BHUTAN CUTS TOURISM TAX

Bhutan

After increasing its tourism levy, known as the Sustainable Development Fee (SDF) on foreign travellers significantly last year, Bhutan has cut this down by half to bolster its tourism sector.

With a 50% reduction, this tourism levy now stands at US$ 100 per person per night, against the earlier US$200 per person per night. This change will come into effect from September 1, 2023, and shall remain in force for four years until August 31, 2027.

The change was made in view of the important role of the tourism sector in generating employment and earning foreign exchange for the country. Post Covid, the recovery has been slower than expected and the reduction is expected to bolster numbers. The Bhutanese government also realises the potential for spillover benefits into ancillary industries; boosting overall economic growth; and funding important environmental, social and infrastructure projects.

Details of the changes are:

• A fifty per cent (50%) reduction will be granted on the prevailing SDF of US$200 for US dollar-paying guests visiting Bhutan. The SDF with the discount will amount to US$100 per person per night for US-dollar paying tourists.
• In addition, a fifty per cent (50%) reduction on the SDF shall be granted on the rates applied to children aged between 6 and 12 for US dollar-paying tourists. The SDF with the discount for children will be US$50 per person per night for US-dollar-paying tourists. Children who have not yet turned six years old are eligible to visit Bhutan without paying any SDF.
• The 24 hours SDF waiver for tourists staying in the border towns shall continue.
• Any guests who have already paid the SDF for their upcoming visit to Bhutan are eligible for refunds on any excess SDF amounts paid, and the amount will be refunded to the original payment account.
• Duration incentives (4+4, 7+7, 12+18 nights packages) introduced in June 2023 have been revoked.
• The 50% discount cannot be combined with the SDF waiver for border towns. Visitors wishing to explore border towns before or after the SDF discount must apply for another visa.
• A visitor with a tourist visa can stay for a maximum of 90 nights from the entry date.

Bhutan started welcoming foreign tourists in 1974, and guests to Bhutan have always been required to pay a Sustainable Development Fee as part of Bhutan’s ‘High Value, Low Volume’ tourism policy. Funds from the SDF go to the government exchequer and are invested in free education and healthcare projects for all Bhutanese.

The official press release can be read here – https://www.moice.gov.bt/?p=266928

* Rajeev Kohli | Creative Travel rajeev@creative.travel