Bhutan, the Himalayan nation, home to several monasteries, has always attracted travelers from all over the world, until COVID, which had a huge impact on the tourism sector in the country. Now, in a bid to attract international tourists, the Kingdom of Bhutan has decided to reduce its daily tourist fee of $200 (INR 16,509) to $100 (INR 8254). The kingdom has taken the decision to boost the tourism sector which is still waiting and struggling to recover even after a year after the end of COVID-19.
In September 2022, soon after the end of COVID-19 restrictions, Bhutan decided to increase its ‘Sustainable Development Fee’ to $200 per night from $65. The country justified this cost by saying that it would off-set the carbon generated by visitors. But the newly introduced tourist fee only limited the number of tourists to the country.
Now, once again, Bhutan is hoping that the slash in price would increase the number of arrivals. The new tax would come into effect from September and last for four years, the government said in a statement. This is in view of the important role of the tourism sector in generating employment, earning foreign exchange and in boosting overall economic growth.
“While the global community continues to heal from the impacts of the Covid-19 pandemic, the conflict persisting in Europe, and the challenges related to the cost of living that are impacting important markets for us, we have listened to the voices of our valued guests, as well as our colleagues in the industry and our global travel partners,” Dorji Dhradhul, the Director General of the Department of Tourism Bhutan, said.
“As a result, we have taken the decision to temporarily lower our Sustainable Development Fee (SDF) with the aim of revitalising our tourism sector. Similar to our nation itself, our approach to our tourism policy stands out for its uniqueness. We acknowledge the necessity of embracing change and occasionally refining both our policies and strategies to better match prevailing market conditions. The lower SDF represents a great opportunity for more people to visit our beautiful kingdom in the future, which will benefit our people as well as the many projects that are funded by the SDF.”
Dhradhul also informed that reducing the fee could boost arrivals in the September-December peak tourist period. He also said that over 56,000 tourists had visited Bhutan since January. Among these, about 42,000 were Indians, who only had to pay a fee of INR 1200 ($14.5) per day.
For the uninitiated, Bhutan remained isolated for many years and generations. It was only in 1974 that the country opened to tourists and received 300 visitors. But by 2019, this number touched 315,600, as per official data.
The reduced tourism levy hopes to provide a boost in attendance at the upcoming Royal Highland Festival, which will be held from October 23 to 24, 2023 at Laya in the Gasa district. The festival, which is held at 4,000m above sea level, aims to celebrate, promote and preserve the life and culture of the nomadic highland people of Bhutan, support their economy, exhibit the beauty and wonders of the highlands, and laud their resilience.
