The major source of economy of Cox's Bazar district is tourism. Millions of foreign and Bangladeshi natives visit this coastal city every year. A number of hotels, guest houses, and motels have been built in the city and coastal region and the hospitality industry is a major employer in the area. A number of peoples are also involved in the fishing and collecting seafoods and sea products for their livelihood. Oysters, snails, searls and jewelry made from them are very popular to tourists in the seaside and city stores. A number of peoples are also involved in the transportation business for tourists. Many people of this district are farmers.
In 2002, a surfing club was initiated at Cox's Bazar by a local Bangladeshi. It has now extended to hold an annual competition including locals and foreign tourists. This is the first surfing initiative in Bangladesh's history.
After the end of British rule, Cox's Bazar remained part of East Pakistan. Captain Advocate Fazlul Karim, the first Chairman (after independence from the British) of Cox's Bazar municipality established the Tamarisk Forest along the beach to draw tourism to the town and also to protect the beach from tide. He also donated many of his father in law's (Akbar Ahmed Chowdhury, son of Fazlul Karim Kwik of Manikpur) and his own lands for establishing a Public Library and Town Hall. In 1971, the wharf was used as a naval port by the Pakistan Navy's gunboats. This and the nearby airstrip of the Pakistan Air Force were the scene of intense shelling by the Indian Navy during the Bangladesh Liberation War.
In 1984 Cox's Bazar was made a District.
