Tourism industry in Bhutan is founded on the principle of sustainability, meaning that tourism must be environmentally and ecologically friendly, socially and culturally acceptable and economically viable. To this regard, the government has adopted a very cautious approach to growth and development of the tourism industry in Bhutan. In order to minimize negative impacts of mass tourism, Government adheres strongly to a policy of High value, Low impact tourism and thus the number of tourists visiting has been maintained at a manageable level; this control is exercised via a policy of government regulated tourist tariff. In trying to strike a balance between the past and the present, authenticity and sensitivity govern the development of all tourism products.
Bhutan’s tourism policy is reflective of the larger development philosophy within Bhutan. While the government’s basic goal, as with other developing countries, is to improve the living standards of its people, development in Bhutan is not judged merely by material prosperity and income growth. The Royal Government of Bhutan has repeatedly affirmed the importance of less quantifiable but more meaningful goals such as the happiness, contentment, and the spiritual and emotional well-being of its people. Thus, the government has taken a cautious approach to development. The Royal Government’s view is that modernization and development should be guided by the “Gross National Happiness” of the Bhutanese people, rather than by the Gross National Product. Likewise, development should be consistent with Bhutan’s capacities and needs.