Bhutan reopened tourism on 23 Sept.2022 after a closure of almost two and half years due to the Covid-19 Pandemic restrictions. As a major change in the tourism policy, the government has introduced Sustainable Development Fee (SDF) as an alternative tourist tax in order to retain Bhutan as a high-end and sustainable tourist destination.
The National Assembly of Bhutan (Parliament) voted for the Tourism Levy Bill 2022 in June 2022. The SDF, which was previously 65 US$ per night per person for international tourists has been raised to 200 US$ per night and the prevailing system of Minimum Daily Package Rate has been eliminated. The bill also introduced payment of SDF for the Indian travelers’ @INR1200/- per night which was previously free. The SDF will be levied on top of the costs of logistics viz. accommodation, meals, guide, local transportation and other applicable services.
Now, tourists no longer need to come through a tour operator and can book tours directly with hotels, a change intended to provide a more level playing field in the industry. Tourists will now be issued a 90-day visa at a go, with the flexibility to travel at any time within that period.
However, there is definitely a great advantage in booking tours through a travel agency given their management experience and expertise in planning tours, equipment and handling guests.
The Royal Government of Bhutan has always taken a cautious approach towards tourism to mitigate the negative impacts of mass tourism, hence the introduction of the high-value, low-volume tourism policy intended to preserve its living culture and promote Bhutan as an exclusive travel destination. With this revision, Bhutan anticipates to balance the number of tourists to its carrying capacity and believe travelers that value such a place will always visit Bhutan.
The government while discussing this issue in the National Assembly explained that one of the main reasons for the revision of the SDF was to reinvest the SDF to improve the overall standard of the tourism industry starting from guides, hotels, meals, hygiene, etc. It is envisioned that with the enhanced tourism infrastructure, Bhutan will become a truly High-End tourist destination. The focus on long-term sustainability will also mean a reduction in carbon footprints.
Other concerns like overcrowding in monasteries compromising their sanctity increase in carbon footprints, waste generation, unrestricted littering, pollution, etc., played a big role in the revision.
The SDF however, exempts day tourists who do not travel past the first designated location (bordering towns), minors under the age of five, and children between the ages of six and twelve, who pay a 50% concessionary tax rate.