The Bangladesh Parjatan Corporation (BPC) was established to help develop the country’s tourism sector more than five decades ago. Over the years, however, the state-owned organization’s role has diminished. A lack of modernization, absence of professional management, and weak appropriate planning have resulted in its failure to attract the expected number of tourists. At the same time, several BPC properties have been leased out to private operators to boost revenue — yet the corporation earns only a minimal amount from them. Most of these lease agreements were signed during the tenure of the ousted Awami League government. These contracts have not been reviewed for a long time. Even the current interim government has also taken no initiative to reassess or revoke them.
The Bangladesh Parjatan Corporation, established in 1972 with seven properties, now operates 53 tourism establishments across the country. Since its inception, the organization has built hotels, motels, resorts, picnic spots, restaurants, bars, swimming pools, golf bars, tourism service centers, and other facilities in key tourist destinations, including Cox’s Bazar, the greater Chattogram Hill Tracts, Sylhet, Kuakata, Rajshahi, Rangpur, Bogura, Dinajpur, Khulna, Meherpur, Gopalganj, Bagerhat, Netrokona, Narayanganj, and Sirajganj. However, sector insiders say the corporation has failed to attract sufficient visitors or generate adequate revenue from these establishments.
In Cox’s Bazar—the country’s prime tourist destination—the corporation operates four facilities: Hotel Shaibal and Motels Labonee, Upal, and Probal, along with a tourism swimming pool. Of these, Motel Probal and the swimming pool are run privately. Due to the absence of competitive tenders and contracts, the same organizations have been operating these facilities for years. While the private operators make substantial profits, BPC itself receives only a negligible amount. Investigations reveal that Motel Probal is being run by a company named Messrs. Indigo BD under an agreement signed on November 10, 2010. In FY 2023–24, the company paid the corporation just BDT 166,667 as annual premium. The well-known motel has 45 modern rooms—both AC and non-AC—with 90 beds, in addition to four economy dormitories.
The tourism swimming pool is operated by Elite Aqua, under a contract signed on December 24, 2008. In FY 2023–24, BPC earned only BDT 862,192 from the facility. Yet Cox’s Bazar sees massive tourist inflows throughout the year—during weekends, social & religious festivals, long public holidays, and the winter season. It often leads to accommodation shortages, forcing visitors to spend the night on the streets. Even in such a high-demand market, BPC earns barely more than BDT 150,000 a year from a major establishment like Motel Probal.
Speaking to Bonik Barta, BPC’s General Manager (Commercial) A N M Mostadud Dastagir said, “Although tourist numbers surge during the peak season, this mostly happens during weekends and holidays. Many beds remain empty on weekdays, which lowers revenue. On the other hand, restaurants and bars also operate under various regulatory constraints, limiting their income potential. Furthermore, due to inadequate experienced manpower and several other challenges, the corporation has handed over some facilities to private firms. These agreements were signed through competitive tenders with the highest-rated bidders.” He added that BPC has cancelled several agreements over the years due to non-payment of dues and violations of contract terms.
The Ruchita Restaurant & Bar, located on the ground floor of the BPC’s old building in the capital’s Mohakhali, occupies 2,758.93 square feet. It has been operated by a private firm, Messrs. Nest, under a lease agreement signed on September 29, 2014. The corporation earned a premium of around BDT 14.21 million from the facility in FY 2023–24.
The corporation-owned Sakura Restaurant & Bar, situated on 3,827.53 square feet in Dhaka’s Shahbagh, is currently run by Messrs. Asif Traders. The lease agreement with the private operator was signed on January 1, 2002. In FY 2023–24, the bar generated over BDT 13.48 million in premium revenue for the corporation.
BPC’s Bogura motel bar, covering 2,200 square feet, is operated by Messrs. Trend Setters under a contract signed on June 26, 2016. In FY 2023–24, it yielded nearly BDT 3.79 million in premium income.
The bar at the Rajshahi tourism motel is housed in a separate three-story building. It is currently operated by a private company named Subarna under an agreement signed on October 17, 2012. In FY 2023–24, the facility contributed about BDT 2.63 million in premiums.
At Mongla’s Hotel Pashur premises, the corporation’s 750-square-foot bar is operated by Messrs. M H Chowdhury under a lease agreement dated February 4, 2015. In FY 2023–24, it generated BDT 2.27 million in premium revenue.
In Sylhet, the 1,049-square-foot bar within the tourism motel compound is run by Messrs. SAS Traders. The lease agreement was signed on September 1, 2015. In FY 2023–24, the bar produced nearly BDT 4.65 million in premiums.
The Mary Anderson Floating Restaurant & Bar, located at the VIP Jetty in Pagla, Narayanganj, supplies food and essential items during state-run cruises along the Buriganga, Shitalakkhya, and Meghna rivers. It is currently operated by Messrs. Sonargaon Tourism under a management agreement signed on May 29, 2008. In FY 2023–24, it generated around BDT 5.14 million in premium revenue for BPC.
The restaurant and bar at Chattogram’s Hotel Shaikat spans 1,248 square feet. Messrs. Subarna Enterprise obtained operational rights on April 18, 2010. In FY 2023–24, the facility brought in over BDT 8.66 million in premiums.
In Sylhet, a 15-year contract was signed with a private company to build a children's amusement park on 13 acres of open land under the BOT method. The contract expired, and due to unpaid dues, BPC reclaimed control of the park on March 10, 2022. In FY 2023–24, the park earned around BDT 3.48 in premiums.
Foy’s Lake in Chattogram, one of the corporation’s most attractive tourism sites, was initially leased to Messrs. Mohona Lines on September 6, 1993 for 15 years. The agreement required an annual premium of BDT 425,000 for the first five years, increasing by 5 percent annually thereafter. Later, following a decision to develop an international-standard tourism facility, the site was leased long-term to Concord Entertainment Company Limited in 2005. However, due to multiple violations of contract terms and complications over land development fees, Bangladesh Railway canceled the agreement in 2017. Concord Entertainment appealed to the High Court, and in 2021, the railway authorities reached a settlement with the company, reinstating the previous terms.
Bangladesh Railway records show that after a bilateral agreement between the railway authority and the Bangladesh Parjatan Corporation (BPC) on July 24, 2003, to lease 337 acres of land at Foy’s Lake, a tripartite agreement was later signed involving Concord Entertainment and the two state organizations.
The private operator pays an annual sum of BDT 2.5 million to the railway and the tourism corporation, which is distributed between the two in a 2:1 ratio. In addition, the railway receives 2 percent of ticket sales from visitors to the amusement park, while BPC receives 1 percent. In FY 2023–24, BPC earned around BDT 1.08 in premiums from Foy’s Lake.
Lalakhal in Sylhet remains a popular destination for travel enthusiasts. The site has been operated by Messrs. Zahid Tourism under an agreement signed on May 4, 2022. In FY 2023–24, the corporation earned only BDT 33,000 in premiums from the facility.
Hotels, resorts, cottages, restaurants, and bars in the private tourism sector generally operate under fully commercial models. These establishments capitalize on the heavy tourist rush during peak seasons. They earn enough during a few busy months to cover operational expenses for the rest of the year. In contrast, BPC has struggled to generate adequate revenue or profit from its facilities—whether operated directly or through private lessees. In FY 2023–24, the corporation’s total revenue amounted to around BDT 1.29 billion. However, it incurred a post-tax loss of BDT 106 million during the same period.
According to BPC’s financial statements for FY 2023–24, 24 of its installations and units are currently managed by private operators under lease contracts. A report by the Finance Division’s monitoring cell, regarding the performance improvement strategy (PIS) for state entities, notes that the corporation does not regularly review these lease agreements. Disputes over contract terms, irregular payment of dues, insufficient maintenance, and inadequate investment have all contributed to the challenges facing the lease-based business model. The Finance Division’ report has recommended annual review of rental rates, clearer reporting of lease income in financial statements, and ending lease agreements for restaurants and bars and bringing them back under direct management.
BPC’s FY 2022–23 financial statements were audited by Basu Banerjee Nath & Co. Chartered Accountants. Dipok Kumar Roy, partner at the audit firm, told Bonik Barta, “Government entities are not run through efficient management with a commercial mindset. This has long been a systemic issue. In contrast, when private firms invest in a property, they typically rely on bank loans. As a result, the revenue from the installments must be used to repay the loan and meet operating costs. That is why private operators run businesses with a profit-oriented approach from the outset, something that is almost absent in government agencies.”
Bonik Barta attempted to contact Nasreen Jahan, Secretary of the Ministry of Civil Aviation and Tourism, to ask why the interim government has taken no initiative to review lease agreements for BPC’s privately operated facilities, however, she could not be reached.