A more inclusive investment policy, bolstered by targeted tax incentives and a strategic push for planned resort development, could unlock the vast tourism potential of the Chittagong Hill Tracts (CHT), experts and officials have suggested.
At the same time, they also stressed the need for preserving its ecologically fragile and culturally rich landscape.
They argue that by revisiting current restrictions and encouraging genuine non-tribal participation, Bangladesh could attract sustainable, well-regulated tourism investment to the region.
Currently, the tax regime favours only indigenous communities, offering them full income tax exemptions on economic activities, including tourism.
"This is a longstanding waiver, but non-tribal investors cannot benefit from it unless they get special permission from the National Board of Revenue (NBR), which is hardly granted," said a tax official at Chattogram Zone-1. "It's a tax policy matter."
Non-tribal investors must obtain rare special permissions from the National Board of Revenue (NBR), discouraging broader participation and slowing formal sector development.
Experts believe extending the benefit under proper regulation would promote transparency, environmental stewardship, and local economic uplift.
But barriers extend beyond taxation. Legal constraints on land ownership and the prevalence of informal construction have created an unregulated boom in eco-resorts, often harming biodiversity and violating the spirit of the 1997 Peace Accord.
As tourism interest in destinations like Sajek Valley and Boga Lake surges, the absence of planning is triggering environmental degradation and raising concerns about long-term sustainability.
However, the system is not immune to abuse. Mr Prodip Kumar Mahottam, Additional Secretary at the Ministry of Chittagong Hill Tracts Affairs, said there have been instances where contractors working on local development projects have exploited tax waivers through proxy ownership or false claims.
"The NBR should scrutinise such cases carefully, but there's definitely room for reform to support genuine investors," he said.
Further complicating the investment landscape are restrictions on land ownership. Under provisions of the 1997 CHT Peace Accord, non-tribal Bangladeshis are barred from purchasing land in the region in order to protect the values, culture, and rights of indigenous populations.
Some local investors have secured term leases, typically for 10 years, or entered into informal partnerships with tribal landowners to build eco-resorts and lodges.
These ventures, often unplanned, are degrading the environment and threatening local biodiversity.
Despite the hurdles, tourism development has progressed in pockets, often in an unregulated and haphazard manner.
Poorly planned hotel and housing construction, especially around popular destinations such as Boga Lake and Sajek Valley, has sparked serious environmental concerns.
Kabir Uddin, Country Focal Point for ICIMOD (International Centre for Integrated Mountain Development), has warned of ecological consequences.
"Hill areas are highly fragile and sensitive to both climate change and human activity. Construction without planning reduces arable land, disrupts ecosystems, and threatens local food security," he said.
This uncontrolled growth risks are undermining both the environmental and cultural values of the region, ironically the very assets that make it so attractive to tourists.
Recognising these issues, the Bangladesh Investment Development Authority (BIDA) has expressed its willingness to facilitate investment in the CHT, provided that it aligns with environmental sustainability and legal frameworks.
"We are aware of the sensitivities of the CHT. There is a divisional committee headed by the Chattogram Divisional Commissioner, and "we've asked them to promote responsible investment," said Md Muzib-Ul-Ferdous, Director General of Local Investment Promotion at BIDA.
"If there are genuine investors committed to planned and sustainable development, we are ready to support them."
He emphasised that the BIDA will work within the rules and values that govern the CHT while preserving the region's biodiversity and heritage.
Jasimharoon@yahoo.com
