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The government is considering revisions to the draft Bangladesh Travel Agency (Registration and Regulation) (Amendment)-2025 Ordinance, following concerns that its 100 percent local ownership requirement could discourage foreign investment, officials said.

The draft ordinance, published online for public feedback, aims to curb customer harassment on both online and offline platforms and strengthen governance in the air travel industry. But the proposed full local ownership requirement for obtaining a licence has drawn strong objections from the Bangladesh Investment Development Authority (BIDA), which has sent its observations to the Ministry of Civil Aviation and Tourism.

BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun said the agency has “strong reservations” about the ownership clause.
“We believe the amendment should prioritise transparency and consumer protection. Blocking foreign investment will not achieve that,” he said.
He noted that major global travel companies expanded through foreign investment and Bangladesh should follow a similar path.
“To strengthen accountability and good market practices, we need to encourage FDI,” he added.

Industry groups—including representatives of travel, Hajj, and recruiting agencies—have urged the government to withdraw the draft, warning that thousands of businesses could collapse and millions of skilled workers may be affected.

One of the most contentious provisions is the requirement for all travel agencies to be linked to the IATA ticket-selling platform. Former ATAB president SN Monzur Morshed Mahbub said this condition would immediately disrupt operations for nearly 6,000 travel agencies, 1,400 Hajj agencies, and 2,700 recruiting agencies, as only around 1,000 currently use the IATA platform.

He warned that many of the proposed rules impose disproportionate burdens on small and medium enterprises. These include mandatory submission of family details, CIB loan clearance, annual financial statements, and bank guarantees of Tk 1 million for offline operations and Tk 10 million for online operations. Technological compliance requirements have also raised concerns.

Mr Mahbub added that the draft effectively eliminates the widely used B2B ticketing model by forcing agencies to secure IATA accreditation costing Tk 3 million, plus a Tk 2.2 million security deposit for Biman Bangladesh Airlines tickets—expenses he said are unaffordable for nearly 90 percent of agencies.
He also criticised the ministry for failing to address alleged fraud by online travel agencies in recent years.
“Instead of tackling OTA malpractice, the ministry is placing the burden on general travel agencies,” he said, alleging the proposed ordinance benefits certain groups by altering a law already passed by parliament.

Technology entrepreneurs have also expressed concern. GoZayaan founder and CEO Ridwan Hafiz said restricting foreign participation would hinder innovation and roll back progress made in the digital travel ecosystem.
“Startups like GoZayaan and ShareTrip have attracted more than $20 million in FDI from global markets. This investment brought capital, expertise, and jobs,” he said.
He added that many investors in the travel sector also support fintech, e-commerce, and technology ventures, meaning restrictive policies would hurt multiple industries.
“Restricting foreign ownership will not protect the sector—it will destroy it. If we want Bangladeshi businesses to grow, we must open more doors, not close them,” he said.

The ministry says it is reviewing public feedback and BIDA’s observations before finalising the ordinance.