Metropolis Report-
Foreign tourists claim that five-star hotels in Bangladesh are demanding Tk115 for every dollar, which is against the regulations imposed by the Bangladesh Bank.
Several international tourists to Bangladesh have reported that certain hotels only accept payments in taka and won’t accept dollars. According to the tourists, the hotel management turned down their request to take dollars for online hotel reservations.
For instance, a foreigner reserved a room at a 5-star hotel in Gulshan last week. He intended to use his credit card to make a $1 payment. However, the motel wouldn’t take dollars as payment.
The hotel insisted on only accepting taka, at a conversion rate of Tk115, despite initially quoting accommodation rates in dollars. The foreigner reflected on his experience and remarked that compared to a few months previously, he had to spend an extra Tk7,000 for the same hotel. He claimed that he routinely travels to Dhaka for business.
The 5-star Renaissance Dhaka Gulshan Hotel’s booking agent acknowledged overcharging for dollars when he was approached on behalf of a customer. He claimed that although the hotel typically accepts dollar payments, it will convert dollars at a rate of Tk115 for customers who wish to pay in taka.
The hotel did, however, state on its website that “All payments are required to be made in the local currency – BDT – according to the hotel’s currency conversion rate.”
A Bangladesh Bank official who requested anonymity informed The Business Standard that banks are exchanging or purchasing dollars at the highest rate of Tk109. By adding Tk1 to the bank’s exchange rate for dollars, money changers can buy or sell dollars.
“Hotels are only permitted to purchase dollars as a form of currency. As a result, their maximum rate per dollar is Tk110. However, neither local nor overseas clients are subject to any regulations regarding the conversion rate. It would be a blatant breach of the regulations if hotels charged more, he said.
The chief financial officer (CFO) of a five-star hotel, however, told TBS that these conversion rates are typical around the globe. The price of a dollar is currently Tk112–Tk113 in Bangladesh’s curb market. The value of the dollar is also changing in the market.
“In light of the unstable dollar market, we thus charge the dollar rate of Tk115. Not only do we charge the same amount, but so do other 5-star hotels in Bangladesh” he claimed.
He responded that each hotel sets its conversion rate when asked how this rate is fixed.
“The Bangladesh International Hotel Association (BIHA) does not fix it. But occasionally, we talk about the conversion rate among ourselves”. He added that we don’t need to get the Bangladesh Bank’s consent.
He also claimed that food and room rent account for 96% of a hotel’s revenue. As a result, by charging a greater conversion rate for dollars, hotels with higher rates can boost their revenue by 4.5 percent.
The Westin Dhaka and Sheraton Dhaka’s parent firm, Unique Hotel & Resorts PLC, is run by Shakawath Hossain, who acknowledges accepting Tk115 per dollar. BIHA’s standing committee on planning and development co-chairman Hossain said to TBS, “We are receiving dollar payments from the clients. On the other hand, anyone can pay in taka. As a global hotel, we often list our rent and menu rates in USD.
Other hotels, on the other hand, take both taka and dollar payments and adhere to the regulations. For instance, both currencies are accepted at the five-star InterContinental Dhaka, a state-owned hotel. The hotel’s reservation service reports that the exchange rate for dollars is Tk110.
The executive director and spokesperson for the Bangladesh Bank, Md. Mezbaul Haque declined to comment on the situation.
Institutions that disobey the dollar rate guideline are frequently punished by the central bank. The central bank has cautioned and penalized many banks for transacting in dollars at a rate greater than the set rate throughout the course of the previous year.
The central bank and law enforcement agencies conducted multiple raids on money changers who were charging exorbitant fees as the dollar crisis began in April 2022. 42 firms were charged in the raids for various dollar trading infractions, and five firms had their licenses suspended.
