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No licence for travel agencies without full local ownership

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  Published in Travel and Leisure on Wednesday, November 5th 2025 at 14:23 GMT by The Daily Star
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Bangladesh Tightens Travel Agency Rules: Full Local Ownership Required for Licences

A sweeping regulatory change announced by the Ministry of Civil Aviation and Tourism has outlawed the licensing of travel agencies that are not wholly Bangladeshi‑owned. The decree, published in the Bangladesh Gazette on 9 March 2024, mandates that all new and existing travel agencies seeking or renewing licenses must be 100 % owned by local residents, with no foreign shareholders permitted. The decision follows a series of consultations with industry stakeholders and a review of the Tourism Development Strategy 2023–2033, which aims to boost domestic tourism while ensuring that the sector remains under local control.

Why the Policy Shift?

The government’s rationale is rooted in two key concerns:

1. Economic Sovereignty – “The tourism industry is a significant contributor to the national economy, and it is essential that profits and decision‑making remain in Bangladeshi hands,” said Minister Abdul Khaleque Zaki, who presented the new guidelines in a televised press briefing. The ministry’s 2021 report estimated that 38 % of licensed travel agencies carried at least one foreign shareholder, and the policy now seeks to curb this external influence.

2. Regulatory Oversight – Under the previous regime, foreign partners could hold up to 25 % of an agency’s shares, which the ministry argued created gaps in compliance monitoring. “Full local ownership simplifies our monitoring and enforcement processes,” Minister Zaki added. The new rule is also intended to streamline the licensing process, making it less bureaucratic for local operators.

Key Provisions of the New Guidelines

The full text of the regulation, available as a PDF on the Ministry’s website, outlines the following requirements:

Foreign‑owned agencies are required to restructure. Existing firms with foreign shares must either buy out those shares or transfer ownership to Bangladeshi entities within 180 days of the decree’s effective date. The ministry has set up a dedicated liaison office at the Dhaka Trade and Investment Promotion Board to assist firms in meeting the new criteria.

Impact on the Tourism Landscape

The tourism industry in Bangladesh is projected to grow at an average rate of 8 % annually, driven by the government’s “Tourism for All” campaign and a surge in domestic outbound travel. Travel agencies play a pivotal role, acting as intermediaries that package tours, handle visas, and coordinate logistics. By requiring full local ownership, the government aims to ensure that profits and decision‑making stay within the country, thereby stimulating domestic job creation and keeping revenue from the tourism sector within national borders.

However, some analysts warn that the policy may create barriers for smaller operators who previously relied on foreign investment to cover start‑up costs. “We are seeing a number of boutique travel agencies with high‑tech platforms that could not secure the required 100 % local capital without foreign backing,” said Farah Khan, a senior analyst at the Bangladesh Tourism Development Board. “The policy might unintentionally squeeze out innovative players, reducing competition.”

The Tourism Development Board is monitoring the situation closely. It has already issued a provisional guide to help agencies transition to the new ownership structure. The guide, available on the board’s portal, lists recommended steps: “a detailed audit of shareholding, consultation with legal counsel, and a capital infusion plan.” It also highlights potential financial assistance programs for local entrepreneurs, which the government plans to roll out in Q3 2024.

Industry Reactions

Reactions have been mixed. The Bangladesh Travel Agency Association (BTAA) has issued a statement calling the policy “unnecessary” and “discriminatory” against foreign partners who have historically invested in the sector. The association requested a review of the guidelines and urged the ministry to consider a phased implementation, allowing agencies a two‑year transition period.

In contrast, several local travel agencies have welcomed the change. “This will level the playing field for local businesses,” said Amit Chowdhury, director of a Dhaka‑based agency that has operated since 2010. “We have always been fully owned and run, but now we can showcase that we meet the highest standards.”

Foreign investors, including a consortium of Singaporean and Malaysian tour operators, have expressed concern that the policy could affect future investment flows. An unnamed representative from the consortium said, “While we respect Bangladesh’s regulatory autonomy, a sudden change in ownership requirements could deter new foreign investment in the travel sector.”

Looking Ahead

The Ministry of Civil Aviation and Tourism has scheduled a public consultation round from 12 April to 30 April, inviting stakeholders to provide feedback on the implementation timeline and the enforcement mechanisms. The ministry’s website hosts a “Frequently Asked Questions” section, which clarifies that the regulation applies only to licensed travel agencies and does not affect tour operators who operate under hotel or resort agreements.

Should the policy be fully enforced, the ministry predicts that local ownership of travel agencies will rise from 62 % to 100 % within two years, while maintaining current levels of service quality. The government plans to monitor key indicators, such as the number of licensed agencies, foreign exchange earnings from tourism, and employment statistics in the travel sector.

In summary, Bangladesh’s new licensing rule marks a decisive shift towards protecting local ownership in the tourism industry. While it seeks to safeguard economic sovereignty and streamline regulatory oversight, the policy will require careful implementation to avoid stifling innovation and discouraging foreign investment. Stakeholders are now poised to shape the next chapter of Bangladesh’s tourism narrative, balancing national interests with global partnership opportunities.