Bhutan’s recent initiatives to enhance its tourism sector underscore the country’s commitment to balancing economic growth with environmental and cultural preservation. The introduction of new incentives and policy measures, effective from September 1, 2023, reflects Bhutan’s dedication to high-value, low-volume tourism. These measures include a significant 50 percent reduction in the daily Sustainable Development Fee (SDF), a key component of Bhutan’s sustainable tourism strategy.
Key features of the new incentives:
Reduced Sustainable Development Fee (SDF):
- The SDF for U.S. dollar-paying tourists has been halved to $100 per person per night, down from the previous $200.
- For U.S. dollar-paying children aged six to 12, there is also a 50 percent reduction, resulting in an effective SDF of $50 per person per night.
- Children under six are exempt from the SDF.
Continuation of 24-hour SDF Waiver:
- Tourists staying in border towns continue to enjoy a 24-hour SDF waiver, promoting border town tourism.
Duration of Incentives:
- These incentives will be in effect from September 1, 2023, to August 31, 2027, aiming to stimulate tourism over the next four years.
Refunds for Excess SDF Payments:
- Visitors who have already paid the SDF for upcoming visits are eligible for refunds on any excess amounts paid.
SDF Payment Process:
- Visitors can conveniently pay the SDF when applying for visas on the Department of Tourism’s official website.
The reduction in SDF acknowledges the pivotal role of the tourism sector in Bhutan’s economy, contributing to job creation, foreign exchange earnings, and funding for various projects. These funds support critical initiatives such as free healthcare and education, cultural preservation, sustainability, infrastructure upgrades, and youth development programs.
Since January 2023, Bhutan has seen a significant influx of nearly 60,000 guests, reaching the predicted arrivals for the entire year. The nation anticipates a return to pre-pandemic tourism levels by 2025.
Bhutan’s proactive approach in balancing tourism growth with environmental and cultural conservation aligns with its unique philosophy of Gross National Happiness, making it an even more appealing destination for conscientious travelers.
