In honor of His Majesty the Fourth Druk Gyalpo’s birthday, the Bhutanese government has announced a groundbreaking initiative aimed at revitalizing the nation’s tourism sector. The new program offers a substantial 25 percent subsidy on airfares for international tourists paying in dollars, targeting visits during both peak and off-peak seasons.
The subsidy will be available for travelers arriving in June, July, and August during the summer months, as well as December, January, and February in the winter. This strategic move aligns with the government’s ambition to elevate annual tourist arrivals to an average of 300,000 visitors.
Finance Minister Lekey Dorji highlighted the importance of the initiative, stating, “While we have seen a steady improvement in tourist arrivals since the pandemic, the growth has not been as robust as we had hoped.” He emphasized that reducing airfare costs is crucial for making Bhutan a more competitive and attractive destination on the global stage.
Currently, Bhutan offers three airfare categories: local travelers, SAARC region tourists, and international visitors. The new subsidy aims to bridge the gap by making international travel costs comparable to those of SAARC tourists, thereby encouraging more visitors from around the world.
The financial support for this subsidy will be disbursed monthly on a per-ticket basis to Drukair and Bhutan Airlines, funded through the government’s internal revenues. Industry leaders have expressed optimism about the potential impact of this initiative. Tandin Wangchuk, CEO of Drukair, commented, “We have tourists arriving mostly during the spring and autumn seasons and during summer and winter we hardly see tourists coming. Facing difficulties during the lean seasons, the government has provided the subsidy which will help improve the perception that Bhutan is an all-season destination, not only for the autumn and spring seasons.”
Similarly, Duptho, Board Director of the Association of Bhutanese Tour Operators, added, “We think that it is because of expensive airfare that international tourists are facing difficulties in visiting our country. Now that the government has reduced the airfare, we hope the tour operators can bring more tourists.”
In the first three quarters of this year, Bhutan welcomed over 95,600 tourists, including 31,000 international visitors. With the introduction of the airfare subsidy, the government hopes to significantly boost these numbers over the next year. The subsidy program is set to commence next month and will run for an initial period of one year, marking a pivotal effort to revive and sustain Bhutan’s tourism industry.
As the country looks forward to increased visitor numbers, stakeholders across the aviation and tourism sectors are optimistic that this initiative will not only enhance Bhutan’s appeal as a year-round destination but also contribute to the nation’s economic growth and cultural exchange.
