Bhutan is known for its stunning landscapes, vibrant culture, and commitment to preserving its environment and traditional way of life. In recent years, Bhutan has gained popularity as a tourist destination, with tourists from all over the world flocking to the country to experience its unique charm. One of the most recent significant developments in Bhutan’s tourism industry is the increase in the daily Sustainable Development Fee (SDF) of $200 for tourists. Read more of the bill here.
The Previous Daily Sustainable Development Fees
The SDF was introduced in Bhutan in 1974 as a means of regulating tourism and ensuring that tourism contributes to the country’s sustainable development. The fee is paid by tourists, and it covers their accommodation, meals, transportation, and tour guide services. The SDF also goes towards supporting Bhutan’s free healthcare, education, and poverty alleviation programs.
In December 2019, the Bhutanese government announced that the daily SDF for tourists would be increased to $250. This was the first increase in the fee since it was introduced in 1974. The increase was implemented from July 2020, but due to the COVID-19 pandemic, Bhutan’s borders were closed, and tourism was halted.
The increase in the daily SDF has been a topic of much discussion and debate. Some people have welcomed the increase, while others have criticized it, arguing that it will make Bhutan an even more exclusive destination that is only accessible to the wealthy. In this post, we will examine the reasons for the increase in the daily SDF, its potential impact on Bhutan’s tourism industry, and its implications for the country’s sustainable development.
The High-Value, Low-Volume Tourism Policy
Bhutan’s High-Value, Low-Volume Tourism Policy was introduced in the 1970s, aimed at ensuring that tourism in the country was sustainable, low-impact, and contributed to the country’s development. Under this policy, the number of tourists visiting Bhutan is limited, and all visitors are required to book their trips through a licensed tour operator. The tour operator arranges all necessary travel, accommodation, meals, and sightseeing, with a minimum daily package fee set by the government.
This policy has been successful in preserving Bhutan’s environment, culture, and way of life while providing a unique and authentic travel experience for visitors. However, the government recognized that the previous Sustainable Development Fee was no longer sufficient to cover the costs of tourism and contribute meaningfully to the country’s development.
The Previous Sustainable Development Fee of Bhutan
The previous Sustainable Development Fee for tourists visiting Bhutan was $200 per day, which covered all essential services such as accommodation, meals, transportation, and tour guide services. This fee was introduced in 2005 and remained unchanged for over a decade.
Despite the previous Sustainable Development Fee being one of the highest in the world, it was still considered affordable for high-end tourists seeking a unique travel experience. However, the government recognized that the fee was no longer sufficient to cover the costs of tourism, given the increasing demand for tourism services and the country’s need for sustainable development.
Why Raise the SDF Now?
The increase in the daily SDF for tourists visiting Bhutan to $200 announced in December 2019, taking effect from July 2020. The decision to raise the SDF was based on several factors, including:
- The need for sustainable development: Bhutan is committed to ensuring that tourism contributes meaningfully to the country’s sustainable development. The increase in the SDF will generate additional revenue that can be used to support Bhutan’s free healthcare, education, and poverty alleviation programs.
- The increasing cost of tourism services: The cost of providing tourism services in Bhutan has increased over the years, and the previous SDF was no longer sufficient to cover these costs.
- The need to limit the number of tourists: Bhutan’s High-Value, Low-Volume Tourism Policy limits the number of tourists visiting the country, and the increase in the SDF is expected to deter budget travelers and ensure that only high-end tourists visit Bhutan.
What This Means for Travelers
The increase in the daily SDF for tourists visiting Bhutan means that travelers will have to pay an additional 30% per day. This fee covers all essential services such as accommodation, meals, transportation, and tour guide services. While this may deter budget travelers, it is still considerably lower than the fees charged by other high-end tourism destinations.
For high-end tourists seeking a unique and authentic travel experience, the increase in the SDF means that they can continue to visit Bhutan and contribute to the country’s sustainable development. The SDF ensures that tourism in Bhutan remains low-impact and high-value, and it helps to preserve the country’s environment and traditional way of life.
