Nestled within the breathtaking landscapes of the Himalayas, the kingdom of Bhutan continues to set an inspiring example for sustainable tourism practices. A dedicated team of cleaning squads patrols its forest and mountain trails, ensuring that litter left behind by tourists is promptly removed from the natural beauty. The unique financial backbone for these teams lies in Bhutan’s longstanding tourist tax, a measure that has helped the nation maintain its remarkable status as the only carbon-negative country in South Asia.
Recent developments have further showcased Bhutan’s commitment to balancing economic growth with environmental preservation. Just last week, Bhutan reduced its daily “Sustainable Development Fee” (SDF) to US$100, a strategic move aimed at navigating the challenges of climate change impacts while supporting local livelihoods. The essence of Bhutan’s tourism philosophy lies in “high-value, low-volume” tourism, wherein the SDF is reinvested to enhance infrastructure, safeguard cultural heritage, and promote eco-friendly transport options to reduce reliance on fossil fuels.
As the world grapples with post-pandemic tourism revival, Bhutan’s approach gains increasing relevance. The conversation surrounding sustainable tourism is evolving beyond mere visitor numbers to a more holistic consideration of longer, thoughtful stays that minimize harm to the environment. Experts emphasize the role of sustainability fees in this endeavor, with C.B. Ramkumar, vice-chairman of the Global Sustainable Tourism Council, highlighting their potential as effective tools for conservation.
Bhutan’s commitment to channeling these fees into conservation and sustainability efforts stands as a pioneering example. Few destinations have taken the bold step of dedicating tourist revenue to such causes. In 2019, New Zealand introduced a tourist tax to fund conservation and infrastructure projects, and Bali, Indonesia, plans to impose a fee in 2024 to preserve its culture and environment.
Global tourism bears a significant carbon footprint, contributing 8-11% of greenhouse gas emissions, largely due to transportation. Climate change poses unique threats to the sector, including extreme weather events that impact travel plans. The recent evacuation of foreign tourists from a wildfire-stricken Greek island serves as a stark reminder of these vulnerabilities.
While the demand for sustainable travel is growing, studies indicate that few are willing to pay extra for eco-friendly experiences. Bhutan’s SDF has adapted over time, offering discounts for longer stays. Yet, the nation’s decision to increase the fee in 2022, coupled with the pandemic, brought challenges for local businesses reliant on tourism revenue.
In the current year, Bhutan hosted nearly 60,000 tourists between January and August, generating US$13.5 million in SDF revenue. This compares to 2019, before the pandemic, when the nation welcomed around 316,000 visitors and collected US$88.6 million in SDF income. Bhutan’s recent decision to reduce the SDF underscores its determination to revive the tourism sector, stimulate employment, and bolster foreign exchange earnings.
As Bhutan aspires to increase tourism’s contribution to its economy from 5% to 20%, the country’s director general of tourism, Dorji Dhradhul, emphasizes the importance of the tourist tax. Facing challenges posed by climate change, including melting glaciers and unpredictable weather, Bhutan recognizes that sustainable tourism isn’t just a luxury—it’s a necessity. In the serene embrace of the Himalayas, Bhutan beckons the world to not only appreciate its natural wonders but also to learn from its forward-thinking approach to harmonizing prosperity with the planet’s well-being.
