The government will offer airfare subsidy during off season to ramp up tourist arrival figures 

Dechen Dolkar

Given the ongoing trend of tourist arrival in the country, the government has significantly lowered its annual targets for tourist arrivals, aiming for 150,000 visitors this year and 250,000 next year.

This is according to the macroeconomic situation report recently published by the Department of Macro-fiscal and Development Finance under the Ministry of Finance.

The government had pledged to increase the number of tourist arrivals to an annual average of 300,000, with 50 percent originating from third countries, to revitalise the tourism industry.

The revision of annual targets is based on the number of tourists who have visited the country so far and the expectation of achieving only 50 percent of the target during the peak tourist season before the year ends.

During the recent meet-the-press session, the Minister of Industry, Commerce, and Employment (MoICE), Namgyal Dorji, said that the government will strive to achieve the target as soon as possible, but it does not mean it will be reached this year.

“This is a target, and we will try to achieve it at the earliest possible,” Lyonpo said.

The minister added that more than 103,000 tourists visited Bhutan last year, and the target of 150,000 by the end of this year represents a 150 percent increase.

From January to August this year, 95,633 tourists visited the country.

Lyonpo also said that the current decline in projected tourist arrivals is largely due to the ongoing recovery from the pandemic, which has significantly impacted global tourism, including Bhutan. 

“It is important to note that the forecast figures are based on current tourist arrival trends, which are still stabilising,” Lyonpo said.

However, the minister expressed optimism that, once international travel confidence improves and strategic initiatives take effect, Bhutan will meet the original target of 300,000 tourists annually in the coming years.

The MOICE minister said that the government is still rebuilding and strengthening the tourism sector to reach pre-pandemic levels and achieve exponential growth, adding that Bhutan has significant potential.

Lyonpo added that several initiatives are underway to enhance the overall visitor experience, promote Bhutan as a unique destination, and implement policies that ensure long-term sustainable growth in the tourism sector. These include streamlining processes and systems, as well as developing new products and services.

Starting December this year, the government will provide airfare subsidies for SDF-paying tourists to reduce airfare costs and increase arrivals during the three winter months (December, January, and February) and the three summer months (June, July, and August).

The government aims to generate revenue of Nu 14 billion to Nu 15 billion in the 13th Plan from tourism.