bhutan tourism strategy

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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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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Bhutan reopens to the world with new tourism strategy

The Kingdom of Bhutan reopens its borders today to international travellers following the Covid-19 pandemic.

Aside from welcoming visitors to the country, Bhutan has also unveiled a new tourism strategy, underpinned by transformations in three key areas: infrastructure and services, tourists’ travel experiences, and environmental impact to maintain carbon-neutral tourism.

Brand Bhutan aims to capture the optimism and renewed ambition of the kingdom, and its new tagline Believe reflects this determined focus on the future, as well as the transformative journeys experienced by visitors.

Prime minister of Bhutan, Lotay Tshering, said: “Bhutan’s noble policy of High Value, Low Volume tourism has existed since we started welcoming guests to our country in 1974 – but its intent and spirit were watered down over the years, without us even realising it.

“Therefore, as we reset as a nation after this pandemic, and officially open our doors to visitors today, we are reminding ourselves about the essence of the policy, the values and merits that have defined us for generations.”

While ‘high value’ is typically understood as exclusive high-end products and extravagant recreational facilities, the term holds a different meaning for the country. To the Bhutanese, it is important to be a high-value society that is “infused with sincerity, integrity and principles, where people must always live in safe communities, among serene environments and derive comfort from the finest facilities”, he explained.

Bhutan will be stepping up its efforts to maintain its status as one of only a handful of carbon-negative countries in the world, and will also enhance its sustainable development policies by raising its Sustainable Development Fee (SDF) from US$65 to US$200 per person, per night. The funds will go towards projects that support the destination’s economic, social, environmental and cultural development.

During the pandemic, the government took the opportunity to upgrade the facilities and infrastructure of the country, as well as enhance the standards and certification process for tourism service providers. Employees across the tourism industry also were required to participate in upskilling programmes to focus on enhancing service quality.

In addition, travellers can look forward to elevated authentic experiences supported by world-class services and personal care.

Minister of foreign affairs, Tandi Dorji, said: “We plan to work with our tourism partners to continue to upgrade the itineraries that guests can experience in our country – to help showcase the very best that Bhutan has to offer.

“We hope that visitors to Bhutan will notice and welcome these changes, and we very much look forward to welcoming all guests to Bhutan.”

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UN Tourism | Bringing the world closer

Asia and the Pacific
15 May 2012

Bhutan Releases New Tourism Strategy

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UNWTO, the leading international organisation in tourism and the specialised agency of the United Nations responsible for the promotion of responsible, sustainable and universally accessible tourism, commissioned a project to formulate Bhutan´s latest five-year tourism plan: Bhutan Tourism Strategy and Development Plans 2013-2018. This plan, presented to the Government in February, presents a mission statement, product development plan, marketing and communication plan and an institutional development plan to achieve Bhutan´s tourism vision.

Bhutan´s tourism vision, ¨to foster a vibrant industry as a positive force in the conservation of the environment and promotion of cultural heritage…, ¨ reflects the country´s desire to develop a responsible, sustainable tourism industry.

In line with its mission to promote sustainable tourism development and help its Member States to maximise the potential of tourism thereby bringing benefits to their countries, UNWTO has been engaged with the nation of Bhutan since it first joined the organization in 2003 in order to achieve this goal.

These days, Bhutan is well known around the world for its distinctive focus on the Gross National Happiness (GNH) agenda, an alternative to the commonly used Gross Domestic Product (GDP) method of measuring the wellbeing of nations. GNH is receiving increasing attention around the world, especially following its endorsement by the United Nations General Assembly and its inclusion in the Millennium Development Goals.

While the new Tourism Strategy and Development Plan outlines the country´s challenges and difficulties in developing a tourism industry that is closely aligned to the GNH philosophy, it also outlines suggestions of increasing the tourism industry´s potential to be a front-liner in the communication of GNH-focused national development.

Representatives from other UNWTO Asia Pacific Member States will have the chance to explore Bhutan for themselves next month, when UNWTO holds its 6 th UNWTO Asia/Pacific Executive Training Program on Tourism Policy and Strategy from 25 th – 28 th June 2012.

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Bhutan: A model for sustainable tourism development

Bhutan’s long-term strategy of controlled tourism with a focus on sustainability and quality has secured the country’s reputation as an exclusive and distinctive destination while ensuring the long-term sustainability of the industry and its contribution to the economy.

Bhutan has a clearly established framework for the development of tourism underpinned by the country’s Gross National Happiness (GNH). Tourism was introduced to Bhutan in 1974 as part of a visionary modernization and economic development plan introduced by Bhutan’s former King, Jigme Singye Wangchuck.

Aware that an unrestricted flow of tourists could negatively impact Bhutan’s pristine environment and unique culture, the government adopted a policy of ‘high-value, low-volume’ tourism in order to control the type and quantity of tourism right from the start.

‘The principle of high-value, low-impact tourism development, guiding tourism’s growth in Bhutan, is highly commendable and has undoubtedly contributed to the unique tourism brand of this country,’ said the World Tourism Organization (UNWTO) Secretary-General, Mr. Taleb Rifai, during an official visit to the country in January 2011.

So far, the government’s objective of maximizing foreign exchange earnings while minimizing the potentially adverse cultural and environmental impacts of tourism has paid off. The number of tourist arrivals has increased from just 287 in 1974 to close to 41,000 high-end tourists in 2010. There was also a 56% increase on 2009 figures in high-end arrivals from neighbouring countries, especially India, highlighting the importance of the regional market. Demonstrating the resilience of the sector, these figures were achieved despite events such as ash clouds in Europe and unstable political situations in the major gateways to Bhutan such as Bangkok.

Conservative figures by the Tourism Council of Bhutan estimate tourism’s contribution to GDP at US$ 90 million in 2010. It has also contributed to employment and created income opportunities through the development of locally owned and operated private-sector enterprises. There are now some 21,000 people employed directly and indirectly in tourism, and an increasing number of Bhutanese entrepreneurs are also investing in the sector. Close to 80% of Bhutan’s 700,000 inhabitants live in rural areas and most are engaged in the agricultural sector; but tourism has contributed to earnings from tourist transport, portage and the promotion of indigenous handicrafts.

‘For a small landlocked country like Bhutan, tourism plays a very important role in generating employment opportunities and revenue. It is second only to hydropower in terms of revenue generation,’ says Ms. Chhimmy Pem, the Head of Marketing and Promotion at the Tourism Council of Bhutan.

One of the key factors in the success of Bhutan’s tourism strategy has been the privatization of the industry. Until 1991, the Bhutan Tourism Corporation, a quasi-autonomous and self-financing body, implemented the government’s tourism policy, and all tourists came as guests of the Corporation. The Corporation, in turn, operated the transport services and nearly all the hotels and accommodation facilities.

The Tourism Council was established under the Ministry of Trade and Industry and the Department of Tourism with the primary responsibility of developing new tourism growth opportunities, undertaking research, protecting tourism assets and its impact on the environment, and managing the administration of visa and trekking permits.

Bhutan’s main tourism attractions are its traditional culture and way of life, its religious festivals, historic monuments and its pristine environment. Protecting nature and culture is part of the Bhutanese value system and is an important aspect of the traditional way of life in Bhutan, and its tourism policy reflects these concerns. The policy of imposing a US$ 200 per person per day tariff (including a US$ 65 royalty charged by the government plus food, accommodation, local transport and guides) has succeeded in providing a source of government income for education, health and building tourism and transport infrastructure, while at the same time making tourism in Bhutan an exclusive and distinctive experience.

The Tourism Council of Bhutan works in close cooperation with the Association of Bhutanese Tour Operators, the Hotel Association of Bhutan and the Guide Association of Bhutan to establish a channel for closer and more effective collaboration between the tourism industry and the Department of Tourism. It also ensures that the interests of the private sector are represented in developing tourism in a sustainable and responsible manner. The government encourages initiatives to enable the private sector to provide value for money to their clients. For example, new luxury hotels, the upgrading of existing hotels and foreign direct investment are encouraged through tax and fiscal incentives.

With ecotourism being the fastest growing market in the tourism industry in general and with the strength of the country’s natural assets, Bhutan has focused on strategies to promote and develop its ecotourism and nature -based tourism.

To overcome the industry’s biggest challenges – accessibility and seasonality – the Tourism Council of Bhutan is working with the national airline, Drukair, to increase the frequency of flights, improve connectivity, add more aircraft to its fleet, and build three additional airports to meet increasing demand. The Council is also working with hotel and tour operators to promote Bhutan as a year-round destination.

For further information visit www.tourism.gov.bt .

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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.

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Phallus shop

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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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Preservation of a paradise: what can we learn from bhutan’s approach to sustainable tourism.

Bhutan, the Land of the Thunder Dragon , captivates its visitors with pristine natural beauty, a fascinating array of cultural displays and distance from the masses of tourists that would usually flock towards destinations as beautiful as this small mountain kingdom. With the global tourism industry being confronted with great sustainability challenges, the need to mend the gap between sustained economic growth and commitment to preserving natural heritage has intensified drastically in recent years. Bhutan, with its unique approach to sustainable tourism, presents a shining example of a solution that not only paves the way to a greener future, but also ensures the well-being of its people and natural treasures alike.

Gross National Happiness: Beyond Economic Metrics

In a world in which even the most remote areas have their stake in the race of globalization, the Himalayan nation of Bhutan has consciously chosen to prioritize happiness and well-being over material wealth and an unsustainable boom in economic growth and material wealth.

The country’s philosophy is centered around “ Gross National Happiness ” – a term pioneered by His Majesty the Fourth King of Bhutan, Jigme Singye Wangchuk in the 1970s.

This index takes into account 33 different indicators for holistic, sustainable development and is built upon four pillars: good governance, sustainable socio-economic development, cultural preservation, and environmental conservation. These four pillars have since been expanded into nine domains in order to encompass a more comprehensive range of values which are fundamental to the well-being of the Bhutanese people, showcasing the principles of a life well led according to the GNH concept.

Moreover, the United Nations have included the Gross National Happiness Index in their 2030 Agenda for Sustainable Development , categorizing GNH as a “Goal 8” ( decent work and economic growth ) measure.

Pay Per Day – Bhutan’s Sustainable Development Fee

While European tourist hot spots are still largely exploring the concept of implementing daily fees to curb the daily influx of visitors, Bhutan made this a reality back in 1974 when tourists were first permitted to enter the secluded country, bringing with its high cost to enter the notion of being earth’s “last Shangri-La”.

Recognizing the fragility of its ecosystems and the crucial need of preserving cultural authenticity, the country has remained firm on its unique “high value, low volume” tourism policy since 1974, with a total of merely 287 visitors entering the country during that year.

Due to the pre-existing consciousness of the importance of a balanced approach to growth, the government imposed strict limits on visitor numbers and, starting in 1991 , required visitors from overseas to pay a fee of at least $250 per day to cover the cost of accommodations, meals, a mandatory tour guide, including the $65 “Sustainable Development Fee” (SDF).

The Cost of “High Value” Experiences

Fast forward to September 2022 when the country re-opened its borders for international tourism after the COVID-19 pandemic, the government of Bhutan has largely overhauled its tourism system, wiping the prior obligation for visitors to be part of a guided tour but drastically increasing the overall cost for a trip to the country.

According to Dr. Tandi Dorji, Bhutan’s foreign minister and chairman of the Tourism Council of Bhutan , the COVID-19 pandemic imposed a period of deep reflection upon the country’s leadership, leading to revised ideas regarding an efficient restructuring and operation of the tourism sector. Dr. Tandi Dorji defined the sector’s goal as aiming “to create high value experiences for visitors, and well-paying and professional jobs for our citizens.”

As a direct result of this revamp, visitors are now required to pay a sustainable development fee of $200 per night per person (aged 12+) directly to the government but will have to cover their expenses for hotels, meals, and various other activities separately. Before the pandemic, tourists had to adhere to a minimum daily spending range of $200 – $250, typically combined into tour packages covering certain expenses, including the SDF, which was still $65 at the time.

An Elitist Approach to Tourism?

Proponents of Bhutan’s $200 daily fee argue that it aligns with the country’s objective to attract “high value, low volume” tourists who can afford the fee. The revenue generated from these fees is intended to be directed toward upgrading infrastructure, protecting and preserving the environment, and creating jobs with fair wages and working conditions.

On the other hand, some critics view the increased rates as “elitist” and fear that they may adversely impact the country’s travel industry, which was naturally affected by the consequences of the COVID-19 pandemic. The country’s foreign minister defended Bhutan’s decision to triple the daily SDF (from $65 to $200), stating it caters to environmentally-conscious tourists willing to pay more for their visit. While he refuted the accusation of the policy being “elitist,” he acknowledged the need to reassess priorities, considering the pandemic’s economic impact on neighboring countries.

Unique Experiences for a Few Travelers

Bhutan’s focus on “high value, low volume” tourism naturally allows the country to attract only those willing and able to shoulder the high costs that accompany a trip to the Buddhist kingdom. The people who do, however, have the means to commit to this unique, immersing experience will not be disappointed.

During a 14 day stay , visitors will be enchanted by the majestic Himalayas, Bhutan’s fascinating cultural sights such as the well-known Paro Taktsang monastery, and the rich, community-based activities of the local people.

Green Kingdom

Central to Bhutan’s sustainability agenda is its tireless dedication to environmental conservation. With an ambitious target of maintaining at least 60% forest cover , Bhutan has become one of the world’s most forested countries. Its lush landscapes bear witness to this commitment.

Additionally, Bhutan has banned plastic bags since 1999, a remarkable feat that has minimized plastic waste and inspired other nations, such as certain Indian states, to follow suit. Bhutan’s focus on renewable energy, particularly hydropower, has not only met its domestic energy needs but also allowed the country to become the world’s first and only carbon negative country .

Culture Unplugged

Preserving its diverse cultural heritage is another one of the kingdom’s prime objectives. The government has implemented initiatives such as the “Living Museum” concept, offering visitors an authentic experience of Bhutanese culture. Located in the country’s capital of Thimphu, “Simply Bhutan” is an immersive “living” museum that allows visitors to dive into various aspects of local culture.

Traditional arts, architecture, and festivals are pivotal in showcasing the country’s identity. By promoting cultural preservation, Bhutan ensures that future generations inherit an intact heritage and that visitors leave with an appreciation for its customs and traditions based on observation and first-hand knowledge.

Festivals in Bhutan are grand, colorful events, and visitors will be pleased to encounter these splendid cultural showcases taking place nearly every month of the year.

Trouble in Paradise?

While Bhutan’s sustainable tourism practices have been widely praised, challenges persist. Balancing the demands of tourism growth with environmental conservation requires a delicate equilibrium. Striking a harmonious balance between economic development and the preservation of cultural authenticity poses ongoing challenges.

The United Nations has identified specific pain points and potential inhibitors for Bhutan’s future development. The organization specifically highlighted the nation’s vulnerability to climate change and natural disasters, concerns over food security and the capacity of the national health system, and a substantial rise in unemployment rates during the pandemic.

All these factors are putting pressure on the country’s nature-dependent livelihoods and carbon-neutral commitment. However, Bhutan’s commitment to sustainability remains strong, and its experiences offer valuable lessons to the world.

Bhutan’s Lesson In Preserving People and Planet – What Can We Learn?

Bhutan’s exemplary model of sustainable tourism serves as a powerful lesson for the global travel industry, including Europe.

As we set out to navigate the challenges of sustainability and seek ways to combine the two factors of “green” and “growth”, Bhutan’s journey offers an ocean of invaluable insights. Bhutan’s commitment to Gross National Happiness, community empowerment, and environmental conservation demonstrates a truly holistic and forward-thinking approach.

Promoting eco-friendly practices can ensure that Europe’s tourism destinations become living examples of sustainability. By adopting Bhutan’s balanced approach, Europe has the potential to pioneer its own models of success in the green tourism industry: By making the preservation of the people and the planet our utmost priority, we can begin to pave the way toward a greener future for the many adventurers and generations to come.

Reviewed by Sarah Guvi, proofread by Juxhina Malaj

Cosima Rudigier

Cosima is an Austrian-American polyglot currently studying Cultures and Languages of South Asia and Tibet at the University of Vienna. When she isn’t busy planning her next adventure, probably to Asia, you’ll find her hanging out in one of Vienna’s cafés with a good book or somewhere in the mountains. A spontaneous person to the core, Cosima loves new and challenging ideas and will probably want to start a project with you every other day!

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Email : [email protected], tourism policy 2021.

The Tourism Council of Bhutan(DOT) is pleased to announce the Tourism Policy of the Kingdom of Bhutan 2021. The policy envisions promoting Bhutan as a green, sustainable, inclusive, and high-value tourism destination guided by the policy of ‘High-value, Low volume’ tourism to contribute to the overall socioeconomic development of the country. The policy sets the agenda and direction for sustainable tourism development in the country through key reform measures and institutional strengthening. Tourism has the potential to create greater benefits across its diverse value chain benefiting various sections of society. It is important that the type of tourism and the reforms thereof are in the larger interest and future benefits of the industry and country.

Further, given the multi-sectoral nature of the tourism industry, it is important that engagement, partnerships, and collaborations at all levels are strengthened and tourism-friendly sector policies and plans are given the highest consideration by the sector stakeholders for tourism to grow and benefit all. Tourism is a strategic and valuable asset like any other natural resource for the country and people and hence critically important to harness its benefits in a sustainable manner, acceptable to our society and strengthening rather than undermining our nature, culture, tradition religion, and more importantly to avoid short term quick material gains. The current COVID-19 pandemic has created unprecedented impacts on people and economics with tourism being one of the most impacted. It has also given us the opportunity to rethink, review, and reset to become more robust and resilient as we strive toward recovery. The promotion and development of sustainable tourism are even more relevant in the current context of the pandemic. It is now important for us to build on the foundation that we have with robust reforms that will bring greater benefits for all through sustainable and inclusive tourism. It is my sincere hope that the Tourism Policy of the Kingdom of Bhutan , 2021 will guide and benefit the industry stakeholders and the country in promoting sustainable tourism. Lyonpo Dr.Tandi Dorji,

Table of Contents

Bhutan Tourism Policy 2021 Glossary

Tourism : Refers to the activity of a visitor and includes trips away from one’s usual environment (residence) for any purpose other than employment by a resident entity in the place visited. The duration of stay shall be as prescribed by the Immigration Act of the Kingdom of Bhutan .
Tourist : Refers to all visitor who travels to a country (inbound/outbound tourism) or place (domestic tourism) other than that in which he/she has his/ her usual residence, and whose purpose of the visit is other than employment by a resident entity in country/place visited. The duration of stay shall be as prescribed by the Immigration Act of the Kingdom of Bhutan.
Domestic Tourism : Comprises the tourism activities of a resident within the country of reference.
Inbound tourism : Comprise of tourism activities of non-resident visitors within the country of reference on an inbound tourism trip.
Outbound Tourism : Comprises the tourism activities of a resident of a country outside the country of reference.
Tourism Industry : Is a cluster of production units in different industries that provide consumer goods and services for visitors. Such industries are called tourism industries because visitor acquisition represents a significant share of their supply that, in the absence of visitors, their production of these would cease to exist in meaningful quantity. This includes accommodation, travel, food and beverage services, guiding services, national parks, museums, entertainment, etc.
Minimum Daily Package Rate (MDPR): Refers to the minimum rate paid by all leisure tourists for an all-inclusive package tour to Bhutan. This includes the Sustainable Development Fee component and payment for the all-inclusive service package (accommodation, meals, guides, and ground transport within Bhutan). The current MDPR is USD 250 per person per night during the months of March, April, May, September, October, and November and USD 200 per person per night during other months of the year (December, January, February, June, July, and August). For both periods the SDF is fixed at $65 per person per night. The MDPR will not apply to countries granted exemptions by the RGOB which currently includes nationals of Bangladesh, India, and Maldives. However, for this category of leisure tourists, an SDF will be applied. The SDF will be determined by the RGOB based on the need to manage the pressures on our society, culture, and environment.
Sustainable Development Fee (SDF): Refers to the tourism levy on all leisure tourists per person per night and is applicable throughout the year as a contribution towards sustainable development initiatives undertaken by the Government and to compensate for the negative environmental impacts associated with tourism.

The SDF is levied as per the Tourism Levy Act of Bhutan 2020.

Ecotourism : High value, Low impact travel that supports the protection of cultural and natural heritage; provides positive and enriching experiences for visitors and hosts; assures tangible benefits to local people; and contributes to the pillars of Gross National Happiness . (Ecotourism Development in the Protected Areas Network of Bhutan Guideline, 2012 Nature Recreation and Ecotourism Division, MoAF / Department of Tourism)
Green : Refers to activities that have a low carbon footprint are eco and energy efficient and contribute to the conservation and preservation of our environment.
Sustainable : Promoting tourism in a manner that will meet the needs of the present tourists, destinations, and citizens while protecting and enhancing their needs and opportunities for the future. High-value destination : Creating good value for money, revenue and yield, quality infrastructure, tourism products and services, high-quality experiential tourism, and Brand Bhutan.
Inclusive : Refers to creating opportunities for participation in tourism and sharing of benefits for all Bhutanese and travelers including vulnerable sections of the society.

Introduction

Bhutan’s participation in the international tourism industry began with the first group of 287 tourists visiting Bhutan in 1974. This was preceded by the adoption of the first rules governing tourism in the country in 1972. Since then, Bhutan’s tourism industry has followed a uniquely sustainable approach of High Value, Low Volume, mindful of tourism’s contribution to socioeconomic development and the negative impacts associated with it. The premise of our tourism policy is rooted in the overall development philosophy of Gross National Happiness and seeks to promote sustainable tourism that meets the needs of present visitors and destinations while enhancing and ensuring opportunities for the future. Bhutan has consistently sought to ensure a cautious tourism industry growth that is within the carrying capacity of our physical, socio-cultural, and natural environment. Bhutan’s tourism industry continues to grow to become one of the major economic sectors contributing significantly towards the socioeconomic development of the country through revenue and foreign currency generation and employment creation amongst others. In 2019 Bhutan recorded a total of 315,599 visitors which is an increase of 15% over 2018. While Bhutan has benefitted immensely from the growth in the tourism sector, it is also faced with challenges particularly associated with the substantial increase in the volume of tourists. The growth in the industry has also been accompanied by social, cultural, and environmental issues, which are anticipated to grow in the future.

Further, the shift and sophistication in the demand and behavior of tourists for meaningful travel experiences also necessitate the need for growth and diversification of tourism products and destinations, including authenticity, contacts with local communities, and learning about culture, tradition, flora, and fauna, etc. This calls for a sustainable approach to tourism development which requires the informed participation of all relevant stakeholders. It requires maintaining a high level of tourist satisfaction and ensuring a high-value experience for the tourists, raising awareness about sustainability issues, and promoting sustainable tourism practices amongst tourists, and the service providers. It is of utmost importance to undertake constant monitoring of impacts, introducing the necessary preventive and /or corrective measures where necessary. Hence a dynamic tourism policy to change and adjust to these changing demands of international travel and tourism has become necessary.

The travel and tourism industry in Bhutan and around the world has undergone significant growth and changes particularly with the changing dynamics of traveler behavior and the travel markets. These developments and the absence of documented comprehensive policy framework have resulted in challenges relating to policy clarity, planning, and coordination for the development, promotion, and regulation of the tourism industry. Bhutan recorded a total of 315,599 visitor arrivals in 2019, of which 72,199 consisted of arrivals from MDPR-paying countries while 242,947 constituted those from countries exempted from paying MDPR. While the government has been undertaking initiatives to promote tourism in all regions of the country, the visitations are largely concentrated in the western region. Visitor arrivals trend over the past years shows that tourist visitation is mainly confined to the western region of Paro, Thimphu, and Punakha. More than 80 % of the total bed nights are spent in the Western region. This was followed by the central circuit while the Eastern and Southern Circuits received the least number of tourists and the least share of the total bed nights. This has been attributed to limited infrastructure and support facilities, a lack of awareness, and information on the tourism products available in other areas amongst tourists and service providers.

For instance, 70 percent of the TCB-accredited tourist accommodations are located in the western region mainly in Thimphu, Paro, Punakha and Wangduephodrang Dzongkhags. The 6 eastern districts have a minimal number of star-rated hotels. Similarly, the Southern circuit has the least number of tourist accommodations and the existing ones are all located in Phuntsholing/Chukha except for one in Tsirang. Other tourism services such as rental services for cars, trekking, cooks, and guides are also all concentrated in the western region. While the issue of seasonality has been improving, efforts are still required to promote Bhutan as a year-round destination. The highest number of arrivals is in April, May, and October. The number of visitors drops to around 4% of the total arrivals during the months of February and July. Tourists from the USA, China, Singapore, Thailand, Japan, the United Kingdom, and Germany continue to be the major contributors to the tourism industry among those who pay the MDPR.

More than half of the international tourists were from Asia-Pacific followed by 24.8 percent from Europe and North America. In terms of volume, tourists from Bangladesh, India, and Maldives dominate the market. The growing popularity of Bhutan as a travel destination has resulted in increasing arrivals mainly from the countries in the region. However, with our limited infrastructure and carrying capacity, it has become increasingly challenging to maintain our policy of High value, Low volume and ensure an authentic and quality experience for tourists.

The increasing number of visitors has also resulted in the following emerging issues:

Congestion at tourist sites and highways,
Increased vehicular movements and safety of unguided tourists resulting in accidents and deaths,
Quality of services provided including accommodation,
Impact/pressure on social infrastructure,
Revenue leakages,
Growth in non-certified tourist facilities,
Unethical business practices and unethical/unacceptable social and cultural concerns,
Growing waste and environment concerns.

The efforts of the Government to address the above issues are constrained without a comprehensive policy. There is no clear direction on how to manage and regulate the unprecedented growth of visitors. In the absence of a tourism policy, the Economic Development Policy (2016) guides the tourism industry development based on which the Fiscal Incentives (FI) 2017 was developed. The FI 2017 provides incentives to the tourism sector in terms of direct tax exemption in the form of income tax holidays for tourist standard hotels and farmhouses/homestay and indirect tax exemption in the form of sales tax and customs duty exemptions to tourist operators for buses, adventure and recreation equipment and furniture, kitchen equipment, and fittings for tourist standard hotels. There is an urgent need for a Tourism Policy to set the agenda and direction for the development of the tourism industry and manage its intended and unintended consequences. The DOT shall develop rules, regulations, and guidelines including a comprehensive Strategic Development Plan for the implementation of this policy.

Title, Commencement, and Application Title

This Policy shall be known as the “ Tourism Policy of the Kingdom of Bhutan 2021 ”.

Commencement : This Policy will come into force from the 22nd Day of the 11th Month of the Male Iron Rat Year of the Bhutanese calendar, corresponding to the 5th day of the first month of the year 2021, and remain in force until superseded or amended.
Application : All matters relating to tourism shall be governed by this Policy and the relevant laws of the Kingdom of Bhutan.

Guiding Principles

The guiding principles which underpin Bhutan’s vision for sustainable tourism are:

Develop and promote forms of tourism that are consistent with our national development philosophy of Gross National Happiness.
Promote High value, Low volume tourism

Refers to targeting mindful and responsible visitors, creating good value-for-money experiences, high revenue and yield, quality infrastructure and tourism products and services, and Brand Bhutan. While ensuring that the number of tourists Bhutan receives is consistent with the absorptive carrying capacity of our natural endowment, socio-cultural values, and infrastructure and does not exacerbate our vulnerabilities as a small nation.

Promote tourism that does not undermine national security and does not erode our tangible and intangible cultural heritage and environment.
Promote inclusive and equitable growth.
Ensure sustainable tourism development.

Vision

A green, sustainable, inclusive, and a high-value tourism destination

The objectives of the Tourism Policy of the Kingdom of Bhutan are:

To promote Brand Bhutan;
To increase the contribution of tourism to the national economy;
To enhance rural livelihoods;
To strengthen institutional structures, partnerships, and collaborations;
To promote professionalism and excellence in the industry; and
To promote sustainable tourism in Bhutan.

Policy Statements

The Tourism Policy of the Kingdom of Bhutan seeks to achieve the vision and objective through the following policy statements. The policy statements are identified under different strategic domain areas of intervention.

Sustainable Tourism Development

The RGOB will continue to pursue a policy of High value, Low volume tourism, where tourism will contribute towards socio-economic development while ensuring the negative impacts associated with tourism are avoided or mitigated.
The RGOB shall adopt a comprehensive approach for the development, promotion, and management of tourism and tourist in the country to work towards a single tourism system by 2030.
In order to ensure that the number of tourists is within manageable limits to avoid issues and concerns associated with mass tourism, the RGOB shall manage and regulate the volume of tourism through the following mechanisms:
a) Adoption of appropriate pricing and other mechanisms such as SDF and MDPR.
b) All leisure tourists except those from countries granted exemptions by the RGOB will have to pay the MDPR which includes the SDF component and payment for the all-inclusive service package which includes accommodation, meals, guides, and ground transport within Bhutan.
c) The MDPR will not apply to countries granted exemptions by the RGOB which currently includes nationals of Bangladesh, India, and Maldives. However, for this category of leisure tourists, only SDF will be applied. The SDF is different from any other fees.
d) The SDF shall be a tourism levy to compensate for the negative environmental impacts associated with tourism. It will not cover the expenses related to the visits such as accommodation, food, travel, and other tourism-related services and SDF shall be different from any other fees.
e) The SDF and MDPR will be revised and determined by the RGOB based on the need to manage the pressures on our society, culture, and environment.

The implementation of the SDF shall be guided by the Tourism Levy Act of Bhutan 2020.

To enhance experience, wellbeing and safety of the tourists, the God shall develops and implements rules, regulations, and guidelines for the management of tourists from those countries who are exempted from paying the MDPR. The guidelines will cover the organization of trips through Bhutanese ground handlers, travel facilitation, streamlining and easing of travel processes, etc.
To address environmental and safety concerns including traffic congestion and vehicular accidents, the RGOB shall adopt and implement guidelines for the regulation of domestic and foreign vehicles including two-wheelers used for tourism purposes.
To contribute towards sustainable and inclusive development, the RGOB shall promote ecotourism.
The RGOB shall open new areas and sites for tourism only upon taking into consideration the impacts on ecology, values, significance, and sentiments of the local communities and sites.
To avoid congestion and ensure quality visitor experiences, the RGOB shall implement mechanisms including management plans at selected tourist sites and places of religious, cultural, and natural significance.
In order to mitigate potential negative impacts, the TCB in collaboration with relevant stakeholders shall assess the absorptive carrying capacity of selected sites and places that are vulnerable to negative social, environmental, cultural, or other impacts associated with over-tourism.
The TCB in collaboration with relevant stakeholders shall institute mechanisms to conserve and promote natural and cultural heritage.
Mechanisms will be developed to compensate for the economic opportunities foregone by communities living in places that are protected and conserved for purposes such as eco-tourism by prohibiting development activities.
The TCB in collaboration with relevant stakeholders shall enhance initiatives to promote the management of waste produced by the tourism sector.

7.2 Positioning Tourism in Development Policies and programme

1. The RGOB shall position tourism in the national development planning and strategies given its contribution to the economy.
2. The RGOB shall integrate requirements related to tourism into the sector policies and plans.
3. The RGOB shall strengthen the collection, storage, analysis, use, and dissemination of data and statistics related to tourism for purposes of the development of the industry.

7.3 Strengthen Tourism Governance and Institutional Setup

The TCB shall continue to be the apex tourism organization responsible for the development, promotion, and regulation of tourism.
a) Budgeting, planning and policy formulation and implementation
b) Regulation and monitoring of the industry
c) Facilitation and coordination
d) Development, promotion and branding of tourism products and services
e) Human resource development
f) Certification and accreditation of tourism services and facilities

The RGOB shall strengthen tourism governance and institutional set-up through the following:

a) Develop and/or Strengthen legislation or regulatory frameworks for tourism.
b) Provide adequate resources and manpower including skills enhancement and upgradation
c) Strengthenandexpandtourismrepresentationwithinthecountryandin major international markets through the Bhutan missions abroad.

7.4 Improvement of Tourism Products and Investment Environment

a) Targeted performance-based incentives and facilitate land leases for tourism infrastructure.
b) Enhanceandimprovetravelfacilitationservicesbystreamliningprocesses and improving efficiency in the delivery of services.
c) Streamlinealltourismbusinessesandservicesestablishment, operations, and regulatory compliance through the TCB.
d) Streamline and simplify processes for tourism businesses.
e) Collaborate with relevant stakeholders to leverage information and communication technology through the implementation of a tourism ICT Master Plan to promote tourism, service delivery, and visitor experience enhancement such as online payment facilities.
f) Improve access to and within Bhutan by improving and expanding air and road connectivity which may include opening an alternate international airport.

2. TCB in collaboration with relevant stakeholders shall improve tourism products and offerings to enhance the visitor experience through the following mechanisms:

a. Diversify tourism products with special emphasis on unique offerings and comparative advantage taking into consideration needs for geographical spread and year-round tourism. This shall include but not be limited to:

Development of new tourism clusters with appropriate services
Nature-based tourism
Community-based tourism / village tourism / rural tourism/ Agrotourism
Ecotourism
Local cuisines, arts and crafts, and traditional medicine.
Promotion of Bhutan as a destination for filming as per relevant laws
Wellness, spiritual and MICE tourism
Adventure and recreational tourism.
Festivals and sacred tourist sites
Sports tourism.
Develop procedures, guidelines, regulations, and standards to ensure systematic and planned development of sustainable products.
Strengthen and improve current tourism product offerings, packaging, and content development.
Strengthen the quality of tourism products and infrastructure operations with standards and monitoring.
Promote domestic tourism by developing products and services catering to the needs of the resident tourists.

a. Develop and implement Brand Bhutan strategies to differentiate Bhutan from the competing destinations. b. Strengthen the promotion of Bhutan as an exclusive destination through innovative marketing and communication strategies.

The DOT in collaboration with relevant stakeholders shall develop and implement a sustained tourism education and awareness campaign for the national audience.
The RGOB shall identify and develop tourism zones across the country to promote coordinated and sustainable development of tourism products and infrastructure.

7.5 Seasonal and Geographical Spread of Tourism 1. The RGOB shall undertake the following measures to promote tourism as a year-round activity: 2. The RGOB shall undertake the following measures to encourage the spread of tourism activities in tourism-deficient regions of Bhutan:

7.6 Standard and Quality

The RGOB shall improve services and offer greater choices for visitors by creating conditions to allow more competition.
To prevent revenue leakages and misuse of tourism payment systems and improve payment for services, the RGOB shall develop/integrate e-platforms for tourism business operations and practices such as licensing, disbursement of payments, tax filing, etc.
To achieve excellence in the standard and quality of tourism facilities and services, the DOT in collaboration with relevant stakeholders shall establish certification systems and standards.
To ensure safety of tourist,appropriate mechanisms shall be developed and implemented.
To ensure access to timely and quality health services all tourists will be encouraged to have travel/health insurance.
The DOT in collaboration with relevant stakeholders shall devise standard systems for crisis and emergency preparedness, management, and response.
To promote excellence and professionalism in the delivery of services by guides, tour operators, hoteliers, and other tourism service providers, the DOT in collaboration with relevant stakeholders shall ensure compliance with standards and a code of ethics.
The RGOB shall implement regulations to discourage unhealthy growth and development in the tourism industry.
The DOT in collaboration with relevant stakeholders shall prevent any form of exploitation including that of vulnerable groups, women, and children in the sector and tourism facilities and establishments.

7.7 Human Resource Development

The RGOB shall encourage and facilitate the development of a professional and competent workforce and the availability of a skilled workforce in the industry as per existing laws.
The TCB in collaboration with relevant stakeholders shall develop human resource development plans and actions to address skills gaps and training needs.
The TCB in collaboration with relevant stakeholders shall ensure the professional quality of institutions providing training in tourism through the development of quality assurance mechanisms.

7.8 Partnerships and Collaborations

The RGOB shall promote partnerships and cooperation on tourism: a) With other countries and international organizations. b) At national, regional, and community levels.
The TCB in collaboration with relevant stakeholders shall strengthen and support relevant stakeholders, tourism associations and networks.
The RGOB shall promote public-private partnerships in tourism.

7.9 Inclusive and Integrated Tourism 1. The TCB in collaboration with relevant stakeholders shall promote inclusive and integrated tourism through:

8 Role of Stakeholders A responsible collaborative approach will enable the promotion of tourism that is economically viable, environmentally sustainable, and culturally acceptable. The implementation of the policy will be a shared responsibility. Every stakeholder including the visitor, comprising of the following but not limited to:

9 Formulation, coordination, and implementation

TCB shall lead the implementation of this policy in collaboration with other stakeholders.
All tourism-related initiatives by sectors shall be undertaken in consultation with TCB.
All tourism-related initiatives by the private sector shall be routed and endorsed by TCB.
The TCB in collaboration with relevant agencies, Local Governments, and sector associations shall implement this policy.
An action plan will be developed to implement this policy and implementation shall be undertaken with the support of the government.

10 Monitoring and Evaluation

The TCB in collaboration with partner agencies and stakeholders shall implement this policy and regular monitoring and evaluation of the implementation shall be undertaken.
The monitoring and evaluation of the policy shall be based on the implementation of the action plan developed by the TCB
The TCB shall conduct periodic monitoring and evaluation of plans, programs, and policies related to tourism.

11 Amendment

This Policy will come into force from the 22nd Day of the 11th Month of the Male Iron Rat Year of the Bhutanese calendar, corresponding to the 5th day of the first month of the year 2021, and remain in force until superseded or amended.
The TCB in collaboration with other relevant agencies shall review this policy at least once every five years and revise it if necessary.
In the event of a conflict of interpretation of any part of this policy, the TCB shall be the authority to interpret the provisions of the Policy which shall be final and binding.

The policy of ‘High-value, Low volume’ tourism in Bhutan envisions promoting the country as a green, sustainable, inclusive, and high-value tourism destination. It aims to contribute to the overall socioeconomic development of the country by setting the agenda and direction for sustainable tourism development through key reform measures and institutional strengthening. The policy is focused on promoting tourism that is sustainable, inclusive, and of high value, with a low impact on the environment and culture of the country.

Bhutan promotes sustainable tourism by setting a minimum daily package rate (MDPR) for all leisure tourists, which includes the Sustainable Development Fee (SDF) component and payment for the all-inclusive service package, such as accommodation, meals, guides, and ground transportation within Bhutan . The SDF is a tourism levy on all leisure tourists, which is applicable throughout the year as a contribution towards sustainable development initiatives undertaken by the Government and to compensate for the negative environmental impacts associated with tourism. The country also practices ecotourism, which is high value, low impact travel that supports the protection of cultural and natural heritage, provides positive and enriching experiences for visitors and hosts, assures tangible benefits to local people, and contributes to the pillars of Gross National Happiness .

The minimum daily package rate (MDPR) for leisure tourists in Bhutan is USD 250 per person per night during the months of March, April, May, September, October, and November and USD 200 per person per night during other months of the year (December, January, February, June, July, and August). This rate includes the Sustainable Development Fee (SDF) component and payment for the all-inclusive service package, such as accommodation, meals, guides, and ground transport within Bhutan.

The Sustainable Development Fee (SDF) in Bhutan is levied as per the Tourism Levy Act of Bhutan 2020. The fee is determined by the Royal Government of Bhutan (RGOB) based on the need to manage the pressures on society, culture, and environment. The SDF is a tourism levy on all leisure tourists, which is applicable throughout the year as a contribution towards sustainable development initiatives undertaken by the Government and to compensate for the negative environmental impacts associated with tourism.

The current COVID-19 pandemic has had unprecedented impacts on people and economics with tourism being one of the most impacted. The pandemic has led to a significant decline in the number of tourists visiting Bhutan , which has affected the country’s tourism industry and its socioeconomic development. However, the pandemic has also given Bhutan the opportunity to rethink, review, and reset its tourism policies and practices to become more robust and resilient as it strives towards recovery. In this context, the promotion and development of sustainable tourism are even more relevant, and it is important to build on the foundation that exists with robust reforms that will bring greater benefits for all through sustainable and inclusive tourism.

Truly Bhutan Travel

Bhutan reopens its borders with new tourism strategy

Published on: September 28th, 2022, by Aue Therchen

Bhutan reopens its borders with new tourism strategy & regulations

Strategy underpinned by enhancements to sustainable development policies, the elevation of guest experience, and infrastructure upgrades
Bhutan unveils new national brand: ‘Believe’

BHUTAN, September 22, 2022.

The Kingdom of Bhutan today reopens its borders to international guests following the COVID-19 pandemic. The country has unveiled a new tourism strategy, underpinned by transformations in three key areas: enhancements to its sustainable development policies, infrastructure upgrades, and the elevation of the guest experience.

“Bhutan’s noble policy of High Value, Low Volume tourism has existed since we started welcoming guests to our country in 1974. But its intent and spirit were watered down over the years, without us even realizing it. Therefore, as we reset as a nation after this pandemic, and officially open our doors to visitors today, we are reminding ourselves about the essence of the policy, the values, and merits that have defined us for generations,” said H.E. Dr. Lotay Tshering , the Honourable Prime Minister of Bhutan .

Tourism Transformation Bhutan

“We must also ensure that we are a high-value society, one that is infused with sincerity, integrity, and principles, where people must always live in safe communities, among serene environments and derive comfort from the finest facilities. Typically, “ high value ” is understood as exclusive high-end products and extravagant recreational facilities. But that is not Bhutan. And, “low volume” doesn’t mean limiting the number of visitors.

We will appreciate everyone who visits us to treasure our values, while we also learn as much from them. If that is what you are searching for, there is no limit or restriction. The best conduit to realizing our vision is our youth and professionals in the tourism industry.

While those working in the tourism sector will represent us at the forefront, the entire nation is the tourism industry and every Bhutanese is a host . The minimum fee we are asking our friends to pay is to be reinvested in ourselves, the place of our meeting, which will be our shared asset for generations. Welcome to Bhutan,” H.E Dr. Lotay added.

Enhancements to Bhutan’s sustainable development policies

Bhutan recently announced that it would raise its Sustainable Development Fee ( SDF ) from USD 65 to USD 200 per person, per night, which will go towards projects that support Bhutan’s economic, social, environmental, and cultural development.

The fees raised will fund national investment in programs that preserve Bhutan’s cultural traditions, as well as sustainability projects, infrastructure upgrades, and opportunities for youth – as well as providing free healthcare and education for all.

For instance, some of the Sustainable Development Fee funds go towards offsetting the carbon footprint of visitors by planting trees, upskilling workers in the tourism sector, cleaning and maintaining trails, reducing the country’s reliance on fossil fuels, and electrifying Bhutan’s transportation sector, among other projects.

Tourism Levy Act of Bhutan 2022

As a country that is vulnerable to the effects of climate change (experiencing melting glaciers, floods, and unpredictable weather patterns), Bhutan will also be stepping up its efforts to maintain its status as one of only a handful of carbon-negative countries in the world – in 2021, Bhutan sequestered 9.4 million tonnes of carbon against its emission capacity of 3.8 million tonnes.

“Beyond protecting Bhutan’s natural environment, the SDF will also be directed towards activities that preserve Bhutan’s built and living cultural heritage, including architecture and traditional values, as well as meaningful environmental projects.

Our future requires us to protect our heritage, and to forge fresh pathways for forthcoming generations,” said Mr. Dorji Dradhul, Director General of the Department of Tourism .

“We need tourism to not only benefit Bhutan economically but socially as well while maintaining our low sustainable footprint. The goal of our new strategy is to create high-value experiences for guests, in addition to well-paying and professional jobs for our citizens.

This is our moment of evolution and we invite our guests to become our partners in this transformative moment,” Dradhul added.

Bhutan reopens its borders with new tourism strategy & Infrastructure upgrades

In line with this, the government used the period during the COVID-19 shutdown to upgrade roads, trails, temples, and monuments around the country, upgrade public bathroom facilities, organize rubbish clean-up events, and enhance the standards and certification process for tourism service providers (such as hotels, guides, tour operators and drivers).

Employees across the tourism industry were required to participate in upskilling programs to focus on enhancing service quality.

Bhutan reopens its borders with new tourism strategy & Elevation of the guest experience

“We know that our new SDF brings with it a certain expectation when it comes to standards of quality and service, so we are committed to enhancing the guest experience – whether that is through the quality of services received or the cleanliness and accessibility of our infrastructure, by limiting the number of cars on our roads, or by limiting the number of people who visit our sacred sites.

By doing so, we protect the experience for visitors to Bhutan, as we must be able to provide authentic experiences supported by world-class services and personal care.

We also plan to work with our tourism partners to continue to upgrade the itineraries that guests can experience in our country – to help showcase the very best that Bhutan has to offer.

We hope that visitors to Bhutan will notice and welcome these changes, and we very much look forward to welcoming all guests to Bhutan,” concluded H.E. Dr. Tandi Dorji, the Minister of Foreign Affairs .

New Tourism Policy of Bhutan 2022

The revamp of Bhutan’s tourism comes amid a widespread ‘transformation project’ rolled out across the country, from the civil service to the financial sector. The changes are geared toward developing Bhutan’s human capital by equipping the population with more proficient skills, knowledge, and experiences.

During a special ceremony in the capital city Thimphu yesterday (September 22, 2022), a new brand for Bhutan was also unveiled by H.E. Dr. Lotay Tshering, Honourable Prime Minister, in the presence of other government officials and dignitaries. ‘ Brand Bhutan ’ aims to capture the optimism and renewed ambition of the kingdom as it opens its doors to guests once again, as well as communicating its promise and plans for its young citizens. Bhutan’s new tagline, Believe , reflects this determined focus on the future, as well as the transformative journeys experienced by its guests.

For more information about visiting Bhutan, visit Bhutan Tour By Theme for Our Local Specialist Are Here To Help You Plan The Most Unique Outstanding Tours. Explore the wonders of Bhutan. Once in a Lifetime Experience. Book a Tour Today. 24/7 Customer support. Verified Customer Reviews. Hand-Picked Guides/ Host .

Other changes to the Sustainable Development Fee [SDF]

The previously stipulated Minimum Daily Package Rate ( MDPR ) has been removed. This gives visitors the flexibility to engage service providers directly, or book flights, hotels, and tours in Bhutan themselves.
Guests from India will pay a previously stipulated fee, which will be revised at a later date.
In previous years, the SDF was USD 65 per person (plus a USD 40 per person, per night fee for individual travelers). There will be a concessionary levy of 50% on the SDF for children between the ages of 6 to 12 years, and exemptions of the SDF for children aged 5 years and below.

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Bhutan's neighbors 'undermining' elite tourism strategy

Regional tourists are spoiling the fun for global big spenders, operators say

Wedged between India and China, the tiny kingdom of Bhutan has long been regarded as one of the world's most exclusive destinations, off the beaten track for the average tourist.

Until recently, a cautious approach to developing international tourism, in line with a "high value, low impact" strategy that requires foreign visitors from most parts of the world to spend a minimum of $250 a day during peak season, had limited arrivals while generating substantial economic benefits. Tourism is the country's biggest hard-currency earner, bringing in $85.4 million in 2018, and overall revenue is second only to hydropower.

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Private equity comes to bhutan, latest on life, india unveils monument to dead from brutal world war ii battle, coffee's 'third wave' gathers pace in jakarta, melbourne writers festival returns to full glory, sponsored content, about sponsored content this content was commissioned by nikkei's global business bureau..

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Bhutan's Economy Maintains Robust Growth Despite Challenges

THIMPHU, May 3, 2024 —Bhutan’s economy continues its strong recovery from the COVID-19 pandemic, according to two new World Bank reports launched today.

The April 2024 Bhutan Development Update indicates that economy is showing signs of a strong recovery with an expected 4.6 percent real GDP growth in FY22/23, driven by higher growth in tourism activity, following economic contraction over two consecutive years due to the COVID-19 pandemic. Growth is expected to accelerate to 4.9 percent in FY23/24.

“ To maintain a strong and inclusive growth, Bhutan can do more to enable the business environment to attract Foreign Direct Investments and promote the private sector to create more jobs that appeal to the aspirations of its citizens”, said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan . “ Further, it will equally be important for the government to timely address the increasing stress on services delivery because of human resources challenges.”

Despite the relatively robust growth in recent years, downside risks to the economy persist. The fiscal deficit is expected to widen in FY23/24 to 5 percent of GDP as expenditure outpaces revenue, due to significant salary increases for public sector employees. Over the last year, there has been a significant decline in international reserves, but they have begun to stabilize as the current account deficit showed signs of narrowing in the first quarter of FY23/24, following a significant expansion in FY22/23. Risks include delayed fiscal consolidation, vulnerabilities in the financial sector, volatile international commodity prices and delays in hydropower projects.

The report includes a special section on labor market and jobs. Bhutan’s labor remains predominantly employed in the low productivity sectors. Workers face many challenges, including limited inclusion of women in meaningful employment and persistence of low-productivity agricultural employment. Employment quality outside of the public sector remains weak, leading to public sector queuing, rising unemployment among urban workers, and a record number of Bhutanese migrating abroad.

The 2023 Public Expenditure Review for Bhutan emphasizes the critical importance of efficient public spending and enhanced domestic resource mobilization to help achieve Bhutan’s long-term development goals.

Bhutan’s revenue collection remains largely driven by the hydropower sector, which contributes significantly to both tax and non-tax revenue collection. However, the contribution from the direct taxes without the hydropower sector remained stagnant. Bhutan’s capital expenditure as a share of GDP is among the highest globally, and expenditures on salary and allowances consume a significant portion of the current expenditure. While Bhutan's commitment to education and healthcare remains robust, there are opportunities to improve spending efficiency.

“ Greater contribution from direct taxes beyond the hydropower sector, coupled with a more effective tax administration system, could bolster Bhutan's ability to generate increased revenues essential for its development ,” said Hoon Sahib Soh, World Bank Practice Manager for Macroeconomics, Trade & Investment for South Asia Region.

State enterprises in Bhutan contribute significantly to budget revenues and create jobs but suffer from profitability and performance challenges. Although Bhutan has enhanced its legal and regulatory framework for state enterprise management, key policy gaps persist, including ownership and dividend policies.

“Further improvements in managing investments, corporate governance and financial reporting, can help improve performance of state enterprises and reduce fiscal risks”, said Adama Coulibaly, World Bank Resident Representative for Bhutan .

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Bhutan strategises to promote tourism

Dechen Dolkar

The Department of Tourism (DoT) has come up with a marketing strategy to promote Bhutan abroad. It consists of raising awareness in media, engagement with international B2B (travel agents) and webinars, travel and trade events, advertising and digital marketing campaigns, domestic industry engagement and existing and new market activations.

Officials of DoT said that social media is also part of the strategy and they have several big influencers from Thailand, Indonesia, and the United Kingdom coming to Bhutan.

The second arm of the strategy has been engaging international travel agents and tour operators and the department is also working with the domestic tourism industry in the country.

A tourism official said that they have met with 40 hotels across the country, seeing how the department can support them with their sales and marketing activities and also giving suggestions.

Officials say that many hotels do not have dedicated sales and marketing staff, and they do not have any marketing outreach.

Officials said that, in terms of markets, they are still actively marketing in Bhutan’s key global markets, but there is also huge potential in other markets, such as China and Russia.

Marketing Strategy for Regional Tourists

The arrival of tourists has dropped drastically in the international market compared with previous years. In Bhutan, there is also a drastic decrease in regional tourists.

The department is also focusing on regional tourists and India is a priority for Bhutan.

“We are about to finalize several marketing campaigns with big travel partners for joint marketing agreements where they will aggressively promote Bhutan to their millions of followers and, in return, they will guarantee a certain number of tourists,” an official said.

According to tour operators in India, the cost of flights from India to Bhutan is very expensive compared with other destinations.

“We will also be working on creating new itineraries for guests, and developing events in Bhutan that attract foreign arrivals, as well as promoting existing festivals and events,” the official said.

The tourism sector still faces some challenges that have an impact on the overall guest experience.

For instance, there are still issues with the online payment gateway system when guests try to pay their SDF and visa fees online. Many of the transactions are not approved, sources said.

Furthermore, the lack of credit card payment facilities at retail outlets around the country limits how much people spend while they’re in Bhutan.

The tourism official said that they are in discussion with relevant stakeholders about making small tweaks to the tourism strategy to support the industry at this time.

“We have an intensive marketing campaign planned over the next 6 to 12 months, while continually refining our strategic long-term marketing initiatives,” the official told Kuensel.

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Is Luxury Travel in Bhutan Truly Sustainable?

H ow to Travel Better is a new monthly column with Condé Nast Traveler’s sustainability editor Juliet Kinsman . In this series, Juliet introduces us to the sustainability heroes she meets, signposts the experiences that are enhancing our world, and shares the little and big ways we can all travel better.

My heart skipped several beats as our plane navigated the cloud-haloed, sharp peaks of the Himalayas before easing itself onto the landing strip in Paro. Few pilots are even qualified to negotiate the strip, which is only the size of a couple football fields and is surrounded by low-rise, green-roofed, whitewash-and-timber buildings. The only passengers on the tarmac, we padded— wide-eyed, slack-jawed—into the tiny arrivals lounge where we were greeted by bucolic scenes hand-painted on the wattle-and-daub walls. An independent bookshop and art displays stood where one would expect to see Duty Free items.

The passport control officer I was assigned opened my stamp-filled passport and smiled, saying: “Oh wow, you travel a lot". This contrasted sharply with my transit through Bangkok, where I was scolded: “Passport full. Get new one .” At 7,000 feet above sea level, Bhutan's only international airport had already been a breath of fresh air. We breezed through to be welcomed by Pencho, our guide, and Kencho, our driver. As we settled into the car, I asked how many visitors the country might have right at that moment, feeling very lucky to see so few around me. “Maybe 200 or 300,” Pencho replied. “It’s high season.”

In terms of world history, but a blink of an eye ago Bhutan was still largely hidden from the rest of the world. It has only been a nation in its own right since 1907, but the hydro-powered, carbon-neutral country always indexes high among the most sustainable in the world. This is the reason why I arrived with expectations as high as the Himalayas: I wanted to better understand their low-traffic, high-spend tourism strategy—the sustainable development fee they charge travelers is a well-known example of this—that is so celebrated, alongside their Gross National Happiness metric. I especially wanted to see how this reconciles with ambitious developments like the Mindfulness City in Gelephu in the south, which aims to be a modern Buddhist lifestyle destination and economic mega hub.

I’m an independent traveler, but relinquishing all planning to our MyBhutan hosts was incredibly pleasant. They were to arrange an itinerary that would have us experience Bhutan in a way that felt honest and genuine, and during which we’d leave money in the hands of those who care about local communities and nature. In Paro, for instance, our first night was spent at Bhutanese-owned Zhiwa Ling Heritage , which proudly displays the design and craftsmanship of regional artisans and prioritizes hiring locals.

Bhutan's hotel industry has always been sensitively regulated by the authorities. Aman and COMO Hotels and Resorts were among the first five-star international hotel brands to entice discerning visitors in the early noughties, and their luxury circuits that followed; connecting Paro, Thiumpu, Punakha, Gangtey, and Bumthang set the bar. More recently, sustainability and wellness leader Six Senses has created its own daisy chain of sleek, eco-conscious retreats . And with Africa’s andBeyond importing their safari approach to Bhutan, wildlife, too, is in the spotlight. But more recently, there has also been an emphasis on homegrown hospitality, and home stays that offer a taste of everyday Bhutanese living are on the rise. One such homestay, the Mendrelgang Heritage Home in Punakha, is an ancestral home that presents an authentic setting, inviting its guests to step into a family’s real-life history.

Our MyBhutan-planned itinerary took us to a different stay every night, and from Paro in the west to Gangtey about 100 miles west. The most challenging planned activity was a three-hour hike up a steep, wooded cliff to Tiger’s Nest , an iconic 17th-century monastery. I couldn’t help noticing that, despite being a major tourist attraction, the majestic temple (as well as the dzongs we visited later) never felt busy. Another day we crossed a prayer-flag-festooned suspension bridge to Happiness Farm in Paro, for a fascinating first-hand tutorial on the centuries-old technique of natural dyeing and weaving with Aum Karma, its nangi-aum (lady of the house). There’s a remarkable national pride in both Bhutan's handmade textiles and traditional clothing: Most men dress in a gho, the elegant knee-high, wide-sleeved robes, while women dress in a hand-woven, ankle-length kira .

Along the drive from Paros through Thimpu, we paused at Dochula Pass, the 10,000-foot-high stop to take in staggering panoramas. We learned from our guide that the geography of this yak-farming terrain has been greatly affected by rising temperatures and less-predictable seasons. Another day, while tree planting with the NGO Green Bhutan, we received a lesson on the importance of biodiversity at the Royal Botanical Park, Lampeiri. And one evening, after dark, we rafted past Punakha Dzong—the palace of great happiness. As it glowed by night on the banks of the Pho Chhu (Male) and Mo Chhu (Female) rivers in the Punakha Valley, we turned to Bhutan’s more meditative side, underscoring that true luxury is a feeling .

Humans are the only creatures that explore for the sake of exploring. We often trot out clichéd catchphrases such as “travel as a force for good,” but what does that really mean? How can we travel the world in a way that genuinely benefits us, and those hosting us? Bhutan, a country shut for two years due to the pandemic, is seeing one in seven young adults leaving in search of higher-paid jobs overseas. Gelephu Mindfulness City is being envisioned as a way to address that—to combine business, culture, and spirituality in a way that allows for progressive growth and for a little of the outside world to seep in. To get this done without compromising on what makes Bhutan so precious will be the challenge. After all, as a visitor, the cultural authenticity free from outside influences is what makes time in the Land of the Thunder Dragon so enriching.

Most of all, Bhutan was a reminder that our greatest privileges on this visit involved not lavish facilities or expensive amenities but pristine, untouched nature and a sense of wonder at a simpler, rural living not yet wiped out by modern progress. Did we fall in love with this magical mountain kingdom? Na ma sa me, which translates from Dzongkha as ‘infinitely.’ Or, quite literally, “between the earth and the sky.”

Sustainable luxury stays

Zhiwa Ling Heritage

Tucked into the main mansion that’s fashioned from local stone and delicately painted timber, the two-bedroomed Royal Raven Suite was extra special thanks to its intricately decorated en-suite shrine room honouring the goddesses of longevity, happiness and wealth.

Sangwa: Luxury Tented Camp

A secret camp created just for you, where you can try your hand at the national sports of archery and darts, watch folk performances by a crackling log fire, taste Bhutanese whiskeys, and feast on a spice-rich, camp-made banquet. — Book with mybhutan.com

Six Senses Bhutan

Six Senses has five beautiful lodges in Bhutan, but waking up in Gangtey to the widescreen view of Phobjikha Valley while listening to the distinct call of the black-necked cranes—on their winter sojourn away from Tibet—will stay with me forever.

Bhutan Spirit Sanctuary

An independently owned five-star wellness hotel where the traditional Bhutanese medicine practitioner prescribes wellness treatments from herbal compressions to Tibetan Ku Nye massages. There’s also a seductive indoor pool to tempt.

andBeyond Punakha River Lodge

This intimate all-inclusive riverside retreat promises up-close wildlife-rich explorations and guided treks and hikes, alongside every five-star perk. Standalone tented suites as well as a two-bedroom villa sit in perfect harmony with the valley, while rafting and kayaking await beyond.

Gangtey Lodge

A dream gourmet escape for couples and honeymooners, where experienced chefs alchemize seasonal ingredients and local specialities such as yak meat and cheese with great imagination. Book a traditional hay bath soak and enjoy the charming valley views that come with.

Juliet Kinsman traveled with mybhutan.com and bhutan.travel.

The monastery in Bumthang during the sunset with smoke, forest and magical light.

What Do Indian Tourists Want? We Asked 5 Hotel Brands – India Report

Bulbul Dhawan , Skift

May 8th, 2024 at 11:00 PM EDT

Due to close proximity, the nations of Nepal, Sri Lanka, and Bhutan witness significant tourism from India. With preferences of Indian travelers changing, boutique properties are reaching out with diverse offerings to attract this tourism segment.

Bulbul Dhawan

The Skift India Newsletter is your go-to platform for all news related to travel, tourism, airlines, and hospitality in India.

India is a key source market for the neighboring countries of Nepal, Bhutan, and Sri Lanka. In February, India was the biggest source market for Nepal, accounting for more than 25% of foreign tourist arrivals in the country.

For Bhutan, Indians accounted for 60% of the total international tourists in the first three months of 2024. The country is expecting 150,000 Indian tourists this year, more than double that of 2023.

In Sri Lanka, the number of tourists from India in the island nation increased by over 100% in January.

What are they doing to keep the growth going? Skift caught up with some boutique hotel brands from these three countries that were in India for a trade event.

Here’s what we learned:

Amrit Rajaratnam, founder of Galle Fort Hotel, Sri Lanka: Indian travelers are seeking authentic, experiential, and unique experiences, Rajaratnam said.

“They seek bespoke luxury experiences and are inclined to invest in shorter, luxe getaways as opposed to longer trips. They want unique, immersive travel experiences, which are family friendly and exclusive.” Rajaratnam added that Indian travelers prefer privacy, often booking entire properties for their group travels.

Khin Omar Win , owner of Gangtey Lodge, Bhutan: “Discerning Indian travelers are more mindful, curious, and adventurous. They seek cultural immersion. The biggest trend we have experienced is the shift in interest from classic travel to developed destinations to more immersive, nature-focused travel and soft adventure,” Win said.

She added that pre-Covid, her property received very little interest from the Indian market but this has significantly increased post-pandemic.

Nilanka Martinus, managing director of Mosvold Boutique Hotels, Sri Lanka : “Indian travelers are looking for unique boutique luxury experiences, coupled with a discerning palate for great food, particularly with a strong preference for vegetarian options. They highly value personalized attention and excellent service standards.”

The Indian market, particularly the middle and upper-middle class, is increasingly inclined to splurge on luxurious travel experiences and boutique hotels and have moved away from package tours, Martinus shared.

Prabina KC Chhetri, sales and marketing director of Dwarika’s Group of Hotels and Resorts, Nepal: She said that apart from experiential tours, Indians are also inclined towards holistic well-being, spiritual and cultural experiences, and sustainable travel.

Hashan Cooray, managing director of Jetwing Hotels, Sri Lanka: Jetwing Hotels has been witnessing increased interest in properties that offer agricultural experiences and tea estate experiences. “Luxury wellness retreats are seeing increased demand from Indian travelers, where they look to stay for a week or more, immersing themselves in daily physical activities, health routines and treatments. Wildlife tours in Yala, Kumana as well as in the Sigiriya region are also gaining popularity,” said Cooray.

Thailand Extends Visa Waiver for Indians Until November 11

Thailand has extended the visa-free arrival arrangement for Indian travelers till November 11. The Thai cabinet on Tuesday approved a plan to extend the visa exemption for six more months.

In November last year, Thailand decided to grant visa-free entry to Indians and Taiwanese citizens from November 10 till May this year. This visa waiver would have ended on Friday.

Travelers from the two countries would be allowed to stay without a visa in Thailand for a period not extending 30 days.

In the first four months of 2024, Thailand recorded over 12 million visitor arrivals, representing a 39% increase over the same period in 2023. More than 550,000 Indians visited Thailand during this period. Thailand expects the number of visitor arrivals from India to reach 1.7 million this year .

India is one of the most important source markets for Thailand and is also the fastest-growing. In 2023, over 1.6 million Indian travelers visited Thailand , making the country the fourth-largest source market for Thailand. These tourists spent more than THB 63 billion ($1.7 billion).

Sri Lanka has also renewed its visa-free entry for visitors from India, China, Russia, Japan, Malaysia, Thailand, and Indonesia. The visa-free entry will allow these visitors to stay in Sri Lanka for 30 days.

IHG Opens India’s First Voco Hotel

IHG Hotels and Resorts has opened India’s first voco hotel – voco Jim Corbett. The 70-key resort marks the introduction of IHG’s seventh brand in India. The hotel chain has four other voco hotels in its India pipeline – in Mumbai, Amritsar, Gurugram, and Goa.

Last month, the company announced its plans to double its operating portfolio in India , aiming to have 100 trading hotels in the country by 2029. In 2023, the hotel chain’s occupancy rate surpassed pre-Covid levels significantly, it said in a statement.

Post the 2023 performance, the company has ambitious expansion plans for India. IHG’s Southwest Asia managing director Sudeep Jain said, “We are on track to record another successful year, fueling our growth ambitions in the country.”

80% of Indian Travelers Prefer Domestic Destinations

Nearly 80% of the Indian travelers prefer domestic destinations as opposed to international ones, shared travel advisory firm VIDEC’s CEO Virendra Jain at the Arabian Travel Mart 2024. While speaking about India’s rapid emergence as a crucial source market for global tourism, Jain shared the characteristics and behaviors of Indian travelers.

As many as 59% travelers in India prefer short weekend trips. “The primary motivator for these trips is the need for a break from daily life, with 33% of travelers seeking leisure escapes.”

He also asserted the need to understand the trends and behaviors among Indian travelers. “Coupled with India’s rising digital proficiency and infrastructural enhancements, these trends are shaping India into a dynamic source market for global tourism, necessitating targeted engagement strategies to capitalize on this growth,” he said.

Correction: This article has been updated to correct the pronoun for Khin Omar Win, owner of Gangtey Lodge in Bhutan.

Skift India Report

The Skift India Report is your go-to newsletter for all news related to travel, tourism, airlines, and hospitality in India.

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Tags: arabian travel market , bhutan , boutique hotels , hotels , ihg , india , india outbound , india travel , international tourism , international travel , nepal , skift india report , sri lanka , thailand , tourism , tourism authority of thailand , Travel Trends , visa waiver , voco

Photo credit: Bhutan, Sri Lanka, and Nepal are focusing on India to achieve their ambitious tourism targets. Avinash Patel / Pexels

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Traveling in Bhutan: What You Need to Know Before You Go
Bhutan’s New Tourism Strategy Amidst the Pandemic
Tourism Policy of Kingdom of Bhutan 2021
Bhutan reopens borders with new tourism strategy
Bhutan Reopens Its Borders With New Tourism Strategy
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COMMENTS

How Bhutan aims to balance economy and environment through 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 ...
PDF Tourism Policy of the Kingdom of Bhutan
The Tourism Council of Bhutan is pleased to announce the Tourism Policy of the Kingdom of Bhutan 2021. The policy envisions to promote Bhutan as a green, sustainable, inclusive, and a high-value tourism destination guided by the policy of 'High-value, Low volume' tourism to contribute to the overall socioeconomic development of the country.
Bhutan Reopens with New Sustainable Tourism Strategy
The Kingdom of Bhutan officially reopens to international travelers since the onset of the COVID-19 pandemic today, September 22, unveiling a new tourism strategy focusing on sustainable development, infrastructure upgrades and more. Bhutan will raise its Sustainable Development Fee (SDF) from USD$65 to USD$200 per person, per night.
PDF Bhutan Tourism Monitor 2020
The Tourism Council of Bhutan is pleased to present the annual statistical publication 'Bhutan Tourism Monitor 2020'. This publication presents the overall performance of tourism for the year including data on market trends, findings and analysis to support future development of the tourism industry.
Bhutan reopens to the world with new tourism strategy
The Kingdom of Bhutan reopens its borders today to international travellers following the Covid-19 pandemic. Aside from welcoming visitors to the country, Bhutan has also unveiled a new tourism strategy, underpinned by transformations in three key areas: infrastructure and services, tourists' travel experiences, and environmental impact to maintain carbon-neutral tourism.
Bhutan Reopens Its Borders With New Tourism Strategy
The Kingdom of Bhutan has reopened its borders to international guests following the COVID-19 pandemic. The country has unveiled a new tourism strategy, underpinned by transformations in three key areas: enhancements to its sustainable development policies, infrastructure upgrades, and the elevation of the guest experience.
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Bhutan's new tourism policy is part of a nationwide transformation, from the civil service to education and financial reforms. ... The goal of the new tourism strategy is to create high value ...
PDF Bhutan Tourism Monitor 2019
The Tourism Council of Bhutan is pleased to present the Bhutan Tourism Monitor (BTM) 2019 - an annual statistical publication. This is an important publication representing the overall performance for the year. The report also contains data on market trends over the years, findings and analysis to support future developments
Bhutan Is Back And Ready For Tourism
Bhutan, a bucket-list destination for many adventure travelers, closed its borders on March 22, 2020, due to the global pandemic. They have since reopened with a new tourism strategy, focusing on ...
Bhutan Releases New Tourism Strategy
With tourism arrivals to the country steadily increasing since 2009 and international tourist receipts more than tripling since 2000, Bhutan is well on the way to becoming one of Asia´s destinations to watch. The UNWTO-commissioned long-term tourism strategy and development plan, released in February, examines this country´s plans further.
Bhutan Reopens with New Sustainable Tourism Strategy
The Kingdom of Bhutan officially reopens to international travelers since the onset of the COVID-19 pandemic today, September 22, unveiling a new tourism strategy focusing on sustainable development, infrastructure upgrades and more. Bhutan will raise its Sustainable Development Fee (SDF) from USD$65 to USD$200 per person, per night.
Bhutan: A model for sustainable tourism development
One of the key factors in the success of Bhutan's tourism strategy has been the privatization of the industry. Until 1991, the Bhutan Tourism Corporation, a quasi-autonomous and self-financing body, implemented the government's tourism policy, and all tourists came as guests of the Corporation. The Corporation, in turn, operated the ...
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The Kingdom of Bhutan today reopens its borders to international guests following the COVID-19 pandemic. The country has unveiled a new tourism strategy, underpinned by transformations in three key areas: enhancements to its sustainable development policies, infrastructure upgrades, and the elevation of the guest experience.
Welcome to Bhutan Travel
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 ...
Preservation of a Paradise: What Can We Learn from Bhutan's Approach to
Bhutan, the Land of the Thunder Dragon, captivates its visitors with pristine natural beauty, a fascinating array of cultural displays and distance from the masses of tourists that would usually flock towards destinations as beautiful as this small mountain kingdom.With the global tourism industry being confronted with great sustainability challenges, the need to mend the gap between sustained ...
Bhutan reopens its borders with new tourism strategy
The Kingdom of Bhutan today reopens its borders to international guests following the COVID-19 pandemic. The country has unveiled a new tourism strategy, underpinned by transformations in three ...
Tourism in Bhutan
In 2005 a document called "Sustainable Tourism Development Strategy" "placed greater emphasis on increasing tourist numbers by using the country's culture and environment to promote Bhutan as an exotic niche destination attractive to wealthy tourists". The most important centres for tourism are in Bhutan's capital, Thimphu, and in the ...
PDF FINAL DRAFT
infrastructure, tourism products and services, experiential tourism and Brand Bhutan. Tourism Industry / sector: Is a cluster of production units in different industries that provide consumption goods and services demanded by visitors. Such industries are called tourism industries because visitor acquisition represents such a significant share ...
Tourism Policy 2021
The Tourism Council of Bhutan(DOT) is pleased to announce the Tourism Policy of the Kingdom of Bhutan 2021. The policy envisions promoting Bhutan as a green, sustainable, inclusive, and high-value tourism destination guided by the policy of 'High-value, Low volume' tourism to contribute to the overall socioeconomic development of the country. The policy sets the agenda and direction for ...
Bhutan's Tourism Dilemma: Balancing Economy and Sustainability
Bhutan's cautious approach to the tourism sector is reflected in its other sectors, including industries and investments. With more than 70 percent green cover , Bhutan places an emphasis on ...
Bhutan reopens its borders with new tourism strategy
BHUTAN, September 22, 2022. The Kingdom of Bhutan today reopens its borders to international guests following the COVID-19 pandemic. The country has unveiled a new tourism strategy, underpinned by transformations in three key areas: enhancements to its sustainable development policies, infrastructure upgrades, and the elevation of the guest ...
Bhutan's neighbors 'undermining' elite tourism strategy
Bhutan's neighbors 'undermining' elite tourism strategy. Regional tourists are spoiling the fun for global big spenders, operators say. The iconic Tiger's Nest Monastery in the Paro Valley is ...
Bhutan's Economy Maintains Robust Growth Despite Challenges
May 3, 2024—Bhutan's economy continues its strong recovery from the COVID-19 pandemic, according to two new World Bank reports launched today. The April 2024 Bhutan Development Update indicates that economy is showing signs of a strong recovery with an expected 4.6 percent real GDP growth in FY22/23, driven by higher growth in tourism activity, following economic contraction over two ...
PDF Bhutan Tourism Monitor
Bhutan Tourism Monitor 2017 3 FOREWORD The Tourism Council of Bhutan is pleased to present the Bhutan Tourism Monitor (BTM) 2017 an annual statistical publication. This important report presents the performance of the tourism industry in the year 2017, market trends over the years, and various other analysis on the key
Bhutan strategises to promote tourism
The Department of Tourism (DoT) has come up with a marketing strategy to promote Bhutan abroad. It consists of raising awareness in media, engagement with international B2B (travel agents) and webinars, travel and trade events, advertising and digital marketing campaigns, domestic industry engagement and existing and new market activations.
Is Luxury Travel in Bhutan Truly Sustainable?
This is the reason why I arrived with expectations as high as the Himalayas: I wanted to better understand their low-traffic, high-spend tourism strategy—the sustainable development fee they ...
What Do Indian Tourists Want? We Asked 5 Hotel Brands
For Bhutan, Indians accounted for 60% of the total international tourists in the first three months of 2024. The country is expecting 150,000 Indian tourists this year, more than double that of 2023.