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Jun 11, 2014

ADMINISTRATIVE FUNCTIONS OF BANGLADESH PARJATAN CORPORATION AND ITS PROMOTIONAL ACTIVITIES FOR THE DEVELOPMENT OF TOURISM IN BANGLADESH

The main purpose of this report is to analyze the current position and future prospects of Bangladesh tourism industry and to highlight how the administration of Bangladesh Parjatan Corporation and its promotion activities can play the role in the tourism development of a country like Bangladesh. Considering this view, the promotional activities undertaken by the tour operators of Bangladesh have been analyzed to identify the problems and limitation of the said activities. In addition to that it was attempted to find out the types of promotional activities most suited for tourism in Bangladesh. Finally, based on the findings, some suggestions have been put forwarded to the policy makers of the concerned authority. The present research is a combination of both theoretical and empirical. For the theatrical foundation and analysis, the existing literatures were investigated. The existing literature includes published journals, periodicals, newspapers, related magazines, Internet etc. Most of the statistical data have been collected from the related web pages. To collect the primary data from the selected tour operators, a survey questionnaire has been used. To analyse the collected data, different quantitative and qualitative measures have been taken. It is revealed that promotion plays a pivotal role in developing the tourism industry in any specific destination as the tourists wants to know in advance about the tourism attractions and facilities at the destination. Promotional measures are intended to provide the information as required by the potential tourists and acts as vital Though Bangladesh has some beautiful attractions to its destination, it fails to attract the significant number of tourists partly because of insufficient promotional activities. As the country lacks sufficient funds for this purpose, it cannot take the necessary promotional activities for this industry.
To promote the tourism of any destination one needs to launch the promotional activities through e.g. international media like cable TV, world renowned newspapers, magazines and other world coverage media. Due to resource constraint, the country can not use the international media. As a result, the country has to depend on the local media to advertise the same which is not effective measure for attracting foreign tourists.
The country also suffers from the image problem and the international media most often highlight the country in a negative way which causes potential visitors not to select Bangladesh as a tourist destination. The real situation is different. To overcome this negative image, international media coverage in a positive way can play an important role. As it is now the country does not have enough funds, it cannot launch effective promotional steps in correcting the same. The government initiative in this regard is also insufficient. All these cause the country to attracting insignificant number of tourists and resultant effect is the failure of earning sufficient amount of foreign currency. Therefore, the initiatives concern authority of the government along with the tourism authority is a must for correcting the image of the country to the potential tourists in order to draw their attention and grow interest to choose Bangladesh as a tourist destination and visit the same. The participation of the private sector in the same industry is not also at expected levels and even most of the private tour operators are new in this area. They also have the resource constraint to play the active role for the development of the industry. The effective steps to encourage the private sector investment from the local as well as from the foreign investors can contribute to develop the industry. 







Abstract
This report is an attempt to investigate how the use of administrative structure of Bangladesh Parjatan Corporation and promotional activities can help to develop the tourism industry by giving a special concentration to the case of Bangladesh. The 7investigation was conducted from both a theoretical and an empirical point of view. The contribution of the same industry to the world economy is considerable. Many countries are now dependent on this sector for foreign currency earnings. Every destination country is trying to achieve more gain by developing this industry. The expansion of the tourism throughout the world has increased competition among the tourist destinations, trying to attract more tourists by adopting appropriate marketing techniques and strategies. Failure of doing so by a particular marketer will lead to a less competitive in the world tourism market.
As an important element of marketing mix, promotion plays the vital role in marketing any product and service. Tourism product/service is of no exception. Because of the tourists want to know in advance about the attractions and the facilities of a particular destination. The tourist also wants to know other related information of his/her visit to make the same safe, secured and enjoyable. As a result, dissemination of information on travel and tourism-related products and services are highly important. By using the different tools of promotion, marketers attempt to serve this purpose and try to influence the potential tourists’ attitudes in favour of the sponsor’s destination and grow interest to visit the same.
Though promotion plays an important role in tourism marketing, the tourism marketing in Bangladesh is far behind from reaching this goal, which leads to incapacity to attract a significant number of tourists. This is mainly due to inadequate and ineffective promotional measures of the tourism sector of Bangladesh. Both the private and public tour operators of Bangladesh have the resource constraints and cannot afford the sufficient budget for the promotional purpose. As a result, they can not conduct the promotional measures for the said industry by using international media which is essential for attracting the foreign tourists. They only depend on the local media which is not sufficiently fruitful for an industry where the location of the target market is

Diversified and they are located at the different parts of the world. In addition to that the low quality of promotional materials, improper distribution of the materials, the perceived negative image by the potential tourists due to a wrongful and negative reporting from international media adversely affect the tourism of Bangladesh.
The research also revealed that the country has a positive trend in arrivals and earnings and it can be increased to a significant level if the country can undertake appropriate promotion measures by increasing the allocation for this purpose. The country also needs to employ creative people for this purpose and the quality of the promotional materials also needs to be developed. The promotional activities should also be directed in correcting the present image towards Bangladesh as tourists’ destination. By ensuring these measures Bangladesh tourism industry can emerge as one of the major contributors to the national economy of Bangladesh.
Chapter-1

ADMINISTRATIVE FUNCTIONS  OF BPC
1.1Chairman:
a. To have overall supervision and control over administrative, commercial and financial affairs of the corporation.
b. To provide the meeting of the board of directors of the corporation.
c. To maintain liaison with government and other agencies in the country and also abroad.
d. To guide and advise the board and other officers of the corporation in connection with formulation and exception of plan and program me for the promotion and development of tourism industry in Bangladesh .
e. To determine training requirement of for the officials of bpc and creation of opportunities through different  related  government and international agencies.,
f. To evaluate accomplishment and standardization of various commercial and promotional activities of the corporation.
G .As the executive head of the corporation ,he is to ensure discipline and smooth functioning of the corporation.
h. To act as the principal accounts officer of the corporation.
i. Any other duties as assigned by the authority from time to time.

1.2  Director (commercial works, planning and training)
A. As one of the members of board of directors, helps the board in formulating policies, supervises commercial operation of projects excluding duty free shop.
B. to provide suggestions, responsible for smooth and successful operation of commercial activities except financial and personal administration, and maintains liaison with govt. and other related agencies for development and expansion of commercial functioning of the corporation
c. To direct guide, undertake and supervise all sales promotion and publicity through all media all at home and abroad.
d. To formulate policy regarding operation of accommodation, catering and transport port units and tours and ensure their implementation through managers (commercial) in the head office.
e. To maintain liaison with wholesale and retail tour operators, travel agents, travel writers Bangladesh mission abroad regarding organization of group tours.
Formulate policies, programmes in respect of development of plans pertaining to the concerned officers engaged in performing the project preformed (p.p), Annual development programme, short term and long term plan etc.
g. To have overall control over training activities of tourism training institute and  to advise and guide to the tourism training institute in connection with various training courses and their standardizing.
h. To give guidance and suggestion to works division in connection with preparation of tender schedule, tender notices etc. For various civil, electrical and mechanical works of the corporation.
i. To supervise and control all sorts of construction works of corporation .passing of legal bills in caser of operational matters.
j. Any other duties assigned from time to time.
K . To supervise regulatory work relating to hotel and restaurant and also for promotional work for the growth of tourism.
1.3 . DIRECTOR (FINANCE):
a. To frame and implement financial policies of the corporation, to supervise and control of finance and accounts, purchase division and duty free shop project.
b. To be responsible for overall financial discipline and economy.
c. To   operate corporations funds.
D .To frame and adopt accounting policies and procedures.
e. To supervise the system of verification and reconciliation of earnings from different projects.
F .Running the accounting system on commercial pattern.
g. To initiate cost benefits studies.
h. supervise and guide the system and procedures .
I. To explain financial aspects of development schemes of the corporation.
j. To endeavor and to keep corporations funds supplied with adequate cash resources.
K .To prepare budgets and undertake enforcement of budgetary control.
L .to supervise local purchase for head office and projects.
m. To arrange for importation of duty free shop.
n. To look after the maintenances of central store.
o. To undertake the overall supervision, administration of duty frees shop.
p. To look into framing o9f policies and procedure for duty free shop operation.
q. maintenance of liason with customers, ministry of commerce, national board of revenue, chief controller of imports and exports, Bangladesh bank in connection with duty free shop.
r. To control foreign exchange fund of duty free shop.
T .Any other duties over time to time.
1.4 SECRETARY:
a. To look after the administration of the corporation.
b. To deal with establishment cases-appiontment, promotion, regulation/confirmation of appointment/fixation of seniority, preservation of Annual confidential reports of all officers and staffs.
C .To circulate all sorts of regulations and clarify there upon. To deal with  all sorts of    disciplinary matters, preparation of charge-sheets, conducting departmental proceedings.
D .To deal with legal matters and court cases and labor union matters. Examining and passing of  legal bills, installation of telephone etc.
e. To deal with agreement with rental matters etc.
f .To undertake maintenance of office stationary and equipment lifting and fixture.
g. To undertake maintenance of transport fleet of transport pool and its repair.
h. To deal with important correspondence on policy matters with the ministry and the other organizations.
i. To respect the corporation in the government/agencies and maintenance of liaison with allied government.
j. Any other assignment given by the chairman/board.


1.5 Deputy Secretary (personal, administration and common service):
a. To supervise officer under him to respect of personal, administration and common service matters and assist the secretary in routine works of the corporation. He is assisted by assistant secretary in his day to day operation.
b. any other functions as and when assigned by the authority

 1.6  Assistant Secretary (personal):
a. To deal with establishment cases of the officers and staff of the headquarters.
b. To deal all case of government clearance for appointment/ promotion to all classes of employees of the corporation, regularization of the promotion/ appointment cases/ maintenance of guard file, confirmation/ bonus/ advance other C.P.F/ national pay commission/ rules and regulation clarification/ confidential cases if any, of all classes of employees’ of the corporation.
c. To deal with labor union matters/ demands/ liaison with the labor directorate.
d. Issuance of order related to foreign and local training/ foreign employment/ visit to foreign countries/ training institute scholarship/ coordination with heads of the divisions/ re designation of the post in case assigned cases.

1.7. Assistant Secretary (common service):
a. To deal with accommodation/ rent/ taxes/ telephones and its installation, repair and maintenance agreement with renal matters.
b. To work after maintenance of typewriter/ duplicating machines, Transport etc. and emergency purchase of any item.
c. To deal with uniform and liveries of the head quarter/ agreement with periodical and newspaper/ auction and hire.
d. To look after the general cleanliness of the office premises/maintenance of the office building.
e. any other duty as assigned by the authority from time to time.
1.8 Assistant secretary (administration):
a. To deal with office administration/ general supervision/ office hours/ holidays etc.
b. To deal with receipt and dispatch/ records/ typing tool/ maintenance of C.L. register of both officer and secretariat.
c. To deal with establishment cases of assistant executive officers/ assistant commercial officer ant the staff of the project only.
d. To deal with legal matters and court cases in accordance with job assigned and passing of legal bills.
1.9 controller (finance and accounce):
a. To be responsible for preparing of budget and control over expenditure. Finalization of the final account of the corporation. Passing of bills, operation of banks, interpretation of rules regarding financial advice, administration of the division.
b. Any  other assignment by nthe authority or chairman.

Chapter -2
 2.1 Law and board

 GOVERNMENT OF THE PEOPLE ' S REPUBLIC OF BANGLADESH
  MINISTRY OF LAW AND PARLIAMENTARY AFFAIRS
  (LAW DIVISION)    President's Order No, 143 of 1972

THE BANGLADESH PARJATAN CORPORATION ORDER, 1972
Whereas it is expedient to provide for the establishment of a corporation for the purpose of promotion, better operation and development of tourism in Bangladesh and for matters connected, therewith or ancillary thereto: -
NOW, THEREFORE, in pursuance of the Proclamation of Independence of Bangladesh, read with the Provisional Constitution of Bangladesh Order, 1972, and in exercise of all powers enabling him in that behalf, the President is pleased to make the following order: -

1. (1) This order may be called the Bangladesh Parjatan Corporation Order, 1972.
(2) It extends to the whole of Bangladesh.
(3)It shall come into force at once.
2. In this Order, unless there is anything repugnant in the subject or context, -
(a) "Board" means the Board of Directors of the Corporation;

(b) "Chairman" means Chairman of the Board;
(c) "Corporation" means the Bangladesh Parjatan, Corporation established by this Order;
(d) "Director" means a Director of the Corporation;
(e) “domestic tourism” means any person of Bangladesh traveling within the country for the purpose of recreation or education or health;
(f) “Government” means Government of the peoples Republic of Bangladesh;
(g) “Prescribed” means prescribed by rules or regulations made under this order;
(h) "tourist" means any person traveling for more than twenty-four hours’ but less than six months in a country other than that of his normal residence but shall not include a person arriving to take up an office, occupation or engagement for gain.
3. (1) On the coming into force of this Order, there shall be established a Corporation to be called the Bangladesh Parjatan Corporation for carrying out the purposes of this Order.
(2) The Corporation shall be a body corporate, having perpetual succession and a common seal with power, subject to-the provisions of this Order, to acquire, hold and dispose of property, both movable and immovable and shall by the said name sue and be sued.
4. (1) The Head office of the corporation shall be at Dacca,
(2) The Corporation may establish office, branches or agencies at any other place in or outside Bangladesh.
5. (1) It shall be the function of the Corporation to promote and develop tourism, provide facilities, undertake measures and carry out all forms of activities connected with or ancillary to tourism.
(2) Without prejudice to the generality of the foregoing provision, the Corporation shall in particular have power: - 1
(a) to promote tourist undertakings and to tourist installations and services;
(b) to project the image of Bangladesh abroad for the purpose of attracting tourist by publicizing history, and culture of the country;
(c) to organize reception and information facilities or outside Bangladesh;
(d) to encourage and develop domestic tourism;
(e) to promote any organization, in or outside Bangladesh, for the purpose of engaging in any activity falling within the functions of the Corporation, or, with the provisions approval of the environment, to associate with any such organization;
(f) to enter into tourism agreement with foreign countries with the previous approval of the Government.
(g) to conduct and carry out research on various aspects of tourism;
(h) to publish literature on tourism;
(i) to acquire, establish, construct; arrange, provide, and run hotels, restaurants, rest houses, picnic spots, camping sites, theatres, amusement parks, casinos and facilities for water skiing and entertainment for tourist;
(j) to establish Travel Agency and/or work as agents’ for railways, shipping companies, airlines, waterways, road transport, for organizing group tours; •
(k) to organize shikar agencies and undertake all activities for promotion of Safari tourism and maintain game sanctiia-. ries and game reserves, fish hatcheries and fowl breeding farms;
(1) to establish institutes or make other arrangements for instruction and training of persons engaged or likely to be engaged in any activity connected, with or ancillary, to tourism;
(m) to acquire, hold or dispose of any property whether movable or immovable;
(n) to invest its moneys and funds and to vary the investments as and when it may seem necessary or proper;
(o) to do all other things connected with or ancillary to any of the matters referred to in the forgoing sub clauses;
(p) to carry out any other functions as may be prescribed.

6. (1) The authorized capital of the Corporation shall be taka 1 crore, to be subscribed by the Government, in the manner determined by the Government according to the requirements of the Corporation.
(2) The initial share capital shall be Taka five. lakhs fully paid up and subscribed by the Government.
(3) Notwithstanding anything contained in clause (1), the Corporation may, for carrying on all or any of its functions have separate capital raised by loan or the Government may approve grant from, or in such manner as.
7. (1) Subject to the flues and regulations made under this Order, the general direction and administration of the affairs and business of the Corporations shall vest in a Board of Directors which may exercise all powers and do all acts and things which may be exercised or done by the Corporation.
(2) The Board, in discharging its functions, shall act on commercial considerations having due regard to the public interest generally and shall be guided on question of policy involving national
2
interest by such general or special instructions as may be given to it by the Government from time to time.
8. (1) The Board shall consist of a Chairman and not less than two and not more than four whole time Directors to be appointed by the Government.
(2) No act or proceeding of the Board shall be invalid morely on the ground. of existence of any vacancy in, or any defect in the constitution of, the Board.
9. (1) The, Chairman and the other Directors shall be appointed by the Government for such period and. on such terms and conditions as may be determined.
(2) The Chairman and the Director of the Board shall be whole time officers of the Corporation and shall exercise functions and discharge such duties as may -be prescribed.
10. No person shall be or shall continue to be a Director who,
(a) is or at any time has been adjudicated insolvent;
(b) is found to be a lunatic or of unsound mind;
(c) is or at any time has been convicted of any offence which, in the opinion of the Government, is an offence involving moral turpitude;
(d) is a minor; or
(e) absents himself from three consecutive meetings of the Board without leave of absence granted by the Chairman, or, in the case of the Chairman, by the Government.
11. (1) The meetings of the Board shall be held at such times and at such place as may be proscribed:
Provided that until rules are made in that behalf such meetings of the Board shall be convened by the Chairman.
(2) To constitute a quorum at a meeting of the Board the Chairman and at least one Director shall be present.
(3) At a meeting of the Board each Director shall have one vote, and in the event of quality of, votes the Chairman shall have a second or casting vote.
(4) If for any reason the Chairman is unable to be present at a meeting of the Board, a Director authorized in writing by the Chairman shall preside at the meeting.
12. The Board may, delegate such powers as it may doom fit to the Chairman for the efficient functioning of the Corporation.
13. There Shall be an Advisory Committee, to be known as the Parjatan Updesta Committee, to perform such advisory functions as may be prescribed, consistence of not less than three and not more than seven persons to be appointed by the Government from among persons who by virtue of their knowledge mid experience can render valuable advice regarding the promotion and development of tourism.
14. The Corporation may open and operate any account with any scheduled Bank or banks.
15. The Corporation may invest its funds in such securities of the Government or in such manner as may be prescribed.

16. (1) The Corporation hall maintain proper accounts and shall prepare annual statement of accounts, including the profit and account and balance sheet, in accordance with such general directions as may be issued, and in such form as may be prescribed, by the Government.
(2) The accounts of the Corporation, shall 'be audited by not less than two auditors, being chartered accountants within the meaning of the Chartered accountants
Ordinance, 1961 (Ordinance X of 1961), who shall be appointed by the Government.
(3) Every auditor appointed under clause (2) shall be given a copy of the annual balance sheet and other accounts of the Corporation together with the account books and vouchers relating thereto for examination and shall, at all reasonable times, have access to accounts and other document o of the Corporation and may in connection with such. Accounts examine any Director or officer of the Corporation.
(4) The auditors shall report to the Government upon the annual balance sheet and the accounts and on any ancillary matter connected therewith.
(5) The Government, at any time, may issue directions to the auditors requiring them to report to it upon the adequacy of measure taken the Corporation for the protection of the interests of the Government or upon the sufficiency of their procedure in auditing the affairs of the Corporation and may, at any time, enlarge or extend the scope of the audit or direct that different procedure in audit shall be adopted or that any other examination shall be made by the auditors or any other persons 'if, in its opinion, the interest of the Government so requires.
17. (1) The Corporation shall furnish to the Government such returns, reports and statements as the Government may form time to time require.
(2) The Corporation shall, as soon as possible after the end of every financial year, furnish to the Government statement of "accounts audited under Article 16 together, with an annual report on the conduct of its affairs for that year and on its proposal for the next financial year. `
(3) The copies of the audited accounts and annual report received by the Government under clause (2) shall be published in the official Gazette and shall be laid before the Legislature.
18. The Corporation shall, be such date in each year as may be prescribed by rules, submit to the Government for approval a statement, in the prescribed form, for each financial year showing the estimated receipt and expenditure and the sums which are likely to be required from the Government during the financial year.

19. The Corporation may, subject to any rules or regulations made or directives issued by the Government, appoint such officers,
Consultants; advisers and employees L" it considers necessary for the efficient performance of its functions on such terms and conditions as it may determine.
20. Notwitltstanding anything contained in any other law for the time being in force, or in any memorandum or articles of association, deed or other instrument, on the commencement of this Order -
(a) All assets of the Pakistan Tourism Development Corporation Limited (hereinafter referred, to as the said company) in Bangladesh shall stand transferred to, and vested in, the Corporation.

Explanation.- The expression "assets" includes all rights, powers, Authorities and privileges, all property, movable and immovable, including lands, buildings, cash balances, bank deposits, reserve funds, investments and all other rights and interests in, or arising out of, such property and all books of accounts, registers, records and all other documents of whatever nature relating thereto;
(b) all debts and liabilities incurred, all obligations undertaken, all contracts entered into and all agreements made in Bangladesh by or with the said company shall, unless the Government otherwise, directs, stand transferred to, and be deemed to have boon incurred, undertaken, entered into or made by or with, the Corporation;
c) all suits or other legal proceedings instituted by or against the said company in Bangladesh before the commencement of this Order shall, unless the Government otherwise directs,, be deemed to have been instituted by or against the Corporation and be continued proceeded with accordingly;
(d) all officers and others employees of the said company in Bangladesh shall stand transferred to the Corporation on such terms ands conditions as the corporation may determine:
Provided that an; officer or other employee so transferred shall have the option not to continue La the service of the Corporation.
21. The Government may, by notification in the official Gazette make rules for the purpose of giving effect to the provisions of this Order.
 22. (1) The Board may with the previous approval of the Government r4’ platoons, not inconsistent with the provisions of this Order and the rules prescribed by the Government, to provide for all matters for which provision is necessary or expedient.
(2) All regulations under clause (1) shall be published in. the Official Gazette and shall come into force on such publicator.
.



Chapter-3
3.1 Introduction
Tourism is one of the fastest growing and single largest industries in the world. The contribution of tourism industry in the global as well as individual perspective is really amazing. Many countries in the world depend upon tourism as a main source of foreign exchange earnings. According to the World Tourist Organization (WTO), while 448.5 million tourists moved throughout the world during the year 1991 (Quoted by Davidson, 1994) , about 593 million tourist arrivals were recorded during 1996 registering a 4.6% increase over 1995 (Bhattacharya, 1997)  and 32.22 percent growth in five years. The World Tourism Organization recorded a total number of 763 million international tourist traffics in 2004 which is 10.58% higher than previous year and earned US$ 623.00 billion which shows an increase of 18.89% over 2003 (WTO, 2005).  Tourism continues to surge as a world economic force, contributing nearly $5.5 trillion to the world’s economy in 2004 (Wagner, 2005).  The increasing trend of tourist arrivals and earnings is continuing. In 2005, the world tourist arrivals rose to 808 million. The World Tourism 2020 Vision forecasted that this figure will be 1,006.4 million in 2010 and the same will reach to 1,561.1 million in 2020. This continued growth in tourism business throughout the world is encouraging and nations are becoming more concern to attract more tourists to their own destinations and trying to promoting this sector as a major source for the economic development of the nation. 
Bangladesh is of no exception from this. The country is trying from the inception of this industry to attracting more tourists to its destinations and to earn more foreign currency from this sector. The statistics on this sector shows that both the arrivals and earnings from tourism in Bangladesh have increased over the past. Statistically it may reflect an impressive profile but in a true sense the picture is somewhat different. In terms of global increasing trend in both the number of tourist arrivals and the earnings from tourism, the same in Bangladesh is very insignificant. Even in consideration of the positions of the neighboring countries, Bangladesh is far behind in this respect. In 2004 about 271,270 foreign tourists visited Bangladesh during the year and the country earned about To . 3967.56 million
(US$ 66.82 million) from this sector in the same year (BPC, 2005).  Though tourism industry, administration and its market have grown phenomenally worldwide, the industry and its market have not grown in Bangladesh. Lack of proper/sufficient promotion is one of the major reasons not for developing the industry in Bangladesh up to the mark. Because, potential tourists need to know properly about the attractions, services, facilities, etc. at the destinations and accessibility to there through various forms of promotional measures. Besides, the expansion of tourism business and the increased competition among destination countries throughout the world have necessitated developing appropriate promotional approaches by the tourism firms worldwide.
Marketing promotion includes all means of conveying the message about a product or service to potential customers by using publicity or sales campaign or TV commercial or free gift etc (Ivanovo and Collin, 1996).  Promotion is regarded as one sub-category of the marketing mix elements. According to Kotler et al (1999) promotion consists of those activities which are used to communicate the products or services and its merits to target customers and persuade them to buy. One of the tools of marketing promotion is sales promotion which consists of short-term incentives to encourage sales of a product or service through samples, coupons, rebates, premiums, allowances, price-offs, contests, push money, trade promotion, exhibits, premiums, sales rallies etc. Sales promotion refers to a vast range of novelty items that can carry promotional messages or a visual representation of the products or services. It includes in-store promotions such as two-for-the-price-of-one, 10 percent off, free gifts, redeemable coupons, competitions or money-back for returning so many bottle-tops or labels (Hackle, 2005).   Sales promotion can be used to dramatize the offers of BPC. Researcher will specifically look for advertising, sales promotion, public relation and publicity, personal selling and or direct marketing including direct sales for the promotion of this industry. As Bangladesh tourism appears to have suffered mostly due to inadequate and ineffective promotional activities and promotional activities play an important role in the marketing of the same, it is necessary to study how promotion can play the role in tourism industry in Bangladesh (Hossain & Hossain, 2002).  Bangladesh Parjatan Corporation (BPC), the only public sector tour operator in Bangladesh spent Tk. 7.935 million in 1995-96 which rose to TK. 10.413 in 2004-05 for promotional activity which is only 0.71% and 0.23% of its earning respectively. On the other hand the Virginia Tourism Corporation (VTC) generates a return-on-investment of $4 for every dollar spent promoting Virginia's tourism and for every one dollar spent in advertising returns almost four dollars in taxes to Virginia (Tourism in Virginia, 2002-2003).  According to the latest Longwoods International report Colorado Travel Year 2003, more than 3.8 million people visited Colorado in 2003 as a direct result of the state’s tourism promotion, resulting in a $65.5 million boost in state and local taxes and without aggressive tourism promotion, the additional revenue would not have been realized (Tourism and Advertising, undated). 
In the face of stiff competition among the destination countries, effective promotional measures are essential for the development of the industry. Bangladesh Parjatan Corporation or Bangladesh tourism could not meet this requirement due to lack of needed fund along with the absence of decision-makers’ foresightedness. As a result, this sector and its market have failed to grow properly not merely because it lacks enough attractions and facilities. But time has not yet past over. Still there are lots of scopes and opportunities if Bangladesh attempts to highlight it as a tourist destination to the potential tourists properly through an effective promotional measure and can take some initiatives to develop some infrastructural facilities, the country would be able to earn many times higher than the present by attracting more tourists within a short time. Considering the time factor and limitation of other resources, only the promotional aspects has been considered for the present study and it will be attempted to examine the existing promotional approaches of both the public and private sector tour operators, identify the problems and the limitations of their promotional activities, and prescribe necessary policy measures for effective promotional actions for the industry in Bangladesh.



3.2  Importance of the Study
Tourism is the fastest growing and single largest industry in the world. Tourism as a multi-faced industry is playing pivotal role in the global as well as in the individual economic perspective. In the year 1950, the international tourist arrivals were 25.2 (Hossain and Firozzaman, 2003)  which rose to more than 800 million in the year 2005 and in 1950, the world tourism earning was US$ 2.1 billion and the same stood at US$ 623 in 2004 (WTO, 2005).  The World Tourism Organization forecasted that in the year of 2010, the total world tourist arrivals will be 1,006.4 million and it will increase to 1,561.1 million in 2020 and the figure of the same for South Asia will be 10.6 million and 18.8 million in the year of 2010 and 2020 respectively and at the same time WTO forecasted that the number of tourist arrivals in Indian Ocean destinations will be 91.544 million and 179.249 in the year 2010 and 2020 respectively and the figure of the same in Bangladesh will be 0.255 million and 0.415 million in the corresponding years (WTO, 2000).  Shamim (2000) showed according to WTO forecast that the earnings from tourism will rise to US$ 2 trillion a year by 2020.
The tourism industry of Bangladesh is of no exception from this. It can play an important role to contribute in the national economy of the country. In view of several holy shrines in the country there is the prospect of attracting millions of tourists to the country. But full potential of tourism could not be used largely due to inadequate and ineffective promotional activities of the industry. Institutional framework for attracting tourists has been in existence for more than three decades, but various institutions promote Bangladesh tourism with little coordination. This is construed to be one of the major hurdles adversely affecting the promotional activities and the resultant growth rate of the tourism industry in the country. It is of utmost importance to examine the special features of tourism firms' promotional activities and suggest how to improve those activities in order to attract a reasonably good number of foreign tourists to visit the country and take their services. So far the researcher knows no comprehensive study addressing promotional aspects of the industry in Bangladesh has been conducted yet by anyone. Even a very few studies are available related to the issue of tourism marketing in Bangladesh. As tourism industry in Bangladesh has failed to undertake adequate and effective promotional activities due to policy guidelines, resource constraints, and they lack of marketing orientation, hence, a study on this area is essential to uncover the relevant facts. It is also expected that the findings and analysis of this study will help formulate appropriate promotional measures and thus motivate effectively more potential foreign tourists to visit Bangladesh as well as to contribute the economy of the country. At the same time, this study may be helpful for the policy-makers of the country to devote their attention to the issue of the segments of the tourism market that they wish to attract.

3.3 Research Areas
On the basis of the research problem, the proposed study will mainly attempt to concentrate on the following areas:
A.         To study the current development trends of the tourism industry in Bangladesh;
B.         To examine the promotional activities undertaken by the different tour operators and evaluate the role of their activities for the development of this industry;
C.         To identify the problems and limitations of promotional activities undertaken by the above mentioned tourism firms; and
D.         To prescribe necessary policies and managerial implications of the tour operating firms in Bangladesh in light of findings and current theory in the field.
3.4  The Research Problems
Tourism marketing is gaining importance all over the world. ‘The marketing of tourism in Third World countries is increasingly common and the fastest growing destinations are in these regions and increasingly the focal points for development and marketing of new, adventurous and exotic tourist destinations. As a result, most of the fastest growing tourism regions are in the Third World countries which continue to grow and, correspondingly, the promotion of these regions is increasingly popular and important’ (Echtner and Prasad, 2002).  Currently, about 30% of all international tourist arrivals are in the Third World and this proportion has nearly tripled over the past 20 years (WTO, 1999).   However, over the last few decades, there has been mounting criticism of the portrayal of these destinations and their people in promotional materials (Britton, 1979; Mohamed, 1988; Cohen, 1989; Crick, 1989; Selwyn, 1993; Silver 1993; Cooper, 1994; Wilson 1994; Dann, 1996a, b; Morgan and Prichard, 1998; Sturma 1999 as cited in Echtner, 2002).  Major part of these criticism trace to the unique marketing situation that characterises the promotion of tourism in the Third World.
Considerably less has been written on Third World tourism marketing and there are a few notable articles that generally address the issues of marketing Third World destinations (Britton, 1979; Silver, 1993) as well as several studies that critically examine specific sets of Third World tourism promotion (Cohen, 1989; Cooper, 1994, Dann, 1996b; Mohamed, 1988; Morgan and Pritchard, 1998; Oppermann and McKinley, 1997; Selwyn, 1993;).
Bangladesh as a third world country has the lacking of proper study and attention on tourism promotion. As a result, though the tourism industry of Bangladesh has a bright prospect and could contribute to the economy to a greater extent, but the sector could not flourish up to the mark due to lack of necessary and proper initiative of the concerned firms/institutions. Patwari (1993) emphasized to eliminate this organizational problem and suggested for the coordinated efforts of the concerned authorities, professional efficiency of the management, and pleasant behavior of the service providers to present the products or services and develop tourism fruitfully in a country like Bangladesh. Pannell Kerr Forster Associates’ Report (1988) blamed that the BPC for not playing its role completely as a national tourism promotion agency and suggested preparing itself for playing its proper role in this regard. These reveal that there remains ample scope for further expansion and growth of the tourism industry if effective promotional activities are taken to cater to the expectations of the tourists and motivate them to visit Bangladesh. Hossain (1999) pointed out that a very few studies have addressed the promotional aspects even the marketing aspects of tourism in Bangladesh. Only a few articles and a few research reports appear to have attempted to deal with the marketing problems of the tourism industry in Bangladesh in a skin-deep and peripheral manner (Hossain and Hossain, 2002).  Hasan(1988)  pointed out that the promotional activities undertaken by the Bangladesh Parjatan Corporation (BPC) is awfully inadequate to cover the main tourist generating countries and suggested for developing more dynamic promotion tool. He also blamed in another study that the BPC’s present promotion strategy with folders and posters is not satisfactory and would not produce any result (Hasan h, 1990).  Review of literature on the development of the tourism industry in Bangladesh also reveals that there remains much to do in matching the supply side with what the tourists demand from the host country.
As noted by Adams (1984)  and Reimer (1990),  a remarkable marketing situation characterizes Third World tourism promotion, that is, these destinations are most often promoted by multinational tour operators, travel agencies, and other intermediaries with origins in the First World. The primary targets of these marketing efforts are also located in the First World, as the developed countries are the main generators of tourists (Echtner & Prasad, 2003).  This situation creates a marketing system whereby the majority of the images used to represent Third World tourism destinations are selected by First World promoters in order to cater to the needs of consumers in developed countries which results many of the concerns aired by previous researchers focus on the images and stereo-types of the Third World that are being created from a primarily First World perspective (Echtner 2002).
In the face of worldwide stiff competition, intangible nature of tourism services and need of pre-purchase information for potential tourists, promotional measures in tourism industry play key role in the performance and development of this industry. As Bangladesh tourism appears to have suffered mostly due to inadequate and ineffective promotional activities, it is necessary to study the strategic promotional approaches of the tour operators in Bangladesh and find out the remedies to overcome the problems or limitations identified.
Chapter- 4
Research Methodology and Techniques
4.1 The Nature of the Study           
 Promotional activities can play the significant role for the development of tourism industry. Tourism in Bangladesh is of no exception from this. Lack of promotional activities is likely to affects the development of tourism in any country as well as in Bangladesh. But the existing literature on the promotional aspects of Bangladesh tourism is very rare and even on the literature covering the marketing aspects of tourism industry in Bangladesh is very limited. As a result, the study is exploratory in nature. It was assumed that promotion is a vital force for an effective marketing strategy of tourism products and services. But Bangladesh is far behind from the realization of the fact and due to that Bangladesh could not take advantage of the full potential of the sector and which causes not to develop the industry significantly and expectation which could be and failed to earn sufficient amount of foreign currency. The present study on the use of promotional activities in Bangladesh tourism industry is an attempt to highlight the issues related to promotion and put forward some suggestions to what actual promotional measures are best suited for attracting more tourists to Bangladesh and contribute more positively to the economy of the country. It was also attempted to identify the promotional approaches of the industry in Bangladesh.


4.2 Source of Data and Data Collection Procedure
The research has been conducted based on both primary and secondary data. As it was mentioned earlier that the existing literature on the promotional aspects of Bangladesh tourism and even on the overall marketing aspects is not adequate, the study was done on the primary data collected through questionnaire on the use of promotional activities by Bangladesh tourism industry. Secondary data was also used in this study. 
A survey questionnaire was used to collect the primary data from the sample selected for this study. The five relevant top executives from BPC and 15 private tour operators were interviewed for the collection of the data. Again, the private tour operators were selected from the members’ list of Tour Operators’ Association of Bangladesh (TOAB). To collect the primary data, the researcher took the help from one of his friends working as an Associate Professor, Marketing), University of Dhaka, Bangladesh. It is worth mentioning here that most of the tour operators are located in Dhaka and an insignificant number of them are located in other larger cities of the country. Due to the lake of time and fund, all the tour operators for interview were selected only from Dhaka- the capital city of Bangladesh.
Secondary data was also used in this study. To collect the secondary data, annual reports of BPC, related journals, periodicals, newspapers, BPC’s web page etc. were consulted. In addition to that for literature review and for other theoretical analysis different journals, periodicals, textbooks, newspapers, internet and other related materials were consulted and used as references.
4.3 Population and Sample Size of this Study
Bangladesh Parjatan Corporation (BPC) – the only National Tourism Organization or government owned tourism organization in Bangladesh, the private tour operators (only the members of TOAB) were considered as the population for this study. It was mentioned in the previous section that a total number of five top executives from BPC and fifteen owners/top executives from the private tour operators were selected as the respondents for collecting the data on the promotional aspects tourism in Bangladesh.
The responses of the respondents interviewed were analysed to gain insights into both qualitative and quantitative aspects of the promotional activities used by their firms. Both qualitative and quantitative analysis of the collected data from the respondents’ firms has been made. In quantitative analysis of the data, conventional statistical tool like percentage, simple averages etc have been used.

4.4 Organization of the Study
The research was conducted considering the time frame allowed for the study. The whole discussion of the study has been organized in a systematic way and has presented in six different chapters. The first chapter includes an introductory discussion covering the justification of the study, research areas, problems and questions. The second chapter is a presentation of the research methodology or the procedure of conducting the study. The third one is on the theoretical discussion on the different terms and issue like- defining tourism and its related terms, different forms of tourism, literature review, introductory discussion on promotion etc. Chapter four discusses the product specification or the tourist attractions in Bangladesh, economic significance of tourism, the perception of the international tourists to Bangladesh as a tourist destination and the chapter ends with the analysis of statistics on tourist arrivals and earnings from this sector which mainly focuses on the different aspects like world tourism and its status, regional arrivals and earnings, position of Asia and South Asia, tourist arrivals to Bangladesh and earnings from the same, spending of Bangladesh tourism for promotional activities etc. Chapter five is empirical analysis of the study which includes role of promotion in tourism marketing, transportation, accommodation and food and drinks in tourism and also the respondents’ attitudes, views and suggestions about promotion etc. The chapter contains the conclusion and recommendations based the whole discussion of the study.
4.5 Literature Review
Though there are sufficient amount of literatures highlighting the marketing aspects of tourism, but a few of them has emphasized on the discussion of the promotional aspects of tourism marketing. At the same time, the literature attempted to deal with marketing aspects of tourism is not available enough especially, on the promotional issues of tourism marketing is much neglected and the literature on the same is very limited. In this study, the literature review includes the following:
Hossain and Hossain (2002) mentioned that tourism industry has gained top priority in most of the destination countries and there exist increased competition among the countries to attract tourists. In the face of world-wide increased competition, Bangladesh lacks far behind in attracting relatively larger number of foreign tourists mainly due to inadequate and ineffective promotional strategies of the industry due to lack of sufficient funds, low quality of promotional materials and its improper distribution, perceived negative image of potential tourists about Bangladesh etc. The authors also emphasized to face the competition and to attract potential tourists Bangladesh needs to give priority to use effective promotional activities in order to attract a significant number of foreign tourists to visit the country. In addition, tour operating firms need to give proper attention in developing the promotional materials and careful attention is required to incorporate the factors affecting the choice of potential tourists. Without effective and sufficient promotional activities in public and private sector of the industry, there is no possibility or little possibility to emerge tourism as a major contributor to the national economy.
The first International Tourism and Media Conference held in November 24-26, 2004 at Latrobe University in Melbourne, Australia addressed the relationships between tourism and media and focused on the thematic areas including film and literature induced tourism, decision making and risk perception, advertising and marketing and tourism associated with events and activities (Gammack, 2005).  The author claimed based on the discussion of the conference that various media help to a great extent to convey the destination awareness among the tourists and with an increasingly globally informed and media-savvy public, one key issue related to understanding tourists’ motivation and expectation. He also concluded that destination branding and promotion are supported by compelling propositions and images and their aesthetic selections and media treatments generate portrayals active in the public mind. Research concerning media and tourism relationships, adopting mixed methods and cross-disciplinary designs allowed larger questions of fact and imagination in touristic media to be addressed.
Tourism researchers have long been advocating the importance of tourist receiving destinations to perform appropriate marketing strategies to promote the right tourism products and service to specific traveler groups (Ahmed and Krohn, 1992; Mill and Morrison, 1985 as cited in Law et. al, 2004).  The authors commented by visiting the official Destination Marketing Organization Web sites of Korea (http://big5.chinese.tour 2korea.com) and Japan (http://jnto.go.jp/eng), two of the most visited destinations by Hong Kong travellers that both of these destinations have developed their Web sites in a way that promote Hong Kong travellers’ favourite activities such as food, sightseeing and shopping. From the practical point of view, it is obvious for an effective marketing strategy to target the appropriate market and plan product positioning and sales. Bangladesh Tourism industry is far behind from this.
Rita and Moutinho (1992) noted that National Tourism Organization (NTO) in any country is responsible for expanding a country’s incoming tourism and NTO’s main task is to promote the destination country in the global tourism markets. As a result, NTO has to identify the most attractive markets - the markets in which its country’s ‘products’ are most competitive, determine the appropriate amount of promotional budgets, allocating the promotion budget in a way so that the greater effectiveness can be achieved, what type of promotional message is appropriate to convey for attracting the potential tourists. For promoting tourism industry, marketers are expected to and consider the strategic imperatives of making meaningful progress in the long run rather than short-term sustainability. The authors also emphasized on the ideas that should be grown and improved over a period of years to realize the full value of potential of promotions rather than forcing the underlying concepts to stop and start over a period of days, weeks or months. In addition to that NTO should have a well plan for promotional activities for achieving the marketing objectives which requires deciding on the priorities and goals before allocating money and resources for promotion to have the better result of the promotional activities. Finally, they recommended that money spend on promotion should depend the factors like: disposable income, relative price, quality, attractiveness, product availability, average annual percentage growth by market,, length of stay, per capita spending, expenditure per visit,, buying habits, competitive pressure, travel distance and costs, travel intensity, potential for getting non-government funding, political factors, overseas staff resources and knowledge etc. 
Hasan (1992)  described the present situation of Bangladesh tourism industry and present marketing strategies in his research book “Problems and Prospect of Bangladesh Tourism Industry” has blamed that Bangladesh tourism industry could not achieve the remarkable progress in comparison to other neighboring (South Asian) countries  though the country is endowed with different tourism attractions. His criticism was concentrated mainly on the failure of BPC to develop and lunch any dynamic and effective promotional strategy and then he suggested creating an independent and different organization for performing the marketing activities of BPC owned tourists spots. In addition to that he strongly recommended for initiating and implementing the marketing plan and strategy effecting for the potential markets and to avoid the aimless policies to develop mass tourism at the present stage in Bangladesh.
Ahmed (1996) mentioned that possessing outstanding tourism resources is not sufficient to lure the optimal number of tourists to a tourist destination. According to the author, tourism promotion plays an
Important role in enhancing the competitive edge of one tourist destination over another because of tourists’ image of a destination and the attitude of tourists toward that destination seem to be two of the most important factors responsible for this variation. As a result, the aggressiveness of the promotion campaigns launched by tourist destinations has added a new dimension to competitiveness and has resulted in increasing numbers of image advertisements in travel and tourism literature and in the mass media which leads the tourist destinations to spend billions of dollars annually on image building and image correction promotion programs. The author also concluded in his study to formulate the promotional strategy, destination’s promotion strategists should identify the respective images of different constituents of total image, and not just one total image and by determining those constituents of a destination’s tourist image that are most significant in the evaluation made by various segments of the target market, the destination’s promotion strategists should direct promotional efforts toward inducing a more favorable image based on those constituents and the appropriate positive image constituents then could be emphasized in the segmented promotional programs which may help a destination to re-emerge from the effects of negative image(s).
Siddqui (2005),  the Marketing Communication Manager, Pan Pacific Sonargaon Hotel, Bangladesh claimed that though Bangladesh has lots of things for tourism, but the country lacks in the initiatives to expose it to the potential tourists. He added that marketing communication can play an important role to let the people abroad to know what fantastic products Bangladesh can offer to the tourists. He emphasized on the cooperative efforts of the National Tourism Organization (NTO) with the private tour operators rather than emerging as the competitor for the overall development tourism industry. He also concluded that National airlines, hotels and the foreign missions of the country or at least an officer in each mission abroad with the responsibility of encouraging the potential tourists through providing necessary information and cooperation can contribute to a great extent for promoting the tourism industry of any country.   
Addressing the way to promote Bangladesh as a tourist destination, Chantarachoti (2005) described that in the eyes of foreigners Bangladesh is seen as a business destination rather than as a tourist destination when in actual fact there are potentials to explore in this country if properly promoted and promotion supported by government to the outside world. He also blamed that though Bangladesh has its abundant potential for growth of tourism industry could not utilized it properly due to lack of government support as well as the right initiatives of the country’s NTO to highlight Bangladesh to the eyes of foreigners as a tourist destination instead of a business destination. Though there is lot of similarities between India and Bangladesh and even with Nepal, Bangladesh is far behind from the mentioned two other countries due to the ineffective and insufficient promotional activities. Chantarachoti also claimed that the high foreign travel tax discourages foreigners to visit Bangladesh. Finally, he also emphasized that government’s initiative can reduce the monopoly of the five star hotels by providing the facilities of establishing more hotels of different start and improving the infrastructure support, accommodation and land arrangements to promote and sell packages.
Mitra (2005) described that Bangladesh does not have enough effort to promote the country as a tourist destination. He argued that Bangladesh has to make aware to the tourists about what to see, where to stay and what to eat. He emphasized for the development of tourism industry, Bangladesh need to develop the infrastructure like hotels, resorts, promoting more places and there should have a link of the government tourism organization with the private sector to boost up the promotional activities for the same.
In another study Hasan (1990) criticized that the present promotional activities undertaken by BPC is limited with folders and posters which does not produce any satisfactory result. He opined that folders, posters, accommodation guide, maps, etc could only be effective promotion tools if the market is established and emphasized that the industry needs to be more concerned with promotion rather than tourism trade. According to his opinion, the opening of its own offices at some of the major tourist generating countries to perform the promotional activities, re-build or correcting the image of the country and establish liaison with tour operators, professional clubs, tour wholesalers, etc. may produce better result for the growth of the industry. 
Hossain and Firozzaman (2003) mentioned that Bangladesh tourism industry failed to grow properly not merely because it lacks in enough attractions but suffering mostly due to inadequate and effective promotional activities. They also claimed that the limited promotional materials like souvenirs, brochures, travel guides, accommodation guides, hand books, tourist maps, poster, folders, etc distributed by BPC and some other private tour operators don’t reach properly to the potential tourists and in addition to that, the quality of these materials is not satisfactory which causes not to create adequate curiosity among the potential tourists. At the same time, there are lacks in government initiative to offset or correcting the country’s present image prevailing to the outside of the country as the country presently is suffering a lot from the image problem. The researchers also blamed that BPC or other private tour operators have little connection with the foreign tour operators and travel agencies for promoting Bangladesh tourism abroad though they act as hidden promoters of tourism activities in any tourist destination. According to the authors, lack of coordination among the parties related to tourism sector e.g. Ministry of Civil Aviation and Tourism, BPC, Biman Bangladesh Airlines, tour operators, travel agencies, hotels, other provides, local authorities and host population also causes for not developing the industry in Bangladesh. Finally, they suggested devoting the proper attention of the policy-makers in this field of the country to overcome the limitation of the promotional measures of this industry and taking a coordinated effort among the parties involved in this industry. 
Hasan (1988)  stated that though the promotion of tourism of a country is greatly depend on the magnitude of publicity, the promotional campaign of BPC is awfully inadequate to cover the main tourist generating countries. Due to sufferings for fund crisis for promotion activities, BPC’s promotional activities are limited to producing and distributing different kinds of literatures, folders, booklets, tourist maps, guide books, brochures, picture, post cards, view cards, posters, leaflets, accommodation guide etc. to make potential tourists aware of the interesting and important historical places, scenic beauties, adventurism, health resorts, rich and ramified culture etc. He also mentioned that the theme used in these promotional materials is not dynamic which fails to draw the attention of the potential tourists. Then he emphasized to maintain a liaison and meaningful cooperation among various governments, tourist organizations, travel agencies and tour operators especially among the SAARC countries to promote the industry effectively.
Marketing communication method is known as the promotion mix and includes advertising, sales promotion, personal selling and publicity (Norgan, 1994).  Then the author noted that most organizations marketing products or services to the general public would use a combination of at least two of these methods in order to achieve marketing objectives and sales targets. Kotler, et al (2005)  mentioned that a company’s total marketing communication mix– also called its promotion mix– consists of the specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to pursue its advertising and marketing objectives. The promotional mix is traditionally perceived to consist of four elements: advertising, sales promotion, public relations and personal selling (Fill, 1999).  The author also mentioned that in response to changing market and environmental conditions, public relations is now seen by some to have a marketing and a corporate dimension and on the other hand direct marketing is now recognized as an important way of developing personal relationships with buyers, both consumer and organizational. This discussion leads to have an understanding about the elements of promotion mix and the major are:
Advertising is a non-personal form of mass communication and offers a high degree of control for those responsible for the design and delivery of the advertising message (Fill, 1999).  Then the author stated that the flexibility of this tool is good because it can be used to communicate with a national audience or a particular specialized segments and a vast number of people can be reached with the message, so the cost per contact can be the lowest of the tools in the mix. At the same time the author blamed that the ability of advertising to persuade the target audience to think or behave in a particular way is suspect and the effect on sales is extremely hard to measure and in addition, the credibility in that audience is less likely to believe message delivered through advertising than they messages received through some other tools.
Personal selling is traditionally perceived as a communication tool which involves face-to-face activities undertaken by individuals, often representating an organization, in order to inform, persuade or remind an individual or group to take appropriate action, as required by the sponsor’s representative (Fill, 1999, p. 6).  According to the author, a sales person engages in communication in a one-to-one basis where instantaneous feedback is possible and the costs associated with interpersonal communication are normally very large. 
Public relations is the art and social science of analyzing trends, predicting their consequences, counselling organization’s leadership, and implementing planned programs of action which will serve both the organization’s and the public interest (The Mexican Statement, 1978).  The statement also indicates the necessity of public relation of being a part of the wider perspective of corporate strategy. Third-party like magazines, newspapers, news programs etc. disseminate the messages on behalf of particular company or organization.  The increasing use of public relations and in particular publicity is a reflection of the high credibility attached to this form of communication and there is no charge for the media space or time but there are costs incurred in the production of the material (Fill, 1999).  Press relations, product publicity, corporate communications, lobbying and counseling etc. are the different tools which can be used for public relation effectively. 
 Sales promotion includes those activities which provide an incentive, additional to the basic benefits provided by a product or service, and which temporarily change the perceived price/value relationship of that product or service (Shimp and DeLozier, 1986).  Again, Kotler, et al (2005) defined sales promotion as the short-term incentives to encourage the purchase or sale of a product or service. According to the authors, samples, cash refunds, price packs, premiums, advertising specialities, patronage rewards, point-of-purchase displays and demonstrations, and contests, sweepstakes and games can be used for consumer promotion tools and many of the tools used for consumer promotions- contests, premiums, displays – can be used as trade promotions or alternatively, the manufacturer may offer a straight discount off the list price on each case purchased during a stated period of time (also called a price-off, off-invoice or off-list whereas in business promotion includes many of the same tools used for consumer or trade promotions but mainly conventions and trade shows and sales contests are used for business promotions. It is important to mention here that in deciding on the tools of sales promotion, marketers need to consider the competition and cost effectiveness of each tool.

Direct Marketing is defined as any activity which creates and profitably exploits a direct relationship between the company and its prospect (Bird, 1982, as stated in Norgan, 1994).  The author also mentioned that once the relationship is initiated, it can be developed and maintained with a variety of promotional techniques, from direct mail to personal selling. Direct marketing is a term used to refer to all media activities that generate a series of communications and responses with an existing or potential customer (Fill, 1999).  Telephone, mail, fax, e-mail, the Internet etc can be used to communicate directly with specific consumers and to create and sustain a personal and intermediary-free dialogue with them.
The above discussion leads to a conclusion that a marketer can use any of the promotion tools or a combination of more than one tool for promoting a product or service. But it depends on the nature of the product, price, customers’ locations, prevailing competition, cost involved, availability of the budget for promotion, company’s overall objectives etc. It is worth mentioning here, that the success of the promotional activities largely depends on the realistic selection of the promotional tool(s) and the creativity in operating the promotional activities.
4.6 Perception or Image of Bangladesh as a Tourist Destination
The perception toward a tourist destination is the sum total of beliefs, ideas, impressions, and expectations that a tourist holds about a destination. Engel et al. (1986) stated that image refers to the consumers’ subjective perceptions of how an alternative performs on important  important role in providing competitive advantages to one tourist destination over another. Tourists perceive many images of their destinations and these images in turn influence their behavior, attitude, and predispositions as consumers (Ahmed, 1996).  The author also pointed out that merely possessing outstanding tourism resources are not sufficient to attract the optimal number of tourists to a tourist destination rather tourists’ image of a destination and the attitude of tourists toward that destination seem to be two of the most important factors responsible for this variation. The author consider this behind the aggressiveness of the promotion campaigns lunched by tourist destinations has added a new dimension to competitiveness and has resulted in increasing numbers of image advertisements in travel and tourism literature and in the mass media and collectively the tourist destinations are spending billions of dollars annually on image building and image correction promotion programs.
Briton (1979, as cited in Echtner 2002) in his article “The Image of the Third World in Tourism Marketing” pointed out the inability of the tourism industry to represent destinations as real places and noted that the Third World destinations are portrayed as paradise, unspoiled, sensuous, mystical and /or exotic and these types of representation affect tourists’ expectations and behavior. In addition to that when tourists perceive of places as less than real their behavior is less than acceptable. Culture is an important dimension to attract tourists to a particular destination. The strengthening of cultural links is important to overcome the often negative perception of India and South Asia in general among Southeast Asian countries (Yahya, 2003).  Bangladesh as a South Asian country can develop the cultural link with its surrounding regions to overcome the image problem and can attract more tourists from other South Asian and Southeast Asian countries.
I am sure this program runs in many countries. But where is Bangladesh in this regard? I had to mention India's name to several people while trying to explain the location of Bangladesh, whose name they have seldom heard.” This indicates that Bangladesh is suffering from not only image problem but also from the point of identity to some extent.   Muqbil (2005) mentioned that Bangladesh has taken little measures to counter its "negative image abroad" as a country that faces "abject poverty, floods and cyclones" and blamed that in 2003-04, the Tourism Corporation, which is responsible for marketing, was given only 10 million taka (about US$158,000) and for the fiscal years 2004-05 and 2005-06, "no funds have been allocated" making it impossible to conduct marketing campaigns in a highly competitive market. He also commented that complicated visa formalities and irritating attitudes of the employees in most of the Bangladesh missions abroad discourage many tourists.
Though the number of foreign visitors in not large, but who visited the country returned with a good feeling with good-looking attractions of the country, rich cultural heritage, magnificent natural beauty, cheap service and facilities and above all the friendly reception and cordial acceptance and hospitality of the local community. But the county or the National Tourism organization could not reverse the existing image of the country by highlighting the real atmosphere and situation suitable for the tourists. It is expected that the BPC along with other private tour operators will prioritize the issue of correcting the image by undertaking aggressive promotional measures in order to develop tourism in Bangladesh. The government should also extend the cooperation in this regard by playing the major role in building the positive image so that the industry can play it proper role to the economy of the country.
4.7 Tourists’ Impressions on the Price of Some Important Tourism Components
Tourists’ impressions toward the tourism service(s) are important for the marketers. The positive impression obviously will result the repeat visit by the same tourist as well as it will serve the purpose of word of mouth advertisement for the destination. Buyers judge whether a product or service is fairly priced by asking themselves whether it represents value for money (Holloway and Chris, 1995).  It is expected that the tourists will receive more value or at least equal to their perceived value after visiting the destination or tourist spot. Any change in price or quality at a particular point of time will also change consumers’ perception on the value (Hossain, 19990).  The author attempted to show in his study about the reasonableness of prices on some selected components of tourism arrangements in Bangladesh which is presented in the following table (Table 4.1):



Table- Tourists’ Impressions on the Prices of Some Important Tourism Components        
Tourism Components
Don’t Know Frequency
Highly Reasonable
(5)
Quite Reasonable
(4)
Fairly Reasonable
(3)
Quite Unreasonable
(2)
Highly Unreasonable
(1)
Mean Score
Food & Drinks
6
(5.94)
7
(6.93)
23
(22.77)
48
(47.52)
16
(15.84)
1
(0.99)
3.2
Accommodation
13
(12.87)
5
(4.95)
16
(15.84)
41
(40.59)
18
(17.82)
8
(7.92)
2.91
Transport
12
(11.88)
5
(4.95)
46
(45.54)
32
(31.68)
6
(5.94)
00
(00)
3.56
Guided Packaged Tours
62
(61.38)
4
(3.96)
7
(6.93)
13
(12.87)
12
(11.88)
3
(2.97)
2.92
Information materials
48
(47.52)
21
(20.79)
19
(18.81)
9
(8.91)
4
(3.96)
00
(00)
4.08

4.8 Effectiveness of Promotional Measures of Bangladesh Tourism Industry


It was mentioned earlier that promotional measures play a vital role in tourism marketing like other products or services which needs the marketers to conduct the same in an effective way. Effectiveness in this regard means how the promotion can produce the positive result by influencing the tourists to visit the promoter’s destination. So, effectiveness is important rather than how much the promoter has spent for this purpose or how many times he has advertised or even which media he has used. The ultimate goal is to reach the advertiser’s message to the potential tourists and to influence them positively to visit the destination of the advertiser. The following table (Table 4.2) shows the effectiveness of various forms of promotional measures of Bangladesh tourism industry:







Table .2 Effectiveness of Various Promotional Measures of Tourism Industry in Bangladesh

Form of Promotion
Don’t Know Frequency
(%)
Highly Effective
(%)
(5)
Quite Effective
(%)
(4)
Fairly Effective
(%)
(3)
Quite Ineffective
(%)
(2)
Highly Ineffective
(%)
(1)
Mean score
Advertisement
86
(85.14)
00
(00)
1
(0.99)
10
(9.90)
2
(1.98)
2
(1.98)
2.67
Publicity
81
(80.19)
00
(00)
5
(4.95)
9
(8.91)
5
(4.95)
1
(0.99)
2.90
Information Materials (Brochures, Guides, Souvenirs, Folders, Handbooks.)

48
(47.52)

4
(3.96)

14
(13.86)

18
(17.82)

11
(10.89)

6
(5.94)

2.98
Posters and View Cards
74
(73.26)
2
(1.98)
5
(4.95)
8
(7.92)
10
(9.90)
2
(1.98)
2.81
Cable TV Highlights
86
(85.14)
2
(1.98)
2
(1.98)
4
(3.96)
4
3.96()
3
(2.97)
2.73
Internet
93
(92.07)
00
(00)
2
(1.98)
5
(4.95)
1
(0.99)
00
(00)
3.13
Word of Mouth (WOM)
53
(52.47)
17
(16.83)
18
(17.82)
12
(11.88)
1
(0.99)
00
(00)
4.06
Motivation by Foreign Tour Operators
62
(61.38)
5
(4.95)
22
(21.78)
9
(8-91)
2
(1.98)
1
(0.99)
3.72
Motivation by Foreign Travel Agencies
81
(80.19)
00
(00)
7
(6.93)
6
(5.94)
5
(4.95)
2
(1.98)
2.90
Biman’s Overseas Offices
83
(82.17)
00
(00)
2
(1.98)
5
(4.95)
4
(3.96)
7
(6.93)
2.11
Bangladesh Mission Abroad
65
(64.35)
2
(1.98)
5
(4.95)
11
(10.89)
11
(10.89)
7
(6.93)
2.56

Source: Hossain, Md. Afjal and Firozzaman, M. (2003) Strategic Promotional Approaches to Developing Tourism in Bangladesh: An Empirical Study of Some Selected Tour Operators, Bureau of Business Research, University of Dhaka, p. 51
It is found from the above table (Table 4.2) that only word of mouth is quite effective with a mean score of 4.06. Tourists rely more on personal source of information and, hence, personal selling will be the most effective promotional tool in tourism marketing (Kumar, 1994). The mean score of Internet is 3.13 and motivation by foreign tour operators is 3.72 which indicate that these two forms of promotional measures are fairly effective. Though the national airlines can play an active and vital role for country’s tourism industry, but the image of Biman Bangladesh Airline is not good and the Biman’s overseas offices failed to contribute in this regard. The mean score of Biman’s overseas offices is 2.11 which indicate that as a form of promotion, it is ineffective. The researchers also mentioned that the overall mean score of effectiveness of all the promotional forms accounted to 3.10 with a standard deviation of 0.53 which is slightly higher than the mid-value of the scale. This overall mean effectiveness score 3.10 can be considered that the promotional measures of Bangladesh tourism industry is fairly effective.

4.9 Statistics on Tourist Arrivals and Earnings

The overall picture of the present status of the tourism industry of any country can be considered in terms of the number of tourist arrivals and the earning from this sector. Anyone can measure the position of any country’s tourism and its share to the world market or to any regional or even to sub-regional markets. The statistical data and its trend is one of the major indicators by which any one can have an idea on the sector. Here, the researcher attempted to focus on position of the same sector based on the statistical data on the number of tourist arrivals and the earnings from the sector.

4.10 World Tourist Arrivals and Receipts

The mobility of tourism market is booming. Now it is one of the fastest growing and the single largest industry in the world and is now considered as a vital force for the economic development of any country. The contribution of tourism is multi-dimensional like: to foreign exchange earnings, employment generation, exchanging cultural views, peace keeping and as a whole for the economic development especially for the developing countries like Bangladesh. As a result, every country is trying to attract more tourists to its destination in order to earn more foreign currency which results an increasing trend both in tourist arrivals and earning every year. The following table (Table 4.3) shows the picture of world tourist arrivals and the earnings from this sector:    
Year
Arrivals (Million)
Change
Receipts
(Billion US$)
Change(%)
1990
441
-
280
-
1995
538
-
423
-
2000
681
-
496
-
2001
680
0.15%
482
-2.82%
2002
700
2.94%
482
00%
2003
690
-1.43%
524
8.71%
2004
763
10.58%
623
18.89%
2005
808
5.90%
NA
     NA
Source: UNWTO Tourism Highlights, Edition 2005, World Tourism Organization, available from: http://www.world-tourism.org/facts/menu.html (accessed 18.5.06)
NA – Not available
The above table indicates that the total world tourist arrivals in 1990 were 444 million and in 2005 it increased to 808 million which is about doubled in the last fifteen years. On the other hand the earning from the same was US$ 280 in 1990 and it increased to US$ 623 which 223% of base year 1990. The growth rate of the earnings is more than the same of the tourist arrivals. The overall trend of both arrivals and earnings form this sector is very amazing.

4.11 International Tourist Arrivals and Earnings by Regions

It was revealed from the previous discussion that the world’s tourism is performing very well at least in-terms of the number of tourist arrivals and the earnings from the industry. But it does not provide any guarantee that every region has the same picture. Some regions have more upward trend and other do not have. Considering this view, researcher attempted to find out the scenario of the industry and the following table (Table 4.4) presents the regional performance of tourist arrivals:
Year
Regions
Total World Arrivals
Africa
The America
Asia and the Pacific
Europe
Middle East
1990
15,160
92,803
57,740
265,290
10,040
441,033

(3.44)
(21.04)
(13.09)
(60.15)
(2.28)
(100.00)
1995
20,438
108,994
85,024
309,306
14,300
538,062

(3.80)
(20.26)
(15.80)
(57.49)
(2.66)
(100.00)
2000
28,154
128,160
114,863
384,147
25,238
680,562

(4.14)
(18.83)
(16.88)
(56.45)
(3.71)
(100.00)
2002
29,492
116,637
131,108
394,034
29,156
700,427

(4.21)
(16.65)
(18.72)
(56.26)
(4.16)
(100.00)
2003
30,763
113,093
119,255
396,579
29,999
689,689

(4.46)
(16.40)
(17.29)
(57.50)
(4.35)
(100.00)
2004
33,222
125,757
152,503
416,362
35,391
763,235

(4.35)
(16.48)
(19.98)
(54.55)
(4.64)
(100.00)
It is clear from the above table that Europe captured the major share of the world tourism market and attracted 265, 290,000 tourists in 1990 which increased to 416, 362,000 in 2004 and the share in total world tourist arrivals was 60.15 percent and 54.55 percent respectively for the same period. America had 21.04 percent share in 1990 and 16.48 percent in 2004 though the number of tourist arrivals increased to 125,757, 000 from 92,160,000 in the same period. It is important to note that both the Europe and the America lost its market share by 5.60 percent and 4.56 percent during the period. On the other hand, the position of Asia and the Pacific is attracting. This region gained its position during the period under consideration both in terms of the number of tourist arrivals and its share to total world arrivals. The data shows that the number of arrivals increased to 152,503,000 in 2004 from 57,740,000 in 1990 and the share of which increased to 19.98 percent from 13.09 percent in the same period. The growth rate in tourist arrivals in Asia and the Pacific is accelerating than any other regions of the world.
The number of tourist arrivals is not only the indicator to have a clear picture of the industry. To consider the performance, financial earning is one of the major determinants of any industry. The researcher attempted to show the financial contribution that each of the regions have gained from the tourism sector. The table (Table 4.5) given below shows the foreign currency earned by each region from tourism

4.12 Foreign Exchange Earnings from Tourism and Travels in Bangladesh

The marketing performance of any tourism organization can be evaluated based on the earnings by the organization. So, it was attempted to focus on the earnings of BPC and the growth rate of the same for the last couple of years to have a clear picture of the sector in terms of financial performance. The following table (Table 4.11) is shows the earnings and growth rate of the same of BPC, the only government owned tourism organization in Bangladesh:
Year
Earnings from Tourism
Amount (Million Tk*)
Growth Rate (%)
267.7

1991-92
391.3
(+)  46.17
1992-93
448.3
(+) 14.57
1993-94
1607.1
(+) 35.4
1994-95
823.6
(+) 35.66
1995-96
1125.4
(+)  36.64
1996-97
1799.7
(+)  59.92
1997-98
3086.9
(+)  71.52
1998-99
2370.1
(-)  23.22
1999-00
2582.7
(+)  8.97
2000-01
2638.1
(+)  2.15
2001-02
3087.1
(+) 17.02
2002-03
3207.4
(+)3.90
2003-04
3782.7
(+) 17.94
2004-05
4203.25
(+) 11.12
Average Growth Rate
(+) 24.12
Source: Bangladesh Bank and BPC Web page, available from: http://www.bangladesht bangladeshtourism.gov.bd /resource_center_wtar9904_03_sh2.php (accessed 30.03.06)
Though the foreign exchange earnings through mobilizing domestic resources by the host country’s tourism industry can play an important role in the economy, the earning of BPC is very insignificant in terms of the overall earnings of the said industry in the world and even in the Asian region. The earnings from tourism in Bangladesh was Tk. 267.7 million in 1990-91 which increased to Tk. 4,203.25 million in 2004-2005. There is also a very positive sign that every year from 1990-01 to 2004-2005 has a positive growth rate except 1998-99. The year 1998-99 is exceptional and achieved a negative growth rate over its preceding year may be due to devastating flood in all over the country and which lasted about 2 months. The highest growth rate was achieved in 1997-98 which is 71.52 percent over the previous year. From the above table, comment can be made that though Bangladesh does not have a good position in world tourism, but the trend of growth rate in the earnings is encouraging. 
4.13 Tourists Arrivals from SAARC Countries to Bangladesh   
There are seven countries of South Asian Association of Regional Cooperation (SAARC) including Bangladesh. As it was clear from the discussion made in the earlier sections that the position of Bangladesh in world tourist arrivals and even is not amazing through the industry is growing faster than in any other industry. It was also observed that in the South Asian countries, the position of Bangladesh is very insignificant. It was attempted to see the picture of the tourist arrival in Bangladesh from the SAARC countries and which can be shown in the following table (Table 4.12): 
Country

Year
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
SAARC Total
Total Arrivals
Share of SAARC Countries
1995
415
(0,65)
46015 (72.10)
94
(0.15)
2995
(4.69)
12903
(20.22)
1395
(2.19)
63817
(100,00)
156231

40.85

1996
568
(0.86)
53007
(80.45)
97
(0.15)
3628
(5.51)
7070
(10.73)
1522
(2.31)
65892
(100,00)
165887

39.72

1997
959
(1.18)
61606
(75.92)
123
(01.5)
5296
(6.53)
11481
(14.15)
1686
(2.08)
81151
(100,00)
182420

44.49

1998
441
(0.57)
57937
(75.26)
63
(0.08)
4799
(6.23)
12087
(15.70)
1563
(2.15)
76980
(100,00)
171961

44.77

1999
730
(0.93)
62935
(80.50)
53
(0.07)
4733
(6.05)
7894
(10.10)
1839
(2.35)
78184
(100,00)
172781

45.25

2000

1010
(1.09)
74268
(79.85)
189
(0.20)
4481
(4.82)
10637
(11.44)
2427
(2.61)
93012
(100,00)
199211

46.69


Source: Special Branch, Bangladesh, available from: http://www.bangladeshtourism.gov.bd/statistics_saarc_ visitors.php (accessed 25.3.06)
It can be noted that a large number of tourist visited Bangladesh is from SAARC Countries. It is almost half of the total tourist arrivals in Bangladesh. The share of the tourist arrivals from SAARC countries to Bangladesh was more than 40 percent from 1995 to 2003 which was decreased to 36.64 percent in 2004. Another important issue to observe here is that most of the tourists of SAARC countries are from India. The share of Indian tourists travelled Bangladesh constituted 72.10 percent in 1995 which increased to 80.95 percent in 2004. The second highest number comes from Pakistan which was 12.07 percent in 2004 followed by Nepal by 3.16 percent. 5.2 Promotional Activities Used in Bangladesh for Tourism Marketing
BPC is the only National Tourism Organization (NTO) in Bangladesh and acts as the public sector tour operator and there are a few number of private tour operators. But most of the private tour operates established newly and lack the sufficient amount of funds. Instead of the lacks of sufficient amount of funds, both BPC and private tour operators are trying to conduct the promotional activities in order to attract more tourists to its destination and thus, develop the tourism industry in Bangladesh. As we know that marketing promotion includes advertising, Personal selling, sales promotion and publicity. All these tools of promotion are used in promoting Bangladesh tourism.
As it was mentioned that BPC is only the public sector tour operator in Bangladesh and most of the private tour operators have started their operation recently, the major promotional activities are undertaken by BPC. BPC uses all traditional techniques to perform the responsibility of stimulating tourism demands among the markets and promoting Bangladesh as a tourist destination through a variety of promotional forms and activities (Hossain and Hossain, 2002).  One of the major attempts of BPC’s promotional measure is to producing and distributing printed materials including brochures, souvenirs, booklets, guides, leaflets, posters, folders etc. for disseminating information among the prospective markets. Including these printed materials, a special brochure featuring its package tour and corresponding prices, BPC distributes these with the help of different foreign tour operators, Biman’s overseas offices, Bangladesh mission offices abroad. On the other hand BPC produces some tourist maps, view cards, and picture post cards and distribute through those offices at a minimum price. These printed materials are distributed in order to disseminate the key information highlighting the tourism attractions of Bangladesh. BPC has the arrangement for the same in its own information centre in home country in order to provide the information among the local people, domestic resident foreigners, and visiting foreigners.
Personal selling is the most expensive element of the promotion mix. Contact employees represent the organization, physically embody the product, directly influence customer satisfaction, and act as walking billboards from a promotional standpoint (Zeithaml and Bitner, 2003).  Therefore, BPC also trains its contact personnel and employees to ensure better interactions with the tourists and maintain effective relations with the tour operators and travel agencies in the tourist generating countries and thus motivate them to sell its package programs (Hossain and Firozzaman).  BPC also maintains contact with some selected tour operators and travel agencies in some important tourist-generating countries and sometimes organizes complementary tours for the selected foreign tour operators to familiarize them with the tourism installations and facilities in Bangladesh. The main objective of such arrangement is to motivate the potential tourists to visit Bangladesh. Thus, it serves as both the personal selling and publicity for the tourism industry of Bangladesh.
Sales promotion activity cost money – whether through the additional cost of printing, free gifts, extra product, samples or competition prizes; or through the loss of contribution caused by discounting price (Norgan, 1994).  BPC uses different kinds of sales promotion techniques to persuade the visitor to choose Bangladesh as a tourist destination. The techniques used by BPC include quantity discount, children discount, off-season price rebate and improved service packages for it package tours, cruise programs and accommodations.  Responding to a question, BPC executives mentioned that they normally offer 15 to 30 percent discount during its service week and also in the off-season. In addition, BPC offers extra services, improved services and improved food at the existing price.
With in marketing promotion mix elements, publicity appears to be the most useful form of promotional measures of the BPC (Hossain and Hossain, 2002).  BPC also participate in international tourism exhibitions like the ITB at Berlin through which attractive package tours are sold to international tour operators and a large number of individual visitors in the fair. During tourism month (16 October – 15 November) different cultural night shows, food festivals, seminars, symposiums, audio-visual presentations etc are arranged mainly locally. Hasan (1992)  mentioned that BPC also attempts to publish articles featuring Bangladesh tourism in different reputed professional magazines and tourism related journals which also serve as publicity for the industry in Bangladesh.
BPC also uses a web page for disseminating the information to the potential tourists. But the fact is that the web page does not contain the complete information of Bangladesh tourism and it related facilities. As a result, it is tough for a potential tourist to have the required information from the said page.
In the local market, BPC advertise in different newspapers, magazines, television and radio. BPC also sometime advertises in some specialized and special interest magazines. Hossain and Hossain (2002) described that BPC does not use any international TV channels, foreign news papers, or world-class general newsmagazines to promote Bangladesh as a tourist destination. The authors stated the reasons of not using those media because of mainly Bangladesh tourism products/services and facilities still require further development of the needs of the international tourist and lack of fund to meet the cost of those expensive media. This inability leads BPC to use the local media even though it is very limited in scale.During the tourism season, BPC with the help of Bangladesh Mission offices and cooperation of foreign tour operators and film clubs arranges the audio-visual presentations on some important tourist
attractions and facilities of the country among the potential tourists in some popular tourist generating countries.
BPC has taken steps for mutual cooperation through different international or organizations and maintaining liaison with various tourism and travel trade organizations like WTO, SARTC, ASTA, PATA etc. BPC as an active member of those organizations is attending in different seminars, workshop in order to extending the mutual cooperation among the member countries and trying to disseminate information for the development of tourism industry for each country. At the same time, the mutual cooperation among the SAARC countries has been initiated by forming a technical committee in 1991 and adopted an action plan on tourism development. Hasan (1988) stated that BPC has undertaken steps for mutual cooperation with neighbouring countries, especially Nepal, for joint publicity campaign, joint production of tourist publicity materials, joint marketing, group tours, exchange of travel agents, travel writers, tour operators, and joint training facilities in various services including hotels.
The above discussion describes that promotion plays an important role in marketing of any product or service. Bangladesh Parjatan Corporation is trying at its utmost level by using the different form and techniques of promotional tools. But BPC’ lacks seriously for sufficient funds and it limits the promotional activities in a very limited scale. The following table (Table 5.1) shows the year-wise foreign exchange earnings of BPC and promotion expenditure:
Year
Earnings from Tourism (TK. in Millions)
Promotion Expenditures (TK. in Million)
% of Promotion Expenditures on Earnings
1991-92
391.3
2.965
0.76%
1992-93
448.3
5.363
1.20%
1993-94
607.1
8.065
1.33%
1994-95
823.6
7.143
0.87%
Source: Bangladesh Bank and BPC Web page
It is apparent from the table 5.1 that BPC spend a small percentage of its total income for promotional activities. In 1991-92, BPC spent only TK. 2.965 million which in only 0.76 percent of its total earnings. The spending for the same purpose increased to Tk. 10.413 in 2004-05 but the percentage on total earnings decreased to only 0.25 percent. Tk. 10.413 million is equivalent to about US$ 158,000 only can not meet the demand for the need of expenditure of an effective promotional measure. Because of the diverse location of the potential tourists and the increasing competition among the different competitive destination countries, tourism sector needs undertake vigorous promotional activities at the national and international levels. Again, the promotion for tourism needs to have the international coverage which requires using international media. To use the international media for promoting any product or service needs a handsome amount of money to spend. But it is clear that the amount spend by BPC is not sufficient enough to use international media covering a vast area of the potential tourist attracting regions. As a result, Bangladesh fails to highlight its tourist attractions to the potential tourists as well as to draw the attention and influence them to select Bangladesh as a tourist destination. The insufficiency of the fund for conducting promotional activities, BPC has to depend on the local media, posters, folders, brochures, tourist maps etc.   
The private tour operators also lack of sufficient fund to operate an extensive promotional activities. As a result, they also conduct some promotional activities in a traditional form by distributing the brochures, leaflets, making advertisements in the local newspapers, participation of different exhibitions arranged locally. But a limited number of private tour operators prints and distributes their brochures in Bengali (local language), English and Japanese languages and some other operators do the same either in Bengal or in English or in both. There are some operators who participate in the international tourism fairs to attract the attention and encourage the potential tourists and try to sell package tours to the foreign tour operators as well as to the individual tourist. This sort of participation helps to get the media coverage in the international level. But most of the private tour operators try to attract the local nationals and the foreign residents already living in Bangladesh or visiting Bangladesh.
The private tour operators also use some sorts of sales promotion like off-season price discounts, free distribution of printed materials; organize live music programs for the visitors in destination’s spot, extra service offers, group tour discounts for the packages offered and river cruise programs. Hardly two or three operators are using the web page for the promotion of the tourism in Bangladesh. 

 Chepter-5

5.1 Type of Promotional Activities Undertaken in Bangladesh Tourism

All most all the tour operators use all the tools of promotion mix in order to promote the industry. They make the advertisements in local newspapers, magazines and televisions. In addition to that they also use the printed materials like brochures, souvenirs, booklet, guides and posters, folders in disseminating information among the potential tourists in order to draw their attention and grow interest among the potential tourists. But they don’t use any international medium to advertise its products or services. BPC has the arrangements to train up their employees and contact personnel to ensure the better interactions and maintain good relationships with the prospective tourists and to motivate them in visiting Bangladesh. BPC and some of the larger private tour operators maintain contact with the foreign tour operators to influence them highlight Bangladesh tourism and its facilities to the foreign tourists. Both the private tour operators and BPC uses the techniques of sales promotion which include quantity discount, children discount, off-season price rebate and improved service packages for it package tours, cruise programs and accommodations to persuade the local tourist as well as the foreign tourists. In addition to that BPC and some private tour operators participate at the tourism exhibition/fair arranged locally and internationally. Occasionally, BPC arranges different cultural night shows, food festivals, seminars, symposiums, audio-visual presentations etc. at the popular tourism destination of the country. BPC has a web page to provide the information of Bangladesh tourism and its facilities among the prospective tourists though the page is not well designed.

5.2 Methods of Determining Promotion Budget

Responding to a question on the method(s) of determining promotion budget, some respondents express that they use more than one method in doing so. It was found that 9 respondents use the affordable method rather than the existing market demands in determining the promotion budget followed by 8 respondents who uses percentage of revenue earning method. It was revealed that only 2 respondents use objectives and task method. The following table (Table 5.5) shows the distribution of the respondents and the method used in determining the promotion budget:
Methods
No. of Respondents
percentage
1.   Affordable amount method
2.   Percentage of revenue earning method
3.   Based on previous year’s expense
4.   Objectives and task method
5.   Fixed amount method
6. Other
09
08
01
02
01
01
56.25
50.00
6.25
12.50
6.25
6.25
Total
22
137.50
Note: Total number of organizations surveyed = 16. Some respondents responded that they use more than one method.

            5.3 Comment on the Amount Spend on Promotion

When the respondents were asked to express their opinion whether the amount spent on promotion on is enough or not, only 3 respondents constituting 15% strongly agreed that the amount is sufficient. Whereas 11 respondents constituting 55% was neutral which indicate that it is neither sufficient nor insufficient or it may happen that the respondents have not enough idea to express their view on this specific areas like promotion. Only 5 respondents strongly agreed that the amount presently spend on promotion is not sufficient to conduct an effective promotional campaign on tourism in the national and international levels. The following table (Table 5.6) shows the distribution of respondents against each scale and their percentage:
Table 5.6 Opinion on the Amount Spend for Promotion
                     Scale



Respondents
Highly Sufficient


(7)
Sufficient



(6)
Fairly Sufficient


(5)
Neither Sufficient
 nor insufficient
(4)
Fairly insufficient

(3)
Insufficient



(2)
Highly insufficient


(1)
Total
No. of respondents
Percentage  of Respondents
03

15
01

5
00

00
11

55
00

00
00

00
05

25
20

100

5.4 Effectiveness of the Promotional Activities Undertaken

                                                                                              
In replying to a question on the effectiveness of the promotional activities that they undertake, only 1 respondent (5%) strongly argued that their promotional activities are effective and 4 respondents (20%) strongly opined that the same is ineffective. But 8 respondents which is the majority constituting 40% scored the same as average. They opined that the promotional activities presently undertaken are neither effective nor ineffective. The following table (Table 5.7) presents the opinion of the respondent on the effectiveness of promotional activities undertaken and implemented by Bangladesh Tourism industry:
          Scale


Respondents
Strongly Effective

(7)
Effective


(6)
Fairly Effective

(5)
Neither effective nor ineffective
(4)
Fairly ineffective

(3)
Ineffe-
ctive

(2)
Strongly Ineffective

(1)
Total
No. of respondents
Percentage of Respondents

01

05

02

10

03

15

08

40

01

5

01

05

04

20

20

100

In an overall comment on the promotional activities, most of the respondents opined that they can not lunch an extensive promotional measure due to lack of sufficient fund for this purpose and have to depend on the local media rather than using any international medium. At the same time some of the international media highlight Bangladesh negatively rather than a tourist destination. The initiative from the government to correct that negative image is not sufficient. This negative image also influences the foreign tourists not select and visit Bangladesh.

5.5  Attitude toward the Role of Promotional Activities

Whatever be the present status of the promotional activities of Bangladesh tourism and its effectiveness, most respondents (70%) think that promotion has a strong role in marketing tourism services followed by 4 respondents (20%) were neither agreed nor disagreed and no one was below the scale of neutrality.



                    Scale

Respondents
Strongly Agreed

(7)
Agreed


(6)
Fairly Agreed

(5)
Neither agreed nor disagreed
(4)
Fairly Disagreed (3)
Disag-reed

(2)
Strongly Disagreed

(1)
Total
No. of respondents
Percentage of Respondents

14

70

01

5

01

5

04

20

00

00

00

00

00

00

20

100
70% of the respondents strongly believe that promotional measures can play strong role to attract tourists to the tourist destination and the mean score of which is 6.25. The mean score on the point whether the promotional expenditure is sufficient or not is 3.8 which is close to 4.00 or a minor below the average mean score. It is interesting to note that only one respondent (5%) consider that their promotional activities launched is effective. The mean score (3.75) indicates that their promotional measures are not effective. But the mean score of respondents’ responses regarding the sufficiency of the promotional expenditure is very close to the scale of neutral and at the same time again they argued that more promotional efforts are needed for the tourism of Bangladesh and its mean score is 6.40 which is very contradictory. Because when the promotion expenditure is close to sufficient there may not have the need of more promotional measures or otherwise the budget is not sufficient.

5.6 Suggestions from the Tour Operators

The respondents were requested to express their opinion about the steps those should be undertaken to attract more tourists. The summary of their suggestions are as:
Measures undertaken to attract foreign tourists
Measures undertaken to attract local tourists
1.   Participate in international tourism fairs
2.  Uses Bangladesh mission abroad
3.  Contracting international tour operators
4.  Distributing brochures and tourist hand books
5. Uses of well-designed website
  1. Advertises in local Newspapers and Bangladesh Television
  2. Arranges tourism fairs
  3. Distributes tourism publications to the potential tourists

The respondents both from the National Tourism Organization (BPC) in Bangladesh and from the private tour operators in Bangladesh were requested to put forward some suggestions for the Development of Bangladesh Tourism. Their suggestions can be presented in a summarised form in the following table (table 5.13):
Suggestion from Bangladesh Parjatan Corporation
Suggestion from Private Tour Operators

1. Need to develop new attractions/ products or services in the destinations.
2. More promotional activities should be undertaken
3. Should develop and update an attractive web site to provide the required information to the potential tourists.
4. Government should priotize this sector for development plan.
5.   Security of the tourists should be ensured.
6.  BPC should have full autonomy to take necessary decision timely
1.   Infrastructural development is needed.
2.   Developing new products or services in the destinations.
3.   Well designed website is needed
4.   Foreign mission should be involved in promotional activities.
5.   Law and order situation should be developed.
6.   Need coordinated promotion activities by NTO and other parties involved.
7.   Govt support to the private tour operators is necessary for the development of this sector.
8. Tax holiday for vehicles is necessary for minimizing cost of operation. 

           
           
           



                     Chapter-6 Recommendations and Conclusion

6.1 Introduction

Tourism is now a fastest growing industry in the world. The growth of the same in the Asia and the Pacific region is more accelerating than any other region. The ever increasing growth of this industry and its market has increased the competition among the tourists importing countries. As a result, the success of any destination country depends on how well it can initiate and adopt the competitive marketing strategy over its competitors. Promotion is one of the most important elements of the marketing mix through which the attractions of the destinations and its facilities are focussed to the potential tourists to draw their attention and grow interest among them to visit the sponsor’s destination. It sates that the destination country needs to take the effective promotional measures so that they can gain the positive result through attracting more tourists to its destination. The present study revealed that Bangladesh is also trying to attract more tourists to its destination through different measures. But the country lacks far behind to conduct the appropriate and sufficient measures regarding the promotional measures. The resultant effect is that Bangladesh could not achieve significant progress to develop the industry though the number of tourist arrivals and the earnings from this industry show a positive growth rate. The position of Bangladesh tourism in world context is very negligible even the country’s position is at the bottom line in the South Asian region. Among the seven countries of SAARC in this region, Bangladesh holds the 6th position just above the position of Bhutan. But the country has some unique attractions like world’s longest and unbroken sea beach, world’s largest mangrove forest with a variety of wildlives, historical cultural heritage, tribal culture, captivating beauty of the nature etc. One of the reasons of not succeeding Bangladesh tourism is insufficient promotional measures undertaken for marketing the said sector. So, it is essential for the policy makers of the concern industry to consider the issue very carefully and on the priority basis for the expected development of the industry.

6.2 Recommendations for Managerial Implications

Based on the findings of the study and the researcher’s experience the following suggestions can be put forwarded for the managerial implication to improve the promotion of this industry in Bangladesh:
I. Correcting the Image of the Country
The image of the destination plays a vital role to attract tourists to that particular destination. But Bangladesh is suffering from the image problem because of some international media. These media highlight Bangladesh negatively which results to create misconception among the potential tourists. Even some Non Government Organizations (NGOs) do the same thing in order to collect funds by highlighting the country as a dreadfully poor, flood ravaged, pestilence and means there is nothing to be in a country to consider as a tourist destination. As a result, many foreigners do not choose Bangladesh as a tourist destination because of either they don’t have enough idea about the country and its tourism attractions and facilities or what they have is negative. To some extent, it may be partially true but is not the fact as a whole. Once someone visits the country his/her perceived image is changed. So, Bangladesh tourism should emphasize first on its promotional measures to correct this negative image. But it is not only the issue to be solved by Bangladesh tourism authority; it requires the government’s initiative as a whole and the Bangladesh Mission offices abroad have a major role in this regard. As Bangladesh tourism industry has not enough funds to use to international media for correcting this negative image, it should emphasize on the printed materials and to distribute it to the potential tourists through different airlines, foreign tour  operators and foreign mission abroad etc. 
II. Ensuring the Security of the Tourists
Security at the destination place is considered as one of the major factors for the foreign tourists. Because of every tourist gives the high priority on security to select a foreign country as a tourist destination. Therefore, the question of adequate security to the tourists during their visit is also very important (Nurunnabi, 1995).  The tourists need to be fear free in visiting a place especially when it is outside their home country. The government of Bangladesh should improve the security in the major tourist areas with a view to correct Bangladesh’s tarnished image. Any sort of risk and uncertainty related to the destination will lead the tourists not to select that particular destination. Promotional measures can remove these sorts of fear, risk, harassment or cheating. 
III. Use of Information Technology in Promotional in Promotional Activity
The recent change and progress in information technology have a revolutionary impact on tourism industry. Because of travel and tourism-related products and services are highly compatible with the Internet and the rapid growth of the Internet is having an impact on the distribution of travel services and has heightened speculation about the potential for disintermediation of the travel agent (Bennett and Lai, 2005).  Again, the international tourism system is dependant on information technology for its future growth, competitiveness and long-term survival - particularly in terms of tourism marketing and distribution (Morgan et al, 2001).  It is considered that who are able to access more information and make use of it are likely to be the winner in the competitive environment. In promoting the tourism industry of any country, the Internet can play the leading role to facilitate information exchange internationally. In addition to that World Wide Web (WWW) is the most popular application on the Internet which can be used effectively for the many purpose of tourism marketing including direct sales, advertisement, customer support, etc. Bangladesh tourism authority must consider the effective use of this technology for the promotional activity of this industry. It is worth mentioning here that though BPC has its own web page, it should be well designed containing all the necessary information. 
IV. Promoting to Some Specific Regions as Bangladesh
 tourism is at the early development stage, the country should target a specific number of countries from where the country can generate more tourists rather than targeting the whole market areas. At least by targeting five more prospective tourist generating countries, the country can undertake more promotional activities to those countries so that a larger number of tourists can be attracted. Even to those countries, Bangladesh can launch heavy promotional activities by using different tools of promotion. If the industry wants to attract more foreign tourists, it needs to publish some creative advertisement in some specific travel guides, magazines, and specialized professional journals that the potential tourists, overseas tour operators, travel agents, and travel writers read (Hossain and Firozzaman, 2003).  The authors described that tourist customers are more likely to respond to the creative advertising message projected through specialized and appropriate media vehicles. Then they urged that that the extent of success in appealing to a particular market segment or encouraging them to visit the destination(s) depends upon the right choice of advertising media and thus the choice of media is an important decision for the marketers of the tourism industry.
V. Allocation of more Promotional Funds      
Bangladesh don’t have that level of capability to compete with the world’s top tourist generating countries, but it has the capability to compete with the member countries of SAARC or at least some other small countries of SAARC except India. To compete with these countries, needs to conduct more promotional measures. But what the amount is allocating presently for this purpose is not sufficient. Though the country has not enough financial capabilities, but it can easily increase it promotional budget up to 4 or 5 percent of it total earnings from this sector. In addition to that the authority should have a plan for the effective use of the promotional budget. Because of it will again help to increase the earnings by attracting more tourists.  
VI. Use of Foreign Tour Operators to Promote Bangladesh as a tourist Destination
Foreign tour operators can play an important role to in motivating the potential tourists to a specific tourist destination. BPC and the private tour operators of Bangladesh can maintain the contact and liaison with the foreign tour operators and to influence them to send more tourists to Bangladesh. Even foreign tour operators can be used to distribute the brochure, souvenirs, and tourists’ maps of Bangladesh tourism. For this purpose they need to have some incentives. Bangladesh can sell package tours through foreign tour operators where they receive a handsome amount of discount.    
VII. More Discounted Offer for a Group Tour and Long Stay
Bangladesh can attract more tourists by offering more discounts on group tours and long stay visits.  For example, discount on air tickets, hotel rents, discounted price of local transport arranged by the tour operators etc. National airlines have a major role in this regards. Since the position of the national airlines of Bangladesh is not so good, the country can make the mutual arrangement on some selected international airlines. In addition to that the tourism authority should offer more off-season discounts, students discount, SAARC tour rebate etc to motivate the potential tourists to visit Bangladesh. At the same time, steps should be taken to attract the local tourists to travel more in a number and frequent visit of different tourism spots of the country.



VIII. Cooperation among the Neighbouring Countries is needed
The SAARC countries can co-operate each other for the development of tourism in this region. Each country can be benefited through building and maintaining a meaningful cooperation among the SAARC countries’ tour operators, travel agencies, tourist organizations etc. This region can undertake the promotional activities jointly to identify and highlight the tourist spot of the SAARC countries. Again the bi-lateral co-operation between any two countries of the same region can help both the participants in developing the sector.  
IX. Developing Infrastructure Facilities and Diversified Products/Services
The present infrastructural facilities of tourism in Bangladesh are not up to the standard of international level. There need to develop more hotels, motels, restaurants, and internal transport for the easy access to the spots. At the same time, the tourism authority needs to take the necessary steps for diversify the products or services. For example, introducing new river, lake and sea cruising, Bangladesh can have a bonanza in tourism industry. Before going to advertise in the international media, the country needs to develop these facilities.
X. Encouraging More Private Sector Investment
Bangladesh tourism industry needs for heavy investment in order to develop infrastructure facilities and promotional measures. Since the government is not in a position to fulfil the needs of this heavy investment due to resource constraint, the government should consider promoting private sector investment both from domestic and foreign investors in order to develop and promote the tourism industry in Bangladesh. To encourage the private investment, the government should declare some incentives to the private investors. The incentives like tax holiday for a certain period on their return, tax free import of vehicles for using in tourism, arrangement of loans at a lower rate of interest, providing physical facilities etc. can be considered favourably for this purpose.  A revised tax holiday for the hotel industry will provide incentives for the construction of new units and motivate the tourists to stay longer period (Hossain and Firozzaman, 2003).  The authors emphasized that tax holiday for accomodation units is necessary as the room rent in Bangladesh is very high. In addition to this, the professional tourism institution of learning should be expanded if possible and the private sector should be encouraged to operate with concessions from the government of Bangladesh.
XI. Coordination among the Different Related Sectors
Bangladesh tourism industry needs the coordinated efforts and promotional activities among the parties involved in this industry. Both the government sector and private sector tour operators should take the joint programs in developing the industry. As tourism is a multifaceted industry, there should have some coordination among the tour operators, hoteliers, airlines, local transport authorities and other service provider so that their coordinated efforts can be fruitful. Again, there should have the necessary coordination among the concerned ministries like ministry of Tourism and Civil Aviation, Home, Foreign Affairs, Transport and Health so that the visit of the tourists can be made safer, healthier and enjoyable. 
6.3 Conclusion
The significance of tourism is viewed from many angles like economic, social, cultural, political, etc. Tourism is now the fastest growing and single largest industry in the world. The industry has attained the impressive growth in the world-wide in terms of tourist arrivals and foreign exchange earnings which has led the ever increasing competition among the destination countries and gained the top priority in most of the destination countries. Every destination country is trying to attract more tourists by drawing the attention and growing the interest among the potential tourists through adopting effective marketing strategies. Promotion is an important element of marketing mix and plays a vital role in developing marketing strategies. Because of tourism is a field where the customers/tourists want to know in advance about the attractions and facilities of the destination. Marketers need to provide such necessary information to the prospective tourists through different promotional measures and thus, try to motivate and attract them to the sponsor’s destination. 
Though the growth of tourism is impressive world-wide, the same in Bangladesh is not so. It is not because of lack of eye-catching tourist’s attraction to the destination of Bangladesh, rather it is the result of inadequate promotional measures. Bangladesh failed to market its incredible tourist attractions like world longest unbroken sea beach, covering miles of golden sands, soaring cliffs, surfing waves, rare conch shells, Buddhist Temples, Pagodas and enjoyable sea-food all of which are almost impossible to be found in any where of the other tourist destinations of the world; the world’s largest mangrove forests is formed at the delta of the Ganges, cultural heritage, pristine beauty of the nature etc. and leads to attract an insignificant number of tourists to its destination. The contribution of Bangladesh tourism to the world tourism is very negligible. Even the position of the country among the SAARC countries is at the bottom line. It holds the position just above the position of Bhutan. As a result, the contribution of tourism in the economy of Bangladesh is very insignificant. 
The existing literatures also show that Bangladesh tourism fails to attract more tourists and not succeeded in developing the sector up to its expectation mainly due to inadequate promotional activities. Though the international media can be effective for drawing the attention of the potential foreign tourists but it is expensive to use the same for promoting the tourism in Bangladesh. As the country has the fund constraint, it has to depend on the local media and on some low qualitative printed materials to promote the sector which do not result positively to achieve the goal from this industry. The use of information technology in promoting Bangladesh tourism is very negligible. The web page presently used by Bangladesh Parjatan Corporation is not well-designed and attractive and cannot disseminate all the necessary information to the prospective tourists.   
Bangladesh tourism also needs to attempt more promotional activities to cope up with the present competition among the destination countries. The country can arrange the more tourist fairs with in the country to attract local tourists and also the foreigners who are already living in Bangladesh. Advertisement in the local newspapers and the distribution of different printed materials related to Bangladesh tourism may help to serve the purpose. In addition, participation in the international tourism fairs, distribution of different types of high quality printed materials among the potential foreign tourists; advertisement in some of the international newspapers covering at least the major tourists generating countries to Bangladesh etc. can be more fruitful for the promotion of the same in Bangladesh. The foreign mission offices abroad of Bangladesh can take the initiatives for encouraging the people to visit Bangladesh. The mutual arrangements with some selected foreign tour operators and providing them incentives can produce more positive result in attracting tourists to the destination of Bangladesh.
Since the potential tourists need the information regarding the destination’s attraction and facilities in advance, uses of information technology can help to a greater extent to disseminate the information among the prospective tourists. Bangladesh tourism can take the initiatives to update its present web page in a well-designed form so that the prospective tourists can get all the necessary information from the page easily. There should have sufficient online facilities so that all bookings related to tourism can be made through online. There should have some attractive offers like discounted air tickets, discount on hotel rent etc for a group visit and for a longer period visit. All these will play the motivational role for the potential tourists to select Bangladesh as a tourist destination.       
6.4. Direction for Further Research

This research was carried out to find out the use of promotional activities in tourism by emphasizing on the context of Bangladesh. It is tough to conduct the research on a vast area like tourism with the time frame allocated for the study. As a result, the tourist opinion from the field survey could not be used. There remains further scope to conduct the study as the replication of the present study. For example, to have in depth picture of the tourists’ opinion they can be interviewed. A comparative study can be done among the cost of visiting the destinations of different regions from the same place of origin. Because of in addition to attractions, the cost for travelling is an important element in choosing the destination place or it can be compared the promotional strategies used by the successful destinations especially the countries in the Asian regions to prescribe the more suitable strategy for the same of Bangladesh.     

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