Bhutan lowers tourist tax for visitors, not applied to those paying in rupees
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In an effort to revive tourism following the global pandemic, Bhutan is reducing the fees imposed on tourists staying for more than four nights.
According to a report in the Independent, the move aims to boost visitor numbers to the country. Bhutan had raised the nightly charge, known as the Sustainable Development Fee (SDF), to $200 in September 2022 when it reopened its borders after more than two years of closure due to Covid-19. This significant increase came after charging $65 for nearly three decades.
However, this incentive applies only to tourists paying in dollars rather than in rupees.
The SDF serves as a deterrent for budget travelers who may harm the environment while attracting more affluent tourists. The funds collected are used to preserve Bhutan's natural landscape and offset the carbon footprint left by visitors.
Under the new regulations, tourists opting for longer stays will pay reduced fees. Visitors staying for four days can now extend their stay for an additional four days without incurring any additional charges. Similarly, those choosing to stay for 12 days can remain for a full month without paying extra SDF.
These new rules will come into effect this month and will remain in place until the end of 2024.
"If more tourists stay longer in Bhutan, tourism can help our economy grow faster," said Dorji Dhradhul, director-general of the Department of Tourism. He highlighted Bhutan's aspiration to gradually increase tourism's contribution to its $3 billion economy from the current 5% to 20%. He further mentioned that the country is on track to achieve its goal of welcoming 86,000 visitors by the end of 2023 and has already hosted more than 47,000 tourists since January.
With the fee reduction in place, Bhutan anticipates attracting more tourists who will contribute to its economic growth while ensuring the preservation of its unique natural heritage.