DHAKA: Japanese investors have announced plans for an initial investment of $1.2 billion in Bangladesh’s tourism and hospitality sector, signaling potential new opportunities for foreign investment in the country’s tourism industry. The announcement was made during a meeting with Civil Aviation and Tourism Minister M. Rashiduzzaman Millat at the Bangladesh Secretariat on Sunday afternoon.

According to a ministry press release, the Japanese delegation expressed strong interest in investing in Bangladesh’s tourism industry and working with the government to develop tourism infrastructure and hospitality facilities. Welcoming the initiative, Minister Millat assured the investors of the government’s cooperation, saying necessary steps would be taken once formal investment proposals were submitted.

The minister said the government was keen to attract foreign investment through mutually beneficial public-private partnerships (PPPs), ensuring positive outcomes for both investors and Bangladesh. Highlighting the country’s tourism potential, Millat pointed to the Sundarbans, the world’s largest mangrove forest, Cox’s Bazar’s extensive natural sea beach and the scenic tea gardens of Sylhet. He said international investment, alongside improvements in tourism infrastructure and services, could help unlock the sector’s potential.

Describing Japan as a longstanding development partner, the minister highlighted its contributions to Bangladesh’s major infrastructure projects. He expressed optimism that Japanese investment and expertise could support the growth of the country’s tourism industry. Millat also instructed the relevant authorities to arrange visits for the Japanese delegation to potential tourism destinations so they could assess investment opportunities.

A delegation from the Bangladesh Tourism Board (BTB) is expected to facilitate visits to prospective sites and help investors identify suitable projects. The Japanese representatives reaffirmed their interest in building a long-term partnership with Bangladesh in tourism and hospitality. The proposed $1.2 billion investment will move forward for consideration once the investors submit formal proposals to the government.

DHAKA – Bangladesh is poised to unlock the long-delayed third terminal of Hazrat Shahjalal International Airport (HSIA) as fresh negotiations with a Japanese consortium enter a decisive phase following submission of a revised, lower-cost proposal.

A high-level senior official of the Civil Aviation Authority of Bangladesh (CAAB) told BSS today that the consortium has addressed Dhaka’s concerns by recalibrating its financial offer, particularly on service charges, operational control and revenue-sharing issues that had stalled earlier discussions.

The latest progress follows series of segment-wise technical meetings held at CAAB headquarters on Monday and Tuesday, where both sides reviewed pricing and operational components in detail, signalling a shift from policy-level dialogue to final-stage negotiations.

CAAB Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq today briefed the outcomes of the technical meetings to Civil Aviation and Tourism Minister Afroza Khanom Rita and state minister M Rashiduzzaman Millat at the secretariat today.

The CAAB official said that the second high-level meeting is scheduled for April 3 at the Ministry of Foreign Affairs, expected to determine the fate of the deal.

The Bangladesh side will likely be represented by Foreign Minister Dr Khalilur Rahman, Civil Aviation and Tourism Minister Afroza Khanam, Prime Minister’s Foreign Affairs Adviser Humayun Kabir, State Minister M Rashiduzzaman Millat and State Minister for Foreign Affairs Shama Obaed Islam, among others, official sources said.

The CAAB official indicated that the meeting could be decisive, with expectations that a final agreement may be reached shortly after. “A final agreement is expected to be reached next week following the April 3rd meeting,” he added.

The third terminal over 99 percent complete has remained non-operational for years due to unresolved management and operational arrangements. Industry insiders have widely criticised the delay, attributing it to policy indecision and rigid positions under the previous interim administration, which left a major national asset idle. Momentum shifted after Prime Minister Tarique Rahman directed authorities to resume negotiations immediately after the new government assumed office, prioritising a practical, outcome-driven solution.

That directive led to the March 13 breakthrough meeting chaired by foreign minister with attendance of Civil Aviation and Tourism minister and state minister, where Bangladesh formally requested a revised proposal from the Japanese side.

The Japanese consortium comprising – Japan Airport Terminal Company, Sumitomo Corporation, Sojitz Corporation and Narita International Airport Corporation – has since submitted a revised offer with reduced pricing, significantly narrowing differences.

Officials said the new proposal reflected greater flexibility and created a pathway towards a “win–win” agreement. The terminal project itself was largely financed by the Japan International Cooperation Agency (JICA) and constructed at an estimated cost of Taka 21,398 crore. Spanning around 542,000 square metres, it is designed to handle an additional 12 to 16 million passengers annually along with nearly 900,000 tonnes of cargo.

The delay in operationalising the terminal has had tangible consequences. Airlines continue to face congestion, slot constraints and operational inefficiencies at existing facilities, while passengers endure overcrowded terminals and reduced service quality.

With revised pricing now on the table and high-level political engagement intensifying, officials said the process has entered its final stretch. Former CAAB chairman Air Vice Marshal M Mafidur Rahman said activating the third terminal is critical not only for easing pressure at Dhaka airport but also for positioning Bangladesh as a regional aviation and logistics hub in South and Southeast Asia.

If the April 3 meeting delivers consensus, Bangladesh could finally bring one of its most significant aviation infrastructure projects into operation marking the end of years of delay and the beginning of a new phase in the country’s aviation expansion, he added.