Tour operators get opportunity to sell foreign travel packages in Taka

Designated tour operators can now sell foreign travel packages to Bangladeshi tourists in Taka. Bangladesh Bank has extended this facility to tour operators who are members of the Tour Operators Association of Bangladesh (TOAB) . Under the new system, the package price for foreign travel can be collected in Taka from Bangladeshi citizens residing in the country. Later, authorised banks can remit the required foreign currency to the respective foreign tour operators, hotels or other service providers.

The central bank issued a circular on Sunday regarding this matter. Stakeholders believe that the new directive from Bangladesh Bank will somewhat simplify the currency exchange process and separate foreign exchange management for Bangladeshi tourists travelling abroad.

According to the central bank's directive, TOAB member tour operators who have agreements or business arrangements with foreign tour operators, hotels or destination management companies will be eligible for this facility. After ensuring actual travel services such as accommodation and transport abroad through these establishments, the equivalent amount of foreign currency can be remitted overseas.

Under the new system, there is scope to remit up to a maximum of $3,000 per calendar year per tourist outside of the regular annual travel quota. This means that, subject to certain conditions, a Bangladeshi tourist can purchase a foreign travel package in Taka from a tour operator, and banks can remit foreign currency to pay for the actual services included in that package.

Tour operators will be required to maintain complete records of transactions under this system. Transaction details must be kept against each tourist's passport number. Additionally, a declaration must be obtained from the tourist confirming they have not exceeded the annual limit through another tour operator.

However, Bangladesh Bank has also provided an alternative for travel packages exceeding $3,000. For such packages, the payment must be collected in foreign currency through international cards. In this case, authorised dealer (AD) banks can provide acquiring services, allowing payment for higher-value travel packages through legitimate banking channels.

The central bank has placed special emphasis on verifying documents before remitting payments to foreign service providers. Before each remittance, the relevant invoice, contract with the foreign entity, detailed itinerary, list of travellers and proof of receiving payment in Taka from the tourist must be verified. This means remittance will not be allowed merely based on claims of selling packages; proof of the actual existence of the travel services and financial transactions will be required.

Furthermore, AD banks must submit detailed reports of the relevant transactions to Bangladesh Bank within seven days of making the remittance. This will ensure that the sale of foreign travel packages and the corresponding foreign currency remittances remain under centralised monitoring.

Business stakeholders have welcomed Bangladesh Bank's initiative. According to them, customers previously faced various complications in collecting and making payments in foreign currency when purchasing foreign travel packages. The opportunity to pay the package price directly to tour operators in Taka will make transactions easier and more transparent for customers.

Stakeholders also believe that this new system could further institutionalise the country's outbound tourism sector. At the same time, if the sale of foreign travel packages through tour operators increases, business transactions will come under the banking system and foreign exchange management will become more systematic.

The central bank's decision provides ordinary travellers with an easier payment system while also potentially expanding the business scope of legitimate and registered tour operators. However, to avail the facility, conditions including TOAB membership, agreements with foreign service providers, adherence to the specified foreign currency limits and proper record-keeping must be met.