Hospitality, F&B take hit as tourist number plummets
Times of India | 7 December 2024
Kolkata: The sharp dip in Bangladeshi tourists visiting Kolkata has dealt a severe blow to the city's hospitality and retail sectors, particularly in the New Market area, often referred to as ‘Mini Bangladesh'. Hotel owners have been forced to slash room tariffs by up to 50% and shift their focus to attracting domestic tourists in a bid to minimise their losses.
Local eateries, once bustling with Bangladeshi visitors, have reduced food production due to dwindling demand. Shops in New Market that depend heavily on Bangladeshi customers are facing mounting losses, underlining the broader economic ripple effect caused by the turmoil in the neighbouring country.
"We currently have no Bangladeshi tourists staying in our hotel, which is unusual as they form a significant part of our clientele. Only 10% of our rooms are occupied by travellers from other parts of the country," said Pintu Basak, owner of D K International Hotel on Marquis Street. "We are offering discounts to attract domestic tourists because we need to cover salaries and overhead costs."
Many hotels have adopted similar strategies, slashing room rates to attract visitors. "This time of the year, our rooms would typically be fully booked by Bangladeshi tourists. But now we are offering discounts to draw tourists from other parts of India to minimise our losses," said Mohammad Ashraf Qureshi, owner of Al Hind, a guest house on Collin Street.
The affected area encompasses roughly 200 hotels and guest houses, catering to various tourist categories, and more than 3,000 shops spread across a 2 sq km zone in central Kolkata, including Marquis Street, Free School Street, Collin Street, Kyd Street and Rafi Ahmed Kidwai Road.
"The numbers have been declining daily since July, coinciding with the start of student protests in Bangladesh. Over the past week, the situation has worsened, with almost no Bangladeshi tourists arriving and many rushing back home," said Harmit Singh, president of the Central Kolkata Hotel Owners' Association.
The slump in Bangladeshi tourism has left businesses in this area scrambling to adapt, underscoring the deep interconnectedness of the area's economy with cross-border tourism. The food and restaurant industry in the area has also been hit hard. "The footfalls are down by almost 70%. This is the first time we've had to reduce production so drastically. We are now relying mainly on local people for business as there are hardly any Bangladeshi tourists," said N C Bhowmik, owner of Radhuni restaurant on Marquis Street.
Kasturi on Marquis Street, which is a favourite with tourists, also wears a deserted look. "Earlier, there would hardly be space during lunch and dinner time. Nowadays there are only a handful of customers," said Dulal Das, manager at Kasturi.
Foreign currency exchangers, shops selling SIM cards, and other service providers in the area also rued the sharp decline in business. "The business has reduced to almost 10% since the fresh round of unrest in Bangladesh," said Mohammad Ansari, a SIM card seller on Kyd Street.
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