Bhutan to reopen with tripled tourist tax

As tourist hotspots around the world consider permit systems and fees to limit the number of tourists, Bhutan will require a USD$200 ($291) daily tax on international visitors when it reopens in September.

The South Asian wonder is often referred to as “the last Shangri-La” for its natural beauty, rich cultural heritage and sustainable development.

Bhutan has had a “high value, low volume” tourism policy to preserve the natural resources of the country. This required visitors to be part of a package tour and pay a daily $65 “sustainable development fee.”

This has now been scrapped and travellers will have to pay a daily $291 fee to the government. Officials said that the new policy rebrands Bhutan as “an exclusive destination,” attracting “discerning tourists” who have more access to a wider range of higher-quality services.

“Covid-19 has allowed us to reset, to rethink how the sector can be best structured and operated so that it not only benefits Bhutan economically but socially as well while keeping carbon footprints low,” Dr Tandi Dorji, Bhutan’s foreign minister and chairman of the Tourism Council of Bhutan said.

“In the long run, our goal is to create high-value experiences for visitors, and well-paying and professional jobs for our citizens. ”

Tour operators are worried about the change, which they believe will leave them with little business.

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

The previous policy meant that all bookings and payments had to be made through registered local tour operators.

“It’s basically a package tour that lets you see an authentic, untouched corner of paradise while protecting itself from being invaded by tourists,” said Megan Petersen a London-based makeup artist who visited Bhutan in 2017.

“It’s genius and places with overtourism problems should use the same model.”

Bhutan’s Government officials said the previous policy discouraged out-of-pocket spending, as many travel agents would organise the holiday so that travellers’ daily spending did not exceed the $250 daily rate.

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

Tourism revenue is a large part of Bhutan’s economy, making up 6 per cent of the country’s GDP. In 2019, 315,599 tourists visited, earning the tourism industry USD$225 million ($328 million), according to the Tourism Council of Bhutan.

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bhutan Bhutan Travel Club Megan Petersen Tourism Council of Bhutan