Lhakpa Quendren

Bumthang—Following the end of the Covid-19 pandemic, the hotel industry has been grappling with a major shortage of workers, as many employees laid off during the lockdowns have not returned.

In Bumthang, both tourist-standard and budget hotels are struggling to retain employees due to low visitor numbers, although some hotels have seen slight improvements. This has made it difficult for hoteliers to offer competitive salaries, which has led to the loss of their employees.

While some hoteliers struggle to fill jobs, others choose not to hire more staff, as it would leave them without adequate work, given that the hotel industry is no longer as thriving as it once was. Instead, they have turned to hiring staff on a daily wage, which they believe benefits both sides.

Pema Dawa, the proprietor of River Lodge, relies on daily wage employment, which pays between Nu 800 to Nu 1,500 per day per person. “We no longer require permanent staff on a fixed salary, as people nowadays find daily wage work more profitable, through which they can earn a month’s salary in just five days,” he added.

On the other hand, the latest Labour Force Survey by the National Statistics Bureau reports an increase in youth unemployment, with 12,046 people, or 3.11 percent, including 6,598 young people, or 17.7 percent, aged between 15 and 24 years.

However, hotels struggle to retain employees due to various reasons, including low pay and lack of career advancement, among others. Regular employees in the tourism industry typically start with a monthly salary of Nu 10,000, plus an additional Nu 5,000 to Nu 6,000 in service charges, along with free accommodation and food.

“With the business mostly running at a loss, we cannot afford to pay a monthly salary of Nu 25,000 or Nu 30,000 like government agencies,” says Pema Dawa. “Even without loans, we would need Nu 85,000 a month to run the hotel with three staff, including Nu 20,000 for utility bills.”

Rising inflation and living costs have made the tourism industry less desirable, with even remote districts struggling to attract and retain talent. Everything, from living costs to essential items, is on the rise, while income has declined, making the situation even more challenging, according to hoteliers.

“When there were more arrivals, we didn’t face payment challenges. Now, both employers and employees are in the same situation,” said Pema Dawa, adding that family members working abroad help with construction and loan repayment. “Each household has at least one member working abroad, and without this support, the business would be in difficulty.”

What makes the business even more difficult and disruptive to operate is that employees come and go after gaining some experience, which is already burdened by the challenge of employing trained professionals. This leaves the industry like a training ground, as many say.

Sonam Yangchen, the proprietor of Gongkhar Hotel, said that most employees leave after gaining some experience, with some even leaving after just three months of service. “We struggle to retain staff, and it is difficult to find replacements, including new employees. My hotel remains closed when there are no reservations,” she added.

“The regular staff has now been reduced from eight to just three. We used to hire additional staff during the busy days of Jampa Lhakhang Tsechu, but we no longer do so,” says Nidup Zangmo, manager of Samyae Resort. “We didn’t receive many tourists during the last festival, unlike previous years when all 54 rooms were fully booked.”

Arrivals picking up?

While some say that tourist arrivals at their hotels have remained stagnant since the pandemic, others report slight improvement over the years.

“I believe this year will see some improvement, as I have already received bookings for 45 people for the festivals. Last year, I had no bookings at this time,” said Pema Dawa.

Sonam Yangchen said that there was little improvement in business in 2024, after being hit hard by the pandemic for three years. “Business was poor in 2023 following the pandemic,” she added.

“We had no guests during the last two days of the Jampa Lhakhang Tsechu but saw good numbers during the Jakar Tshechu,” she said. “In the past, the rooms were fully booked for all four days of the Jampa Lhakhang Tsechu.”

“If there were more tourists, it would improve business and create more employment opportunities,” said Nidup Zangmo.

Bumthang sees fewer regional tourists, as most prefer to visit Thimphu, Paro, and Punakha for short durations. Most international tourists also visit these locations, with some making an overflow visit to Bumthang. Some say the number of regional tourists has declined since hoteliers stopped allowing self-cooking in the hotels.

Pilgrimage to Bumthang has declined, according to the proprietor of Hotel Norkhel.

“In the past, people from Sikkim and India used to visit, but now they no longer do,” she said.

Residents say there is a need to invest in the development of tourism infrastructure in the regions, including road improvements.

“The government has benefited from the Sustainable Development Fee, but the tourism hotspots are neglected,” said a resident.