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Tourism Policy of Bhutan

Tourism Policy of Bhutan

http://www.thdl.org/texts/reprints/jbs/JBS_03_01_03.pdf

http://www.btb.com.bt/travel_info.html

The Tourism Policy of the Royal Government of Bhutan is based on a concept of "High Value & Low Impact". This concept is founded on the principle of sustainability, meaning that tourism must be environmentally and ecologically friendly, socially and culturally acceptable and economically viable. For this reason the number for tourists visiting Bhutan are kept to an environmentally manageable level through government regulated tourist tariff.

Sustainability of Tourism in Bhutan (Part 1)

by Tandi Dorji (Communication Officer, National Environment Commission, Thimphu)

Introduction

Bhutan’s tourism industry began in 1974. It was introduced with the primary objective of generating revenue, especially foreign exchange; publicizing the country’s unique culture and traditions to the outside world, and to contribute to the country’s socio-economic development. Since then the number of tourists visiting Bhutan has increased from just 287 in 1974 to over 2,850 in 1992 and over 7,000 in 1999.

By the late 1980’s tourism contributed over US$2 million in revenues to the royal government. In 1989, the royal government raised the tourist tariff. That year only 1,480 tourists visited Bhutan but eh government still earned US$1.95 million through tourism. By 1992 tourist revenues contributed as much as US$3.3 million and accounted for as much as 15-20% of the total of Bhutan’s exported goods and services.

The royal government has always been aware than an unrestricted flow of tourists can have negative impact on Bhutan’s pristine environment and its rich and unique culture. The government therefore adopted a policy of ‘high value – low volume’ tourism, controlling the type and quantity of tourism right from the start. Until 1991 the Bhutan Tourism Corporation (BTC), a quasi-autonomous and self-financing body, implemented the government’s tourism policy. All tourists, up that time came as guests of BTC, which in turn operated the tour organization, transport services and nearly all the hotels and accommodation facilities. The government privatized tourism in October 1991 to encourage increased private sector participation in the tourism sector. Today there are more than 75 licensed tour operators in the country.

Tablel 1: Tourist Arrivals by Country of Residence and Revenue Receipts from 1989-98

Region

89

90

91

92

93

94

95

96

97

98

Americans

479

377

544

616

751

734

1003

1039

1010

1714

Asia

Pacific

335

459

755

728

791

1193

1529

1639

1712

1418

Europe

621

614

807

1229

1323

1884

2227

2391

2590

2062

Others

45

88

190

119

160

6

69

51

9

All regions

1480

1538

2106

2763

2984

3971

4765

5138

5363

6203

Revenue

Receipts

(million

US$)

 

2.30

 

2.99

 

3.30

 

3.97

 

6.00

 

6.51

 

6.50

 

7.98

Source: Department of Tourism, Thimphu

After the privatization process, a regulatory body, the Tourism Authority of Bhutan (TAB), now called the Department of Tourism (DOT) was established under the Ministry of Trade and Industry. The primary responsibilities of the Department of Tourism include ensuring compliance by travel agents with the tourism policy of the royal government, including the regulation of the number and segments of foreign tourists; fixation of rates for trekking, expeditions, and cultural tours; receiving of tourists payments and processing of tourist visas; issuing and ensuring compliance with guidelines and regulations related to tourism activities, ensuring conservation of culture, tradition, environment and protection against ravages of pollution and exposure. from tourism activities; and developing new opportunities for generating growth and foreign exchange through protective tourism, and to undertake research and to undertake research and development in such areas.

Currently the minimum daily tariff set by the Department of Tourism for both cultural tours and treks is US$200 for the high season and US$165 for the low season. There is no quota or limit on the number of tourists allowed to visit Bhutan. Rather the volume of tourists coming to Bhutan has been limited by the capacity constraints of tourism infrastructure due to the pronounced seasonality of tourism in the country. March/April and October/November are the top tourist seasons as the weather is best for trekking and cultural festivals are taking place in different parts of the country.

So far the royal government’s overall objective of maximizing foreign exchange earnings while minimizing adverse cultural and environmental impacts of tourism seems to have paid off. The tourism industry has made significant contributions to the socio-economic development of the country, especially after the privatization of the industry in 1991. A high level of profits is available to tour operators and an increasing number of Bhutanese entrepreneurs are investing in the tourism sector. Bhutanese have also found employment as guides, cooks, transport operators, and hotel and restaurant owners. Tourism contributes significantly to rural incomes through earnings from tourist transport and portage. Tourism has also provided the impetus for the development of the service sector, including hotels, restaurants, transportation and communication. Another visible impact of tourism has been the promotion of the indigenous cottage industry and the setting up of handicraft shops in Thimphu and other frequently visited areas.

Bhutan’s main tourism attractions are its traditional culture and way of life, its religious festivals, historic monuments and its pristine environment. Bhutan has received much international acclaim for its cautious approach to development that places a high priority on conserving the nation’s natural and cultural heritage. Protecting nature and culture is part of the Bhutanese value system and is an important aspect of the traditional way of life in Bhutan, and the tourism policy reflects these concerns. The policy of imposing a high tariff has succeeded in making tourism in Bhutan an exclusive and distinctive experience. However, with the increase in the number of tourists coming to Bhutan every year, there is a need to monitor and evaluate the environmental and cultural impacts of tourism and offer measures to reduce any adverse impacts.

World tourism is evolving as well as growing and tourists increasingly want to engage in recreational or sporting activities, learn more about local cultures or develop special interests. Among these special interests is the natural environment resulting in what is commonly termed ‘eco-tourism’. This offers new opportunities and challenges for Bhutan.

The sustainable development of tourism will require partnership and co-operation within the tourism industry, and between the industry, government, tourists and people. Local input and involvement are also important for the long-term sustainability of tourism in Bhutan. If local residents and communities are part of tourist operations and receive benefits from tourism, then the goals of the local communities, tourism operators and the government can be met.

 

 

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