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Travel & Leisure

Bhutan halves $200 daily tourist tax to spur sluggish recovery

Discount until 2027 highlights challenge of balancing economy, sustainability

Bhutan's decision to discount its "sustainable development fee" for tourists, roughly a year after raising it, highlights the difficulty of calibrating the amount of traffic. (Photo by Phuntsho Wangdi)

THIMPHU -- The tiny Himalayan kingdom of Bhutan on Friday halved its daily tourist tax, among the highest in the world, as it looks to attract more visitors and hasten the industry's slow recovery from the COVID-19 pandemic.

Dollar-paying visitors will now be charged $100 a night as a sustainable development fee (SDF), instead of $200. Children aged 6 to 12 will be eligible for an additional 50% off the lowered levy. The change comes nearly a year after Bhutan raised eyebrows by roughly tripling the daily charge as it emerged from a pandemic closure of about two and a half years, determined to reinforce its "high quality, low volume" tourism strategy.

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