Starting September 23, the small Himalayan kingdom of Bhutan in South Asia will reopen its borders after a two-year hiatus. However, travelers will now face a steep increase in tourism tax, which could make visiting the country less accessible than before.
The tourism tax will jump to $200, a significant increase from the previous rate of $65 set in 1991. This nearly threefold increase is part of the Bhutanese government’s efforts to manage the environmental impact on tourism, with the additional funds to reduce carbon footprints and support local tourism workers.
While the higher tax is likely to lead to a decline in visitors, particularly given tourism’s significant role in Bhutan’s economy, some see this as an opportunity. Local tourism workers welcome the opportunity shift toward “high-value, low-impact tourism,” attracting a small number of tourists with purchasing power unaffected by the increased tax. This will allow them to focus on offering premium experiences with fewer visitors.
Positive outlooks are emerging that the new tourism landscape will encourage more diverse travel options. Previously, tourists had to rely on local travel agencies to plan their trips. Still, with the reopening, they will have more freedom to plan their itineraries, potentially boosting interest in Bhutan’s unique offerings.
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