SDF
Bhutan is a small landlocked country in South Asia that has gained popularity in recent years for its unique approach to tourism. The government has made a conscious effort to prioritize its cultural heritage and natural resources, while limiting the number of visitors to the country.
Bhutan now mandates a “sustainable development fee” of $200 per night for all visitors, which marks a considerable rise from the previous charge of $65. The reasoning behind these regulations is apparent: Bhutan is striving to promote tourism that is both high in value and low in volume to safeguard its environment and cultural heritage.
Bhutanese people have historically been deeply rooted in their mountainous agricultural lifestyle and religious beliefs. It is essential to visit Bhutan with a respectful and sensitive attitude that recognizes and appreciates the country’s culture and traditions.
Bhutan has implemented several sustainable tourism initiatives, such as promoting responsible waste management and decreasing carbon emissions, to protect the environment and promote eco-friendly practices. These efforts have received recognition, and in 2020, Bhutan was awarded the Sustainable Tourism Award by the World Tourism Organization, further demonstrating its commitment to sustainable tourism.
The Sustainable Development Fee enables investment in transformative programmes that preserve our cultural traditions, protect our heritage and environment, upgrade infrastructure, create opportunities for our young people, and build resilience.
Press Release on Introduction of Incentives for the Tourism Sector
The Royal Government of Bhutan is pleased to announce additional incentives and policy measures to boost the tourism sector. This is in view of the important role of the tourism sector in generating employment; earning foreign exchange; realizing the potential for spillover benefits for ancillary industries; and in boosting overall economic growth.
The incentives and measures shall consist of the following:
- A fifty percent discount shall be granted on the prevailing SDF of USD 200 for US Dollar paying tourists visiting Bhutan. The effective SDF with the discount shall be USD 100 per person per day for US Dollar paying tourists.
- In addition, fifty percent discount on the SDF shall be granted on the rates applied to children aged between 6 to 12 years for US Dollar paying children visiting as tourists.
- The 24 hours SDF waiver for tourists staying in the border towns shall continue.
The above incentives will come into effect from 1 September 2023 and shall remain effective for four years till 31 August 2027. The Royal Government shall conduct periodic assessments of the domestic and international tourism scenarios and may discontinue the above incentives to uphold and promote High Value Low Volume Tourism Policy of Bhutan after 31 August 2027.
