Bhutan is taking steps to rejuvenate its tourism sector, which continues to grapple with the aftermath of COVID-19 restrictions. In a bid to boost the industry, the Himalayan kingdom has decided to reduce the daily fee charged to tourists by half, seeking to attract visitors and bolster an economy that heavily relies on this sector.
Notably, Bhutan introduced a «Sustainable Development Fee» of $200 per visitor per night after the conclusion of two years of COVID-related restrictions in September the previous year.
This fee hike was explained as an initiative to offset the carbon footprint generated by incoming travelers. However, as the tourism industry struggles to regain its footing, the government has announced a reduction in this fee to $100 per night, effective from September and lasting for a span of four years.
The government underscored the significance of the tourism sector in terms of generating employment, earning foreign exchange, and contributing to overall economic growth.
In a statement, officials expressed their hope that this decision would foster positive outcomes for the industry, considering the vital role it plays in Bhutan's economy.
Historically secluded, Bhutan embraced tourism in 1974, initially welcoming a modest 300 visitors. Over the years, this number burgeoned to 315,600 visitors in 2019, reflecting a 15.1% increase from the previous year, as per official data.
The kingdom, however, has maintained a cautious stance toward mass tourism, even prohibiting mountain climbing to preserve the natural sanctity of its peaks. The tourist fee has consequently acted as a gatekeeper, limiting the influx to a smaller number of high-spending tourists, setting it apart from the neighboring nation of Nepal.