MoICE Unveils New Incentives to Propel Tourism Sector

Boosting Tourism: Bhutan’s New Measures Aim to Attract Visitors and Sustain Growth

The Ministry of Industry, Commerce and Employment (MoICE) has announced a series of additional incentives aimed at fostering growth and vitality within the country’s burgeoning tourism sector. With a focus on enhancing the appeal of Bhutan as a prime tourist destination, the Ministry’s latest measures are poised to captivate travelers and elevate the economy.

As of September 1, 2023, a groundbreaking 50% discount on the prevailing Sustainable Development Fee (SDF) for US Dollar paying tourists visiting Bhutan will be enacted. Under this new provision, the effective SDF will be significantly reduced from the current USD 200 to USD 100 per person per day, exclusively for US Dollar paying tourists. This substantial reduction is expected to make Bhutan even more enticing to international tourists, enabling them to experience the country’s rich culture, breathtaking landscapes, and unique heritage.

Furthermore, the Ministry’s announcement revealed that this same 50% discount on the SDF will extend to rates applicable to children aged between 6 to 12 years, who are visiting Bhutan as tourists. This measure seeks to encourage family tourism, allowing younger visitors to also enjoy the splendors of Bhutan at a more affordable cost.

For tourists staying in border towns, the Ministry maintains its commitment to promoting tourism at these locations. The 24-hour SDF waiver, a policy already in place, will continue to be a part of Bhutan’s strategy to attract visitors to the border regions, fostering economic growth and cultural exchange.

These enticing incentives are poised to remain in effect for a span of four years, until August 31, 2027. The Ministry’s announcement underscored its dedication to the High-Value Low Volume Tourism Policy that has long been a pillar of Bhutan’s tourism strategy.

However, it also emphasized that the government would be conducting periodic evaluations of both the domestic and international tourism landscapes. This assessment may lead to the discontinuation of the aforementioned incentives beyond August 31, 2027, with the objective of preserving and nurturing the integrity of the High-Value Low Volume Tourism Policy.

The ministry’s announcement stated that the government would conduct periodic assessments of the domestic and international tourism scenarios and may discontinue the above incentives to uphold and promote the High-Value Low Volume Tourism Policy after August 31, 2027.

By Kinley Yonten

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