Rising Travel Fees in Bhutan

After two years of being closed off to visitors due to COVID-19, Bhutan is re-opening to tourism, but with an increased tourism fee.

Children and pigeons in Thimphu. Xiaojun Deng. CC BY 2.0

Bhutan is a beautiful Buddhist country located in Southeast Asia. It is located along the eastern edge of the Himalayas, and there is plenty of mountain and valley scenery, as well as Buddhist monasteries. There are a multitude of reasons to visit Bhutan, but there is one interesting reason that might stop some people from going: the “High Value, Low Impact” tourism fee. 

In the past, the government of Bhutan has charged the equivalent of $65 USD per night per traveler. This has been a system implemented for three decades, but after COVID-19 and the decrease in tourism everywhere, the Tourism Council of Bhutan will raise the fee to $200 during the low travel season when the country reopens on September 23, 2022. During high season, the fee will be $250 per day for every person. India, Bangladesh and Maldives have been exempt from the tourism fee thus far, but when the country reopens, the government has decided to charge visitors from these three nations $17, with a few exceptions for certain age groups. Bhutan has been closed to outsiders for the past few years due to strict COVID-19 guidelines. The money gained from the travel fee increase will be used to decrease the carbon footprint created by tourists visiting the country, as well as to help the Bhutanese who work in the tourism industry. Even with the fee, tourism in Bhutan does make up 6% of the country’s GDP. 

Keeping Bhutan’s rivers clean. United Nations Photo. CC BY-NC-ND 2.0

There is a misconception that the $200 is an extra expense in addition to the usual travel costs, but that is incorrect. These fees are actually all inclusive, meaning it covers the cost of typical travel expenses, such as food, accommodations (though choosing to stay at luxurious hotel will cost extra), tour guides, transportations and tourist site entrance fees. Souvenirs, tour guide tips and drinks are the most common travel expenses that are excluded from the tourism tax. Those people have to pay for themselves.

A large question about the existence of the travel fee is where the money goes. Part of it, of course, goes to the government (around 30%), but the rest does go to the tour guides, hotels, drivers and other staff mem bers in the tourism industry. The government also does work to improve education, infrastructure and healthcare systems for its citizens, so the money tourists pay does go to improving the country. Furthermore, whether flying or driving into Bhutan, carbon emissions are being produced, and the tour buses and other modes of transportation add to it. Offsetting people’s carbon footprint from all that is an area the government is devoted to. The promotion of carbon-neutral traveling and making the tourism industry more sustainable overall are what Bhutan is committed to achieveing  in order to improve the country.

Bhutan is not the only country with a tourism fee. There are other countries that have implemented it as a way to combat over tourism and protect the tourist industry in each country, such as Italy, Japan, Germany and Spain. There are many more countries that do this, and the tax ranges from less than $1 to over $50, depending on the country. The money goes back to it, from the workers to the upkeep of tourist attractions. Many countries have implemented it, and the fee is worked in as a tax for things like airline tickets or hotels. Bhutan does the highest tax, but with the money, the country has worked hard to preserve its culture and natural beauty.



Katherine Lim

Katherine Lim is an undergraduate student at Vassar College studying English literature and Italian. She loves both reading and writing, and she hopes to pursue both in the future. With a passion for travel and nature, she wants to experience more of the world and everything it has to offer.