Setting the Stage for Tourism Growth

Prime Minister’s Vision

Bhutan is setting its sights on welcoming 3 lakh tourists globally, with a significant portion—1.50 lakh—targeted from India by 2024. Prime Minister Dasho Tshering Tobgay emphasized this ambitious goal during the FICCI India-Bhutan Summit on Tourism. He announced plans to facilitate easier access for Indian travelers through government subsidies on airfares and improved air connectivity to multiple Indian cities. These efforts aim to restore tourism to nearly 50 per cent of pre-COVID levels.

Current Landscape and Challenges

Impact of Sustainable Development Fee

Despite Bhutan’s allure as a custodian of culture and its vast forest coverage, tourism has been hindered by the Sustainable Development Fee (SDF), particularly for Indian visitors. The fee of $15 per day (approximately ₹1,200) for Indians contrasts sharply with the $100 per day requirement for visitors from other countries. This fee disparity has deterred many potential tourists from exploring the nation’s rich cultural and natural heritage.

COVID-19’s Toll on Tourism

The COVID-19 pandemic dealt a severe blow to Bhutan’s tourism industry, an essential driver of economic growth. With hopes pinned on revitalizing the sector, Bhutan looks towards strengthening ties with India to stimulate tourism between the two nations.

Addressing Industry Concerns

Enhancing Air Connectivity and Subsidies

Industry stakeholders highlighted the need for improved air connectivity and affordable airfares, particularly from cities like Mumbai and Ahmedabad. In response, the government pledged to offer subsidies on airfares and explore additional flight routes to these key destinations.

Streamlining Permit Processes

Recognizing the lengthy permit approval process as a barrier to tourism, Bhutan’s Prime Minister assured measures to streamline permit processes for Indian travelers. This move aims to make visiting Bhutan more convenient and enticing for tourists.

Encouraging Foreign Direct Investment

To further bolster Bhutan’s tourism infrastructure, discussions revolved around inviting Foreign Direct Investment (FDI) from Indian investors. The Lalit Group’s interest in developing a wellness resort in Bhutan underscores the country’s appeal as an investment destination.

Regional Collaboration for Tourism

Uniting South Asian Destinations

In response to industry demands, Bhutan’s Prime Minister expressed openness to a joint regional tourism package encompassing India, Nepal, Bhutan, and Sri Lanka. Such collaboration aims to promote the region’s diverse attractions and streamline travel experiences for visitors.

 A Bright Future for Bhutan’s Tourism

As Bhutan charts a course towards achieving its ambitious tourism targets, collaborative efforts with India and strategic initiatives to address industry concerns are poised to propel the nation’s tourism sector to new heights.