To revitalise its struggling tourism sector, Bhutan is cutting its daily tourist fee by 50 percent. The country had initially raised its "Sustainable Development Fee" to $200 per visitor per night from $65 after ending Covid-19 restrictions in September 2022. The increased fee was intended to offset the carbon footprint generated by tourists.
Bhutan is a Himalayan kingdom and is known for its pristine landscapes. It has now reduced the daily fee to $100 per night. The new rate will come into effect from September and will remain in place for a duration of four years. The government's decision is driven by the recognition of tourism's role in generating employment and adding revenues to its overall economic growth.
Bhutan opened its doors to tourists in 1974, initially welcoming merely 300 visitors. However, over the years, its popularity has grown with 315,600 tourists visiting the country in 2019, which was a 15 percent rise compared to 2018.
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Despite the economic benefits of tourism, Bhutan has remained cautious about the potential negative impacts of mass tourism. To preserve the sanctity of its natural landscapes, the country prohibits mountain climbing. The higher tourist fee has also acted as a deterrent, allowing Bhutan to attract high net worth visitors, unlike neighbouring Nepal.
In a bid to encourage more tourists, the government recently relaxed rules related to stay lengths and fees for visitors. However, the anticipated increase in tourist numbers did not rise as intended.
A government spokesperson informed Reuters that that over 56,000 tourists visited Bhutan since January, with a significant proportion being from India. Indian visitors pay a reduced fee of Rs 1,200 Indian rupees ($14.5) per day due to existing agreements between the two countries.
The tourism sector employs approximately 50,000 individuals and contributes around $84 million annually in foreign exchange earnings. The government's decision to lower tourist fees is expected to boost boosting tourism, while maintaining a balance with the nation's environmental and cultural priorities.
(Edited by : Jerome Anthony)
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