Factors Influencing Capital Investment in the Bangladesh Tourism Industry

Tourism is one of the most promising and potential industries for developing countries around the world for their economic development. In developed countries like the USA, the UK, or any other European countries, the service industry has played a huge role in bringing foreign revenues. The general income and living standards of people have improved significantly over the last few decades. This indicates a need or demand for more hospitality services. A country like Bangladesh is yet to find this answer whether it has been successful in promoting growth in this industry as well other than being one of the fastest-growing economies in the world. To develop any industry, it needs investments. Thus, this paper will look into whether the tourism industry of Bangladesh is getting enough investment or not (national or from abroad) and what matters can be done to improve the situation. This study mainly consists of secondary research, with resources using different kinds of literature from research papers, articles, books, etc. The key aspect of this study is to examine the causes for low investment into this industry, like identifying probable risks that are associated with such a potential country like Bangladesh. Identifying the external factors which are related within Bangladesh and internal factors that are associated with investors with probable solutions to improve more investments is discussed. Later, a case-based discussion will be provided to make more valid arguments and suggestions. This paper hopes to create knowledge for those who are willing to invest their money in the tourism industry of Bangladesh, to government policymakers to be more aware of the situation, and to academicians who are interested in the fields of hospitality and finance.