In a significant boost to the hospitality sector, the Royal Monetary Authority (RMA) of Bhutan has announced a five percent interest subsidy on loans for four-star and below hotels, effective from May 1, 2026. The initiative, funded through the Royal Government’s Economic Stimulus Programme (ESP), aims to alleviate the ongoing financial pressures faced by hoteliers following years of tourism disruptions.
The subsidy comprises a 4% direct contribution from the ESP Fund and an additional 1% interest rate reduction provided by participating financial institutions. This combined relief will be available for one year and targets duly licensed hotels certified by the Department of Tourism (DoT) and registered in the Tourist Registration System (TRS). Eligible establishments can apply through their banks from May 1 to July 31, 2026.
Bhutan’s hotel industry has struggled in the post-pandemic era due to reduced tourist arrivals, high operational costs, and accumulated loan burdens. Many properties, particularly smaller and mid-tier ones, have faced challenges in servicing debts while preparing for a tourism revival. The RMA described the measure as both an “opportunity and a shared responsibility,” urging hoteliers to use the relief to regularize loan repayments and invest in service improvements.
Officials hope the subsidy will stabilize the sector, preserve jobs, and enhance Bhutan’s appeal as a premium yet sustainable tourism destination. “This support comes at a critical time,” said a senior RMA official. “It will help hotels rebuild resilience and contribute to broader economic recovery.”
The move aligns with the government’s broader efforts to stimulate key economic sectors. Hotel associations have welcomed the announcement, though some operators note that full benefits will depend on consistent tourist inflows and the effective implementation of related policies, such as Sustainable Development Fee adjustments.
As the May 1 deadline approaches, hoteliers are encouraged to complete necessary certifications and engage with lenders promptly. This targeted intervention underscores the RMA’s commitment to fostering a vibrant hospitality industry that remains central to Bhutan’s unique tourism model.
