Bhutan may reconsider its controversial $100 each day tourism fees if the country’s tourism industry recovers soon, Bhutan’s Prime Minister Tshering Tobgay told CNBC on May 10.
However the fees are more likely to go higher, he said.
Bhutan reopened its borders in September 2022 with an increased “Sustainable Development Fee” of $200 per person per day in place. In 2023, the country lowered the fee to entice travelers to remain longer, before halving the fee across the board.Â
The current each day fee — $100 for adults and $50 for youngsters aged six to 12 — is described as a “time-limited incentive” valid until Aug. 31, 2027, in line with Bhutan’s Department of Immigration.
But Tobgay indicated that the fee amount could change before that date.
“We will have a quota of 300,000 tourists,” Tobgay said. “And if the demand to return into Bhutan to go to far outstrips our capability to welcome them we’d even should increase sustainable fees at the moment.”
“That can be a welcome development,” he added.
A slow return of international travelers
Bhutan’s tourism industry is recovering slower than other countries in Asia — a situation which Tobgay said he expects will quickly change. Â
“The moment we start marketing our country and what is offered … I believe there can be a beeline to go to Bhutan,” he said.
Bhutan welcomed 315,599 international visitors in 2019, 73% of whom were from India, in line with an annual report published by the Tourism Council of Bhutan.
Last 12 months, the country welcomed around 130,000 tourists, Tobgay told CNBC.
Bhutan is targeting 300,000 tourist arrivals per 12 months, half of which could be from “third countries” and “dollar-paying visitors,” in line with a manifesto from Tobgay’s People’s Democratic Party.
Indian travelers pay a reduced fee of 1,200 Bhutanese ngultrum ($14.50) per night, and daytrippers from India are exempt from the fee, in line with Bhutan’s Department of Immigration.
Fee changes following Covid
Before Bhutan closed its borders in March 2020 in response to the Covid-19 pandemic, travelers were required to pay a each day package rate that began at $200 per day. The speed often included hotel, transportation and tour guide costs, and the mandatory $65 Sustainable Development Fee.
Now, those costs are along with the $100 Sustainable Development Fee.
Tobgay acknowledged that the changes to Bhutan’s Sustainable Development Fees have caused “a variety of confusion.” Still, he said he’s confident the present rate of $100 will allow the country to fulfill its recovery goals in a short time. Â
“Truth be told, I believe $200 per day as a sustainable development fee many tourists are willing to pay,” he said, especially “when guests discover the proceeds from the Sustainable Development Fee are used to guard our natural environment, to supply free education and free health care to our residents.”
“Most tourists are delighted that they will play a small part — a small meaningful part —  within the sustainable development of Bhutan,” Tobgay told CNBC.
