Travel industry leaders have warned that a proposed ordinance requiring online agencies to deposit TK 1 crore could force thousands of businesses to shut down, leaving hundreds of thousands unemployed.

At a press conference on Saturday at a capital’s hotel, S. N. Monjur Murshed (Mahbub), former President of the Association of Travel Agents of Bangladesh (ATAB), slammed the draft Travel Agency Registration and Control Ordinance–2025 as a threat to the sector's survival.

Controversial draft requires offline travel agencies to maintain a security deposit of TK 10 lakh, whilst online agencies must deposit TK 1 crore in a scheduled bank.

"Nearly 6 thousand travel agencies, 1,400 Hajj agencies, and 2,700 recruiting agencies across the country will be at risk of losing their businesses," Murshed warned.

Proposed amendments also ban agencies from buying or selling tickets to other travel agents and prohibit ticketing operations from agency premises unless conducted as designated agents. Family members owning agencies must disclose registration details, passport numbers, and bank accounts, whilst Credit Information Bureau clearance becomes mandatory.

Murshed criticised the government's response to recent fraud scandals involving Online Travel Agencies (OTAs) that embezzled hundreds of crores.

"The ministry did not take any initiative, as a result of which these fraudulent businesses found the opportunity to siphon money and escape overseas," he said.

Industry leader appealed for dialogue, warning that except for a handful of large agencies, most will be forced to close.

"Let the new law not become a tool to shut down our businesses, but rather a framework to build a fair, sustainable, and well-regulated travel industry," he concluded.