'The More You Stay, The More You Save,' How India's Neighbour Bhutan Is Making Travelling Cheaper

India's neighbouring nation, Bhutan, is a sight to behold. Known for its monasteries, fortresses, and landscapes, it's tough not to fall in love with the country's beauty.

And given that the past few pandemic-hit years have hit the tourism industry to a great extent, Bhutan has come up with some incentives to encourage travellers to visit the country from this month onwards until the end of 2024.

"The More You Stay, The More You Save"

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Bhutan's tourism industry has come up with an incentive wherein travellers can avoid paying some of Bhutan¡¯s daily tourism fees as long as they stay there for at least five nights. And the longer you stay, the more you can save.

Last week, Bhutan announced changes to its Sustainable Development Fee (SDF), which had earlier made headlines after it jumped from $65 to $200 a day when the country reopened its borders in September.

As per the new incentive, travellers coming to Bhutan and paying the fee for the first four days can stay an additional four days without paying the fee, according to an announcement on Bhutan¡¯s Department of Tourism website.

Similarly, travellers who pay the fee for the first seven days can stay an additional seven days without paying for the second week, while those who pay for 12 days are exempt from paying it for 18 days thereafter, as per the CNBC report.

This equates to $600 in savings for tourists staying around a week and some $3,600 in savings for those staying a month (as they would pay $200 for 12 days and then the next 18 days' fees of $3600 are exempt).

Changes Effective December 31, 2024

The changes, effective June 1, are meant to encourage vacationers to stay longer.

Bhutan¡¯s Department of Immigration has also created a website where travellers can calculate potential savings under the different incentive programs.

Travellers who have already booked trips to Bhutan can take advantage of the new incentives by cancelling their visas and reapplying for a new one, according to the announcement.

Government officials are quick to point out that Bhutan¡¯s SDF has not changed, however, and remains $200 per traveller per night, as the report mentioned.

The new fee incentives, which officials have called a "promotion", are set to remain in place until the end of 2024, after which "the standard SDF will apply once again," according to the tourism department.

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A Controversial Fee?

Spending at least $200 a day isn¡¯t new to travellers to Bhutan. Before the pandemic, tourists were required to spend a minimum of $200 to $250 per day, which was often wrapped into tour packages that included hotel, food, and transportation charges as well as the SDF, which was $65 at the time.

Bhutan then scrapped that spending structure in 2022 in favour of a set $200 fee.

Supporters of Bhutan¡¯s $200 daily fee say it furthers the country¡¯s goal to attract "high-value, low-volume" tourists who can afford the fees, which will go towards upgrading infrastructure, protecting the environment, and creating jobs that provide fair wages and working conditions.

But others argue the increased rates are "elitist," and will harm the country¡¯s travel industry, which was already reeling from the effects of the COVID-19 pandemic, as the report mentioned.

News that officials were considering changing the SDF followed discussions between Bhutan¡¯s Prime Minister Lotay Tshering and members of Bhutan¡¯s tourism and business communities in April, according to a local media report.

After citizens argued the tourism fees were harming investment in the country and discouraging long vacations, the Bhutan PM assured community members that changes were in the works, the report said.

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