investment. It should
rise by 0.5% in 2013, and rise by 6.0% pa over the next ten years to BDT67.4bn in 2023 (1.5%
of total).
Travel & Tourism is an important economic activity in most countries around the world. As well
as its direct economic impact, the industry has significant indirect and induced impacts. The UN
Statistics Division-approved Tourism Satellite
DIRECT CONTRIBUTION
The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel &
Tourism (total spending within a particular country on Travel & Tourism by residents and non-
residents for business and leisure purposes) as well as government 'individual' spending -
spending by government on Travel & Tourism services directly linked to visitors, such as
cultural (eg museums) or recreational (eg national parks).
The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the
output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels,
airlines, airports, travel agents and leisure and recreation services that deal directly with tourists.
The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by
‘netting out’ the purchases made by the different tourism sectors. This measure is consistent with
the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account: Recommended
Methodological Framework (TSA: RMF 2008).

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TOTAL CONTRIBUTION
The total contribution of Travel & Tourism includes its ‘wider impacts’ (ie the indirect and
induced impacts) on the economy. The ‘indirect’ contribution includes the GDP and jobs
supported by:Travel & Tourism investment spending – an important aspect of both current and
future activity that includes investment activity such as the purchase of new aircraft and
construction of new hotels; Government 'collective' spending, which helps Travel & Tourism
activity in many different ways as it is made on behalf of the ‘community at large’ – eg tourism
marketing and promotion, aviation, administration, security services, resort area security
services, resort area sanitation services, etc; Domestic purchases of goods and services by the
sectors dealing directly with tourists - including, for example, purchases of food and cleaning
services by hotels, of fuel and catering services by airlines, and IT services by travel agents.
5.2 Entertainment
Total output of the services sector consists of the collective outputs of the wholesale and retail
trade; hotel and restaurant; transport, storage and communication; financial intermediations; real
estate, renting and business activities; public administration and defense; education; health and
social work, and community, social and personal services activities. The sectoral share of the
services sector is 52.76% of the total GDP. The contribution of cinema halls, cinema production
houses, tele films/drama production houses and private TV channels have been considered and
added from FY 2004-05.
6.0 Trade of service and Trade liberalization
Trade liberalization has opened a new horizon for service exports. Service export is the amount
which is paid by the foreign national for using the service of Bangladesh. Service import is the
was formed to eliminate the trade barriers. Here we shall see the impact of trade liberization on
the service sectors of Bangladesh. From the table 4, the figure-3 is drawn. It is found from the
figure -3 that the import of service average Tk.199368 million is more than the export of service
average Tk.112214.5 million. The total trade deficit is increasing over the year. The average rate
of growth of service export is more than service import which are 16.16% and 15.89%
respectively. This is a good symptom for Bangladesh.
7.0 Employment opportunity in Service sector
Service sector has created a great scope for employment. Bangladesh is a labor intensive country.
Population is an important resource of Bangladesh. From the table 5 (data is taken from world
Bank data bank) the figure-4 is drawn and it is shown that average employment of Agriculture,
Industry, Service to toal employment are 58.89%, 12.39 5and 25.36% respectively.

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Sectoral Composition of Employmen
Sectoral composition of employe workforce %
Source WDI 2007
Year Agriculture Manufacturing Service
1982-83 58.8 11 24.2
1984-85 57.7 11.5 26
1989-90 66.4 13 16.2
1995-96 63.2 9.6 25
1900-00 62.1 10 23.5
2002-03 51.7 13.7 34.6
But employment of service sector is increasing. The employment of industry sector is increasing
but agriculture sector is decreasing.
7.1 Share of Service Sector in Employment
Service sector employment has also shown a rising tendency but its contribution to total
employment is much lower than its contribution to country’s GDP. Table 2 shows the sectoral
composition of employment over the two decades. There was a sharp rise in employment share
of the agricultural sector in the eighties from 58.8 percent in 1982-83 to 66.4 percent in 1989-90.
Since then Bangladesh economy has been witnessing a declining trend in the employment share
of agriculture. The share of agriculture in total employment reached to 51.7 percent in 2002-03,
which signifies the increase of non-farm activities during that period. On the other hand, the
share of the manufacturing sector in total employment increased from 11 percent in 1982-83 to
13 percent in 1989-90, however declined to 9.6 percent in 1995-96, which again rose to 13.7
percent in 2002-03. The employment share of the service sector has been somewhat unstable
during the last two decades. It declined from 24.2 percent in 1982-83 to 16.2 percent in 1989-90.
During the late 1990s and early 2000s, when liberalization of some services sectors, like
telecommunication and financial intermediaries, was one of the major policy reforms, the
employment share of service sector grew substantially, which reached to 34.6 percent.

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8.0 Regulatory Framework
In Bangladesh, the level of market concentration in the services and utility sector tends to be
significantly higher than that of the manufacturing sector. These enterprises are often granted
monopoly rights that they sometimes auction off to private concessionaires through long term
revenue-sharing concessions. Consequently, the market structure of most service industries can be
described as monopolistic or oligopolistic. Grameen Phone, a telecommunication service provider,
had an estimated market share of 63 percent at the year-end of 2006. Grameen Phone was the most
profitable part of Telenor’s global mobile network in the final quarter of 2006 that the Norwegian
company reported, with subscribers in Bangladesh almost doubling during the year .
8.1 Health
There is no specific rule regarding the Mode 1. In case of Mode 2, a valid visa holder can avail
services from any hospitals or clinic paying specific services.
Under Mode 3, a company, incorporated outside Bangladesh, may operate health services in
Bangladesh subject to having a valid license from the Directorate General of Health Services under
the Medical Practice and Private Clinics and Laboratories (Regulation) Ordinance, 1982. There is no
specific rule regarding Mode 4. A foreign health professional needs permission from the Ministry of
Health through Bangladesh Medical and Dental Council (BMDC). As per the BMDC rules, a foreign
practitioner is given temporary permission up to 6 months to practice in Bangladesh.
8.2 Tourism
In Bangladesh’s schedule of specific commitments, there are market access limitations under modes
1 and 2. But in the existing legislation, there are no specific rules and regulations under modes 1 and
2. However, any persons from a country which hasdiplomatic relation with Bangladesh may avail
tourism services in Bangladesh as per the Visa Rules 2006. There is no specific legislation under
Mode 3 for this sector. Existing legislation does not provide any rule governing.
9.0 Technical Assistance Require
Trade facilitation in the services sector requires technical assistance of different types at various
levels. Technical assistance is needed for improving institutional and human capacities that can
manage the negotiating process at different levels:
 Developing infrastructure facilities which include transportation, port and customs and
storage facilities along with power supply and communication systems;
 Evolving marketing and distribution facilities that are presently far from pleasing;

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 Broadening the scope of Aid for Trade that can provide technical assistance while
undertaking regulatory reforms and translating the services regulatory framework into
GATS language.
10.0 Points for Service Sectors
After analysis, it can be said that the contribution of service sector is about 49.22% and the
growth rate of service sector is 6.175%. The contribution is about half of the total economic
sectors and the growth rate is more than the average growth of GDP. Emphasis is given on the
service sector for development. Since the industry sector is growing rapidly (7.49%), support can
be given by providing the quality and smooth service. The employment in service sector is
increasing day by day. So, there is lot of opportunity for employment in this sector. Though there
is negative Trade Balance of service of Bangladesh, the growth rate of service export is more
than that of import. It is a good symptom for us. So we have to emphasize the service export
such as Tourism, Software, Transportation and Financial service etc. The prospects of some
promising service sectors are pointed out below.
10.1 Development of Tourism
Tourism is one of the most promising sectors for Bangladesh with her huge natural beauty,
heroic historical background and archaeological resources (Das & Chakroborty 2012).
Bangladesh is a country of natural beauty. She has lot of tourism places. These places are of
different interest like beaches, historical places, archaeological sites, religious palaces, forest and
jungle etc.
10.2 Quality Financial Services
Financial service is another important part of total service sector in Bangladesh. It is a promising
sub sector which consists of the Bangladesh Bank (the central bank), four nationalized
commercial banks (NCBs), 5 state owned specialized banks (SBs), more than 30 private sector
commercial banks (PCBs) and more than 9 foreign commercial banks (PCBs). The rest of the
financial sector consists of more than 29 non-bank financial institutions, the capital market, 3
general and 17 life insurance companies, the cooperative banks and the microfinance institutions.
10.3 Development of Education sector
For increasing of people and literacy rate, the demand of higher education is increasing. The
technical institution, Business education, health education create the demand to the people. The
development of government and private universities is the indicator of growing demand of
education sector.

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11.0 Concluding Remarks
The contribution of service sector is about 50 percent of the total GDP. So, the growth rate of
GDP depends on the service sectors. The service sector provides the support for the development
Industry sector and agriculture sector.
For the international trade (export and import), the smooth transportations, financial and
insurance service is required. For the improvement of the GDP sector, it has to give special
emphasize on service sectors.
There is lot of scope of development of service sector. Bangladesh is providing transit and
transshipment to India, Nepal and Bhutan that will increase return from the transportation and
communication sector. The manufacturing sector is growing rapidly. So, the need of financial
service and education is increasing in future. Tourism, hotel service is promising in Bangladesh.
The trade liberalization on service will cause the opportunity for service export. So, we have to
take the initiatives for development of service sectors. This paper has analyzed the comparative
contribution of service sector, the growth of service sector, service export and the employment in
service sectors. There is scope for further research about the ways of development of service
sectors.
12.0 Recomandation
 The growth of an efficient services sector is essential for the overall growth of the
economy. An efficient financial services sector is crucial for raising the competitiveness
of the countries. For this reason, appropriate government policies and measures need to
be designed for a sustained growth of the services sector.
 Bangladesh needs to enhance the education and skill level of its workforce as it is
important for the financial service firms to employ skilled workforce for delivery of their
services to foreign clients or attract firms to employ skilled workforce foreign
multinationals into the country.
 Computer literacy level along with the general education level needs to be enhanced to
boost Mode1 export.
 In sectors in which regulatory bodies exist, e.g., Securities and Exchange (SEC) etc.
there is the need to strengthen the capabilities .
 Special emphasis needs to be given to introduce E-governance to improve transparency
and reduce transaction costs. E-governance can also counter the menace of corruption
that is all pervasive in the Bangladesh society.
 Regulatory institutions in collaboration with associations for different services sectors
should make efforts for standardization, recognition and accreditation of service

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institutions, facilities and professional qualifications with international standards,
qualifications and bodies.
 Improvements in law and order situation and political stability are vital in attracting
foreign investment. Bangladesh should improve its country image abroad by having
political stability, adopting sound macroeconomic policies, clamping down on extremism
and militancy, and improving the law and order situation.
 Bangladesh's commitments to GATS are very limited but in practice most of
the country's services sectors have been liberalized as part of its general
economic reform program.
 Bangladesh Bureau of Statistics (BBS) needs to improve statistical coverage of
the financial services sector. Inclusion of more reliable data on financial service
sector would increase awareness among foreign investors.
 Government should take initiatives to start short training program on GATS for
all stakeholders on a regular basis. The resource person can be drawn from the
Ministry of Commerce, universities, and research organizations of the country
as well as from the professional staff of the WTO, ITC and UNCTAD.
 Attracting FDI: Bangladesh badly needs FDI. More emphasis needs to be given
to attract FDI to financial services. The country may benefit from "commercial
presence" in these services by way of improvements in quality and supply.
Commercial presence should be welcome in banking services as it will bring
better technology and best practices, which will improve the efficiency in the
sector.
13.0 Conclusions
Different country experiences suggest that trade liberalization alone cannot result in growth and
development. This is true especially in the case of LDCs where infrastructure facilities are not
suitable and knowledge deficiencies regarding sectoral potentiality further deprive them of the gains
through trade openness. On the whole there are several issues concerning trade liberalization and
domestic regulation in the services sector which require immediate attention. Some of these are as
follows:
 Although Bangladesh has made some significant gains from trade liberalization, a rather
slow and cautious approach is preferred by many stakeholders. There is a need to strengthen
the capacity for domestic regulation, the underlying rules to strengthen the process of trade
liberalization in a number of services sectors.

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 There is a need to actively involve all stakeholders (civil societies, private sector, etc.) at
every stage of the decision making process from assessment studies to formulation to actual
policy formulation. This could help build domestic support for trade liberalization of
domestic regulation.
14.0 Appendix
Appendix A
Reference
 https://www.yahoo/tourism.com
 https://www.goole.com
 https://www.FE news.com
 https://www. Google/entertainmemt24.com
 https://www.google .com
 Tourisam sector of bangladesh - Google
 https://www.beautifulbangladesh.com
 https://www.ask.com

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