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Famous for Happiness, and Limits on Tourism, Bhutan Will Triple Fees to Visit

As Venice and other European hot spots explore permit systems and daily fees to limit the number of tourists, the tiny Buddhist kingdom will require a $200 tax on international visitors when it reopens this fall.

By Ceylan Yeginsu

• July 5, 2022

The tiny Buddhist kingdom of Bhutan on the eastern edge of the Himalayas, often referred to as “the last Shangri-La” for its abundance of natural beauty, sustainable development and rich cultural heritage, has long resisted the quick financial returns of mass tourism in favor of conservation. The approach is aligned with a cultural philosophy where the country’s wealth and prosperity is measured, through a national happiness index , as an alternative to the gross domestic product.

Since 1974, the year when foreigners were first permitted to visit Bhutan, the country has had a unique “high value, low volume” tourism policy , requiring international visitors to pay at least a daily rate of $250 that covered accommodations, meals, a mandatory tour guide and included a $65 “sustainable development fee” to the government. The package-like approach was aimed to preserve the natural resources of the country by limiting the number of international visitors and controlling where they went. While some tourists complained of poor hotel plumbing, slow internet access and bland food, many appreciated the ease of the predetermined tours.

Now as the government of Bhutan prepares to reopen its borders on Sept. 23, it has overhauled the tourism system and will significantly raise the cost to visit. Visitors no longer need to be on a package tour, but they will now have to pay a $200 daily fee directly to the government, and pay separately for their accommodation, meals, tours and other travel expenses. The new policy, officials say, will rebrand Bhutan as “an exclusive destination,” attracting “discerning tourists” who will have access to a wider range of higher-quality services.

“Covid-19 has allowed us to reset, to rethink how the sector can be best structured and operated, so that it not only benefits Bhutan economically, but socially as well, while keeping carbon footprints low,” said Dr. Tandi Dorji, Bhutan’s foreign minister and chairman of the Tourism Council of Bhutan. “In the long run, our goal is to create high-value experiences for visitors, and well-paying and professional jobs for our citizens. ”

But many tour operators express anxiety over the change. They are worried that the new structure will leave them without any business — uncertain whether they will be able to attract a sufficient number of tourists with the higher fee, or if tourists will even require their services at all, now that they will have the option to book directly through hotels, tour guides and the like.

“Just when we thought we were seeing the light at the end of the tunnel after two-and-a-half years of being out of business, the government’s tourism amendment bill has thrown us back in the darkness and we have no idea how to go about it,” said Pelden Dorji, the chief executive officer of the Bhutan Travel Club, a company that specializes in adventure travel experiences.

Mr. Dorji has already received cancellations from groups that had booked, but not paid for, packaged trips they had scheduled later in the year. He said the group members felt that they could not justify paying an additional $200 a day on top of the other expenses that had been agreed upon as part of the previous package deal.

‘Deep love and respect for nature’

Under the previous policy, all bookings and payments had to be made through registered local tour operators, who were required to organize a prearranged itinerary with fixed dates and overnight stops.

“It’s basically a package tour that lets you see an authentic, untouched corner of paradise while protecting itself from being invaded by tourists,” said Megan Petersen, 44, a London-based makeup artist who visited Bhutan in 2017. “It’s genius and places with overtourism problems should use the same model.”

Ms. Petersen spent eight days exploring Bhutan with her sister, trekking through forests and mountain meadows, hiking to cliff-side temples and meeting local communities in remote villages. Throughout their trip, they camped and stayed in basic three-star accommodations. Everything was included in their package.

“The lodges and food were pretty average, but that just added to the experience of being able to experience the real community and culture without the fake tourist treatment,” Ms. Petersen said. “What makes Bhutan so special is the kindness and spirituality of its people and their deep love and respect for nature and their land.”

Government officials say the previous policy discouraged additional out-of-pocket spending, as many travel agents would assemble their trip activities, food and other offerings to not exceed the $250 daily rate — the practice effectively turned the policy’s minimum rate into the maximum.

“The policy caused more misunderstandings than understanding and it has resulted in lowering the services that we are potentially able to offer,” said Prime Minister Lotay Tshering.

Under the revised tourism bill, which was passed by the Bhutanese parliament last month, Bhutan will be able to reinvest “in bringing up the quality of tourism products, especially in terms of training our guides, bettering the quality of our hotels, restaurants and food, while preserving the pristine environment that we have for generations to come,” the prime minister said.

One of the government’s main priorities, Dr. Tshering said, is to invest in waste management infrastructure and protect Bhutan’s biological corridors, nature parks and main cultural assets. Bhutan’s constitution mandates that 60 percent of the country’s land must be under forest cover and maintains strict laws to protect and uphold its carbon-negative status.

“This all costs money,” Dr. Tshering said.

‘Why fix something that is not broken?’

While Bhutanese travel representatives had expected some reforms to the country’s tourism policy, the threefold increase to the government’s sustainability tax came as a shock, with many fearing that the new model will turn tourists toward cheaper destinations at a time when the country is desperate for tourism dollars to boost its post-pandemic recovery.

Tourism revenue is a key contributor to Bhutan’s economy, making up 6 percent of the country’s gross domestic product. Some 29,000 tourists visited Bhutan in 2020 before the borders were shuttered in March of that year, and generated a revenue of $19 million. In 2019, 315,599 tourists visited, earning the tourism industry $225 million, according to the Tourism Council of Bhutan. The kingdom eased its travel restrictions earlier this year, allowing in foreign visitors on a case-by-case basis and requiring them to quarantine.

Tourism operators argue that the minimum package framework incentivized tourists by including all essential services.

“Everyone is asking, ‘why fix something that is not broken?’” said Lotay Rinchen, co-founder of the tourism company Bridge To Bhutan, Bespoke Mindful Journeys . It “protected the travel industry and ensured a certain level of quality and business,” he said of the prior system.

Mr. Rinchen was always in favor of increasing the price of the minimum fee. But without the requirement of the package structure, he says he anticipates the Bhutan brand will be harder to sell. He has started to explore the possibility of offering luxurious products to lure in tourists willing to pay the higher costs, like chic boutique lodges, wellness retreats and upscale glamping. Previously tourists could pay extra for high-end hotels like the Taj Tashi and Le Meridien Thimphu , but many chose the basic options included in the minimum daily fee package.

“This is not the right timing. Bhutan’s economy is in bad shape, and we had expected to open up tourism and start earning hard currency again, but this price hike will keep tourists away,” said Mr. Dorji of the Bhutan Travel Club, adding that the new model could attract a demographic of older sightseeing tourists who would “skim from one luxury hotel to another, without experiencing the Bhutanese way of life.”

The prime minister said that was not the government’s intention. “We want to make sure that we get a set of tourists who are intellectually high-standing, knowledgeable and conscious of our needs and unique features,” he said.

Elsa Foster, 44, an American personal trainer who lives in Scotland, took a mountain biking tour in Bhutan with a group of friends in 2018. After a day of sightseeing in Bhutan’s capital, Thimphu, they embarked on a seven-day off-roading adventure, cycling through remote mountain valleys and villages. Ms. Foster said it was very practical to have hotels booked by their tour agent as they stayed in a different location each night.

“I really liked how everything was organized and packaged with the old fee system, all you had to do was show up,” she said. “But to pay 200 bucks on top of all the other expenses, you’ve got to be pretty rich and it’s a shame that Bhutan will become inaccessible to young people who won’t be able to afford it.”

The government hopes the new policy will have the opposite effect, attracting a wider demographic. “All we mean is to welcome with a very open heart all individuals and potential visitors who want to visit and experience the uniqueness we have to offer,” Dr. Tshering said. “Then we will ensure that the visitor will get the value of the money that is spent in Bhutan.”

The United States was one of the top tourism markets for the kingdom before the pandemic, behind India and Bangladesh, with 13,016 Americans visiting in 2019 and spending an average of 10 nights, according to the Tourism Council of Bhutan.

Karma Tshering, an environmental conservation and ecotourism specialist, said the government should use the increased tourism tax to meet its sustainability goals, which could include investing in hiking trails, highway amenities and training and support to service providers.

He is worried that without the minimum-spend policy, “which helps our service providers obtain minimum revenue to support their services, our people will be left in the hands of the tourists to negotiate and bring down prices,” Mr. Tshering said, adding that there could be “a chain impact on delivering quality services and high-end experiences.”

Some sectors see an opportunity in the change. Sonam Wangchuk, chairman of the Hotel & Restaurant Association of Bhutan, said the amendment was long overdue and will bring positive change where all hotels and restaurants will have equal opportunity.

“I guess it is now the survival of the fittest, where one now needs to pull up their socks and become a go-getter,” he said. “The old days of business knocking at your door are gone, therefore the harder we work the more promising it will be.”

Chencho Dema contributed reporting from Kansas City, Mo.

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Bhutan revises its tourism policy to redefine High Value Low Volume tourism

Visitors to Bhutan will now have to pay more than triple the previous Sustainable Development Fees (SDF).

The  sustainable development fee (SDF) for visitors to Bhutan has been raised from 65 USD to 200 USD per night . Similarly, the minimum daily package rate (MDPR) has been removed.

Previously, visitors to Bhutan paid 200-290 USD per night, where 65 USD went to the government and the remainder was used for lodging, transportation, and guides. 

The implementation of the new rates will surely reduce the number of international tourists to Bhutan (regional tourists from India pay a different rate). 

The new policy has stirred up some curiosity and displeasure outside of Bhutan. To get a better understanding of the motivations behind the move,  Daily Bhutan  reached out to the Director General of Tourism Council Bhutan (TCB), Dorji Dhradhul for a chat.

The conversation was enlightening. Mr Dorji shared with us that Bhutan is going through a transformation. It’s long overdue, and COVID-19 has given them the opportunity to reset. 11 aspects of the country’s activities are being reviewed, and tourism is just one of them. 

When it comes to tourism, Bhutan realised that they have opened their doors too wide, so they decided to close it a little. 

“The policy has been the same since the 70s — high value, low volume. We don’t want tourists beyond our capacity, and the numbers were manageable over the years."

“But there was a big jump within the past decade. In 2019, we had 315k tourists, nearly double of what we had in 2011. This has asserted pressure on Bhutan as we have a limited number of hotels, roads, and infrastructure."

“It got to a point where overseas tour agencies voiced that they will not be bringing more tourists, as Bhutan is no longer the high-end destination it once was,” Mr Dorji expressed. 

Within that decade, there was an explosion of cheap hotels and homestays. Loans were easy to obtain and laws were lax. The industry became a low-hanging fruit. Anybody with no opportunity in other sectors could just get a tourist licence and become an operator. There are currently 3,500 registered tour operators and counting, and more than 4,000 registered guides. There is an oversupply of guides and operators. 

Corruption reared its ugly head too, with agents undercutting prices, operators trying to circumvent regulations, and various parties evading taxes. 

Mass tourism has sidelined the Bhutanese communities, damaged the environment, and hijacked the local culture. Monasteries became crowded, disrupting the activities of the spiritual seekers. Worse still, loud music and unruly behaviour became commonplace at religious sites.

Now, where grocery stores used to sit are souvenir shops and cafes. The path to  Chimi Lhakhang  spots stalls with more gimmicks than handicrafts. Vehicles and tourists flood Dochula, a nuisance to the pilgrims trying to perform their prayers.  Taktsang (Tiger’s Nest)  was meant to facilitate a spiritual journey but is now full of rushing ponies, loud music, and cheap artefacts.

Bhutanese are welcoming in nature and are comfortable with visitors. But with mass tourism, they started to feel overwhelmed. For instance, the crowding of temples. Bhutanese are religious people with many rituals to perform, many of which are to be done on a particular day. Very often, when they arrive at the site, they discover a crowd of tourists. 

With mass tourism, both the visitors and hosts become the losers

“We want our tourists to have an exclusive experience. As of 2019, we have not been able to do this. It’s high time we returned to our original intentions,” continued Mr Dorji. 

For too long, Bhutan’s tourism sector has privatised profits but socialised losses. A small majority has benefited from the tourism sector while the farmers, who comprise over 50% of the Bhutanese population, receive close to no advantages. 

Meanwhile, Bhutan has a growing carbon footprint from tourism, despite being the only carbon-negative country in the world. This is a worrying trend.

“The priority is for Bhutan to preserve its culture and way of life. If we have to sacrifice tourism, so be it."

“Tourism is like minerals, to be protected for the future generation. The present generation might have to make sacrifices and lose some of our business in the short term, but in the long run, we all benefit,” Mr Dorji said with certainty.

The current goal is simple: to return to the ‘high value, low volume’ principle the country started with. The country knows what needs to happen.

First, they must identify the roles of key tourism stakeholders, streamline the government taxes, and establish pricing that prevents mass tourism. 

Right now, what Bhutan has to do is manage the quality of the travel experience so that both visitors and hosts can reap maximum benefits, a feat the Bhutanese government hopes to achieve with the revised SDF. 

Revised entrance fees for sacred sites in Bhutan

In addition to the increased SDF, tourists are now required to pay an entrance fee when visiting various national monuments or sacred sites.

Visitors entering various national monuments and sacred sites are subjected to an entrance fees. Effective July 12, 2022, below are the sacred sites and entrance fees that visitors required to pay :

Taktsang Monastery : Nu. 2000 (~USD 25) Tashichho Dzong : Nu. 1000 (~USD12.50) Thimphu Memorial chorten : Nu. 1000 (~USD12.50) Changangkha Lhakhang : Nu. 1000 (~USD12.50) Kyichu Lhakhang : Nu. 1000 (~USD12.50) Rinpung Dzong : Nu. 1000 (~USD12.50) Punakha Dzong : Nu. 1000 (~USD12.50) Chimi Lhakhang (Fertility Temple) : Nu. 1000 (~USD12.50)

From September 23, 2022, visitors are required to pay entrance fees for 8 other monuments and sacred sites.

Jambay Lhakhang, Bumthang : Nu. 1000 (~USD12.50) Jantsa Dumtseg Lhakhang, Paro: Nu. 1000 (~USD12.50) Dobji Dzong, Paro : Nu. 1000 (~USD12.50) Rinchending Goenpa, Phuentsholing: Nu. 1000 (~USD12.50) Buddha Dordenma, Thimphu : Nu. 1000 (~USD12.50) Simtokha Dzong, Thimphu : Nu. 1000 (~USD12.50) Trongsa Dzong : Nu. 1000 (~USD12.50) Palden Tashi Choling Shedra, Phuntsholing: Nu. 1000 (~USD12.50)

In order to prevent overcrowding, these monuments and sacred sites will only be opened to the locals on six auspicious dates in the Bhutanese calendar:

5th of the 1st month (Chotrul Duchen) 10th day of the 3rd month (Zhabdrung Kuchoe) 15th day of the 4th month (Saga Dawa Duchen/ Lord Buddha Parinirvana) 4th day of the 6th month (Chokor Duchen/ first sermon of Lord Buddha) 22nd day of the 9th month (Lha Bab Duchen/Descending day of Lord Buddha) 10th day of the 5th month ( Birth anniversary of Guru Rinpoche )

Bhutan set to raise SDF to 200 USD

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Tourism Policy of the Kingdom of Bhutan.

Bhutan announces new tourism incentives - click here to read more

Welcome to Bhutan

In a world that is always on the go, Bhutan provides sanctuary. Here, you can find earthly pleasures: archery and age-old crafts, dishes of home-made cheese and fearsomely hot chillies, breathtaking treks and restorative hot-stone baths.

But there’s another Bhutan, too – the one hinted at by the prayer flags strung across gorges and fluttering on every hillside. It’s where irreverent humour meets deeply held beliefs, and epic landscapes and slow journeys create room for quiet awe. In this Bhutan, you can enhance your well-being, immerse yourself in wonder and embark on exhilarating adventures.

More than 70% forested, and the first carbon-negative country in the world, we’re also planting the seeds of science and tech innovation.

There isn't just one Bhutan to discover; there are many. From storied cities to soaring mountains, the door to the kingdom is open once again to old and new friends.

This kingdom is steeped in history, but our gaze is fixed on the future. This is our moment of evolution.

Guardians of some of the world’s most pristine, wild and sacred places – and of a rich, deeply rooted culture – we are steadfast as the cypress in our commitment to conservation., our future requires us to protect our heritage and to forge fresh pathways for forthcoming generations., those who seek us out are called here. arriving as guests, you become our partners in this transformative moment and make a meaningful contribution towards preserving what is priceless., we see a bright future. and we believe in our ability and responsibility to realise it together, and shine as a beacon of possibility in the world., elevated values, bhutan believes.

From our reopening on September 23rd, visitors to Bhutan will make an active contribution to Bhutan’s economic, social and cultural development. The Sustainable Development Fee (SDF) enables investment in transformative programmes that preserve our traditions, protect our heritage and environment, upgrade infrastructure, create opportunities for our young people, and build resilience. 

Bhutan has recently announced incentives for longer stays in Bhutan. Click here to read more.

Short distances long journeys

Matsutake picking

Hot-stone bath

Snowman Race

Bird watching

Trans Bhutan Trail

Helicopter services

Laya-Lingzhi Trek

Phallus shop

Butterflies

Rhododendrons

Fiddlehead fern

Punakha Dzong

Samuh and Shangreela

Traditional architecture

Mask-making

Trongsa Dzong

Hydro-power

One of the world’s most sought-after, and expensive, mushrooms, the matsutake draws fungi fans from around the globe to Ura and Genekha. These tranquil villages are now the unlikely epicentre of a mushroom-powered transformation, attracting visitors from far and wide keen to try their hands at finding the matsutake on our forested mountains, and to sample their rich culture and gentle pace. The Matsutake festivals in August are a perfect time to visit, giving you the chance to pick and taste these marvellous mushrooms, as well as a rare opportunity to enjoy mask dances and local food.

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How Bhutan aims to balance economy and environment through tourism

Bhutan is already 72% carbon negative, meaning it absorbs more carbon dioxide from the atmosphere than it produces. Image:  Pexels/Soonam Wooeser

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Stay up to date:, travel and tourism.

• Bhutan, a tiny Himalayan kingdom known for its pristine environment and sustainable development, will cap tourist numbers at 200,000 a year from 2023 to protect its natural resources and fight climate change.
• The move is part of the country's efforts to become carbon neutral by 2025.
• Bhutan is already 72% carbon negative, meaning it absorbs more carbon dioxide from the atmosphere than it produces.
• The government said the cap would be enforced through a quota system, with each tourist paying a daily fee of $250. The money will be used to fund conservation and development projects.

In the scenic Himalayan kingdom of Bhutan, cleaning squads patrol forests and mountain trails on the lookout for litter left behind by tourists, removing empty water bottles and crisp packets stuck in bushes and trees.

The money to run these teams comes from a tourist tax Bhutan has levied for decades to avoid over-tourism and preserve its status as South Asia’s only carbon-negative country - meaning it absorbs more emissions than it produces annually.

Bhutan halved the daily “Sustainable Development Fee” (SDF) - to $100 - last week as it strives to strike a balance between supporting the local economy and jobs, and protecting nature and the environment in the face of worsening climate change impacts.

Under the country’s principle of “high-value, low-volume” tourism, Bhutanese officials told the Thomson Reuters Foundation that the tax goes towards upgrading infrastructure, preserving natural and cultural treasures, and investing in electric transport to cut fossil fuel dependency.

While the tiny country of fewer than 800,000 people is currently in the spotlight, it is far from alone in this regard.

A 2018 report by the Intergovernmental Panel on Climate Change found we have until 2030 – just 11 more years – to avert climate change.

The run-up to 2020 is a crucial period for delivering sufficient climate action to limit global warming to 1.5°C, as countries move to expand their climate commitments.

To help meet this global challenge, the World Economic Forum's 2019 Sustainable Development Impact summit has made Accelerating Climate Action one of four focus areas.

Following the UN Secretary-General’s Climate Action Summit this month, this meeting will bring together stakeholders to cap global warming at 1.5°C through innovative partnerships and smart technologies. The action areas include heavy industries and transport, energy innovation, nature-based climate solutions, restoring ocean health and the role cities, among others.

As nations globally seek to revitalise their tourism sectors after the COVID-19 pandemic, there is growing debate about how best to attract more visitors and boost revenues without causing overcrowding and fuelling pollution and harm to the environment.

Sustainability experts said the traditional approach of evaluating tourism through visitor numbers alone was outdated and damaging to the sector, and urged governments to consider ways of welcoming people for longer and more-considered stays.

“(A) sustainability fee is one of the ways to ensure a destination does not degrade,” said C.B. Ramkumar, vice chairman of the Global Sustainable Tourism Council, a U.S.-based non-profit. “It is a good tool for conservation.”

While many countries and cities have some form of tourist tax, few places have followed Bhutan’s lead in ensuring that the cash goes towards conservation or sustainability efforts.

New Zealand in 2019 introduced a NZ$35 ($21) tourist tax to fund conservation and infrastructure projects, while Indonesia’s holiday island of Bali is to impose a 150,000 rupiah ($10) fee from 2024 to help preserve its culture and environment.

Using the tourist tax to boost conservation efforts

Tourism is responsible for around 8-11% of global greenhouse gas emissions - mostly due to transportation - according to the World Travel and Tourism Council (WTTC), an international forum.

It is also among the most vulnerable sectors to the impacts of climate change, with researchers citing soaring temperatures and rising sea levels that can affect visitor numbers.

For example, about 20,000 foreign tourists were evacuated from the Greek island of Rhodes in July, where a wildfire burned resorts and hotels. Greece has said it will offer a week’s free stay on Rhodes in 2024 to visitors whose vacation was cut short.

Overall, demand for eco-friendly tourism is growing, yet very few people are willing to pay more for sustainable travel, according to recent studies and warnings from sector executives.

In Bhutan, the SDF has been revised over the years - with discounts available for visitors making longer trips.

When Bhutan reopened to tourists in September 2022 after more than two years of COVID-19 closure, it raised the tax to $200 from the $65 it had charged for about three decades - saying the money would offset the carbon generated by visitors.

This fee hike, coupled with the pandemic’s impact, hit tourist numbers and resulted in losses for tour operators, hotel owners, and handicraft and souvenir shops in the country.

Bhutan welcomed nearly 60,000 tourists between January and August this year, earning the nation $13.5 million in revenue from the SDF, according to government data.

In 2019, before the pandemic, there were about 316,000 tourists, generating $88.6 million in SDF revenue.

When Bhutan announced the SDF reduction this month, the government said the move aimed to revive the tourism sector, generate employment, and earn the country foreign exchange.

Bhutan plans to lift tourism’s contribution to its $3-billion economy to 20% from about 5% now - yet no time-frame has been set.

Dorji Dhradhul, the director general of Bhutan’s tourism department, said the tourist tax is vital to stepping up the nation’s conservation efforts as it faces climate change threats of melting glaciers and ever-more unpredictable weather.

The SDF has led the country to explore “solutions to balance its revered ecological conservation practices with socio-economic progress”, Dhradhul said by email.

The tax funds free healthcare and education for the country’s citizens and is used to offset the carbon footprint of visitors by planting trees, cleaning and maintaining trails, and electrifying Bhutan’s transportation sector, Dhradhul said.

“Our future requires us to protect our heritage and forge fresh pathways for forthcoming generations,” he said.

Bhutan’s “carbon negative” approach began in the 1970s, when its then-king pushed for an economy built in part on sustainable forest management - balancing conservation and development.

Its forests absorb more than 9 million tonnes of carbon each year, while its economy, which is designed to cut fossil fuel use and waste, emits less than 4 million tonnes, Dhradhul said.

Have you read?

3 ways hotels and tourists can work together to decarbonize travel, how global tourism can be more sustainable, how bhutan could provide the blueprint for climate-smart forest economies, what can bhutan teach the world about climate action, tour operators and local businesses fear for future.

Bhutan has long been a prime holiday destination for Indian travellers in particular. Entry for Indians had been free until 2022, when a daily tax of 1,200 rupees ($14.50) was introduced.

Mumbai-based tour operator Rakesh Kalyani has a longstanding collaboration with hoteliers in Bhutan, and said he was not surprised by the move to impose a tax on Indian tourists.

“Tourists littered, someone even climbed a stupa (Buddhist shrine) and took pictures. How do you stop that?” asked Kalyani, who said he now has no bookings for Bhutan with many clients instead preferring to visit nearby northeastern Indian states.

The fee for Indian tourists will remain in place for at least another two years as Bhutan prioritises the wellbeing of its environment, culture and people over “quantity in tourism”, according to Dhradhul.

As more and more places worldwide consider tourist taxes, they run the risk of excluding those seeking affordable travel.

“They want to preserve their culture, but not everyone is able to travel now,” said Arjun Verma, who runs Bhutan Divine Tour agency in Siliguri, a district in India’s eastern state of West Bengal, which serves as the country’s gateway to Bhutan.

“As tour operators, we are facing a lot of problems.”

In Bhutan, Jigme Tshering, chairman of the Hotel and Restaurant Association, a national federation, said that while the SDF was aligned with the country’s vision of sustainability, it also posed challenges in terms of “the impact on businesses”.

He said he hoped the reduced tax will help the tourism industry grow at a faster pace than in previous months - a view echoed by local businesses seeking more customers and income.

In Bhutan’s Paro, the picturesque valley home to the Tiger’s Nest Monastery, handicraft shop owner Tashi Lhamo said she had cut down spending on family holidays and new clothes due to the loss in business over the past year as tourist numbers dropped.

“Most of our customers are Asians and few are from the United States,” Lhamo said in a phone interview.

“But I am hopeful for more international tourists to come now that they have reduced the SDF. Indians buy small items, but our main business comes from international tourists,” she added.

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Geophysical and Cultural Realities: Tourism Policy of Bhutan and Maldives

• First Online: 17 March 2021

Cite this chapter

• Minh Xuan Dam 4 ,
• Redeem Faith J. Sabacan 5 ,
• Karen S. Sim 5 &
• K Thirumaran 5  

Part of the book series: Managing the Asian Century ((MAAC))

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Bhutan and Maldives have limited tourist arrivals primarily targeting quality tourists. This policy of targeting quality tourism is driven by geophysical and cultural realities undergirded by domestic frameworks. This chapter examines the literature related to constrained environments in tourist destinations that play a big role in determining the outcome of policy approaches and its implementation. Addressing the gap in tourism literature, the research locates the constraints in the two countries and how those limitations have steered the creation and implementation of policy approaches. Based on field observations and extensive library research, the two destinations are profiled as case studies combined with a synthesis of the literature.

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Dam, M.X., Sabacan, R.F.J., Sim, K.S., Thirumaran, K. (2021). Geophysical and Cultural Realities: Tourism Policy of Bhutan and Maldives. In: Azzali, S., Thirumaran, K. (eds) Tropical Constrained Environments and Sustainable Adaptations. Managing the Asian Century. Springer, Singapore. https://doi.org/10.1007/978-981-33-4631-4_7

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bhutaninbound

Bhutan Best Inbound Tour | Blog

Revised Bhutan SDF

Perhaps no single event in Bhutan’s history has drawn so much international attention as the sudden passing of a bill on Bhutan Sustainable Development Fund . On 27th June 2022, the bill was passed to levy the revised Bhutan SDF for International guests from USD 65 to USD 200. You can read the article here . In the light of the introduction of Bhutan New Tourism policy to Levy the SDF to 200 and introduction of entry fees to monuments, many questions are afloat. We are here to answer your question

Bhutan Tourism Policy of High Value Low Volume

Bhutan opened up to Tourism in 1974 after it came out of centuries of isolation. However the government adopted a cautious tourism policy from the beginning to avoid negative impacts of mass tourism .

Bhutan’s consistent tourism policy of high value , low impact was crafted to ensure its rich living culture. The kingdom represents a mystical destination left for those seeking a journey back in time. Visitors walk into a rich and vibrant culture still living in the dances and songs, festivals and legends, the art and architecture.

In order to achieve that the number of tourists visiting Bhutan was limited by imposing the Bhutan visit SDF of USD 65 per night. And it was not revised thereafter.

Introduction of Entry Fees to Monument

Bhutan have also increased the entry fees to monuments and Dzongs. This was in pursuance to the 14th meeting of National Monument Committee held on 12th July 2022.

Nu. 1000/person= Aproxim. USD 13/person.

Why now introducing the New Bhutan Tourism Policy?

Bhutan has remained an exotic and intriguing destination for most travelers with a level of mystery that has provided a cachet of curiosity . However, the unsettling and transformative times brought on by human conflict, climate change, and other factors including the Covid-19  pandemic, are forcing countries across the world to rethink and revise travel procedures Bhutan too must take the pragmatic and practical approach to ensure the sustainability initiative adopted by our farsighted kings & to adopt a growth path that is more holistic.

Other Factors to Increase SDF

Bhutan being a small landlocked country had observed the sudden upsurge of tourist visitors. The monasteries were crowded, the sacredness of the sanctity was disrupted & there was an increase in waste.

Bhutan has always prided itself in being the only negative country in the world with 1000 acres of protected areas & as the one who jealously guards its religious & cultural heritage.

However all these were coming to a threat. Over the period of time there was a glacial recession & growing carbon footprint. So it became inevitable for the government to adopt the cautious tourism policy to avoid the negative impacts of tourism that could have on a small country like Bhutan.

Revised Bhutan SDF 

The increase in the SDF to USD 200 was in line with Bhutan’s ‘High Value, Low Volume’ tourism policy. The SDF, however, has exemption on day tourists, who do not travel beyond the first designated point (Border town- Phuntsholing), five-year-olds and below, and children between six and 12 years would receive the concessionary levy rate of 50 percent.

What to expect with the increase in Revised Bhutan SDF

For most people high-end tourism means wealthy visitors who stay in expensive luxury hotels.

When Bhutan introduced the concept of ‘High Value Low Volume Tourism’ , it was not about luxury hotels, fancy restaurants or pothole free roads. Nor it had the intention to target rich clients.

But to give the guest the feel of Bhutan-ness of Bhutan- the uncontrived, authentic and genuine Bhutan experience. We mean quiet treks through pristine forests and not being swamped by the masses. We are also talking about the feel of a society at peace and people who are not intent on ripping-off guests. And We are talking about a taxi driver or shopkeeper who takes the trouble of returning a bag left behind by a passenger or customer.

The priority is not marketing Bhutan but managing the quality of the travel experience for both visitors and hosts.

Beneficiaries of Bhutan New SDF

Tourism is one of the biggest assets of the nation. Therefore, all Bhutanese citizens are key stakeholders as enshrined in the Constitution. The renewed vision for the tourism sector  deliberately places considerations for the future generation . This is because the economic makeup of the country will be redefined by exciting new drivers of growth.

Reforms in education and skilling, and emphasis on STEM, for example, will help engage youth in high skill industries with the dexterity to navigate and excel in a rapidly-changing technology-driven world.

Embrace this nation policy of High value low volume with Bhutan Best Inbound Tour. We are the local tour operators based in Bhutan to offer you the authentic Bhutanese experience.

Discover the sacredness of Bhutan festival

Enjoy the freshness of new trekking routes like trans Bhutan trail

Enjoy the glory of virgin peaks

Challenge yourself for Snowman Trek

Celebrate the rich character of the society in Bhutan

Say hello to the Nomads

Meet the monk on the hill top. Participate in morning chant with them

Explore Bhutan & explore Bhutan

This is what Bhutan aims to offer & this is what we want to offer you. . . . Its Magic & Mystery

(Kuensel,Dasho Kinley Dorji)

Bhutan Best Inbound Tour is a Bhutan Travel company and is a registered Bhutan Tour operators company under the umbrella of the Tourism Council of Bhutan. We handle all kinds of travel arrangements including Bhutan Visa, Bhutan Flight, Bhutan Itinerary design and Hotel booking. With a belief in quality and services, Bhutan Inbound is a reliable and efficient travel organizer in Bhutan for foreign and domestic tourists, business travelers, special interest visitors and events. Our professionals toil hard to achieve complete client satisfaction through their par-excellence knowledge and experience. Some of the most popular package that we offer are 1.Cultural Tour Package 2.Bhutan Festival Package 3.Family Friendly Tours 4.Bhutan Trekking 5.Off The Beaten Path 6.Luxury Tours

WHY WE ARE BEST We are recognized by the Tourism Council of Bhutan, Association of Bhutanese Tour Operators. Moreover we are also appreciated by various corporate and world tourists for offering impeccable services. We are rated No. 1 Tour Operator in the nation by Trip Advisor and branded as Excellent by TourRadar. We have long-term associations with excellent hotels and resorts, rendering our guests an amazing experience. The vehicles provided are all luxurious, catering to the comforts of our guests . Furthermore we have professional drivers who ensure a smooth ride over the curvaceous mountainous terrain of Bhutan.

Contact us for any Bhutan Tour/ Travel service at [email protected] or [email protected]

Bhutan Tourism: What Exactly is Bhutan's Tourism Policy? | Bhutan Travel Guide

By Koryo Tours

Bhutan Tourism Policy

Bhutan's Tourism Policy

Before 1960 Bhutan was a fairly closed country. 

In 1974, the Bhutanese Government opened the isolated country to foreigners for the first time and tourism in Bhutan began. 

However, the tourism policy in Bhutan remains to be one of the most unique in the world. 

The Bhutanese Government Tourism Policy

The Bhutanese Government tourism policy is;

High value, Low impact

According to the Bhutanese government, 

“Founded on the principle of sustainability, tourism must be environmentally friendly, socially and culturally acceptable, and economically viable”

The Bhutanese government, they also wish to

“To promote Bhutan as an exclusive travel destination based on Gross National Happiness (GNH) Values”.

This basically means they charge a lot for each traveller to go to Bhutan, and therefore can reduce tourism volume and maintain the peaceful environment and protect the landscape.

It also means that tourism doesn’t impact the traditional culture that they wish to preserve. 

Almost all nationalities must have a visa to travel to Bhutan and must go to Bhutan on a group tour or with a Bhutanese tour company, and pay the government fee. 

Sometimes, the Bhutanese Government also hold special initiatives to promote the country to certain countries wavering this government fee - but this seems to be on a somewhat random basis and you just chance if you’re the lucky passport holder! 

Here is a list of nationalities that need a Bhutan visa , and those that are exempt . 

Bhutan's Tourism Policy: Cost

The bhutanese government fixed daily tariff:.

$ 250 per person per night SPRING Season: March – April – May 

$ 250 per person per night AUTUMN Season: September – October – November.

$ 200 per person per night - Remaining Months. 

Each traveller pays $ 40 as visa fee, which is one time.

SURCHARGES:

For Solo Traveler: $ 40 per night

For Two Person Traveler: $ 30 per person per night

NOTE: All fees must be paid in USD in advance to the Bhutanese tour provider or to the government. 

You cannot get your visa or visa documents until you have paid in full. 

Bhutan Travel Guide

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Bhutan Tourism Policy

Bhutan’s tourism sector is regarded as one of the most exclusive travel destinations in the world. Bhutan enjoys a reputation for authenticity, remoteness and a well-protected cultural heritage and natural environment.

Today tourism is a vibrant business with a high potential for growth and further development. The Royal Government of Bhutan adheres strongly to a policy of ‘High Value, Low Volume’ tourism which serves the purpose of creating an image of exclusivity and high- yield for Bhutan.

The Vision The tourism industry in Bhutan is founded on the principle of sustainability, meaning that tourism must be environmentally and ecologically friendly, socially and culturally acceptable and economically viable. The Royal Government of Bhutan recognizes that tourism is a world-wide phenomenon and an important means of achieving socioeconomic development particularly for a developing country like Bhutan. It believes that tourism, in affording the opportunity to travel, can help to promote a deeper understanding among people and to strengthen ties of friendship based on a deeper appreciation and respect for different cultures and lifestyles.

Towards achieving this objective, the Royal Government, has adopted a very cautious approach to growth and development of the tourism industry in Bhutan. Its tremendous potential as a truly indigenous industry and the clear comparative advantages Bhutan enjoys, are compelling reasons to promote Bhutan as a high-end tourist destination in a manner which accords with the tenets of Gross National Happiness.

Tourism Levy A tourist must pay a tourism levy known as the Sustainable Development Fee (SDF). The Sustainable Development Fee enables investment in transformative programs that preserve our culture traditions, protect our heritage and environment, upgrade infrastructure, create opportunities for our younger generations and build resilience.

As of 1 September 2023, the effective SDF is USD $100 per person per night for US Dollar paying tourists. In addition, a fifty percent discount on the SDF is granted on the rates applied to children aged between 6 to 12 years for US Dollar paying children visiting as tourists. The 24 hours SDF waiver for tourists staying in the border towns is also applicable.

Guests from India are levied SDF of Nu. 1,200 or equivalent amount in INR per person per night, which will remain in effect for two years, following which time it may be reviewed and revised in keeping with the principle of the preferential rate after two years.

Visa Fee & Required Documentation A passport copy is required. The passport must be valid for six months from the intended date of departure from the Kingdom.

• Travel insurance valid for the duration of the trip.
• A recent passport size photograph.
• The visa fee is USD 40 per person and it is non-refundable. While the process to issue the visa is usually quick, the visa can take up to five working days to process.

Exemption and Concessionary Levy Subject to any conditions specified in the Rules, the Competent Authority may provide for an exemption or concessionary levy rate on the applicable Sustainable Development Fee:

• Day tourists who do not travel beyond the first designated point are exempt.
• Children aged 5 and under are exempt.
• Concessionary levy of 50% for children aged 6 to 12 years.
• Other exemptions or levy rates that may be deemed necessary.

Bhutan Travel Bureau is a licensed tour operator as certified by the Tourism Council of Bhutan , and the Association of Bhutanese Tourism Operators .

Zhabdrung Kuchoe, observed on the 10th day of the third Bhutanese month every year marks the day when Zhabdrung Ngawang Namgyal the founder of Bhutan passed away at the Punakha Dzong in 1651. Bhutan commemorates this day to pay homage to Zhabdrung as the leader who brought unity to the country. Bhutanese people from all walks of life offer prayers of gratitude to Zhabdrung Ngawang Namgyal. ... See More See Less

3 days ago  ·  

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A picture is worth a thousand word from one of the most beautiful fortress in Bhutan- Paro Rinpung Dzong. Our wonderful guest along with one of our best guide and fellow staff . ... See More See Less

7 days ago  ·  

BUMDRAK TREK The trail passes through pine forest and the view of Paro in the valley floor below is breathtaking. The trek is romantic in the sense that hikers can soak in the beautiful sunset over the hills of Haa. You can also get a bird’s eye view of the Tiger’s nest monastery (Taktsang) and all the chapels above it. There are three sky burial sites in the area which is believed to have been blessed by Guru Rinpoche. For more information Visit our website : https://www.bhutantravelbureau.com ... See More See Less

2 weeks ago  ·  

Best Time For Hiking In Bhutan: The perfect time to head for hiking in Bhutan depends on your choice. If you want to go on a hike in winter then the months of December to March will be the ideal months. However, the most popular seasons for hiking are in spring and autumn as in these months the climate is at its best and Bhutan looks mind-blowing. Our guest enjoying short hikes in Paro and Thimphu. ... See More See Less

1st Flr, BTB Building, Behind NGN, Olakha (2.53 mi) Thimphu, Bhutan 11001.

Contact No: 2 332 105 /  +975 17 11 42 22

Email:  [email protected]

Web: www.bhutantravelbureau.com

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• Tourism Policy

Tourism in Bhutan started only in 1974 with the enthronement of the fourth king Jigme Singye Wangchuk. This tiny Himalayan kingdom is barely known to the outside world even today and if you look at the world map it is easy to overlook Bhutan. With the expansion of modern communications, Bhutan has become a part of the global village.

However, in order to ensure a balanced socio-economic development and to preserve a unique culture, the government has carefully regulated tourism. The Tourism Council of Bhutan (T.C.B) sets strict rules and regulations that are designed to discourage mass tourism. The number of tourists visiting Bhutan is still small but increasing year by year. The number has risen from about 3000 in 1993 to 11,000 in 2005 and 54,000 in 2012. .

This limited tourism provides the opportunity to individual travellers visiting Bhutan to gain a unique insight into a way of life seldom seen. Travellers feel it is a privilege to be there gathering many enchanting memories that automatically become engraved in their hearts. Bhutan’s past is its present and modern development has so far blended in effectively with the traditional aspects of society. This unspoilt, sparsely populated country deserves special attention from avid travellers and welcomes people who want something different to join a cultural or an adventure tour.

Tourism Policy – How it Affects You

Independent travel is not permitted. All tourists visiting Bhutan are required to travel through an authorized tour operator on a pre-planned, pre-paid, guided package tour. The tour operator is responsible for all logistical arrangements during your stay in Bhutan. The government stipulates a fixed minimum all-inclusive daily rate. The tour operator cannot offer discounts below this rate since it would be breaking the law. Please understand that, government royalties mean that the tour operator is working within a tight budget. Bhutan Visit has a carefully thought-out pricing structure which ensures that we can provide our visitors with the very best service and standards of accommodation without cutting any corners. We aim to provide you with the best services and facilities possible.

Though you will not necessarily notice this, permits are required for travelling within the country and for visiting certain religious sites. Bhutan Visit organizes this prior to your arrival. Please understand, however, that tourists may not visit certain specified regions and holy sites.

Tourist Facilities

Tourist facilities, such as hotels and restaurants, are expanding and improving. Most have been built and decorated in traditional Bhutanese style. Standard tourist hotels are required to be of three-star standard (Bhutanese categorization) and so the services are limited. However, you will find reasonable standard hotels in the west, and comfortable lodges as you go further east, and you will always be greeted and welcomed by friendly people. In the main towns in West.

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