Bhutan has recently reduced its tourism tax specifically for visitors who extend their stay beyond four nights. This discount applies exclusively to tourists who make their payments in US dollars.
This decision has been made to attract a greater number of tourists and facilitate the recovery of visitor numbers following the impact of the pandemic.
Since its reopening in 2022 after a two-year closure due to Covid, Bhutan has implemented the highest Sustainable Development Fee (SDF) per visitor, amounting to USD 200 per night. The SDF serves as a privilege fee for individuals staying in Bhutan.
Previously, the fee had remained at a substantial USD 65 per person per night for the past three decades.
The primary objective of the SDF is to discourage budget travelers while enticing affluent visitors who prioritize environmental concerns. The funds collected through the SDF contribute to the preservation of Bhutan's natural landscapes and offset the carbon footprints of tourists.
However, under the new regulations, travelers who choose to prolong their stay will pay reduced fees. From June until the end of 2024, tourists who stay for four days are eligible for an additional four days without incurring any further daily charges. Likewise, those who extend their stay to 12 days can remain in Bhutan for a full month without any additional SDF payment.
Dorji Dhradhul, the Director General of the Department of Tourism, emphasized the potential economic growth for Bhutan if more tourists opt for longer stays, stating, "If more tourists stay longer in Bhutan, tourism can help our economy grow faster," as reported by The Straits Times.