In response to mounting concerns over unregulated cash transactions and rising instances of tax evasion within the tourism industry, the Royal Monetary Authority (RMA) has announced plans to roll out a comprehensive online payment gateway for all tourists. The announcement was made today during the National Assembly’s question hour, where lawmakers pressed the government on strategies to safeguard foreign currency reserves and uphold Bhutan’s “High Value, Low Volume” tourism policy.
At present, foreign visitors arriving in Bhutan can only settle the Sustainable Development Fee (SDF) and visa charges through existing online platforms. However, expenses related to accommodations, transport, guiding services, and other tourism-related activities continue to be conducted primarily in cash—an opaque system that has led to considerable revenue leakage. Officials estimate that unmonitored cash payments have allowed a significant portion of tourism earnings to escape taxation, while simultaneously encouraging the outflow of foreign currency.
During the session, Lamgong-Wangchang MP Sonam Tashi urged the government to consider making digital payments mandatory for tourists. “By instituting a mandatory card or online payment system,” MP Tashi argued, “we can effectively track all visitor expenditures. This not only boosts transparency and increases state revenues, but also aligns seamlessly with our national brand, Bhutan Believe, and our tourism objectives. A secure and standardized platform will offer long-term benefits to every stakeholder in the industry.”
In his response, the Prime Minister confirmed that the RMA is actively developing a user-friendly gateway that will accommodate a wider range of tourist payments, extending beyond the SDF and visa fees. He noted that the central bank is currently consulting with counterparts from various countries to learn best practices and build a robust infrastructure capable of supporting credit card transactions nationwide.
“The challenge we face is twofold,” the Prime Minister explained. “First, our digital infrastructure is still evolving, and card readers are not yet ubiquitous across the country. Second, international norms dictate a 4 percent service charge on credit card transactions. In most nations, merchants absorb this fee; here, it is often passed on to consumers, which discourages visitors from using cards.”
To address these obstacles, the Prime Minister assured legislators that the government is prepared to underwrite the service charges—at least during the initial rollout—to incentivize adoption by both businesses and tourists. “If necessary, we will cover the 4 percent fee on behalf of the customer,” he stated, adding that doing so will foster a smoother transition to cashless operations.
Industry insiders have welcomed the move, noting that a comprehensive payment gateway could yield multiple benefits: streamlined accounting for businesses, improved tax compliance, and a reduction in currency outflow. Hotel managers, tour operators, and transport providers have long called for a unified system that can capture the full value of tourism-related transactions without forcing them to rely on cash.
Once operational, the gateway is expected to interface with existing banking networks and point-of-sale terminals, enabling tourists to settle bills through credit or debit cards. In rural or remote areas where digital connectivity remains patchy, the RMA plans to introduce portable card terminals linked via mobile networks.
Tourism analysts agree that transitioning to a mandatory digital payment system will not only preserve Bhutan’s foreign reserves but also enhance the visitor experience by offering greater convenience and security. Furthermore, the move is anticipated to bolster the government’s ability to collect accurate data on tourism trends, thereby informing future policy decisions.
In closing, the Prime Minister emphasized that the updated online payment gateway represents a crucial step toward modernizing Bhutan’s tourism infrastructure. “By embracing technology,” he remarked, “we can safeguard our economy, maintain the integrity of our tourism sector, and reassure visitors that Bhutan remains committed to transparency and sustainability.”
The RMA has indicated that the new system will be launched in phases, with pilot testing slated to begin early next year. Full implementation is expected by the end of 2025, pending final approval and necessary infrastructure upgrades.
