Bhutan Slashes Sustainable Tourist Fee By 50% to Revive Tourism
The Bhutanese government has reduced the Sustainable Development Fee (SDF) charged per tourist by 50% starting 1st August 2023, down from $200 to $100 per visitor per night. The move aims to boost tourism which has struggled to rebound since the COVID-19 pandemic.
The Kingdom of Bhutan is landlocked between India and China in the Eastern Himalayas. It has long followed a selective high-value, low-impact tourism model. All foreign visitors must pay the mandatory SDF and book trips via licensed Bhutanese tour operators.
The SDF helps fund free education, healthcare and heritage preservation for citizens. At its height pre-pandemic, the $200 fee generated over $5 million in annual revenue. But the tiny country saw tourist arrivals plummet over 92% in 2020 and 2021 due to closed borders.
Officials state the six-month pilot initiative will improve Bhutan’s competitiveness as a destination. Neighbouring countries like Nepal, Myanmar and Sri Lanka do not levy similar sustainability fees currently.
However, some environmental advocates argue lowering the daily tariff could strain Bhutan’s limited tourism infrastructure during its reopening. The government caps visitor numbers to control impacts on its pristine landscape and Buddhist culture.
If deemed successful, officials may make the halved SDF permanent. This aligns with Bhutan’s model of low-volume tourism focused on environmental conservation and cultural preservation. The government hopes the reduced fee attracts more mindful and high-spending visitors as tourism rebounds worldwide.
