Luxury hotels in Dhaka continue to struggle as business travelers, both domestic and international remain hesitant to visit due to ongoing instability in the country. Despite slight improvements since mid-July, the hospitality industry is still far from recovering to normal levels.
Occupancy rates at luxury hotels have dropped significantly, falling from the usual 78-80% to around 30-35%. Business travelers, who typically make up the majority of hotel guests, have sharply declined, especially following the political unrest in early August. Currently, only a small percentage of rooms are being occupied by business travelers, with limited guests arriving from international organizations and NGOs.
Additionally, the number of airline crew bookings, which previously filled a substantial number of rooms, has decreased due to a reduction in international flights to and from Dhaka. This has compounded the financial challenges for hotels and guest houses making it difficult to cover minimum operational costs. If the situation persists, many luxury hotels may face the possibility of closing their doors within the next months or even a year.
The downturn has affected not only hotel accomodation but also events and seminars. Scheduled programs, such as expos and conferences, were put on hold due to the unstable conditions. Although some improvement has been noted. The overall occupancy levels remain low, with rates still well below 40% in many cases.
Travel warnings issued by countries such as the US and Japan remain in effect, further discouraging international visitors from traveling to Bangladesh. This has led to a significant reduction in guests from key markets like India, the US, and China, with many opting to delay their trips until the situation stabilizes.
