Bhutan Slashes Tourism Levy By 50%: A Boost For Sustainable Tourism Until 2027.
In a bold move to bolster its tourism sector, the Royal Government of Bhutan has announced a significant 50% cut on its Sustainable Development Fee (SDF). The reduction aligns with Bhutan’s long-standing commitment to high-value, low-volume tourism. Effective until September 2027, travellers will now pay only USD 100 per night, a sharp decline from the previous USD 200 fee.
This revamped policy underscores the pivotal role of tourism in Bhutan. The sector provides employment and crucial foreign exchange, promotes growth in related industries, and finances vital environmental, social, and infrastructure projects.
Here’s a breakdown of Bhutan’s rejuvenated tourist incentives:
- General Tourists: A 50% reduction on the standard SDF for guests paying in USD. This means tourists will now pay USD 100 per night.
- Child Discounts: Children aged between 6 to 12 years touring Bhutan will benefit from a 50% reduction, translating to an SDF of just USD 50 per night. Furthermore, children below six years are exempted from the SDF.
- Border Town Waiver: The existing SDF waiver for tourists residing in border towns remains unchanged.
This revised structure will be in place from September 1, 2023, to August 31, 2027. Travellers who’ve previously paid the SDF for forthcoming trips can seek refunds on excess amounts.
Reflecting on this transformative decision, Dorji Dhradhul, the Director General of the Department of Tourism Bhutan, commented, “As the world grapples with the aftermath of the Covid-19 pandemic and geopolitical tensions, we’ve tuned into feedback from our esteemed visitors, industry peers, and global partners. This adjustment in our SDF is our response, aiming to breathe new life into our tourism sector. Our policies, much like our nation, stand out in their distinctiveness. We recognize the need for change and periodic recalibration of our strategies to resonate with the evolving market. The revised SDF provides a golden chance for more individuals to explore our majestic kingdom, thereby benefiting the myriad projects funded by it.”
Since opening its gates to foreign tourists in 1974, Bhutan has maintained its ‘High Value, Low Volume’ tourism mantra. The SDF, central to this approach, has always been mandatory. The funds garnered through the SDF are channelled into a myriad of ventures to ensure Bhutan’s continuous growth and conservation while averting the pitfalls of mass tourism. This includes offering free healthcare and education to all Bhutanese, supporting cultural preservation, endorsing conservation projects, funding infrastructure upgrades, and empowering youth initiatives.
As of January 2023, Bhutan has hosted close to 60,000 guests. Its principal tourism markets encompass India, the USA, the UK, Australia, Germany, Malaysia, France, Singapore, Vietnam, and China. The nation optimistically anticipates tourism figures to bounce back to pre-pandemic levels by 2025.
In June 2023, Bhutan unveiled a series of incentives to stimulate its tourism sector, which the current 50% incentive has replaced.
Prospective visitors can apply for visas and remit their SDF payments through the Department of Tourism’s official website: https://bhutan.travel/visa.
To ensure the continuity of its unique tourism policy, the Royal Government will carry out routine assessments of both domestic and global tourism trends, retaining the right to revise incentives post-August 2027.
For comprehensive information on Bhutan’s rejuvenated tourism approach, please visit www.bhutan.travel.
Written by: My Thanh Pham
