The tiny Himalayan kingdom of Bhutan on Friday halved its daily tourist tax, among the highest in the world, as it looks to attract more visitors and hasten the industry’s slow recovery from the COVID-19 pandemic.
Dollar-paying visitors will now be charged $100 a night as a sustainable development fee (SDF), instead of $200. Children aged 6 to 12 will be eligible for an additional 50% off the lowered levy. The change comes nearly a year after Bhutan raised eyebrows by roughly tripling the daily charge as it emerged from a pandemic closure of about two and a half years, determined to reinforce its “high quality, low volume” tourism strategy.
“Although arrival numbers are on track with the forecast targets, the overall economic impact and tourism recovery is still low and slow,” said Dorji Dhradhul, director general of the department of tourism. “Therefore, we hope the reduction will attract more guests and boost the economy.”
The discount, effective until Aug. 31, 2027, is aimed at increasing tourist arrivals “in view of the important role in generating employment; earning foreign exchange; realizing the potential for spillover benefits for ancillary industries; and in boosting overall economic growth,” the government said in a statement.
Bhutan counted about 56,000 arrivals from January through mid-August this year. Two-thirds came from neighboring India, whose tourists are subject to a different daily tax of 1,200 Indian rupees ($15). That fee will remain unchanged.
In 2019, before COVID-19, the industry earned an estimated revenue of more than $80 million and employed about 50,000 people across the hospitality and related service sectors, according to government data. That year brought more than 300,000 visitors, about 230,000 from within the region.
