Skift Take

Bhutan's commitment to high value, low volume tourism is underscored by its recognition that a sustainable development fee of $200 per person per night may hinder visitors from perceiving the true value of their experience.

Peden Doma Bhutia

Last year, Bhutan sent a shock to its tourism sector by raising its so-called sustainable development fee from $65 to $200 per night, per person for all tourists, excluding Indian nationals, who are charged $15 (Rs 1200) per night, per guest.

Now, even though it has a modest goal of just 98,000 tourists this year, the country is acknowledging the challenges the fee has created and is introducing several incentives to encourage longer stays:

Travelers who meet the sustainable development fee payment requirement for a four-night stay can extend their visit with an additional four nights exempt from the daily levy. Those choosing a seven-night stay enjoy a waiver for up to seven extra nights. For month-long stays, tourists only need to pay the fee for 12 nights, with an exemption from the levy for an additional 18 nights.

Earlier this year, Bhutan had also started offering duty-free gold to visit