Recession hits Bhutan’s tourism industry

THIMPHU: Global meltdown has hit Bhutan’s all-important tourism sector and tour operators have sought special measures from the government to deal with the crisis.

The Association of Bhutanese Tour Operators (ABTO) has said that over 1,500 tourists have cancelled their proposed trip to the country in 2009 following the financial crunch.

“More bad news may be in store. Even the ones coming in do not or will not stay long,” ABTO General Secretary Sonam Dorji said. ABTO is requesting “interim measures,” such as deferment of the planned tariff revision in 2009 from $200 to $250 till thin gs normalise, and concession on the royalty amount and national carrier Druk Air tickets. It also wants hotels to keep a lid on their annual tariff increase. Observers, however, think differently.

“Tourism is not an intensive investment business, not for the operators anyway. It is a more superior revenue-generating business than most, from comparably less investment,” an observer said. “Our tourism industry has had it good for a long time, they should be able to ride this storm, which too will pass,” the observer added.

According to the official records, over 30,000 foreign tourists visited Bhutan last year. In 2008, it generated $40 million royalty to the government. The country, with a population of under 750,000, has slowly eased up the rules for foreign tourists. E arlier, not many tourists were allowed to visit the country annually. – PTI

The Hindu Business Line :

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