Bhutan’s Prime Minister Tshering Tobgay told CNBC on May 10 that the country may reconsider its controversial $100-a-day tourist fee if the country’s tourism industry recovers soon. .
But fees are likely to be higher, he said.
Bhutan reopened its borders in September 2022 and increased its “sustainable development fee” to $200 per person per day. In 2023, the country cut prices in half across the board, after lowering prices to encourage travelers to stay longer.
According to the Bhutan Immigration Department, the current fee ($100 for adults and $50 for children aged 6 to 12) is a “limited-time incentive” valid until August 31, 2027.
But Tobgay suggested the fee amount could change by that date.
“We plan to receive 300,000 tourists,” Tobgay said. “If tourist demand to Bhutan far exceeds our capacity, at that point we may have to increase sustainable rates.”
“That would be a welcome development,” he added.
Overseas travelers are slow to return
Bhutan’s tourism industry has recovered slower than other Asian countries, but Tobgay said he expects that to change soon.
“I think the moment we start marketing this country and what’s available… there will be a straight line to visit Bhutan,” he said.
According to the annual report published by the Bhutan Tourism Council, Bhutan received 315,599 international tourists in 2019, of which 73% were from India.
Last year, the country welcomed about 130,000 tourists, Tobgay told CNBC.
According to Tobgay’s People’s Democratic Party manifesto, Bhutan is targeting 300,000 tourist arrivals a year, half of which will be from “third countries” and “dollar-paying tourists.”
According to Bhutan’s Immigration Department, Indian travelers will pay a reduced fee of 1,200 Bhutanese Ngultrum ($14.50) per night, while day-trippers from India will be exempt from the fee.
Price changes due to the new coronavirus infection
Before Bhutan closed its borders in March 2020 in response to the Covid-19 pandemic, travelers had to pay daily package fees starting at $200 per day. This fee often includes hotel, transportation, tour guide costs, and a mandatory $65 sustainable development fee.
These costs are now in addition to the $100 sustainable development fee.
Mr Tobgay acknowledged that changes to Bhutan’s sustainable development fee were causing “a lot of confusion”. Still, he said he was confident the current $100 rate would allow the country to quickly reach its recovery goals.
“Truth be told, I think many tourists would be willing to pay $200 per day for sustainable development fees, especially if the proceeds from sustainable development fees protect the natural environment and are provided free of charge. “If you find out a guest is using it to do something,” he said. Provide education and free healthcare to the population. ”
“Most tourists are happy that they can play a small role, a small meaningful role, in the sustainable development of Bhutan,” Tobgay told CNBC.
