Govt draft restricts foreign investment in travel sector
Business Report :
The government has proposed that travel agencies must be 100 percent locally owned to obtain a licence, sparking concern from industry leaders and investment authorities.
The draft amendment to the Bangladesh Travel Agency Registration and Control Ordinance aims to “prevent customer harassment” and “ensure good governance in air travel,” according to the Ministry of Civil Aviation and Tourism. The ministry published the draft online and invited public feedback for seven days.
However, the Bangladesh Investment Development Authority (Bida) questioned the need for the changes, noting that the existing 2013 law already requires applicants to be Bangladeshi citizens. Bida said the citizenship requirement discourages foreign and joint venture investment, depriving customers of competitive services. The authority recommended removing the citizenship restriction and allowing companies registered in Bangladesh to apply for licences.
Industry leaders also voiced strong opposition. Ridwan Hafiz, managing director of travel tech firm GoZayaan Ltd, said, “Restricting foreign participation now would roll back progress and dampen innovation across tourism-related sectors.” He noted that startups like GoZayaan and ShareTrip have attracted over $20 million in foreign investment, bringing capital, expertise, innovation, and jobs.
Sadia Haque, co-founder and CEO of ShareTrip, called the draft a setback for Bangladesh’s goal of building a technology-driven and globally competitive economy. She said the travel industry contributes $2.5-3 billion to the national economy and provides jobs while connecting Bangladesh to global markets.
Haque warned that restricting foreign investment could harm both local startups and international investor confidence, undermining the country’s reputation as a digital economy.
Bida also highlighted that as Bangladesh prepares to graduate from least developed country status in November 2026, sector-specific trade barriers should be removed and conflicting laws should be aligned with the country’s investment goals.
The proposed amendments have reignited debate over how to balance local ownership rules with the need to attract foreign investment and modernize the travel industry.