Summary:
- Kolkata’s hospitality and retail sectors, especially in the New Market area, are facing a severe economic downturn due to a sharp decline in Bangladeshi tourist arrivals caused by visa restrictions and political unrest in Bangladesh.
- Businesses reliant on Bangladeshi customers, including hotels, restaurants, and shops, have seen revenues drop by up to 70%, forcing many to offer discounts or temporarily shut down.
- Local business leaders are urging both governments to ease visa policies and restore normalcy, emphasizing the deep economic interdependence between the two nations.
- Despite the challenges, Kolkata’s business community has assured Bangladeshi tourists of their safety and welcome, hoping for improved relations and recovery in cross-border tourism.
Kolkata’s hospitality and retail sectors are grappling with a severe economic downturn as Bangladeshi tourist arrivals plummet due to strained diplomatic relations and visa restrictions. Businesses in the city’s central areas, particularly the New Market region—often referred to as “Mini Bangladesh”—have been hit hard, prompting local entrepreneurs to issue a reassuring message to Bangladeshi visitors.
In a press conference held on December 7, representatives of Kolkata’s business community, including the Marquis Street-Free School Street Welfare Society, New Market Trade Association, and Hotel Owners’ Association, announced their commitment to ensuring the safety and comfort of Bangladeshi tourists. “We will not boycott Bangladeshis. They can visit us without fear, and we will provide them with as much security as possible,” said Monotosh Saha, president of the welfare society. He emphasized the mutual economic benefits of cross-border tourism and urged both governments to resolve ongoing tensions.
The decline in Bangladeshi visitors has had a profound impact on Kolkata’s economy. December typically marks the peak tourist season, with 5,000–7,000 Bangladeshi tourists arriving daily. However, this figure has dropped to just 5% of its usual volume. Businesses heavily reliant on Bangladeshi customers—such as hotels, currency exchange services, and retail shops—are struggling to stay afloat. According to Monotosh Sarkar, joint secretary of the welfare society, “New Market is essentially a Bangladesh-centric area. The absence of Bangladeshi tourists has severely affected our businesses.”
Hotel owners have reported drastic measures to mitigate losses. Many have cut room rates by up to 50% and shifted focus to domestic tourists. “Eighty percent of my hotel’s guests used to be from Bangladesh,” said Monotosh Sarkar, a hotel owner in the area. “Now it’s only 20%, which has forced us to adapt by offering discounts.” Similarly, restaurants and shops that once thrived on Bangladeshi clientele have seen sales drop by up to 70%.
The root causes of this decline stem from political unrest in Bangladesh and subsequent visa restrictions imposed by India. Following the ouster of former Bangladeshi Prime Minister Sheikh Hasina in August 2024 and subsequent protests, India limited visa issuance to emergency cases only. This policy shift has created significant barriers for Bangladeshi tourists, many of whom contribute substantially to Kolkata’s economy through shopping and leisure activities.
Local business leaders have called for urgent action from both governments to ease visa restrictions and restore normalcy. Muhammad Ali Hossain Sheikh, a businessman involved in foreign currency exchange and transportation, appealed for more flexible visa policies, including the introduction of multiple-entry visas. “The current situation is unsustainable for both sides,” he stated.
Despite these challenges, Kolkata’s business community remains optimistic about future improvements in bilateral relations. Indian Foreign Secretary Vikram Misri is scheduled to visit Dhaka on December 9 for high-level talks aimed at de-escalating tensions between the two nations. Business leaders hope this meeting will pave the way for resolving issues such as visa facilitation and cross-border trade.
As Kolkata’s economy continues to reel under the weight of reduced cross-border tourism, stakeholders emphasize the importance of maintaining strong ties between India and Bangladesh. “Bangladeshis are not just foreign tourists; they are like family,” said Sarkar. “We hope for better days when our streets will once again be bustling with their presence.”
Source: Daily Inqilab
