Bhutan’s hotel industry is facing an unprecedented staffing crisis, as high employee attrition and a steady outflow of workers to overseas markets leave businesses struggling to maintain service standards.
Hoteliers report that employees are increasingly leaving mid-contract, including participants of the government-backed Youth Engagement and Livelihood Programme (YELP), many of whom quit after just a few months. The exodus has been particularly acute with workers seeking better-paying opportunities in the Middle East.
The Hotel and Restaurant Association of Bhutan (HRAB) has voiced alarm over the growing challenge. “It is becoming difficult to run hotels around the clock and meet service expectations, especially as we work to revive tourism,” one HRAB official noted.
Seeking Foreign Labour
In response, the HRAB has approached authorities to allow the hiring of foreign workers to fill the gaps. However, the move comes with its own concerns. Salaries for expatriate staff are projected to be significantly higher than those for Bhutanese employees, raising questions about the long-term affordability and sustainability of such a solution.
Industry insiders warn that the added financial burden could weigh heavily on hotels already grappling with the slow recovery of Bhutan’s tourism sector.
Calls for Policy Intervention
To address attrition, the HRAB is also considering pushing for stricter rules around resignations, particularly for YELP participants, who are viewed as a vital but unstable source of manpower. Proposals include tighter contractual obligations to discourage abrupt departures.
Without urgent measures, industry leaders fear that Bhutan’s hotels may struggle to deliver the level of service needed to attract and retain international visitors – a cornerstone of the country’s broader economic recovery strategy.
