In an effort to boost the struggling tourist sector, the Kingdom of Bhutan is cutting its $200 daily tourist fee in half.
Bhutan Cuts Tourist Fee In Half, Now Much More Affordable
Bhutan is one of the most expensive nations in the world to visit because it is both costly and remote. Flights are limited, the country has a single international airport, and on top of all other costs, a $200/day fee is levied on each adult visitor from most nations. It calls this its “Sustainable Development Fee” (SDF).
This money goes to underwrite a robust national healthcare and education program and maintain infrastructure. Prior to the pandemic, the daily fee included basic food, lodging, and a guide, but post-pandemic the fee is simply a fee. Bhutan boasts that it targets “high value, low impact” tourists. Unlike in neighboring Nepal, most mountain climbing is not permitted.
Starting in September, the fee will be halved to $100 per day for a period of four years. Justifying the cut, the government explained:
“This is in view of the important role of the tourism sector in generating employment, earning foreign exchange … and in boosting overall economic growth.”
Indeed, I spent five nights in Bhutan this spring and I heard many times how the new SDF scheme has pushed away visitors and made it nearly-impossible for those who relied on tourism to survive.
Through this initiative, Bhutan hopes tourism will become 20% of its economy. Currently, it is about 5%.
Consider this:
- Thus far in 2023, only 56,000 tourists have visited Bhutan
- But 42,000 were Indian nationals, who only have to pay a visa fee $14.50 per day
- 50,000 Bhutanese rely upon the tourist sector for employment
This initiative comes after another change in June to incentivize longer stays. Through the end of 2024, tourists paying the daily fees for four days will be allowed to stay an extra four days at no additional cost. Those who pay SDF for 12 days can stay for a full month.
This makes Bhutan quite reasonable to visit, at least compared to just a few months ago.
Finally, note you cannot rent a car yourself or travel between cities in Bhutan without a guide. It is still necessary to hire one for most tourist activities. Those are typically arranged through your place of lodging.
CONCLUSION
Bhutan will cut its daily tourist fee to $100 for most foreign nationals starting next month. This provides yet another great reason to visit this delightful mountain kingdom.
Speaking personally, while I hope this will not cause a stampede of foreign visitors, this makes it much more affordable to bring my family here, which I cannot wait to do.
Time to book
Unless someone is traveling with a family they won’t matter to most everyone. If you are willing to pay $100 you’d probably pay $200. And very few have any interest in going to Bhutan. Except in blogs I’ve never heard it mentioned by anyone I know that travels.
Obviously a type “this” and not “they”.
I’m not willing to pay 200 x 8 days = 1600 ……where now I’m fine with paying 400 for the same 8 days with these new rules
Many talk about Bhutan in my travel circle ……2 places they always ask ..have you been to Antarctica? Or BHUTAN
Sow I think many will come to Bhutan now that prices are much lower
While I can’t see myself maximizing this with an 8-day stay at Bhutan, I will agree that halving the fees is huge, and I don’t buy the “if you can afford $100, you can afford $200” line that the OP said.
Isn’t it $800 for 8 days under the new rule?
Bhutan’s decision to reduce its tourist fee by half is a commendable move to revive its struggling tourism sector. This initiative aims to attract more visitors, boost economic growth, and support local employment. The country’s efforts to make tourism more accessible while maintaining its unique charm are promising for travelers and the Bhutanese community alike.
Somehow I missed your trip reports and just read them all. We stayed for 8 days in 2018, a year after I read Lucky’s trip review. I cannot find flaws in that country: The scenery, the culture, the religion, the people. At that time, there were only 17 licensed pilots in the world who fly in and out of Paro. I hope to visit far flung “off the beaten path” Asian and African countries this decade. There are people who read travel blogs but exhibit ignorance of other countries. Americans tend not to take interest in learning and appreciating differences, if not superior values and life choices, in foreign countries. Keep exploring and writing trip reports of underreported countries in Asia, Africa and South America.
For the rest of us, Nepal.
The SDF rate increase policy was a disaster which ruined so many people’s livelihoods and investments. It was ill timed, the economy and industry had already been decimated by Covid. Anyone with a basic understanding of economics and ability to read a simple supply and demand curve chart, could have told them that it wasn’t going to work. I guess this is what happens when you have career government bureaucrats with zero business or economics experience calling all the shots. It’ll be interesting to see if the goverment is held accountable for this.
Interesting take and I’m not sure you are wrong – but it was nice to see the country not overrun with tourists.
…so would we label this discriminatory?
Indians only pay $14.50?