KATHMANDU — In an effort to increase tourism following the COVID-19 pandemic, Bhutan has decided to reduce its nightly fees for tourists staying more than four days. Previously, the “Sustainable Development Fee” charged $200 per visitor per night, but now it will be lowered from the $65 fee that had been in place for the past three decades.
The Sustainable Development Fee, also known as SDF, was initially implemented to attract affluent travelers while discouraging budget tourists who may negatively impact the environment. The funds collected from the fee are used to preserve the pristine landscape and offset the carbon footprints left by visitors.
Bhutan’s strict regulations prohibit mountain climbing in order to protect the sanctity of its peaks, resulting in fewer tourists compared to nearby Nepal. However, with the new incentive, tourists paying the daily fees for four days will be able to extend their stay by an additional four days. Those who pay SDF for 12 days will be allowed to stay for a full month.
“By encouraging tourists to stay longer in Bhutan, we can accelerate our economic growth through tourism,” stated Dorji Dhradhul, the director general of the Department of Tourism.
It’s important to note that the fee reduction only applies to tourists paying in US dollars and not to visitors from neighboring India who pay in Indian rupees.
Dhradhul expressed the country’s desire to gradually increase the tourism sector’s contribution to the overall economy from 5% to 20% of Bhutan’s $3 billion economy. However, no specific timeline was given.
So far this year, Bhutan has welcomed over 47,000 tourists, and it aims to receive around 86,000 visitors by the end of the year, a modest increase compared to the pre-pandemic numbers of approximately 315,600 visitors in 2019.
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