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Bangladesh’s hospitality industry is entering a new phase of growth, supported by rising business travel, expanding international hotel brands, and improving infrastructure. Despite global economic uncertainties and volatile energy prices, the sector continues to demonstrate resilience, according to Gary Farstad, General Manager of The Westin Dhaka and Sheraton Dhaka.
With more than two decades of international hospitality experience spanning Canada, the Cayman Islands, and Curaçao, Farstad has led several successful hotel transformations through operational excellence, revenue growth, and guest-centric innovation. Before joining Marriott’s Dhaka properties, he served at the Curaçao Marriott Beach Resort, where he achieved a US$2.4 million increase in gross operating profit between 2023 and 2024 while improving brand performance and employee engagement. He is also a recipient of the 2022 ITAC National Business Innovation Award and the Hotel Association of Canada’s 2019 Revenue Performance Team of the Year Award.
In an interview with a group of journalists, Farstad shares his views on Bangladesh’s hospitality industry, tourism potential, policy priorities, and the sector’s future outlook.
Q: How do you assess the current state of Bangladesh’s hotel industry? What impact will the latest national budget have on the hospitality sector?
Gary Farstad: Bangladesh’s hospitality sector has demonstrated remarkable resilience despite global economic challenges. The latest national budget, with its emphasis on infrastructure development, aviation, tourism promotion, and digital transformation, provides a positive foundation for the industry. Policies that encourage foreign investment and simplify business operations will help attract more international visitors and investors, benefiting premium properties such as The Westin Dhaka and Sheraton Dhaka while supporting sustainable industry-wide growth.
Q: How has Bangladesh’s hotel industry evolved over the past three decades?
Farstad: The transformation has been extraordinary. Thirty years ago, the market consisted mainly of a handful of traditional hotels. Today, Bangladesh hosts internationally recognised luxury brands and has emerged as an important commercial destination. Strong economic growth, expanding trade, increased diplomatic engagement, and improved air connectivity have transformed the industry from basic accommodation services into a sophisticated hospitality ecosystem offering world-class experiences.
Q: What is your outlook for the hospitality sector over the next five years?
Farstad: I remain highly optimistic. Growth will be driven by increasing foreign investment, expanding international trade, rising domestic tourism, and a growing middle class with greater spending power.
The industry’s future will largely depend on three key areas: delivering highly personalised luxury and wellness experiences, investing in sustainable and technology-driven operations, and strengthening Bangladesh’s position as a destination for meetings, incentives, conferences and exhibitions (MICE). Combined with the country’s renowned hospitality, these trends will shape the sector’s next phase of growth.
Q: How are global economic uncertainty and energy market volatility affecting hotel operations?
Farstad: Rising energy costs influence everything from international travel to utility expenses and imported goods. Hotels inevitably feel those pressures. However, we are mitigating the impact by investing in energy-efficient technologies, sourcing more products locally where possible, and continuously improving operational efficiency. Our objective is to control costs without compromising the quality of guest experiences.
Q: Can Bangladesh become a major tourism destination in South Asia? What steps are needed to achieve that goal?
Farstad: Absolutely. Bangladesh possesses tremendous untapped potential, with its rich cultural heritage, natural beauty, rivers, beaches, archaeological sites, and warm hospitality.
To unlock that potential, the country should prioritise stronger international destination branding, improved aviation and transport infrastructure, easier visa procedures, sustainable tourism development, and continuous investment in hospitality education and workforce development. These measures would significantly enhance Bangladesh’s global competitiveness.
Q: How can Bangladesh develop a skilled hospitality workforce?
Farstad: People are the heart of our industry. Building a highly skilled workforce requires closer collaboration between educational institutions and the hospitality sector, expanded vocational training, structured internship programmes, and clearly defined career pathways. International hotel brands such as Westin and Sheraton also have an important responsibility to develop local talent through global training standards and leadership programmes.
Q: Hotel room rates in Bangladesh are often higher than in neighbouring countries. Why is that?
Farstad: Pricing reflects the realities of operating in the local market. Hotels face relatively high costs due to import duties on specialised equipment, expensive real estate, energy costs, and the need to maintain rigorous international safety and security standards. Luxury hotels also invest substantially in service quality and guest experience. As more international hotels enter the market and room supply increases, greater competition should gradually create better value for consumers.
Q: What policy measures would help accelerate the growth of the hospitality industry?
Farstad: Continued investment in transport infrastructure is essential. I also believe greater public-private collaboration in promoting Bangladesh internationally, rationalising duties on specialised hospitality equipment, and offering incentives for environmentally sustainable hotel developments would encourage further investment and strengthen the industry’s competitiveness.
Q: Will the expansion of five-star hotels create healthy competition?
Farstad: Certainly. Healthy competition benefits everyone. It encourages hotels to improve service standards, culinary offerings, technology adoption, and operational efficiency. Ultimately, guests receive better experiences, while Bangladesh strengthens its reputation as a premium hospitality destination.
Q: How can the government and private sector work together to boost hospitality and tourism?
Farstad: It requires genuine partnership. The government’s role is to provide enabling infrastructure, ensure safety and security, and promote Bangladesh globally as a destination. The private sector contributes investment, innovation, service excellence, and workforce development. When both sides work towards common objectives, the industry becomes far more resilient and contributes significantly to economic growth.
Q: What lessons can Bangladesh learn from neighbouring countries with successful tourism industries?
Farstad: There is much to learn from regional success stories, particularly in destination branding, infrastructure development, and integrated tourism planning. However, Bangladesh should avoid simply copying others. Instead, it should build on its own unique strengths, including its culture, cuisine, natural landscapes, and the genuine warmth of its people. Authenticity, supported by international service standards, can become Bangladesh’s strongest competitive advantage.
Q: Finally, what is your outlook for the hotel business this year?
Farstad: I am very confident about the year ahead. We are seeing growing demand for personalised luxury experiences, wellness-focused travel, and premium dining. At The Westin Dhaka and Sheraton Dhaka, our priority is to continue raising service standards, investing in local talent, embracing innovation, and delivering memorable guest experiences. I believe Bangladesh’s hospitality industry is well positioned for sustained long-term growth.