Bhutan to Increase Tariff for Tourists

The Tourism Council of Bhutan (TCB) will be increasing the tariff for foreign tourists from January, 2012, with each tourist paying US $250 per day during the months of March, April, May, September, October and November.

The tariff has stayed the same for 22 years and will now increase from US $200 to US $250.

“We have been looking forward to it for quite some time now,” said Damcho Rinzin, the media focal person for TCB.

However the lean season (January, February, June, July, August and December) will stay at the old tariff. This, Damcho said, is to address seasonality problems and better distribution of tourists.

“A lot of tourists visit the western part of the country, and if we keep the rate at US $200 for the lean season, we hope that tourists will spend more time and visit other regions,” he said.

According to Damcho, the tariff could not be revised earlier because of the global recession; however, inflation and costs have gone up substantially over the last two decades resulting in tour operators asking for a tariff revision. The view is that as the global economy has stabilized a little, the revision is now reasonable.

Damch went on to say: “We are looking at encouraging high-end tourism, which requires provision of better services”.

With the increase in cost, the TCB have created a mandate with the tour operators to keep their guests in accommodation facilities that have been rated as 3 stars and above. Plus, there will not be any changes to the royalty which is presently US $65.

Duration discounts and agents’ commission will remain the same. “The average length of stay is seven to eight nights, and if we give tourists discount on duration, they will stay longer and would want to visit other regions as well,” said Damcho.

However, some experts are warning that the revised tariff could hamper tourism in Bhutan since some economies are still recovering from the recession.

To this, Damcho said Bhutan has to take the risk at some point carefully.

Tourism has been set up very carefully in Bhutan; to enter you need to be accompanied by a guide from a registered tour company, otherwise you cannot enter. It also plays a major part in the personal and extremely courteous way that you are guided through the country.  The Bhutanese people are by nature very friendly, hospitable and polite, treating people genuinely more like treasured guests and a good friend, than a tourist.

The tourist tariff or ‘happy tax’ is expensive; however, most of it goes toward the preservation of the Bhutanese forests, the upkeep of the kingdom, healthcare and education, etc. The tax you pay also covers everything in your ‘tour’ – from: your accommodation, your transport, your meals, everything!

Not many tourists are used to this kind of tourism; however, it is this kind of policy which has retained Bhutan as the jewel in the crown of the Himalayas and a true Shangri – La.

By Jane Poretsis

Source: Bhutan Observer www.butanobserver.bt